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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
__________________________________________________________________ 
FORM 10-Q 
__________________________________________________________________
 
(Mark One)
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended: September 30, 2023
 
OR
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                     to                    
 
Commission file number: 001-41040 
__________________________________________________________________ 
logo2a04.gif
FOSSIL GROUP, INC.
(Exact name of registrant as specified in its charter)
 __________________________________________________________________
Delaware 75-2018505
(State or other jurisdiction of
incorporation or organization)		 (I.R.S. Employer
Identification No.)
   
901 S. Central Expressway,Richardson,Texas 75080
(Address of principal executive offices) (Zip Code)
(972) 234-2525
(Registrant’s telephone number, including area code) 
__________________________________________________________________ 
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTicker SymbolName of each exchange on which registered
Common Stock, par value $0.01 per shareFOSLThe Nasdaq Stock Market LLC
7.00% Senior Notes due 2026FOSLLThe Nasdaq Stock Market LLC
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐



 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act (check one):
Large accelerated filer☐ Accelerated filer☒
   
Non-accelerated filer ☐ Smaller reporting company ☒
Emerging growth company ☐
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares of the registrant’s common stock outstanding as of October 31, 2023: 52,477,538



FOSSIL GROUP, INC.
FORM 10-Q
FOR THE FISCAL QUARTER ENDED SEPTEMBER 30, 2023
INDEX




























Trademarks, service marks, trade names and copyrights

We use our FOSSIL, MICHELE, RELIC, SKAGEN and ZODIAC trademarks, as well as other trademarks, on watches, our FOSSIL and SKAGEN trademarks on jewelry, and our FOSSIL trademark on leather goods and other fashion accessories in the U.S. and in a significant number of foreign countries. We also use FOSSIL, SKAGEN, WATCH STATION INTERNATIONAL and WSI as trademarks on retail stores and FOSSIL, SKAGEN, WATCH STATION INTERNATIONAL, WSI, MISFIT, ZODIAC and MICHELE as trademarks on online e-commerce sites. This filing may also contain other trademarks, service marks, trade names and copyrights of ours or of other companies with whom we have, for example, licensing agreements to produce, market and distribute products. Solely for convenience, the trademarks, service marks, trade names and copyrights referred to or incorporated by reference into this report may be listed without the TM, SM, © and ® symbols, as applicable, but we will assert, to the fullest extent under applicable law, our rights or the rights of the applicable licensors, if any, to these trademarks, service marks, trade names and copyrights.



PART I—FINANCIAL INFORMATION

Item 1. Financial Statements
FOSSIL GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
UNAUDITED
IN THOUSANDS
September 30, 2023December 31, 2022
Assets  
Current assets:  
Cash and cash equivalents$116,132 $198,726 
Accounts receivable - net of allowances for doubtful accounts of $13,857 and $14,647, respectively
193,975 206,133 
Inventories326,718 376,028 
Prepaid expenses and other current assets148,114 164,413 
Total current assets784,939 945,300 
Property, plant and equipment - net of accumulated depreciation of $406,365 and $415,172, respectively
68,582 79,882 
Operating lease right-of-use assets 154,479 156,947 
Intangible and other assets-net55,244 55,999 
Total long-term assets278,305 292,828 
Total assets$1,063,244 $1,238,128 
Liabilities and Stockholders’ Equity  
Current liabilities:  
Accounts payable$158,028 $191,141 
Short-term debt455 342 
Accrued expenses:  
Current operating lease liabilities43,762 49,702 
Compensation41,067 44,259 
Royalties13,628 20,875 
Customer liabilities 40,505 41,996 
Transaction taxes7,395 14,303 
Other35,161 40,424 
Income taxes payable8,588 22,878 
Total current liabilities348,589 425,920 
Long-term income taxes payable21,126 22,603 
Deferred income tax liabilities600 616 
Long-term debt255,935 216,132 
Long-term operating lease liabilities142,128 150,188 
Other long-term liabilities16,115 19,660 
Total long-term liabilities435,904 409,199 
Commitments and contingencies (Note 13)
Stockholders’ equity:  
Common stock, 52,472 and 51,836 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively
525 518 
Additional paid-in capital310,603 306,241 
Retained earnings46,638 175,491 
Accumulated other comprehensive income (loss)(76,666)(76,318)
Total Fossil Group, Inc. stockholders’ equity281,100 405,932 
Noncontrolling interests(2,349)(2,923)
Total stockholders’ equity278,751 403,009 
Total liabilities and stockholders’ equity$1,063,244 $1,238,128 
 
