Fossil Group Inc (FOSL) 2025 Q4 法說會逐字稿

Good afternoon, ladies and gentlemen, and welcome to the Fossil Group fourth-quarter and full-year 2025 earnings call. (Operator Instructions)

女士們、先生們，下午好，歡迎參加 Fossil 集團 2025 年第四季及全年業績電話會議。（操作說明）

This conference call is being recorded and may not be reproduced in whole or in part without written information from the company.

本次電話會議正在錄音，未經本公司書面許可，不得全部或部分轉載。

Now I will turn the call over to Christine Greany of the Blueshirt Group to begin.

現在我將把電話交給藍衫軍的克莉絲汀‧格雷尼，讓她開始發言。

Hello, everyone, and thank you for joining us. With me on the call today is Franco Fogliato, Chief Executive Officer; and Randy Greben, Chief Financial Officer.

大家好，感謝各位的參與。今天和我一起參加電話會議的有執行長弗朗哥·福利亞托和財務長蘭迪·格雷本。

Before we begin, I would like to remind you that information made available during this conference call contains forward-looking information, and actual results could differ materially from those that will be discussed during this call.

在會議開始之前，我想提醒各位，本次電話會議中提供的資訊包含前瞻性訊息，實際結果可能與本次會議中討論的結果有重大差異。

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 the company's Form 8-K, 10-Q and 10-K reports filed with the SEC. In addition, Fossil 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.

Fossil Group 關於前瞻性聲明的政策以及可能導致實際結果與此類聲明存在重大差異的諸多因素的補充信息，均可在公司向美國證券交易委員會提交的 8-K 表格、10-Q 表格和 10-K 表格報告中找到。此外，除法律要求外，Fossil 不承擔因新資訊、未來事件或其他原因而公開更新或修訂任何前瞻性聲明的義務。

During today's call, we will refer to constant currency results as well as certain non-GAAP financial measures. Please note that you can find a reconciliation of actual results to constant currency results and other information regarding non-GAAP financial measures discussed on this call in Fossil's earnings release, which was filed today on Form 8-K and is available in the Investors section of fossilgroup.com.

在今天的電話會議中，我們將提及以固定匯率計算的結果以及某些非GAAP財務指標。請注意，您可以在 Fossil 今天提交的 8-K 表格收益報告中找到實際結果與固定匯率結果的調節表以及本次電話會議中討論的其他非 GAAP 財務指標信息，該報告可在 fossilgroup.com 的投資者關係部分找到。

With that, I'll now turn the call over to Franco to begin.

接下來，我將把電話交給法蘭科開始通話。

Hello, everyone, and thank you for joining us. 2025 was a transformative year for the company, defined by operational excellence and financial performance that exceeded our expectations. We took bold steps to advance our turnaround plan, delivering strong execution against the three pillars we laid out just 1 year ago. Those include refocusing on our core, rightsizing our cost structure and strengthening our balance sheet.

大家好，感謝各位的參與。 2025年對公司來說是具有變革意義的一年，這一年我們實現了卓越的營運和超越預期的財務表現。我們採取了大膽的措施來推進我們的轉型計劃，並對我們一年前製定的三大支柱進行了強有力的執行。這些措施包括重新聚焦核心業務、調整成本結構和強化資產負債表。

We built a brand-led consumer-focused operating model, assembled an exceptional management team and established a culture of accountability. We recently appointed a new Chief People Officer who would be a valuable part of our efforts to continue strengthening our organizational capabilities, culture and customer-first mindset.

我們建立了以品牌為主導、以消費者為中心的營運模式，組建了一支卓越的管理團隊，並建立了一種問責文化。我們最近任命了一位新的首席人力資源官，他將成為我們繼續加強組織能力、文化和以客戶為先的理念的重要力量。

I'm incredibly proud of our teams and wanted to thank everyone across the organization for their energy, passion and hard work and for upholding our commitment to keep the consumer at the center of everything we do. Our turnaround efforts gained traction quickly, enabling us to end the year ahead of our initial plan. We delivered full year performance above the updated guidance we provided halfway through the year. Net sales totaled $1 billion. Gross margin expanded 380 basis points to 55.9%, and we reduced SG&A by over $100 million. This drove a positive adjusted operating income of $11 million, a year-over-year improvement of $48 million.

我為我們的團隊感到無比自豪，並想感謝整個組織的每一位成員，感謝他們的活力、熱情和辛勤工作，以及他們始終堅持以消費者為中心開展一切工作的承諾。我們的轉虧為盈措施迅速取得了成效，使我們能夠提前完成年初的計劃。我們全年的業績都超過了年中時發布的最新預期。淨銷售額達10億美元。毛利率成長 380 個基點至 55.9%，銷售、管理及行政費用減少了 1 億美元以上。這使得調整後的營業收入為 1,100 萬美元，比上年同期成長了 4,800 萬美元。

Now I will turn to the operating highlights and key accomplishment of 2025. First and foremost, we created a positive brand platform for the future. We accomplished this by improving the customer journey and delivering a robust pipeline of product innovation all supported by powerful heritage brand storytelling.

現在我將介紹 2025 年的營運亮點和主要成就。首先，我們為未來打造了一個積極的品牌平台。我們透過改善客戶體驗和提供強大的產品創新管道來實現這一目標，所有這些都得到了強大的品牌傳承故事的支持。

At the same time, we successfully established a full price selling model by radically transforming our promotional cadence across channels. This enabled us to return the business to a healthy gross margin profile in the mid-50s and improve profitability in both our wholesale and direct-to-consumer channels. Importantly, this has strengthened our wholesale partner relationship, creating a powerful flywheel effect that is delivering benefits across all channels.

同時，我們透過徹底改變各通路的促銷節奏，成功建立了全價銷售模式。這使我們能夠將業務的毛利率恢復到 50% 左右的健康水平，並提高批發和直接面向消費者管道的獲利能力。重要的是，這加強了我們與批發合作關係，產生了強大的飛輪效應，為所有管道帶來了好處。

Next, we have reenergized our core licensed brands, Michael Kors, Emporio Armani, Armani Exchange and Diesel. Most notably, strategic investment in point of sale and a renewed focus on specialty watch retail enabled us to improve our in-store presentation and performance in the wholesale channel. We also drove momentum in our traditional watch business by prioritizing our most scalable markets in the wholesale channel, including the US and India.

接下來，我們重新激活了我們的核心授權品牌，包括 Michael Kors、Emporio Armani、Armani Exchange 和 Diesel。最值得一提的是，對銷售點的策略性投資以及對專業手錶零售的重新關注，使我們能夠改善店內展示和批發通路的績效。我們也透過優先發展批發通路中最具規模化的市場（包括美國和印度），推動了傳統手錶業務的發展動能。

This resulted in wholesale traditional watch growth in our core brands of 2% globally for the full year in 2025. At the same time, we took a clear action to rightsize our cost structure and instituted a culture of strict cost control.

這將使我們核心品牌的全球傳統手錶批發業務在 2025 年全年實現 2% 的成長。同時，我們採取了明確的措施來調整成本結構，並建立了嚴格的成本控製文化。

Lastly, and as importantly, we transformed our balance sheet. We now have the runway and flexibility to support the next phase of our turnaround, build a sustainable, profitable business model and deliver long-term value creation. We have entered 2026 well positioned to leverage our foundational assets, including our 40-plus year heritage, iconic brand, innovative design, global reach and talented teams.

