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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 28, 2024
 
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 29, 2024: 53,193,974



FOSSIL GROUP, INC.
FORM 10-Q
FOR THE FISCAL QUARTER ENDED SEPTEMBER 28, 2024
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, 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 28, 2024December 30, 2023
Assets  
Current assets:  
Cash and cash equivalents$106,308 $117,197 
Accounts receivable - net of allowances for doubtful accounts of $15,602 and $12,616, respectively
173,700 187,942 
Inventories226,389 252,834 
Prepaid expenses and other current assets69,460 152,717 
Total current assets575,857 710,690 
Property, plant and equipment - net of accumulated depreciation of $362,279 and $384,688, respectively
45,215 57,244 
Operating lease right-of-use assets 135,506 151,000 
Intangible and other assets-net55,830 59,096 
Total long-term assets236,551 267,340 
Total assets$812,408 $978,030 
Liabilities and Stockholders’ Equity  
Current liabilities:  
Accounts payable$159,002 $147,161 
Short-term debt2,254 480 
Accrued expenses:  
Current operating lease liabilities40,434 43,565 
Compensation36,855 44,789 
Royalties15,229 15,880 
Customer liabilities 24,816 37,584 
Transaction taxes7,179 10,412 
Other22,220 27,811 
Income taxes payable9,534 14,795 
Total current liabilities317,523 342,477 
Long-term income taxes payable19,786 20,409 
Deferred income tax liabilities719 698 
Long-term debt173,444 206,983 
Long-term operating lease liabilities120,648 137,644 
Other long-term liabilities18,380 18,081 
Total long-term liabilities332,977 383,815 
Commitments and contingencies (Note 13)
Stockholders’ equity:  
Common stock, 53,154 and 52,487 shares issued and outstanding at September 28, 2024 and December 30, 2023, respectively
532 525 
Additional paid-in capital314,133 311,709 
Retained (deficit) earnings (76,709)18,403 
Accumulated other comprehensive income (loss)(73,579)(76,405)
Total Fossil Group, Inc. stockholders’ equity164,377 254,232 
Noncontrolling interests(2,469)(2,494)
Total stockholders’ equity161,908 251,738 
Total liabilities and stockholders’ equity$812,408 $978,030 
 
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 28, 2024For the 13 Weeks Ended September 30, 2023For the 39 Weeks Ended September 28, 2024For the 39 Weeks Ended September 30, 2023
Net sales$287,819 $344,121 $802,693 $991,123 
Cost of sales145,587 182,458 390,119 512,076 
Gross profit142,232 161,663 412,574 479,047 
Operating expenses:  
Selling, general and administrative expenses160,858 191,433 466,733 569,493 
Other long-lived asset impairments985 622 1,935 838 
Restructuring expenses4,849 16,003 31,575 27,732 
Total operating expenses166,692 208,058 500,243 598,063 
Operating income (loss)(24,460)(46,395)(87,669)(119,016)
Interest expense4,922 5,760 14,116 16,110 
Other income (expense) - net3,617 (3,093)8,955 6,813 
Income (loss) before income taxes(25,765)(55,248)(92,830)(128,313)
Provision (benefit) for income taxes6,165 5,561 2,257 (34)
Net income (loss)(31,930)(60,809)(95,087)(128,279)
Less: Net income (loss) attributable to noncontrolling interests101 253 25 574 
Net income (loss) attributable to Fossil Group, Inc.$(32,031)$(61,062)$(95,112)$(128,853)
Other comprehensive income (loss), net of taxes:  
Currency translation adjustment$7,065 $(3,801)$2,948 $(1,994)
Cash flow hedges - net change(856)4,623 (103)1,646 
Pension plan activity— — (19)— 
Total other comprehensive income (loss)6,209 822 2,826 (348)
Total comprehensive income (loss)(25,721)(59,987)(92,261)(128,627)
Less: Comprehensive income (loss) attributable to noncontrolling interests101 253 25 574 
Comprehensive income (loss) attributable to Fossil Group, Inc.$(25,822)$(60,240)$(92,286)$(129,201)
Earnings (loss) per share:  
Basic$(0.60)$(1.16)$(1.80)$(2.47)
Diluted$(0.60)$(1.16)$(1.80)$(2.47)
Weighted average common shares outstanding:  
Basic53,171 52,466 52,863 52,219 
Diluted53,171 52,466 52,863 52,219 
 