See notes to the unaudited condensed consolidated financial statements.
5


FOSSIL GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)
UNAUDITED
IN THOUSANDS, EXCEPT PER SHARE DATA
 
For the 13 Weeks Ended September 30, 2023For the 13 Weeks Ended October 1, 2022For the 39 Weeks Ended September 30, 2023For the 39 Weeks Ended October 1, 2022
Net sales$344,121 $436,271 $991,123 $1,183,292 
Cost of sales182,458 216,651 512,076 588,010 
Gross profit161,663 219,620 479,047 595,282 
Operating expenses:  
Selling, general and administrative expenses191,433 196,530 569,493 591,521 
Other long-lived asset impairments622 608 838 1,060 
Restructuring expenses16,003 — 27,732 5,438 
Total operating expenses208,058 197,138 598,063 598,019 
Operating income (loss)(46,395)22,482 (119,016)(2,737)
Interest expense5,760 5,127 16,110 13,445 
Other income (expense) - net(3,093)(1,859)6,813 (1,915)
Income (loss) before income taxes(55,248)15,496 (128,313)(18,097)
Provision (benefit) for income taxes5,561 9,214 (34)15,904 
Net income (loss)(60,809)6,282 (128,279)(34,001)
Less: Net income (loss) attributable to noncontrolling interests253 433 574 738 
Net income (loss) attributable to Fossil Group, Inc.$(61,062)$5,849 $(128,853)$(34,739)
Other comprehensive income (loss), net of taxes:  
Currency translation adjustment$(3,801)$(13,465)$(1,994)$(37,437)
Cash flow hedges - net change4,623 3,668 1,646 7,836 
Total other comprehensive income (loss)822 (9,797)(348)(29,601)
Total comprehensive income (loss)(59,987)(3,515)(128,627)(63,602)
Less: Comprehensive income (loss) attributable to noncontrolling interests253 432 574 738 
Comprehensive income (loss) attributable to Fossil Group, Inc.$(60,240)$(3,947)$(129,201)$(64,340)
Earnings (loss) per share:  
Basic$(1.16)$0.11 $(2.47)$(0.67)
Diluted$(1.16)$0.11 $(2.47)$(0.67)
Weighted average common shares outstanding:  
Basic52,466 51,825 52,219 51,843 
Diluted52,466 52,052 52,219 51,843 
 
See notes to the unaudited condensed consolidated financial statements.
6


FOSSIL GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
UNAUDITED
IN THOUSANDS

For the 13 Weeks Ended September 30, 2023
 Common stockAdditional
paid-in
capital		Treasury
stock		Retained
earnings		Accumulated
other
comprehensive
income
(loss)		Stockholders'
equity
attributable
to Fossil
Group, Inc.		Noncontrolling interestTotal stockholders' equity
SharesPar
value
Balance, July 1, 202352,446 $524 $308,768 $— $107,700 $(77,488)$339,504 $(2,602)$336,902 
Common stock issued upon exercise of stock options, stock appreciation rights and restricted stock units31 1 — — — 1 — 1 
Acquisition of common stock for employee tax withholding— — — (14)— — (14)— (14)
Retirement of common stock(5)(14)14 — — — — — 
Stock-based compensation— — 1,849 — — — 1,849 — 1,849 
Net income (loss)— — — — (61,062)— (61,062)253 (60,809)
Other comprehensive income (loss)— — — — — 822 822 — 822 
Balance, September 30, 202352,472 $525 $310,603 $— $46,638 $(76,666)$281,100 $(2,349)$278,751 