最後，同樣重要的是，我們改善了資產負債表。我們現在有足夠的時間和靈活性來支持我們下一階段的轉型，建立一個可持續的、有利可圖的商業模式，並創造長期價值。進入 2026 年，我們已經做好充分準備，可以充分利用我們的基礎資產，包括我們 40 多年的歷史傳承、標誌性品牌、創新設計、全球影響力以及才華橫溢的團隊。

Also notable, the industry is experiencing strong momentum across markets and demographies. At the same time, our comeback is capturing increasing attention from consumers, partners and the press. Just last month, I was at the INHORGENTA Watch and Jewelry Show in Munich, where many of our brands were center stage. In 2026, we will be making more bold moves on our journey to reinvent Fossil Group and lead the industry. It's an exciting time for the company as we continue to foster a collaborative, creative and energetic culture with accountability and a strong commitment to win.

值得注意的是，該行業在各個市場和人群中都呈現出強勁的發展勢頭。同時，我們的回歸也引起了消費者、合作夥伴和媒體的越來越多的關注。就在上個月，我參加了在慕尼黑舉辦的INHORGENTA鐘錶珠寶展，我們的許多品牌都成為了展會的焦點。2026年，我們將採取更大膽的舉措，重塑 Fossil 集團，引領產業發展。對於公司而言，這是一個激動人心的時刻，我們將繼續培養協作、創新和充滿活力的企業文化，同時注重責任感和對勝利的堅定承諾。

We're turning the page to a new chapter and evolving our three strategic pillars as follows: returning to profitable growth, optimizing our operating model and building shareholder value. Over the next 3 years, this evolution of our turnaround is expected to generate a return to top line growth, high single-digit adjusted operating margin and positive free cash flow. More on our financial outlook shortly. But first, let's talk about the initiatives we will be executing against to further advance our turnaround.

我們正在翻開新的一頁，並將我們的三大策略支柱發展如下：恢復獲利成長、優化營運模式和提升股東價值。在接下來的 3 年裡，我們預計這項轉型計畫將帶來營收成長、高個位數的調整後營業利潤率和正的自由現金流。稍後將詳細介紹我們的財務展望。但首先，讓我們來談談我們將要執行哪些措施來進一步推動我們的轉型。

Within our first pillar, returning to profitable growth, our teams will be focusing on define initiative across the Fossil brand platform to fuel innovation, deepen consumer engagement, grow the traditional watch business and reinvigorate our jewelry and leather categories. In 2026, we will be fueling innovation through design, technology and storytelling. This included reinventing key icons, continuing to delight our customers with culturally relevant collaboration, reviving one of Fossil's most sought-after Y2K innovation and introducing a selective group of premium products.

在恢復獲利成長的第一個支柱下，我們的團隊將專注於在 Fossil 品牌平台上製定明確的舉措，以推動創新、加深消費者參與、發展傳統手錶業務並重振我們的珠寶和皮革品類。2026年，我們將透過設計、技術和故事敘述來推動創新。這包括重新打造標誌性產品，繼續透過與文化相關的合作讓客戶滿意，復興 Fossil 最受歡迎的 Y​​2K 創新之一，以及推出一系列精選的高端產品。

Let me take you through the road map. Starting with our watch icons, which make up a significant portion of our business, we will be innovating and expanding upon key collection, including our Everett, Harlow, Machine and Raquel platforms and our watch rings. Additionally, we will be doubling down on our Minis collection across all of our top women's platforms.

讓我帶你了解路線圖。我們將從構成我們業務重要組成部分的腕錶系列入手，對包括 Everett、Harlow、Machine 和 Raquel 系列在內的主要係列以及我們的腕錶戒指進行創新和擴展。此外，我們將在所有頂級女裝平台上加大對迷你係列的投入。

Following the success of 2025 collaboration such as Fantastic Four, Galactus, Minecraft, Shelby and Superman, we will continue activating culturally relevant partnership with both new and returning properties in 2026. These collaborations deliver highly engaged audiences, customer acquisition at scale and meaningful earned media.

繼 2025 年與《神奇四俠》、《行星吞噬者》、《我的世界》、《謝爾比》和《超人》等合作取得成功之後，我們將在 2026 年繼續與新的和回歸的 IP 開展具有文化相關性的合作。這些合作能夠帶來高度參與的受眾、大規模的客戶獲取以及有意義的媒體曝光。

Importantly, as we anniversary successful 2025 partnership, we're focusing on converting collaboration shoppers into long-term Fossil customers, improving retention and lifetime value. One of our most significant introduction this year is the return of Fossil Big Tic, a bold animated movement that combines analog craft with digital innovation.

重要的是，在我們慶祝 2025 年成功合作週年之際，我們正致力於將合作購物者轉化為 Fossil 的長期客戶，提高客戶留存率和終身價值。今年我們最重要的產品之一是 Fossil Big Tic 的回歸，這是一個大膽的動畫動作，它將模擬工藝與數位創新相結合。

Originally introduced in the late '90s, Big Tic is one of Fossil's most recognizable and emotionally resonant designs. The design are geared towards millennial watch consumer, nostalgic for Y2K, Gen Z consumer craving an analog forward accessory and the male watch enthusiasts looking for a big bold watch to match his style.

Big Tic 最初於 90 年代末推出，是 Fossil 最具辨識度和最能引起情感共鳴的設計之一。這些設計的目標客戶包括懷念 Y2K 時代的千禧世代腕錶消費者、渴望擁有復古模擬風格的 Z 世代消費者，以及正在尋找一款與自身風格相匹配的醒目大錶的男性腕錶愛好者。

Earlier this month, we recently launched a nostalgic limited edition Y2K capsule quickly followed by a reinvention of Big Tic Machine. Initial response from consumer and acclaim from the press has been tremendous thus far.

本月初，我們推出了一款充滿懷舊氣息的 Y2K 限量版膠囊系列，隨後又對 Big Tic Machine 進行了重新設計。到目前為止，消費者的初步反應和媒體的好評都非常巨大。

Our Big Tic marketing campaign reflects the evolution of our creative strategy, featuring a dynamic animated concept built around the idea that everything Big Tic touches becomes larger than life. It's bold storytelling reinforce product distinctness while driving modern relevance. We have a lot more exciting Big Tic innovation coming and anticipate that momentum will continue to build as we roll out additional collection throughout the year.

我們的 Big Tic 行銷活動體現了我們創意策略的演變，其特點是圍繞著「Big Tic 觸碰的一切都變得比現實更偉大」這一理念而構建的動態動畫概念。它大膽的敘事手法強化了產品的獨特性，同時又使其與時俱進。我們還有更多令人興奮的 Big Tic 創新即將推出，並預計隨著我們在今年推出更多產品系列，這種勢頭將繼續增強。

Another significant innovation coming later this year is the introduction of Signature, Fossil's first premium platform in more than a decade. Rooted in craftsmanship and timeless design, the collection represent an important evolution for the brand and is designed to resonate with watch enthusiasts and collectors alike. Signature will also introduce a new level of technical sophistication and assembly that reflects Fossil continued commitment to quality and innovation. We look forward to sharing more details in the coming quarters.

今年稍後還將推出另一項重大創新——Signature，這是 Fossil 十多年來的首個高端平台。該系列腕錶植根於精湛工藝和永恆設計，代表了品牌的重要發展歷程，旨在引起腕錶愛好者和收藏家的共鳴。Signature系列也將引入更高水準的技術複雜性和組裝工藝，體現Fossil對品質和創新的一貫承諾。我們期待在接下來的幾季分享更多細節。

While we're first and foremost a watchmaker, our jewelry and leather offerings expand our expression as an accessory brand. Our strategy for this category focused on staying true to our brand DNA of quality, value and timelessness. We're repositioning the business with modern design, including jewelry introduction inspired by our most important watch collection and increased personalization through engravable offerings.

雖然我們首先是一家製錶商，但我們的珠寶和皮革製品拓展了我們作為配件品牌的表達方式。我們針對這一品類的策略是堅持我們品牌的DNA，即品質、價值和永恆。我們正在透過現代設計重新定位業務，包括推出靈感源自我們最重要的腕錶系列的珠寶，並透過可錒刻服務提高個性化程度。

We will be supporting all of this product innovation with a focused high-impact marketing road map. In 2025, we concentrated our investments in priority markets and the results validated that disciplined brand-led investment drive stronger engagement and return.