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 28, 2024
 Common stockAdditional
paid-in
capital		Treasury
stock		Retained
(deficit) earnings		Accumulated
other
comprehensive
income
(loss)		Stockholders'
equity
attributable
to Fossil
Group, Inc.		Noncontrolling interestTotal stockholders' equity
SharesPar
value
Balance, June 29, 202453,099 $531 $313,581 $— $(44,678)$(79,788)$189,646 $(2,570)$187,076 
Common stock issued upon exercise of stock options, stock appreciation rights and restricted stock units55 1 (1)— — — — — — 
Stock-based compensation— — 553 — — — 553 — 553 
Net income (loss)— — — — (32,031)— (32,031)101 (31,930)
Other comprehensive income (loss)— — — — — 6,209 6,209 — 6,209 
Balance, September 28, 202453,154 $532 $314,133 $— $(76,709)$(73,579)$164,377 $(2,469)$161,908 

For the 13 Weeks Ended September 30, 2023
 Common stockAdditional
paid-in
capital		Treasury
stock		Retained
(deficit) 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 39 Weeks Ended September 28, 2024
 Common stockAdditional
paid-in
capital		Treasury
stock		Retained
(deficit) earnings		Accumulated
other
comprehensive
income
(loss)		Stockholders'
equity
attributable
to Fossil
Group, Inc.		Noncontrolling interestTotal stockholders' equity
SharesPar
value
Balance, December 30, 202352,487 $525 $311,709 $— $18,403 $(76,405)$254,232 $(2,494)$251,738 
Common stock issued upon exercise of stock options, stock appreciation rights and restricted stock units792 8 (8)— — — — — — 
Acquisition of common stock for employee tax withholding— — — (111)— — (111)— (111)
Retirement of common stock(125)(1)(110)111 — — — — — 
Stock-based compensation— — 2,542 — — — 2,542 — 2,542 
Net income (loss)— — — — (95,112)— (95,112)25 (95,087)
Other comprehensive income (loss)— — — — — 2,826 2,826 2,826 
Balance, September 28, 202453,154 $532 $314,133 $— $(76,709)$(73,579)$164,377 $(2,469)$161,908 
For the 39 Weeks Ended September 30, 2023
 Common stockAdditional
paid-in
capital		Treasury
stock		Retained
(deficit) 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— — — (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 

See notes to the unaudited condensed consolidated financial statements.
7



FOSSIL GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
UNAUDITED
IN THOUSANDS
For the 39 Weeks Ended September 28, 2024For the 39 Weeks Ended September 30, 2023
Operating Activities:  
Net income (loss)$(95,087)$(128,279)
Adjustments to reconcile net loss to net cash used in operating activities:  
Depreciation, amortization and accretion12,241 14,487 
Non-cash lease expense 49,158 56,515 
Stock-based compensation2,178 4,580 
Decrease in allowance for returns and markdowns(6,932)(231)
Net gain on disposal of assets(4,182)(3,258)
Property, plant and equipment and other long-lived asset impairment losses1,935 838 
Non-cash restructuring charges501 5,048 
Bad debt expense5,518 2,986 
Other non-cash items 2,497 1,385 
Changes in operating assets and liabilities:  
Accounts receivable8,248 11,228 
Inventories26,602 45,879 
Prepaid expenses and other current assets79,620 16,490 
Accounts payable13,279 (31,124)
Accrued expenses(17,773)(23,732)
Income taxes(6,162)(15,535)
Operating lease liabilities(55,470)(65,239)
Net cash provided by (used in) operating activities16,171 (107,962)
Investing Activities:  
Additions to property, plant and equipment(4,724)(7,172)
Decrease (increase) in intangible and other assets1,048 (1,247)
Proceeds from the sale of property, plant and equipment7,822 23 
Net cash provided by (used in) investing activities4,146 (8,396)
Financing Activities:  
Acquisition of common stock(111)(529)
Debt borrowings69,708 162,615 
Debt payments(102,981)(124,013)
Payment for shares of Fossil Accessories South Africa Pty. Ltd.(422)(2,316)
Net cash (used in) provided by financing activities(33,806)35,757 
Effect of exchange rate changes on cash, cash equivalents, and restricted cash2,643 (2,751)
Net decrease in cash, cash equivalents, and restricted cash(10,846)(83,352)
Cash, cash equivalents, and restricted cash:  
Beginning of period121,583 204,075 
End of period$110,737 $120,723 

