Fossil Group swings to $11.7M profit in Q3 2026
Fossil Group ended the quarter with 174 stores, compared with 204 on October 4, 2025.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Fossil Group, Inc. reported third-quarter fiscal 2026 net sales of $271.2 million, up 0.4% reported and 2.0% in constant currency from $270.2 million a year earlier. Gross margin rose to 59.8% from 49.0%, while operating income was $25.3 million versus an operating loss of $21.7 million.
Net income attributable to Fossil Group was $11.7 million, compared with a $39.9 million loss; adjusted EBITDA was $36.7 million, versus a $15.0 million loss. Interest expense increased to $8.9 million from $4.2 million. Direct-to-consumer sales declined 5.9% and wholesale sales rose 4.4%, both in constant currency. Asia sales increased 15.1% and Europe sales decreased 5.6%, both in constant currency.
The company raised its 2026 outlook to worldwide net sales of $980 million to $990 million and adjusted operating margin of 5.5% to 6.5%, excluding foreign-currency effects; it also projects positive free cash flow. As of October 3, 2026, liquidity was $111.7 million and total debt was $208.0 million. Inventories totaled $189.2 million, up 13.4% from a year earlier.
1 point · 0 major0 major · 1 point
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointNet income reached $11.7 million, versus a $39.9 million loss year over year.
Negative
- Moderate pointDirect-to-consumer sales declined 5.9% in constant currency in the third quarter.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Net sales: $271.2 million
Gross margin: 59.8%
Operating income: $25.3 million
+5 more
8 metrics
Net sales
$271.2 million
Fiscal third quarter 2026; up 0.4% reported and 2.0% in constant currency year over year
Gross margin
59.8%
Fiscal third quarter 2026; compared with 49.0% in fiscal third quarter 2025
Operating income
$25.3 million
Fiscal third quarter 2026; compared with an operating loss of $21.7 million in fiscal third quarter 2025
Net income attributable to Fossil Group, Inc.
$11.7 million
Fiscal third quarter 2026; compared with a $39.9 million loss in fiscal third quarter 2025
Adjusted EBITDA
$36.7 million
Fiscal third quarter 2026; compared with a $15.0 million loss in fiscal third quarter 2025
Direct-to-consumer sales
Decreased 5.9% in constant currency
Fiscal third quarter 2026 compared with the prior-year quarter
Worldwide net sales outlook
$980 million to $990 million
Fiscal 2026 guidance; excludes foreign-currency impacts
Adjusted operating margin outlook
5.5% to 6.5%
Fiscal 2026 guidance; excludes foreign-currency impacts
Key Terms
constant currency, Adjusted EBITDA, asset-based revolving credit facility, free cash flow
4 terms
constant currency financial
"sales in constant currency"
Constant currency is a way of measuring financial results that removes the effects of changes in currency exchange rates. It allows for a clearer comparison of a company's performance over time by showing what the numbers would look like if exchange rates had stayed the same. This helps investors understand whether growth comes from actual business improvements or just currency fluctuations.
Adjusted EBITDA financial
"Adjusted EBITDA was $36.7 million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
asset-based revolving credit facility financial
"availability under its asset-based revolving credit facility"
A loan arrangement where a lender agrees to make funds available up to a set limit that a borrower can draw, repay, and draw again, with the amount available tied to the value of specific assets (like inventory, receivables, or equipment) pledged as collateral. It matters to investors because it provides flexible working capital while limiting risk exposure: the company can fund growth or cover shortfalls quickly, but borrowing capacity can shrink if asset values fall.
free cash flow financial
"Positive free cash flow"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Earnings Snapshot
Net sales: $271.2 million · Guidance included
Third quarter of fiscal 2026 ended October 3, 2026
Net sales
$271.2 million
Up 0.4% on a reported basis and 2.0% in constant currency, compared with $270.2 million in the third quarter of fiscal 2025
Gross margin
59.8%
Up 10.8 percentage points from 49.0% in the third quarter of fiscal 2025
Operating income
$25.3 million
Compared with an operating loss of $21.7 million in the third quarter of fiscal 2025
Net income attributable to Fossil Group, Inc.