我們將透過重點突出、影響深遠的行銷路線圖來支持所有這些產品創新。2025 年，我們將投資集中在重點市場，結果證明，有紀律的品牌主導型投資能帶來更強的參與和回報。

This year, we will continue scaling this approach, deploying our resources to opportunities where we can build further brand equity and accelerate growth. Our 2026 storytelling is designed to celebrate Fossil heritage, reinforce our quality and design credential and elevate cultural relevance. A great example of this is our exciting partnership with brand ambassador, Nick Jonas. Nick has proven to be an authentic and highly engaged partner, currently anchoring campaign across Nick Jonas collection, Machine and Big Tic.

今年，我們將持續擴大這項策略的規模，將資源投入能夠進一步提升品牌價值和加速成長的機會。我們2026年的故事敘述旨在頌揚Fossil的傳承，鞏固我們的品質和設計資質，並提昇文化相關性。我們與品牌大使尼克·喬納斯的合作就是一個很好的例子。尼克已被證明是一位真誠且高度投入的合作夥伴，目前是尼克喬納斯 (Nick Jonas) 系列、Machine 和 Big Tic 等品牌宣傳活動的核心人物。

Moving now to our omnichannel initiative, which are designed to modernize our brand expression and also improve our e-commerce business and optimize our Fossil store portfolio. In the wholesale channel, we are focusing on our top customer in must-win markets, including the US, France, Germany and India. For example, in the US, the strength of the Fossil brand, our robust product pipeline and engaging campaigns are driving growth with key partners. Additionally, we're expanding distribution to specialty and energy retailers that can help to build the brand awareness and create excitement among a younger demographic.

接下來，我們將介紹我們的全通路計劃，該計劃旨在使我們的品牌表達現代化，同時改善我們的電子商務業務並優化我們的 Fossil 門市組合。在批發管道方面，我們專注於在必須贏得的市場（包括美國、法國、德國和印度）中最重要的客戶。例如，在美國，Fossil 品牌的強大實力、我們強大的產品線和引人入勝的行銷活動正在推動與主要合作夥伴的成長。此外，我們正在擴大分銷管道，拓展至專業零售商和能源零售商，這有助於提升品牌知名度，並在年輕群體中激發消費者的興趣。

In the e-commerce channel, we have reshaped our business through two major actions over the past 18 months. First, we dramatically reduced our discount posture by more than 50%, establishing a full price selling model. Next, we implemented a comprehensive redesign of the Fossil site, featuring richer storytelling and a more seamless customer journey. The result is a smaller but more profitable sales channel with higher AUR across the entire marketplace. As we pursue long-term growth, we will continue to deliver consistent price and promotion while investing in personalization, inspiration and more cohesive brand representation to drive customer engagement and strengthen brand perception.

在電子商務通路方面，在過去 18 個月裡，我們透過兩項重大措施重塑了我們的業務。首先，我們大幅減少了折扣力度，減少了 50% 以上，建立了全價銷售模式。接下來，我們對 Fossil 網站進行了全面重新設計，使其更具故事性，並提供更流暢的客戶體驗。最終形成了一個規模較小但利潤更高的銷售管道，並且在整個市場中的平均用戶活躍度 (AUR) 也更高。在追求長期成長的同時，我們將繼續提供穩定的價格和促銷活動，同時投資於個人化、激發靈感和更統一的品牌形象，以推動客戶參與並加強品牌認知。

In the retail channel, we are optimizing our store portfolio and deploying our Store of the Future strategy in the US and EMEA. We're very pleased with the initial results from our Store of the Future concept, which blends lifestyle selling, data-led decision-making and a purpose-driven strategy. Importantly, it is shifting our selling culture to proactively clienteling at outreach, personalized service and community focus. This has result in an improvement across key performance indicators, including AUR and conversion.

在零售通路方面，我們正在優化我們的門市組合，並在美國和歐洲、中東及非洲地區部署我們的未來門市策略。我們對「未來商店」概念的初步成果非常滿意，該概念融合了生活方式銷售、數據驅動的決策和目標驅動的策略。重要的是，它正在將我們的銷售文化轉變為積極主動地拓展客戶關係、提供個人化服務和關注社區。這使得包括平均使用率和轉換率在內的關鍵績效指標均有所改善。

Turning to our core licensed brands. We're focusing on initiatives to return the brand to sustained sales growth. We believe there is a significant opportunity to unlock potential in Michael Kors jewelry and men's watches. Our strategy for Kors jewelry is centered on modern wearable design while leaning into one of our strongest assets, the MK logo. We have recalibrated our pricing architecture to improve accessibility and enhance our competitive position.

接下來，讓我們來看看我們的核心授權品牌。我們正集中精力採取措施，使該品牌恢復持續的銷售成長。我們相信，Michael Kors珠寶和男士腕錶領域蘊藏著巨大的發展潛力。我們的 Kors 珠寶策略以現代可穿戴設計為中心，同時充分利用我們最強大的資產之一——MK 標誌。我們重新調整了定價結構，以提高可及性並增強我們的競爭地位。

Men's watches, we are returning to proven Michael Kors design codes and investing behind hero platforms that have historically driven scale. We will do this by focusing on both confident styling, recognizable attributes and strong perceived value within key price tiers.

在男士腕錶領域，我們將回歸 Michael Kors 久經考驗的設計理念，並投資於那些歷來推動規模化發展的明星平台。我們將透過專注於自信的造型、可識別的特徵以及在關鍵價格區間內強大的感知價值來實現這一目標。

For the Emporio Armani brand, we are pursuing opportunities in selected markets outside of China, where there is a strong local demand for premium products and additional runway in the wholesale channel to broaden assortment and leverage long-standing partnerships. We're also continuing to drive the Armani Exchange brand, which is experiencing strong momentum across major markets, including the U.S. and India. Key initiatives include elevating our retail presence, expanding distribution, building on the success of our icons and delivering localized product offerings.

對於 Emporio Armani 品牌，我們正在中國以外的特定市場尋求機會，這些市場對高端產品有強勁的本地需求，並且在批發渠道方面還有更大的發展空間，可以擴大產品種類並利用長期合作關係。我們也持續推動 Armani Exchange 品牌的發展，該品牌在包括美國和印度在內的主要市場都取得了強勁的成長勢頭。重點舉措包括提升我們的零售影響力、擴大分銷管道、鞏固我們標誌性產品的成功以及提供在地化產品。

Turning now to the final area of focus under our growth pillar. We see a significant opportunity in India, which has been the fastest-growing large economy in the world for the past 4 years. This is an important strategic market where our brands have category leadership, strong momentum and secular tailwinds. I was in India last month with other members of our executive team as part of our focus on unlocking the full potential of this geography, where we are experiencing growth across all channels and brands.

現在轉向我們成長支柱下的最後一個重點領域。我們看到了印度的巨大機遇，印度在過去4年中一直是世界上成長最快的大型經濟體。這是一個重要的策略市場，我們的品牌在這個市場中擁有品類領先地位、強勁的發展動能和長期利好因素。上個月，我與其他高階主管團隊成員一起去了印度，這是我們致力於充分挖掘該地區潛力的一部分，我們在該地區的各個管道和品牌都實現了成長。

In 2026, we will be building further brand heat across our portfolio by broadening our assortment, entering premium price points and introducing limited edition, all supported by dynamic storytelling. We will also be increasing our footprint through expanded distribution, opening additional wholesale doors with both new and existing partners and opening new Fossil retail stores. We have a highly seasoned team in India who is committed to driving continued growth and rapidly scaling the business.