For the 13 Weeks Ended October 1, 2022
 Common stockAdditional
paid-in
capital		Treasury
stock		Retained
earnings		Accumulated
other
comprehensive
income
(loss)		Stockholders'
equity
attributable
to Fossil
Group, Inc.		Noncontrolling interestTotal stockholders' equity
SharesPar
value
Balance, July 2, 202251,807 $518 $304,775 $— $179,060 $(87,079)$397,274 $(3,249)$394,025 
Common stock issued upon exercise of stock options, stock appreciation rights and restricted stock units22 — — — — — — — — 
Acquisition of common stock for employee tax withholding— — — (13)— — (13)— (13)
Retirement of common stock(2)(13)13 — — — — — 
Stock-based compensation— — (264)— — — (264)— (264)
Net income (loss)— — — — 5,849 — 5,849 433 6,282 
Other comprehensive income (loss)— — — — — (9,797)(9,797)— (9,797)
Balance, October 1, 202251,827 $518 $304,498 $— $184,909 $(96,876)$393,049 $(2,816)$390,233 
For the 39 Weeks Ended September 30, 2023
 Common stockAdditional
paid-in
capital		Treasury
stock		Retained
earnings		Accumulated
other
comprehensive
income
(loss)		Stockholders'
equity
attributable
to Fossil
Group, Inc.		Noncontrolling interestTotal stockholders' equity
SharesPar
value
Balance, December 31, 202251,836 $518 $306,241 $— $175,491 $(76,318)$405,932 $(2,923)$403,009 
Common stock issued upon exercise of stock options, stock appreciation rights and restricted stock units800 8 (8)— — — — — — 
Acquisition of common stock for employee tax withholding— — — (529)— — (529)— (529)
Retirement of common stock(164)(1)(528)529 — — — — — 
Stock-based compensation— — 4,898 — — — 4,898 — 4,898 
Net income (loss)— — — — (128,853)— (128,853)574 (128,279)
Other comprehensive income (loss)— — — — — (348)(348)(348)
Balance, September 30, 202352,472 $525 $310,603 $— $46,638 $(76,666)$281,100 $(2,349)$278,751 
7


For the 39 Weeks Ended October 1, 2022
 Common stockAdditional
paid-in
capital		Treasury
stock		Retained
earnings		Accumulated
other
comprehensive
income
(loss)		Stockholders'
equity
attributable
to Fossil
Group, Inc.		Noncontrolling interestTotal stockholders' equity
SharesPar
value
Balance, January 1, 202252,146 $521 $300,848 $— $229,132 $(67,275)$463,226 $2,132 $465,358 
Common stock issued upon exercise of stock options, stock appreciation rights and restricted stock units896 9 (9)— — — — — — 
Acquisition of common stock— — — (12,443)— — (12,443)— (12,443)
Retirement of common stock(1,215)(12)(2,947)12,443 (9,484)— — — — 
Stock-based compensation— — 6,606 — — — 6,606 — 6,606 
Net income (loss)— — — — (34,739)— (34,739)738 (34,001)
Other comprehensive income (loss)— — — — — (29,601)(29,601)— (29,601)
Distribution of noncontrolling interest earnings— — — — — — — (5,686)(5,686)
Balance, October 1, 202251,827 $518 $304,498 $— $184,909 $(96,876)$393,049 $(2,816)$390,233 

See notes to the unaudited condensed consolidated financial statements.