See notes to the unaudited condensed consolidated financial statements.
8


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 28, 2024 (“Third Quarter”) as compared to the thirteen-week period ended September 30, 2023 (“Prior Year Quarter”), and the thirty-nine week period ended September 28, 2024 ("Year To Date Period") as compared to the thirty-nine week period ended September 30, 2023 ("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 28, 2024, 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 30, 2023, as amended (the “2023 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 2023 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.
9


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 28, 2024For the 13 Weeks Ended September 30, 2023For the 39 Weeks Ended September 28, 2024For the 39 Weeks Ended September 30, 2023
Numerator:  
Net income (loss) attributable to Fossil Group, Inc.$(32,031)$(61,062)$(95,112)$(128,853)
Denominator:   
Basic EPS computation:  
Basic weighted average common shares outstanding53,171 52,466 52,863 52,219 
Basic EPS$(0.60)$(1.16)$(1.80)$(2.47)
Diluted EPS computation:  
Diluted weighted average common shares outstanding53,171 52,466 52,863 52,219 
Diluted EPS$(0.60)$(1.16)$(1.80)$(2.47)

At the end of the Third Quarter and Year To Date Period, approximately 1.4 million and 1.6 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 0.1 million and 0.2 million weighted average performance-based shares at the end of the Third Quarter and Year To Date Period, respectively.
At the end of the Prior Year Quarter and Prior Year YTD 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 Prior Year Quarter and Prior Year YTD Period, respectively.
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 28, 2024 and September 30, 2023 that are presented in the condensed consolidated statement of cash flows (in thousands):
September 28, 2024September 30, 2023
Cash and cash equivalents$106,308 $116,132 
Restricted cash included in prepaid expenses and other current assets1,413 106 
Restricted cash included in intangible and other assets-net3,016 4,485 
Cash, cash equivalents and restricted cash$110,737 $120,723 

Recently Issued and Adopted Accounting Standards
In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU"), 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"), to enhance the transparency and decision usefulness of income tax disclosures through changes to the rate reconciliation and income taxes paid information. This guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company plans to adopt ASU 2023-09 in the first quarter of 2025 on a prospective basis and expects the adoption of the updated guidance to result in the additional disaggregation of certain tax information within the Company's income tax footnote disclosure.
In November 2023, FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures (Topic 280), to improve reportable segment disclosures, primarily through enhanced disclosures about significant segment expenses. The amendments in this update will require public entities to disclose significant segment expenses that are regularly provided to the Company's chief operating decision maker and included within segment profit and loss, an amount and description of its composition for other segment items, and expanded interim disclosures. This guidance is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. Adoption of the ASU should be applied retrospectively to all prior periods presented in the financial statements.
10