2026 年，我們將透過擴大產品種類、進軍高端價格區間和推出限量版，進一步提升我們產品組合的品牌熱度，所有這些都將透過動態的故事敘述來支持。我們還將透過擴大分銷管道、與新舊合作夥伴拓展更多批發管道以及開設新的 Fossil 零售店來擴大我們的業務版圖。我們在印度擁有一支經驗豐富的團隊，致力於推動業務持續成長並快速擴大業務規模。

Moving now to our second turnaround pillar, optimizing our operating model. We made significant progress towards rightsizing our expense structure in 2025. With this improved baseline and an emphasis on strict cost control, we're well positioned to continue to drive optimization across the organization.

現在進入我們的第二個轉型支柱，優化我們的營運模式。我們在2025年合理調整支出結構方面取得了重大進展。憑藉這項改進後的基準和對嚴格成本控制的重視，我們有能力繼續推動整個組織的最佳化。

We will be focused on initiatives to strengthen our omnichannel strategy and go-to-market execution while prioritizing operational investment and infrastructure improvement. Key area of focus include sharpening our go-to-market execution to elevate point-of-sales engagement, reducing complexity and improving business agility, enhancing our digital and technology infrastructure, delivering best-in-class supply chain performance and prioritizing high-impact project and key performance indicators.

我們將專注於加強全通路策略和市場推廣執行的各項舉措，同時優先考慮營運投資和基礎設施改善。重點領域包括：加強市場推廣執行，提升銷售點互動，降低複雜性，提高業務敏捷性，增強數位化和技術基礎設施，提供一流的供應鏈績效，並優先考慮高影響力專案和關鍵績效指標。

I will now turn to our third and final pillar, building shareholder value. The rapid progress we made in year 1 of the turnaround, our accelerating profit profile and our strengthening balance sheet give us conviction that we are set up to create lasting value for all of our stakeholders. We expect to continue improving profitability, affording us the optionality to strategically invest for growth and value creation.

現在我將轉向我們的第三個也是最後一個支柱：創造股東價值。我們在扭虧為盈第一年取得的快速進展、不斷加速的盈利能力以及日益增強的資產負債表，讓我們確信，我們有能力為所有利益相關者創造持久價值。我們期望獲利能力持續提升，使我們能夠進行策略性投資，以實現成長和價值創造。

Building on the strong execution and financial performance we delivered in 2025, we are pleased to be raising the financial target we introduced 1 year ago. As a reminder, we previously communicated 2027 sales target of at least $800 million. We now expect to surpass that benchmark 1 year earlier than planned. In 2026, we expect sales in the range of $945 million to $965 million, highlighted by a return to top line growth in the fourth quarter. Additionally, we expect positive adjusted operating margin of 3% to 5% and breakeven free cash flow.

基於我們在 2025 年取得的強勁執行力和財務業績，我們很高興提高 1 年前提出的財務目標。再次提醒大家，我們之前公佈的2027年銷售目標至少為8億美元。我們現在預計比原計劃提前一年超越這一目標。預計 2026 年銷售額將在 9.45 億美元至 9.65 億美元之間，其中第四季營收將恢復成長。此外，我們預期調整後營業利益率為 3% 至 5%，自由現金流將達到損益兩平。

Our commitment to operational excellence and returning the business to profitable growth is grounded in a focus on discipline, accountability and performance. I'm grateful to our teams, partners and shareholders for their continuing support of Fossil Group and look forward to reporting to you on our progress throughout the year.

我們致力於卓越運營，力求使業務重回盈利成長軌道，而這一切都建立在對紀律、責任和績效的重視之上。我衷心感謝我們的團隊、合作夥伴和股東們對 Fossil 集團的持續支持，並期待今年向大家報告我們的進展。

Before I turn the call to Randy, I would like to acknowledge the current geopolitical climate. As a global company, we are disheartened by the events occurring in the Middle East, and we're closely monitoring the safety and well-being of our employees and partners in the region.

在將電話轉給蘭迪之前，我想先談談當前的地緣政治局勢。作為一家全球性公司，我們對中東地區發生的事件感到痛心，我們正在密切關注該地區員工和合作夥伴的安全和福祉。

Now I will turn the call to Randy to discuss the financials.

現在我將把電話轉給蘭迪，讓他來討論財務問題。

Thank you, Franco. 2025 was a year of tremendous progress on multiple fronts. I'm pleased that we gained strong traction on our turnaround initiatives, delivered financial results ahead of our expectations and transformed our balance sheet. Our 2025 performance reflects the strength of our brands, strategies and teams and demonstrates that we have the right building blocks in place to drive long-term growth and profitability.

謝謝你，法蘭哥。 2025年是多方面取得巨大進步的一年。我很高興我們的轉虧為盈計畫取得了強勁進展，財務表現超出預期，資產負債表也得到了改善。我們 2025 年的業績反映了我們品牌、策略和團隊的實力，並表明我們已經具備了推動長期成長和獲利的正確基礎。

Now I'll turn to the specifics of our fourth quarter and full year performance. Net sales for Q4 totaled $274 million, reflecting a decline of 20% including 4 points of impact from store closures. For the full year in 2025, net sales were $1 billion, including 330 basis points of impact from store closures and 80 basis points of impact from the exit of connected watches. Fourth quarter gross margin came in at 57.4%. That's up 350 basis points from last year and reflects the ongoing strength of product margins as well as our focus on full price selling, which allowed us to drive structurally higher margins over the past 12 to 18 months.

現在我將具體介紹我們第四季和全年的業績。第四季淨銷售額總計 2.74 億美元，年減 20%，其中門市關閉造成了 4 個百分點的影響。2025 年全年淨銷售額為 10 億美元，其中包括門店關閉造成的 330 個基點的影響和因智慧手錶退出市場造成的 80 個基點的影響。第四季毛利率為57.4%。這比去年提高了 350 個基點，反映了產品利潤率的持續強勁以及我們對全價銷售的重視，這使我們能夠在過去 12 到 18 個月中實現結構性更高的利潤率。

Indeed, full year gross margin for 2025 was 55.9%, representing 380 basis points of expansion versus 2024 even with the continued and compounded headwind of minimum royalty guaranteed shortfalls, which as previously shared, are expected to be materially abated in full year 2026. In 2025, we executed against several initiatives that drove a meaningful improvement in gross margin. Specifically, we substantially lowered our discount rate, strengthened our supply chain, negotiated better terms with key suppliers, retooled our open-to-buy processes and implemented targeted price increases.

事實上，2025 年全年毛利率為 55.9%，比 2024 年增長了 380 個基點，即使面臨最低特許權使用費保證缺口持續累積的不利因素，但正如之前所分享的，預計這些缺口將在 2026 年全年得到實質性緩解。2025年，我們實施了多項舉措，顯著提高了毛利率。具體而言，我們大幅降低了折扣率，加強了供應鏈，與主要供應商談判了更好的條款，調整了採購流程，並實施了有針對性的價格上漲。

I am pleased to note that all of these actions not only improved our underlying gross margin profile but also enabled us to largely mitigate tariff headwinds throughout the year. The fact that we were able to absorb the impact of tariffs in 2025, while delivering a return to healthy gross margins demonstrates the agility of our supply chain and is a testament to our teams around the globe. Looking at 2026, we expect to continue to offset the current rate structure with our mitigation strategies and have not embedded material rate changes or any tariff refunds into our forward-looking guidance.

我很高興地註意到，所有這些措施不僅改善了我們的基本毛利率狀況，而且使我們能夠在全年基本緩解關稅的不利影響。我們能夠在 2025 年消化關稅的影響，同時恢復健康的毛利率，證明了我們供應鏈的靈活性，也證明了我們全球團隊的實力。展望 2026 年，我們預計將繼續透過我們的緩解策略來抵消當前的費率結構，並且沒有將實質性的費率變化或任何關稅退款納入我們的前瞻性指導中。

Moving now to operating expenses. Strict cost control enabled us to lower SG&A expenses by 16% versus prior year. The improvement is attributable to 49 fewer stores in operation versus a year ago as well as lower compensation and administrative expenses.