8



FOSSIL GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
UNAUDITED
IN THOUSANDS
For the 39 Weeks Ended September 30, 2023For the 39 Weeks Ended October 1, 2022
Operating Activities:  
Net income (loss)$(128,279)$(34,001)
Adjustments to reconcile net loss to net cash used in operating activities:  
Depreciation, amortization and accretion14,487 17,587 
Non-cash lease expense 56,515 60,073 
Stock-based compensation4,580 5,821 
Decrease in allowance for returns and markdowns(231)(8,519)
Gain on disposal of assets(3,258)(448)
Property, plant and equipment and other long-lived asset impairment losses838 1,060 
Non-cash restructuring charges5,048 876 
Bad debt expense2,986 5,611 
Other non-cash items 1,385 9,973 
Changes in operating assets and liabilities:  
Accounts receivable11,228 22,677 
Inventories45,879 (137,244)
Prepaid expenses and other current assets16,490 (16,091)
Accounts payable(31,124)(19,151)
Accrued expenses(23,732)(56,944)
Income taxes(15,535)2,470 
Operating lease liabilities(65,239)(68,533)
Net cash used in operating activities(107,962)(214,783)
Investing Activities:  
Additions to property, plant and equipment and other(7,149)(8,689)
(Increase) decrease in intangible and other assets(1,247)993 
Net cash used in investing activities(8,396)(7,696)
Financing Activities:  
Acquisition of common stock(529)(12,444)
Distribution of noncontrolling interest earnings and other— (6,069)
Debt borrowings162,615 261,983 
Debt payments(124,013)(111,237)
Payment for shares of Fossil Accessories South Africa Pty. Ltd.(2,316)— 
Net cash provided by financing activities35,757 132,233 
Effect of exchange rate changes on cash, cash equivalents, and restricted cash(2,751)(644)
Net decrease in cash, cash equivalents, and restricted cash(83,352)(90,890)
Cash, cash equivalents, and restricted cash:  
Beginning of period204,075 264,572 
End of period$120,723 $173,682 

See notes to the unaudited condensed consolidated financial statements.
9


FOSSIL GROUP, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
UNAUDITED
 
1. FINANCIAL STATEMENT POLICIES
Basis of Presentation. The condensed consolidated financial statements include the accounts of Fossil Group, Inc., a Delaware corporation, and its wholly and majority-owned subsidiaries (the “Company”).
The information presented herein includes the thirteen-week period ended September 30, 2023 (“Third Quarter”) as compared to the thirteen-week period ended October 1, 2022 (“Prior Year Quarter”), and the thirty-nine week period ended September 30, 2023 ("Year To Date Period") as compared to the thirty-nine week period ended October 1, 2022 ("Prior Year YTD Period"). The condensed consolidated financial statements reflect all adjustments that are, in the opinion of management, necessary to present a fair statement of the Company’s financial position as of September 30, 2023, and the results of operations for the Third Quarter, Prior Year Quarter, Year To Date Period and Prior Year YTD Period. All adjustments are of a normal, recurring nature.
These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Annual Report on Form 10-K filed by the Company pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”), for the fiscal year ended December 31, 2022 (the “2022 Form 10-K”). Operating results for the Third Quarter are not necessarily indicative of the results to be achieved for the full fiscal year.
The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), which require the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the periods reported. We base our estimates on the information available at the time and various other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates. The Company has not made any changes in its significant accounting policies from those disclosed in the 2022 Form 10-K.
Business. The Company is a global design, marketing and distribution company that specializes in consumer fashion accessories. Its principal offerings include an extensive line of men's and women's fashion watches and jewelry, handbags, small leather goods, belts and sunglasses. In the watch and jewelry product categories, the Company has a diverse portfolio of globally recognized owned and licensed brand names under which its products are marketed. The Company's products are distributed globally through various distribution channels, including wholesale in countries where it has a physical presence, direct to the consumer through its retail stores and commercial websites and through third-party distributors in countries where the Company does not maintain a physical presence. The Company's products are offered at varying price points to meet the needs of its customers, whether they are value-conscious or luxury oriented. Based on its extensive range of accessory products, brands, distribution channels and price points, the Company is able to target style-conscious consumers across a wide age spectrum on a global basis.
Operating Expenses. Operating expenses include selling, general and administrative ("SG&A"), other long-lived asset impairments and restructuring charges. SG&A expenses include selling and distribution expenses primarily consisting of sales and distribution labor costs, sales distribution center and warehouse facility costs, depreciation expense related to sales distribution and warehouse facilities, the four-wall operating costs of the Company's retail stores, point-of-sale expenses, advertising expenses and art, and design and product development labor costs. SG&A also includes general and administrative expenses primarily consisting of administrative support labor and support costs such as treasury, legal, information services, accounting, internal audit, human resources, executive management costs and costs associated with stock-based compensation. Restructuring charges include costs to reduce and optimize the Company’s infrastructure and store closures. See Note 16— Restructuring for additional information on the Company’s restructuring plan.
Earnings (Loss) Per Share (“EPS”). Basic EPS is based on the weighted average number of common shares outstanding during each period. Diluted EPS adjusts basic EPS for the effects of dilutive common stock equivalents outstanding during each period using the treasury stock method.
10