$11.7 million
Compared with a net loss of $39.9 million in the third quarter of fiscal 2025
Adjusted EBITDA
$36.7 million
Compared with an adjusted EBITDA loss of $15.0 million in the third quarter of fiscal 2025
Guidance
Worldwide net sales of $980 million to $990 million; adjusted operating margin of 5.5% to 6.5%; positive free cash flow. Worldwide net sales and adjusted operating margin guidance exclude impacts from foreign currency.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were FOSL's third-quarter 2026 sales and earnings?
Fossil Group reported net sales of $271.2 million for the fiscal quarter ended October 3, 2026, up 0.4% reported and 2.0% in constant currency year over year. Net income attributable to Fossil Group was $11.7 million, compared with a $39.9 million loss in the prior-year quarter.
What is FOSL's 2026 financial outlook?
Fossil Group raised its 2026 worldwide net sales outlook to $980 million to $990 million and adjusted operating margin outlook to 5.5% to 6.5%. Both measures exclude foreign-currency impacts. The company also expects positive free cash flow, defined as net cash from operating activities less net cash used in investing activities.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 10, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of | (Commission File Number) | (IRS Employer | ||||||||||||
| incorporation or organization) | Identification No.) | |||||||||||||
| (Address of principal executive offices) | (Zip Code) | ||||||||||
Registrant’s telephone number, including area code: (972 ) 234-2525
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| Title of each class | Ticker Symbol | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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. ☐
Item 2.02 Results of Operations and Financial Condition.
On November 10, 2026, Fossil Group, Inc. (the “Company”) issued a press release announcing financial results for the fiscal quarter ended October 3, 2026. A copy of the press release is attached hereto as Exhibit 99.1.
The information in this Current Report and the accompanying exhibit are being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), and are not incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof, except as shall be expressly set forth by specific reference to this Current Report in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Document Description | |||||||
| 99.1 | Press Release, dated November 10, 2026, announcing financial results for the fiscal quarter ended October 3, 2026. | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: November 10, 2026 | ||||||||
| FOSSIL GROUP, INC. | ||||||||
| By: | /s/ RANDY GREBEN | |||||||
| Randy Greben | ||||||||
| Chief Financial Officer | ||||||||
Exhibit 99.1
FOSSIL GROUP, INC. REPORTS THIRD QUARTER 2026 FINANCIAL RESULTS
Reported worldwide net sales of $271 million increase 0.4%; Constant currency worldwide net sales up 2.0%
Gross margin expands 10.8 percentage points to 59.8%
Third quarter operating income of $25 million and operating margin of 9%; constant currency adjusted operating income of $30 million and constant currency adjusted operating margin of 11%
Raises full year 2026 financial outlook
Richardson, TX, November 10, 2026 (GLOBE NEWSWIRE) - Fossil Group, Inc. (NASDAQ: FOSL) today announced financial results for the fiscal third quarter ended October 3, 2026.
“Our strong third quarter results reflect momentum across brands, channels and geographies and demonstrate that our product innovation and storytelling is connecting with consumers around the globe,” said Franco Fogliato, CEO. “The three strategic pillars under our turnaround plan are translating to top line growth and accelerating profitability. We are pleased that year-to-date results are outpacing our expectations, supporting an increase in our full year financial outlook on both the top and bottom line. Our teams are continuing to deliver strong execution and we believe we are just at the beginning of our long-term growth journey, providing us with confidence in our ability to drive lasting shareholder value.”
Third Quarter 2026 Operating Results
Amounts referred to as “adjusted” as well as “constant currency” are non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to their closest reported GAAP measures are included at the end of this press release.