接下來是營運費用。嚴格的成本控制使我們的銷售、一般及行政費用比前一年降低了 16%。這項改善歸功於與一年前相比，營運門市數量減少了 49 家，以及薪資和管理費用的降低。

During Q4, we closed six additional stores ending the year with 199 locations globally. All 49 closures in 2025 occurred at natural lease expiration with minimal closing costs. Given the improving performance of our fleet, we expect to reduce our number of store closures down to approximately 15 locations this year.

第四季度，我們又關閉了六家門市，年底全球門市總數達到 199 家。2025 年全部 49 處房產關閉都是由於租賃合約自然到期，關閉成本極低。鑑於我們車隊的營運狀況不斷改善，我們預計今年將關閉的門市數量減少到約 15 家。

As we continue to focus on improving our cost structure, our teams are acting with financial discipline and rigor. I'm pleased to note that on a full year basis, we slightly overdelivered on our full year SG&A savings target of $100 million. Zooming out, the successful delivery of 2025 SG&A savings target was a key follow-on to work that began in 2023. In total, the company's SG&A levels have been rightsized by more than $250 million over the last 36 months. And while the lion's share of this work is behind us, we're never done.

在我們繼續致力於改善成本結構的同時，我們的團隊正在以嚴謹的財務紀律開展工作。我很高興地指出，從全年來看，我們略微超額完成了全年銷售、管理及行政費用節省目標 1 億美元。從更宏觀的角度來看，成功實現 2025 年銷售、一般及行政費用節省目標是 2023 年開始的工作的關鍵後續成果。過去 36 個月，該公司的銷售、一般及行政費用總額已減少了超過 2.5 億美元。雖然這項工作的大部分已經完成，但我們永遠不會停止前進。

As Franco mentioned, in 2026, we expect to further optimize our operating model by capturing efficiencies throughout the organization. We will be directing resources toward go-to-market execution, operational investments and infrastructure improvements.

正如弗蘭科所提到的，我們預計在 2026 年透過提高整個組織的效率來進一步優化我們的營運模式。我們將把資源投入市場推廣、營運投資和基礎設施改善。

Looking now at our bottom line performance in Q4, strong gross margins north of 57% and exceptional expense management translated to a profitable quarter with adjusted operating income totaling $11 million. We also achieved positive adjusted operating income for the full year also at $11 million. This is notable after two consecutive years of losses on the bottom line and is another very tangible demonstration of our turnaround taking routes.

現在來看看我們第四季的最終業績，超過 57% 的強勁毛利率和出色的費用控制轉化為一個盈利的季度，調整後的營業收入總計 1100 萬美元。我們全年的調整後營業收入也為正，達到 1,100 萬美元。在連續兩年虧損之後，這成績特別顯著，也再次切實證明了我們扭虧為盈的決心。

Turning to the balance sheet. We ended the year with $96 million in cash and cash equivalents, $67 million of availability under our asset-based revolver and no utilization of our ATM program. Year-end inventory totaled $152 million, down 15% from last year, consistent with sales and in line with our expectations. It's worth noting that we have brought inventory levels down by more than $200 million over the last 3 years. The reduction in inventory, particularly in the last year, has not only seen us become more appropriately balanced in terms of weeks of supply and turns, but as importantly, it occurred as we rebalanced our overall inventory position to include far more full margin products.

接下來看一下資產負債表。年底我們擁有 9,600 萬美元現金及現金等價物，資產抵押循環信貸額度下可用資金為 6,700 萬美元，且未使用 ATM 服務。年末庫存總額為 1.52 億美元，比去年下降 15%，與銷售額一致，符合我們的預期。值得注意的是，在過去的三年裡，我們已經將庫存水準降低了超過 2 億美元。庫存的減少，尤其是在過去一年中，不僅使我們在供應週數和周轉率方面更加平衡，而且更重要的是，這是因為我們重新調整了整體庫存狀況，納入了更多全利潤產品。

Strengthening the balance sheet was a key pillar under the first phase of our turnaround, and we delivered on that in spades. We are pleased to have entered 2026 in a healthy position with the right combination of liquidity and debt maturity horizon.

強化資產負債表是我們扭虧為盈第一階段的關鍵支柱，而我們在這方面做得非常好。我們很高興以良好的財務狀況進入 2026 年，擁有充足的流動性和合理的債務到期期限。

Now let's take a look at our outlook for 2026 and beyond. We are incredibly proud of the work our teams are doing and believe we're poised for another year of strong execution as we embark on the next evolution of our turnaround plan that Franco just laid out. Provided there is no significant disruption in the macroeconomic environment, we expect our turnaround pillars to deliver the following outcomes for full year 2026. Worldwide net sales of $945 million to $965 million including approximately $21 million of the impact related to retail store closures. That's down 4% to 6% and represents a significant improvement in the rate of decline versus last year.

現在讓我們來看看2026年及以後的展望。我們為團隊的工作感到無比自豪，並相信我們已經做好準備，在弗朗哥剛剛制定的扭虧為盈計劃的下一階段繼續保持強勁的執行力。只要宏觀經濟環境沒有重大變化，我們預計我們的轉型支柱將在 2026 年全年實現以下成果。全球淨銷售額為 9.45 億美元至 9.65 億美元，其中包括零售店關閉造成的約 2,100 萬美元損失。這一數字下降了 4% 至 6%，與去年相比，下降速度有了顯著改善。

For added context, the impact of store closures and the extra week in 2025 is worth about 360 basis points. And it's worth reiterating the point that Franco made a few minutes ago. Based on the guidance we're providing today, we now see 2026 as the sales low points under our turnaround. One year earlier than previously planned and materially higher than the approximately $800 million in revenue we indicated for 2027, 1 year ago.

為了提供更多背景信息，商店關閉和 2025 年額外一周的影響價值約為 360 個基點。值得重申的是弗蘭科幾分鐘前提出的觀點。根據我們今天提供的指導意見，我們認為 2026 年將是公司扭虧為盈過程中的銷售低潮期。比原計劃提前一年，並且比我們一年前預測的 2027 年約 8 億美元的收入大幅提高。

As we look at the cadence of the year, we anticipate that 2026 will be second half weighted with year-over-year declines slowing through the year and an expected return to top line growth in the fourth quarter. This is in line with seasonal trends but more importantly, reflects the compounding benefits of our turnaround initiatives. This includes the lapping of last year's store closures and selected further closures this year, the sunsetting of some noncore small licensed brands and our watchstation.com website and the comping of last year's inventory reset as we shifted our focus to full-price selling.

從全年的節奏來看，我們預計 2026 年下半年將是成長的高峰期，年減的趨勢將在全年放緩，預計第四季將恢復營收成長。這符合季節性趨勢，但更重要的是，它反映了我們扭虧為盈措施帶來的累積效益。這包括彌補去年關閉的門市以及今年部分門市的關閉，停止銷售一些非核心的小型授權品牌和我們的 watchstation.com 網站，以及彌補去年庫存的調整，因為我們將重點轉向了全價銷售。

Importantly, we anticipate that gross margins will remain healthy in the mid- to upper 50s. Further, we expect that the intra-quarter volatility we've experienced particularly in Q3 of previous years, should be largely abated with the benefit of our minimum guaranteed royalty relief. Additionally, expense control is expected to drive another year of meaningful SG&A reduction and enable us to achieve SG&A leverage.