The following table reconciles the numerators and denominators used in the computations of both basic and diluted EPS (in thousands, except per share data):
For the 13 Weeks Ended September 30, 2023For the 13 Weeks Ended October 1, 2022For the 39 Weeks Ended September 30, 2023For the 39 Weeks Ended October 1, 2022
Numerator:  
Net income (loss) attributable to Fossil Group, Inc.$(61,062)$5,849 $(128,853)$(34,739)
Denominator:   
Basic EPS computation:  
Basic weighted average common shares outstanding52,466 51,825 52,219 51,843 
Basic EPS$(1.16)$0.11 $(2.47)$(0.67)
Diluted EPS computation:  
Effect of stock options, stock appreciation rights, restricted stock units and performance restricted stock units— 227 — — 
Diluted weighted average common shares outstanding52,466 52,052 52,219 51,843 
Diluted EPS$(1.16)$0.11 $(2.47)$(0.67)

At the end of the Third Quarter and Year To Date Period, approximately 2.2 million and 2.1 million weighted average shares issuable under stock-based awards, respectively, were not included in the diluted EPS calculation because they were antidilutive. The total antidilutive weighted average shares included 0.3 million and 0.3 million weighted average performance-based shares at the end of the Third Quarter and Year To Date Period, respectively.
At the end of each of the Prior Year Quarter and Prior Year YTD Period, approximately 1.7 million and 2.2 million weighted average shares issuable under stock-based awards, respectively, were not included in the diluted EPS calculation because they were antidilutive. The total antidilutive weighted average shares included 12,900 and 26,100 weighted average performance-based shares at the end of the Prior Year Quarter and Prior Year YTD Period, respectively. Additionally, 73,500 weighted average performance-based shares were not included in the diluted EPS calculation at the end of the Prior Year Quarter because performance targets were not met.
Cash, Cash Equivalents and Restricted Cash. Restricted cash included in intangible and other-assets net was comprised primarily of pledged collateral to secure bank guarantees for the purpose of obtaining retail space. The following table provides a reconciliation of the cash, cash equivalents, and restricted cash balances as of September 30, 2023 and October 1, 2022 that are presented in the condensed consolidated statement of cash flows (in thousands):
September 30, 2023October 1, 2022
Cash and cash equivalents$116,132 $162,612 
Restricted cash included in prepaid expenses and other current assets106 106 
Restricted cash included in intangible and other assets-net4,485 10,964 
Cash, cash equivalents and restricted cash$120,723 $173,682 

11


Recently Issued Accounting Standards
In October 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-06, Disclosure Improvements - Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative ("ASU 2023-06"). The amendments in ASU 2023-06 modify the disclosure or presentation requirements of a variety of topics in the FASB Accounting Standards Codification (the "Codification"), with the intention of clarifying or improving them and to align the requirements in the Codification with the regulations of the U.S. Securities and Exchange Commission (the “SEC”). The effective date for ASU 2023-06 varies and is determined for each individual disclosure based on the effective date of the SEC's removal of the related disclosure. ASU 2023-06 will not have an impact on the Company's financial position or results of operation.
Recently Adopted Accounting Standards
In October 2021, the FASB issued ASU 2021-08, Business Combinations – Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The guidance requires an acquirer to recognize and measure contract assets and liabilities acquired in a business combination as if they had originated the contracts, as opposed to at fair value on the acquisition date. The standard is effective for business combinations after January 1, 2023. The adoption of this standard did not have an impact on the Company's consolidated financial statements or related disclosures.
2. REVENUE
Disaggregation of Revenue. The Company's revenue disaggregated by major product category and timing of revenue recognition was as follows (in thousands):
For the 13 Weeks Ended September 30, 2023
AmericasEuropeAsiaCorporate Total
Product type
Watches:
     Traditional watches$113,611 $72,941 $66,103 $28 $252,683 
     Smartwatches7,352 5,927 4,034 — 17,313 
Total watches$120,963 $78,868 $70,137 $28 $269,996 
Leathers20,815 6,201 5,993 — 33,009 
Jewelry8,797 19,892 5,928 — 34,617 
Other2,034 2,705 995 765 6,499 
Consolidated$152,609 $107,666 $83,053 $793 $344,121 
Timing of revenue recognition
Revenue recognized at a point in time $152,469 $107,479 $82,936 $518 $343,402 
Revenue recognized over time 140 187 117 275 719 
Consolidated$152,609 $107,666 $83,053 $793 $344,121 

