Fossil on Wednesday announced a strategic review of its current business model and capital structure. This includes efforts to optimize its business model through additional changes to its operations, as well as further structural cost reductions, which are under consideration. The company anticipates this effort will expand on its current TAG Plan and could include additional debt and equity financing options, including monetization of various assets to strengthen its balance sheet. The company has retained Evercore to act as its financial advisor. The company remains on track with its TAG Plan, which was announced in March 2023 and is designed to reduce operating expenses, improve operating margins and advance the company’s commitment to profitable growth. The TAG Plan generated annualized operating income benefits of approximately $125M in 2023 and is expected to generate additional annualized operating income benefits of at least $100M in 2024. Restructuring costs associated with the TAG Plan are estimated to be $35M in fiscal year 2024 compared to $49M in fiscal year 2023.
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