重要的是，我們預計毛利率將保持在 50% 到 50% 的健康水準。此外，我們預計，在最低保證特許權使用費減免的優惠下，我們以往在第三季經歷的季度內波動應該會大大緩解。此外，預計費用控制將推動銷售、一般及行政費用在未來一年內持續大幅降低，並使我們能夠實現銷售、一般及行政費用槓桿效應。

While we will be investing in marketing to support the robust pipeline of innovation that Franco spoke about, total marketing dollars are expected to be down slightly versus 2025. We are positioned to achieve improved profitability in 2026 and expect adjusted operating margins to be in the range of 3% to 5% on a full year basis.

雖然我們將投資行銷以支持弗蘭科所說的強大的創新管道，但預計行銷總支出將比 2025 年略有下降。我們預計在 2026 年實現盈利能力的提升，預計全年調整後的營業利潤率將在 3% 至 5% 之間。

Additionally, our focus on improving cash conversion is expected to result in breakeven free cash flow as we drive the business to be cash generating in 2027 and beyond. With innovative product offerings, favorable watch industry dynamics and talented teams, we are looking forward to building upon the foundation and track record we established in year 1 of our turnaround. To that end, we are rolling forward our previously communicated 3-year outlook by 1 year.

此外，我們專注於提高現金轉換率，預計這將使我們在 2027 年及以後實現收支平衡的自由現金流，並推動業務實現現金流的產生。憑藉著創新的產品、有利的鐘錶行業動態和優秀的團隊，我們期待在扭虧為盈第一年所建立的基礎和業績基礎上再創佳績。為此，我們將先前公佈的三年展望向前推移一年。

In 2028, we expect our turnaround plan to be driving mid-single-digit sales growth, high single-digit adjusted operating margins and positive free cash flow. Looking further ahead, we believe our brand-led, consumer-focused, an increasingly optimized operating model will deliver benefits well into the future.

預計到 2028 年，我們的轉虧為盈計畫將推動銷售額實現中個位數成長，調整後營業利潤率達到較高個位數，並帶來正的自由現金流。展望未來，我們相信，我們以品牌為主導、以消費者為中心、不斷優化的營運模式將在未來很長一段時間內帶來好處。

Now I'll ask the operator to open the call to Q&A.

現在我請接線生開啟問答環節。

(Operator Instructions)

（操作說明）

Tom Forte, Maxim Group Tom.

Tom Forte，Maxim Group Tom。

Franco and Randy, congrats on the strong quarter and year. I have three questions. I'll go one at a time. I apologize to the extent that you may have commented on these during the prepared remarks.

Franco 和 Randy，恭喜你們本季和全年業績出色。我有三個問題。我會一個一個來。如果您在事先準備好的發言中就這些問題發表了評論，我深表歉意。

Question number one, what were the drivers of gross margin in the quarter? And what gives you confidence the improvements are sustainable?

第一個問題，本季毛利率的驅動因素是什麼？你憑什麼確信這些改進是可持續的？

Tom, first of all, this is Franco. Thank you. We're excited. Look, we made significant progress. I think you remember, we always said that the quarter four last year was the beginning of the new strategy towards the end of the quarter four.

湯姆，首先，這位是弗蘭科。謝謝。我們很興奮。你看，我們取得了顯著進展。我想你還記得，我們​​一直說去年第四季是新策略的開始，新策略將在第四季末實施。

We wanted to build a smaller company, more profitable. We wanted to change the model from very promotional into a full price selling model, and we're continuing with this strategy. We're very excited. I'm thankful to the work the teams have done globally to drive that strategy, and that strategy is paying very much shareholder value.

我們想打造一家規模更小、獲利能力更強的公司。我們希望將促銷模式轉變為全價銷售模式，我們將繼續推行這項策略。我們非常興奮。我感謝全球各團隊為推動這項策略所做的工作，而這項策略也為股東創造了巨大的價值。

Not only we've seen a better gross margin with our DTC, but we've seen incredible AUR increases across the marketplace as we become less promotional to the marketplace. We're excited. We're a product and marketing company. We've built great relationship with our partners. And I've seen -- I've just got back from the trade show, as I mentioned in my earlier remarks, and there is a great momentum we've seen customers that we haven't done business for years they are coming back to us now because we're leading by example.

我們不僅在 DTC 方面獲得了更高的毛利率，而且隨著我們減少對市場的推廣，整個市場的平均用戶訪問量也出現了驚人的增長。我們很興奮。我們是一家產品和行銷公司。我們與合作夥伴建立了良好的關係。正如我之前提到的，我剛從貿易展回來，我看到了強勁的成長勢頭，一些多年未與我們合作的客戶現在又回來了，因為我們以身作則。

So very, very encouraged. Randy?

真是太鼓舞人心了。蘭迪？

Tom, wonderful to hear from you. The only thing that I'd add is, while Frank likes to say, 2025 is in the past, and we're now living in 2026. If you look at 2025, our gross margin performance was actually quite sustainable and consistent other than the dip that we took in the third quarter, which as we've spoken about, was related to royalty shortfalls as we've successfully renegotiated our minimum guarantees for 2026. That third quarter digit shouldn't be in place, and you should see that continued sustained performance. So really the path is a very positive indication and we've already locked in the improvement that we were seeking for '26.

湯姆，很高興收到你的來信。我唯一要補充的是，雖然弗蘭克喜歡說，2025 年已經過去了，我們現在生活在 2026 年。展望 2025 年，除了第三季的下滑之外，我們的毛利率表現實際上相當可持續且穩定。正如我們之前所說，第三季的下滑與特許權使用費的不足有關，因為我們已成功重新協商了 2026 年的最低保證金。第三個季度的數字不應該出現，你應該會看到這種持續穩定的業績。所以，這條道路確實是一個非常積極的信號，我們已經實現了我們為 2026 年所尋求的改進。

All right. Wonderful. And I appreciate both of you answering all my questions. Right, so question number two. So it looks like you're guiding to an inflection point in sales and a return to growth in the fourth quarter of '26. What gives you confidence you'll be able to achieve that goal?

好的。精彩的。感謝二位回答我的所有問題。好的，那麼第二個問題。所以看來你們正在引導銷售額在 2026 年第四季迎來拐點並恢復成長。是什麼讓你有信心實現這個目標？

Yes. Look, the last 18 months has been a transformation of the company. We're in the middle of the journey. We see the light out of the tunnel, a smaller company returning to grow and we're excited about the opportunities.

是的。你看，過去18個月對公司來說是一個改變的時期。我們正處於旅程的中途。我們看到了隧道盡頭的曙光，一家規模較小的公司正在重回成長軌道，我們對未來的機會感到興奮不已。

I keep saying I'm excited about what we've done about the history, I'm excited about what we are delivering to the market now in terms of innovation. But I guarantee you we are more excited about what's coming next. Product pipeline takes 18 months to get there. We're so excited about the opportunities. We think as we are driving a smaller DTC, we've seen a very good return from our wholesale channel beyond our expectation in 2025.

我一直說，我對我們在歷史方面所做的工作感到興奮，我對我們現在在創新方面為市場帶來的成果感到興奮。但我可以向你保證，我們對接下來要發生的事情更加興奮。產品研發週期需18個月才能完成。我們對這些機會感到非常興奮。我們認為，隨著我們推進規模較小的直接面向消費者 (DTC) 模式，我們在 2025 年從批發管道獲得了超出預期的豐厚回報。

Consumer very resilient. They love our portfolio of brands. Customers have a long-term relationship with the company. We are driving the company to get back into growth because the company has an incredible asset and incredible brands.

消費者適應能力很強。他們非常喜歡我們旗下的品牌組合。客戶與公司建立了長期合作關係。我們正在努力推動公司重回成長軌道，因為公司擁有巨大的資產和卓越的品牌。

All right. Excellent. All right. So third and final question for me. It seems like you've already made a number of adjustments to manage expenses. In the next evolution of your turnaround plan, you talked about further improving the cost structure. What more can you do that you've not already done?