Adoption of ASU 2023-07 will result in additional segment-related footnote disclosures within the notes to the consolidated financial statements.
In October 2023, FASB issued 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 operations.
The Organization for Economic Cooperation and Development ("OECD") and over 140 countries have agreed to enact a two-pillar solution to reform the international tax rules to address the challenges arising from the globalization and digitalization of the economy. "The Pillar Two Global Anti-Base Erosion (GloBE) Rules" provide a coordinated system to ensure that multinational enterprises with revenues above 750 million euro pay a minimum effective tax rate of 15% tax on the income arising in each of the jurisdictions in which they operate. Many aspects of Pillar Two will be effective for tax years beginning in January 2024, with certain remaining impacts to be effective in 2025. Each country must enact its own legislation to apply the Pillar Two rules. The Company does not expect Pillar Two to have a material impact on its financial results, including its annual estimated effective tax rate or liquidity for 2024, but will continue to monitor future developments.
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 28, 2024
AmericasEuropeAsiaCorporate Total
Product type
Watches:
     Traditional watches$93,935 $74,162 $55,151 $— $223,248 
     Smartwatches3,997 (265)236 — 3,968 
Total watches$97,932 $73,897 $55,387 $— $227,216 
Leathers14,186 3,561 6,199 — 23,946 
Jewelry7,273 17,528 6,658 — 31,459 
Other1,942 2,067 734 455 5,198 
Consolidated$121,333 $97,053 $68,978 $455 $287,819 
Timing of revenue recognition
Revenue recognized at a point in time $121,243 $96,912 $68,861 $455 $287,471 
Revenue recognized over time 90 141 117 — 348 
Consolidated$121,333 $97,053 $68,978 $455 $287,819 

11


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 

For the 39 Weeks Ended September 28, 2024
AmericasEuropeAsiaCorporate Total
Product type
Watches:
      Traditional watches$260,586 $186,918 $156,393 $— $603,897 
      Smartwatches14,677 1,834 4,726 — 21,237 
Total watches$275,263 $188,752 $161,119 $— $625,134 
Leathers49,857 11,703 17,135 — 78,695 
Jewelry19,418 43,218 19,286 — 81,922 
Other6,397 6,952 2,173 1,420 16,942 
Consolidated$350,935 $250,625 $199,713 $1,420 $802,693 
Timing of revenue recognition
Revenue recognized at a point in time $350,637 $250,174 $199,370 $1,420 $801,601 
Revenue recognized over time 298 451 343 — 1,092 
Consolidated$350,935 $250,625 $199,713 $1,420 $802,693 
12


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 
Contract Balances. As of September 28, 2024, the Company had no material contract assets on the Company's condensed consolidated balance sheets and no deferred contract costs. The Company had (i) no contract liabilities as of September 28, 2024 and December 30, 2023, respectively, related to remaining performance obligations on licensing income, (ii) $0.9 million and $1.7 million as of September 28, 2024 and December 30, 2023, respectively, primarily related to remaining performance obligations on wearable technology products and (iii) $2.2 million and $2.7 million as of September 28, 2024 and December 30, 2023, respectively, related to gift cards issued.


3. INVENTORIES
Inventories consisted of the following (in thousands):
September 28, 2024December 30, 2023
Components and parts$14,415 $18,931 
Work-in-process185 — 
Finished goods211,789 233,903 
Inventories$226,389 $252,834 

4. WARRANTY LIABILITIES
The Company’s warranty liability is recorded in accrued expenses-other in the Company’s condensed consolidated balance sheets. Warranty liability activity consisted of the following (in thousands):
For the 39 Weeks Ended September 28, 2024For the 39 Weeks Ended September 30, 2023
Beginning balance$10,122 $13,623 
Settlements in cash or kind(3,795)(5,266)
Warranties issued and adjustments to preexisting warranties (1)
382 1,879 
Ending balance$6,709 $10,236 
_______________________________________________
(1) Changes in cost estimates related to preexisting warranties are aggregated with accruals for new standard warranties issued and foreign currency changes.
 
13


5. INCOME TAXES
The Company’s income tax (benefit) expense and related effective rates were as follows (in thousands, except percentage data):
For the 13 Weeks Ended September 28, 2024For the 13 Weeks Ended September 30, 2023For the 39 Weeks Ended September 28, 2024For the 39 Weeks Ended September 30, 2023