RTTNews | Aug 13, 2020 11:08AM EDT

11:07 Thursday, August 13, 2020 (RTTNews.com) - Shares of Fossil Group Inc. (FOSL) are currently gaining over 13% on Thursday morning driven by the watch and fashion accessories maker's quarterly results and outlook.

Fossil Group Wednesday reported a second-quarter loss of $22.5 million or $0.44 per share, wider than last year's loss of $7.3 million or $0.15 per share.

Worldwide net sales dropped 48% to $259.0 million from $501.4 million last year. The year-over-year decline primarily reflects COVID-19 related impacts on a global basis, including retail and wholesale closures, throughout much of the quarter.

"Our second quarter results were impacted by broad-based global store closures due to COVID-19 throughout much of the quarter," stated Kosta Kartsotis, Chairman and CEO.

Nevertheless, during an earnings conference call, Kartsotis said that the company is focusing more on e-commerce than retail, and the pandemic is accelerating that process. On a constant currency basis, sales from the company's owned e-commerce websites increased 138% and third party marketplace e-commerce sales increased 20% compared to prior year.

The company reduced its operating expenses for the second quarter by $86 million or 33%, on a year-over-year basis.

Moving ahead, the company currently anticipates that third quarter worldwide net sales will decline in the range of 35% to 45%. While, Chief Financial Officer Jeff Boyer said the fourth quarter will probably improve to maybe down only 25% to 35%.

FOSL is currently trading at $5.27, up $0.63 or 13.58%, on the Nasdaq.

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