好的。出色的。好的。我的第三個也是最後一個問題。看來你已經做了一些調整來控制開支。在你的下一階段轉虧為盈計畫中，你談到了進一步改善成本結構。你還能做些什麼而沒有做過的事？

Yes, it's a great question. Let me take the lead and then I'll let Randy jump in and he is driving that. Look, as an organization, we are really driving this continuous improvement that we're really anchoring into the discipline of managing the company. We will constantly evaluate what we do and constantly finding a better way to do that.

是的，這是一個很好的問題。讓我先開，然後讓蘭迪接手，由他來開。你看，作為一個組織，我們正在大力推動持續改進，並將這種改進真正融入公司管理的各個層面。我們將不斷評估我們的工作，並不斷尋找更好的方法。

It's all about the innovation, the way we bring the product to market, the focus into driving the business. And we're so pleased because, honestly, since we refinanced the business in November, this is a different company. Everything we do is about talking about how we go and we become more efficient.

一切都關乎創新，關乎我們如何將產品推向市場，關乎我們如何專注於推動業務發展。我們非常高興，因為說實話，自從我們在 11 月對公司進行再融資以來，這已經是一家截然不同的公司了。我們所做的一切都是為了討論我們如何前進，從而提高效率。

We're very, very pleased. I think there are plenty of opportunities still there. We'll look into store performances, market performances, channel performances. This is really part of what we want to drive that accountability and focus into driving shareholder value.

我們非常非常滿意。我認為那裡仍然有很多機會。我們將考察門市業績、市場業績和通路業績。這正是我們希望推動問責制和將重點放在提升股東價值上的原因之一。

So a few things that I'd like to add, if I could. If you think about the work that we've done to manage expenses, it's been very broad, and we're quite proud of the breadth and depth of where we've made adjustments to our business. One of the things that is important as we look into the future is the continued optimization of the business.

如果可以的話，我還想補充幾點。想想我們為控制開支所做的工作，就會發現涉及面非常廣，我們對業務調整的廣度和深度感到非常自豪。展望未來，重要的一點是不斷優化業務。

And if you think about ways that, that may play out, we have lots of opportunity as it relates to the simplification of our technology stack, places in which we can leverage automation or AI. And then as you move forward into the more medium-term horizon of our turnaround, that's when we start to play a little bit of offense as well, and we get the benefit of sales leverage as we return to growth.

如果你思考這可能會如何發展，我們會發現我們在簡化技術堆疊方面有很多機會，我們可以利用自動化或人工智慧。然後，隨著我們轉型進入中期階段，我們也會開始採取一些進攻策略，並在恢復成長的過程中獲得銷售槓桿的好處。

Owen Rickert, Northland Capital Markets.

歐文‧里克特，北地資本市場。

Congrats on a great quarter and outlook. It's pretty solid here. I have about four questions for you. I guess, firstly, deepening consumer engagement is cited as a key growth driver going forward. Can you guys just maybe elaborate on what that means tactically? Is that sounds like more marketing spend or first half of the year? And I guess, how are you measuring engagement improvement?

恭喜你們取得了出色的季度業績和良好的前景。這裡相當穩固。我大概有四個問題想問你。首先，我認為，加深消費者參與度是未來成長的關鍵驅動力。你們能不能詳細解釋一下這在戰術上意味著什麼？這聽起來像是上半年的行銷支出增加嗎？那麼，你們是如何衡量用戶參與度提升的呢？

Yes, Owen, thanks again. Look, we're excited. We're a product and marketing company. Part of the strategy and the turnaround plan was to refocus the company into the fundamentals. When I joined the company when we assembled a world-class management team, we clearly said product takes time.

是的，歐文，再次感謝你。瞧，我們很興奮。我們是一家產品和行銷公司。策略和扭虧為盈計畫的一部分是將公司重新聚焦於基本面。當我加入公司時，我們組建了一支世界一流的管理團隊，我們明確表示，產品需要時間。

And we saw some of that coming through fall '25. Really spring '26 is very exciting. You've seen we launched Big Tic with Fossil, this incredible success, and we're just at the beginning. So we think innovation, product and the way we bring storytelling to the market will be the key differentiator. Think about the animation we just launched with the Big Tic.

我們在 2025 年秋季就看到了其中一些跡象。2026年春季真是令人興奮。你們已經看到我們與 Fossil 合作推出的 Big Tic 取得了巨大的成功，而這只是個開始。因此，我們認為創新、產品以及我們將故事帶入市場的方式將是關鍵的差異化因素。想想我們剛剛和 Big Tic 一起推出的動畫。

And this is to us is just the beginning. When I think about our core licensed brands, which is really the second pillar of driving returning to growth. Think about Michael Kors, Armani, Diesel, those are world-class brands that consumers are shopping every day. We see good momentum. We're investing in jewelry. We're investing in traditional watches. We see great momentum there.

對我們而言，這只是個開始。當我想到我們的核心授權品牌時，這實際上是推動恢復成長的第二個支柱。想想邁克爾·科爾斯、阿瑪尼、迪賽，這些都是世界級品牌，消費者每天都在購買它們。我們看到良好的發展勢頭。我們正在投資珠寶。我們正在投資傳統手錶。我們看到這方面發展勢頭強勁。

And the third pillar, we're really probably to some extent, proud is really our India market that has been overperforming the company. India is the fourth largest economy in the world and it's been one of the fastest growing in the last few years. It is an industry that is growing. We are very well positioned there. We're seeing strong growth, and we think that market will continue to grow for us.

而我們真正引以為傲的第三個支柱，或許在某種程度上，是我們的印度市場，它的表現一直超出了公司預期。印度是世界第四大經濟體，也是近年來經濟成長最快的國家之一。這是一個正在蓬勃發展的行業。我們在那裡佔據了非常有利的位置。我們看到了強勁的成長勢頭，我們認為這個市場將繼續為我們帶來成長。

So very excited. It's early days. Look, we're here for the long run. We think that the opportunities as we get back the company into the fundamentals, we think the opportunity is there, and we are really focused into driving these performances going forward. Randy?

太激動了！現在下結論還為時過早。瞧，我們是著眼長遠的。我們認為，隨著公司重回正軌，機會也隨之而來，我們將全力以赴推動公司未來的業績成長。蘭迪？

The only thing that I would add is, Owen, you suggested in your question that we'd be spending more marketing. Our anticipation is actually that we'll be spending slightly less marketing in 2026. We'll certainly be spending the marketing dollars that we do spend better. We'll be more optimized in terms of the way we deploy our funds, smarter media mix modeling, smarter use of ambassadors. We've got a robust pipeline of initiatives that we've got that we expect to really drive efficiency as we work through this year and into the next.

我唯一要補充的是，歐文，你在問題中提到我們會增加行銷方面的投入。我們預計到 2026 年，我們的行銷支出實際上會略有減少。我們一定會更有效地利用現有的行銷預算。我們將更優化資金部署方式、更聰明的媒體組合模型以及更聰明地利用品牌大使。我們有一系列強而有力的措施正在籌備中，我們預計這些措施將在今年及明年真正提高效率。

Got it. Next for me, you mentioned those three pillars of the next evolution, profitable growth, optimizing the operating model and building that shareholder value. I guess, how do you think about sequencing those? Is profitable growth, the prerequisite for everything else? Are these three pillars running in parallel?

知道了。接下來，您提到了下一階段發展的三個支柱：獲利成長、優化營運模式和提升股東價值。我想問的是，您是如何考慮這些順序的？獲利成長是其他一切的前提條件嗎？這三者是並行發展的嗎？

Look, let me take this, and then I'll leave Randy to dig and give you more visibility. Look, we always said that returning the company to growth is a priority. We think the reason why we've done everything we've done so far is because we believe the company has an opportunity to return to growth. We also see the industry coming back, which is very encouraging and very pleasing to see younger generation coming back into the traditional watches. All of this is very exciting.