12


For the 13 Weeks Ended October 1, 2022
AmericasEuropeAsiaCorporate Total
Product type
Watches:
      Traditional watches$132,077 $102,142 $75,970 $9 $310,198 
      Smartwatches14,578 10,401 8,327 — 33,306 
Total watches$146,655 $112,543 $84,297 $9 $343,504 
Leathers27,262 5,683 8,150 — 41,095 
Jewelry8,353 22,955 6,560 — 37,868 
Other2,056 2,498 1,205 8,045 13,804 
Consolidated$184,326 $143,679 $100,212 $8,054 $436,271 
Timing of revenue recognition
Revenue recognized at a point in time $183,900 $143,453 $100,076 $800 $428,229 
Revenue recognized over time 426 226 136 7,254 8,042 
Consolidated$184,326 $143,679 $100,212 $8,054 $436,271 

For the 39 Weeks Ended September 30, 2023
AmericasEuropeAsiaCorporate Total
Product type
Watches:
      Traditional watches$313,842 $204,156 $194,259 $1,955 $714,212 
      Smartwatches28,285 17,812 13,395 — 59,492 
Total watches$342,127 $221,968 $207,654 $1,955 $773,704 
Leathers68,889 17,959 19,746 — 106,594 
Jewelry20,439 53,773 16,808 — 91,020 
Other5,736 7,918 3,104 3,047 19,805 
Consolidated$437,191 $301,618 $247,312 $5,002 $991,123 
Timing of revenue recognition
Revenue recognized at a point in time $436,727 $301,047 $246,971 $4,177 $988,922 
Revenue recognized over time 464 571 341 825 2,201 
Consolidated$437,191 $301,618 $247,312 $5,002 $991,123 
13


For the 39 Weeks Ended October 1, 2022
AmericasEuropeAsiaCorporate Total
Product type
Watches:
      Traditional watches$366,714 $253,728 $209,857 $23 $830,322 
      Smartwatches47,228 33,347 24,134 — 104,709 
Total watches$413,942 $287,075 $233,991 $23 $935,031 
Leathers69,091 18,372 23,763 — 111,226 
Jewelry25,548 62,730 18,217 — 106,495 
Other5,944 7,933 3,592 13,071 30,540 
Consolidated$514,525 $376,110 $279,563 $13,094 $1,183,292 
Timing of revenue recognition
Revenue recognized at a point in time $513,393 $375,433 $279,193 $3,032 $1,171,051 
Revenue recognized over time 1,132 677 370 10,062 12,241 
Consolidated$514,525 $376,110 $279,563 $13,094 $1,183,292 
Contract Balances. As of September 30, 2023, the Company had no material contract assets on the Company's condensed consolidated balance sheets and no deferred contract costs. The Company had contract liabilities of (i) $0.5 million and $0.8 million as of September 30, 2023 and December 31, 2022, respectively, related to remaining performance obligations on licensing income, (ii) $1.6 million and $3.7 million as of September 30, 2023 and December 31, 2022, respectively, primarily related to remaining performance obligations on wearable technology products and (iii) $2.6 million and $3.1 million as of September 30, 2023 and December 31, 2022, respectively, related to gift cards issued.


3. INVENTORIES
Inventories consisted of the following (in thousands):
September 30, 2023December 31, 2022
Components and parts$14,137 $20,998 
Work-in-process