Fossil Group, Inc. (NASDAQ:FOSL) Q1 2018 Earnings Conference Call - Preliminary Transcript

May 08, 2018 • 05:00 pm ET


Fossil Group, Inc. (NASDAQ:FOSL) Q1 2018 Earnings Conference Call - Preliminary Transcript


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Welcome to Fossil Group 2018 First Quarter Earnings Call. My name is Adrienne, and I'll be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we'll conduct a question-and-answer session. Please note this conference is being recorded.

I'll now turn the call over to Jeff Boyer, CFO. Mr. Boyer?

Jeffrey N. Boyer

Thanks, Adrienne, and good afternoon, everybody. As many of you are aware, an unauthorized third-party released our earnings report prior to the market close. We're extremely disappointed this occurred. We'll conduct a thorough review to ensure this won't occur in the future. Early indications are that a financial news organization acts as a non-public staging area for website and scraped this information for their benefit. Upon learning of this incident, we immediately published our earnings release through our normal distribution channel. We apologize for any confusion due to this incident and are taking steps to ensure it won't happen in the future.

Now, I'll turn the call over to Allison to read our Safe Harbor statement. Allison?

Allison C. Malkin

Thank you. Good afternoon, everyone. Thank you for joining us and welcome to Fossil Group's first quarter 2018 earnings conference call. I would like to remind you that the information made available during this conference call contains forward-looking information and actual results could differ materially from those that will be projected during this call. Fossil Group's policy on forward-looking statements and additional information concerning a number of factors that could cause actual results to differ materially from such statements is readily available in our Form 8-K and 10-Q reports filed with the SEC.

In addition, the company assumes no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law. Please note that you can find a reconciliation and other information regarding non-GAAP financial measures discussed on this call in our earnings release filed on Form 8-K and in the Investors section of our website. Please note that you may listen to a live webcast or replay of this call by visiting under the Investors section.

Now, I would like to turn the call over to the company's Chairman and CEO, Kosta Kartsotis.

Kosta N. Kartsotis

Thanks, Allison. Good afternoon, everyone, and thanks for joining us today. I will begin with a few prepared remarks before turning the call over to Jeff Boyer, our CFO. Following Jeff's comments, we'll have Greg McKelvey, our Chief Strategy and Digital Officer, join us for the Q&A.

We are reporting today that our first quarter results have surpassed the high-end of our guidance. As we stated on our February call, our posture for fiscal 2018 was to plan prudently but operate aggressively in the marketplace. This approach drove better-than-expected results despite continuing disruption in key categories and distribution channels. As we look ahead, we will continue our prudent planning posture but take every opportunity to actively pursue accretive sales opportunity as we focus on becoming a more profitable company.