聽著，讓我來拿這個，然後我讓蘭迪繼續挖掘，這樣你就能看得更清楚了。我們一直都說，讓公司重回成長軌道是首要任務。我們認為，我們迄今為止所做的一切，是因為我們相信公司有機會重回成長軌道。我們也看到這個行業正在復甦，這非常令人鼓舞，看到年輕一代重新喜愛傳統腕錶也令人非常高興。這一切都令人非常興奮。

The last -- the first 18 months for me with the company have been simply fantastic. They've been exciting. And I look at every day at all the opportunities, and I think, we're doing the right work to focus on what matters, which is really profitable sales. And once we are really driving this and we see our DTC stabilizing because we're less promotional, and we continue to invest in our wholesale channel, there is no reason why the company shouldn't grow given the strong asset we have here.

我加入公司的前18個月簡直棒極了。它們令人興奮。我每天都會審視所有的機會，我認為，我們正在做正確的工作，專注於真正重要的事情，那就是實現真正盈利的銷售。一旦我們真正開始推進這項業務，並且看到我們的 DTC 業務因為促銷活動減少而趨於穩定，同時我們繼續投資於批發渠道，鑑於我們擁有的強大資產，公司沒有理由不發展壯大。

Owen, I don't necessarily view them as sequential, there really should be a flywheel effect. If you think about the third pillar, building shareholder value, that should be borne through an improvement in profitability, our ability to grow and then strategically invest for growth and, of course, to generate cash, all borne through efficiencies in the operating model, growing of the top line. So much less about sequencing, more about getting all of these three to fuel each other.

歐文，我並不認為它們是順序發生的，實際上應該存在飛輪效應。如果你考慮第三個支柱，即創造股東價值，那麼這應該透過提高獲利能力來實現，即我們成長的能力，然後進行策略性成長投資，當然還有創造現金流，所有這些都透過提高營運模式的效率和增加收入來實現。與其說是順序問題，不如說是讓這三者互相促進的問題。

Got it. Got it. Super helpful, guys. And then we're seeing strong -- some pretty nice tailwinds with consumer adoption. I guess as you think about the consumer you're trying to target, has your view of that target consumer for, I guess, the Fossil brand and license brands evolve through this transformation process or this turnaround process at all?

知道了。知道了。太有幫助了，夥計們。然後我們看到，消費者接受度方面出現了一些強勁的利多因素。我想，當你思考你想要瞄準的消費者群體時，你對 Fossil 品牌及其授權品牌的目標消費者的看法，是否在這個轉型過程或變革過程中有所演變？

Thanks for the question. This is probably the most impressive I've ever seen in my career is the resilience of our consumer. Literally, we moved from a model that was highly dependent on promotional sales into a highly dependent full price model, and we have seen no slowdown. We've seen consumer coming back, buying our products. We've seen -- we lost some consumer in our Fossil brand.

謝謝你的提問。這可能是我職業生涯中見過的最令人印象深刻的事情，那就是我們消費者的韌性。從字面上講，我們從高度依賴促銷銷售的模式轉向了高度依賴全價銷售的模式，而且我們沒有看到任何放緩的跡象。我們看到消費者又回來購買我們的產品了。我們發現，我們的 Fossil 品牌流失了一些消費者。

And to be honest, I'm not even sure we wanted that because we were looking for deals. And we got back some of the consumer we lost because we were very promotional. And there's only one way of defining that is the resilience of our brand. So we're very pleased with this.

說實話，我什至不確定我們是否想要那樣，因為我們當時只是想找些優惠。我們透過大力促銷活動挽回了一些流失的客戶。而定義這一點的唯一方法就是我們品牌的韌性。我們對此非常滿意。

So thanks for asking the question because every time we discuss internally, that is probably the biggest and best surprise we had. I would have thought we would have impacted more, but it didn't happen. The consumer were back and they were like, we love what you guys are doing for Fossil. And the Big Tic response is just a phenomenal as we are capturing not only the nostalgic consumer that's seen the Big Tic from the '90s, but we're catching this new generation that are -- want a real brand.

所以，謝謝你提出這個問題，因為每次我們內部討論時，這大概都是我們遇到的最大、最好的驚喜。我以為我們會產生更大的影響，但事實並非如此。消費者們又回來了，他們說：“我們非常喜歡你們為 Fossil 所做的一切。”Big Tic 的反應非常熱烈，我們不僅吸引了 90 年代就見過 Big Tic 的懷舊消費者，還吸引了想要一個真正品牌的新一代消費者。

So very exciting. Thanks for asking.

太令人興奮了。謝謝你的提問。

Great. Great. And then last for me, guys. When you talk to your wholesale partners today versus, let's say, a year ago, how has that conversation been evolving? Are they leaning in more, asking for more products, more marketing support? What's the qualitative deal of those relationships right now?

偉大的。偉大的。最後，各位。如今你與批發合作夥伴的對話與一年前相比，發生了哪些變化？他們是否更積極主動，要求更多產品和更多行銷支援？這些關係目前的實質內容是什麼？

It's a great question. Look, we're on the phone with them, obviously, weekly. Some of them, we have decades of relationship. They're impressed for the speed of change driven with the company. They love the consistency.

這是一個很好的問題。你看，我們每週都會和他們通電話。我們和其中一些已經認識幾十年了。他們對公司變革的速度印象深刻。他們喜歡這種穩定性。

And I recall, I think I said that in the previous call, the first time I met with them in, I think it was October, November '24, they said, we love your story, but we heard the story before. When I met again them in Q1 '25, they said, well, you've been consistent, keep going this way. And now they recognize we're walking the talk. and they love it.

我記得，我想我在上一次通話中說過，我第一次和他們見面是在 2024 年 10 月或 11 月，他們說，我們很喜歡你的故事，但我們以前聽過這個故事。2025 年第一季我再次見到他們時，他們說，嗯，你一直都很穩定，繼續這樣下去。現在他們意識到我們言行一致，他們很喜歡這樣。

And to be honest, the results are paying. So they're seeing more sales for our brands. They're seeing more margin because they're less promotional. And suddenly from being probably, I would say, not very inspiring, we went to lead by example, and we have a great relationship.

說實話，結果令人滿意。所以他們看到我們品牌的銷售量增加了。由於促銷活動減少，他們的利潤空間反而更大。突然之間，我們從一個可能不太鼓舞人心的人，轉變為以身作則的人，我們建立了良好的關係。

I was in Munich in Germany for the trade show, jewelry and watch trade show. And literally, a year ago, they were happy we were back. But this year was really surprising the welcoming and we literally had a customer that haven't done business with us for years that are back and wanted to grow with the Fossil Group.

我當時在德國慕尼黑參加珠寶和手錶貿易展。事實上，就在一年前，他們還很高興我們回來了。但今年真的出乎意料地受到了熱烈歡迎，我們甚至有一位多年未與我們開展業務的客戶重新回到我們這裡，並希望與 Fossil 集團共同發展。

This company has got a great reputation and it was one of the reasons I thought this company had an opportunity to have a much stronger future. And I think the first indication from our partner are very encouraging.

這家公司享有很高的聲譽，這也是我認為這家公司有機會擁有更強大未來的原因之一。我認為我們合作夥伴給予的初步回饋非常令人鼓舞。

That concludes our question-and-answer session. I will now turn the call back over to Franco for any closing remarks. Franco?

我們的問答環節到此結束。現在我將把電話轉回給佛朗哥，請他作總結發言。弗朗哥？

Thank you, everyone, for listening in today's call. We're excited about where we're headed and look forward to talking with you after the Q1 results.

感謝各位收聽今天的電話會議。我們為未來的發展方向感到興奮，並期待在第一季業績公佈後與您交流。

That concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連線了。