•Net sales totaled $271.2 million, an increase of 0.4% on a reported basis and 2.0% in constant currency, compared to $270.2 million in the third quarter of fiscal 2025. The sales increase was driven by strong consumer response to our product innovation and storytelling. Our store rationalization initiatives unfavorably impacted sales by approximately 190 basis points in the third quarter. From a regional view in constant currency, Asia net sales increased 15.1% and the Americas increased 0.1%, while Europe decreased 5.6%. Wholesale sales in constant currency increased 4.4%, and our direct to consumer sales decreased 5.9%. Within our direct to consumer channels, which include e-commerce and Fossil retail stores, comparable retail sales increased 0.1%. In our major product categories, traditional watch sales increased 6.4% in constant currency in the third quarter compared to the prior year period. The leathers category decreased 20.5% and jewelry sales declined 10.8%, each in constant currency during the third quarter. From a brand lens, the Fossil brand increased 13.6% in constant currency during the third quarter as compared to the prior year.
•Gross profit totaled $162.3 million compared to $132.4 million in the third quarter of 2025. Gross margin increased 10.8 percentage points to 59.8% versus 49.0% in the third quarter of 2025. The year-over-year increase primarily reflects reduced licensed brand minimum royalties, the accelerated timing of minimum royalty recognition as compared to the prior year and improved product margins in our core categories driven by benefits from our full price selling model, sourcing initiatives and reduced tariffs.
•Operating expenses totaled $137.0 million, a decrease of 11.1% compared to $154.1 million a year ago. As a percentage of net sales, operating expenses were 50.5% in the third quarter of 2026 compared to 57.0% in the prior year third quarter. Operating expenses in the third quarter of 2026 included $2.9 million of restructuring costs, primarily related to professional services and employee costs, while operating expenses in the third quarter of 2025 included $6.8 million of restructuring costs. SG&A expenses were $133.9 million, a decrease of 8.8% compared to the third quarter of 2025. As a percentage of net sales, SG&A expenses were 49.4% in the third quarter of 2026 compared to 54.3% in the prior year third quarter, largely driven by cost reductions and efficiencies gained through our restructuring programs.
•Operating income (loss) was $25.3 million compared to $(21.7) million in the third quarter of 2025. Operating margin was 9.3% in the third quarter of 2026 compared to (8.0)% in the prior year third quarter. Constant currency adjusted operating income totaled $30.2 million compared to adjusted operating loss of $14.4 million in the third quarter of 2025. Constant currency adjusted operating margin was 11.0% in the third quarter of 2026 compared to adjusted operating margin of (5.3)% in the prior year third quarter.
•Interest expense was $8.9 million compared to $4.2 million in the third quarter of 2025 due to increased debt issuance cost amortization, higher debt balances and increased interest rates.
•Other income (expense) was $4.2 million of income compared to $6.2 million of expense in the third quarter of 2025, primarily reflecting net currency gains in the third quarter of 2026 as compared to net currency losses in the prior year third quarter. The prior year third quarter also included a $1.7 million loss on extinguishment of debt.
•Income (loss) before income taxes was $20.6 million compared to $(32.1) million in the third quarter of 2025.
•Adjusted EBITDA was $36.7 million, or 13.5% of net sales in the third quarter of 2026 and $(15.0) million, or (5.6)% of net sales in the prior year quarter.
•Provision (benefit) for income taxes was an expense of $9.2 million, resulting in an effective income tax rate of 44.6% compared to an expense of $8.0 million and an effective tax rate of (24.8)% in the prior year third quarter. The change in effective tax rate was primarily due to the Company generating pre-tax income in the third quarter of 2026 compared to a pre-tax loss in the prior year third quarter, as well as shifts in the global mix of earnings and valuation allowance adjustments.
•Net income (loss) totaled $11.7 million with net income per diluted share of $0.19, which compares to net loss of $39.9 million and net loss per diluted share of $0.76 in the prior year third quarter. Adjusted net income was $14.2 million for the third quarter of 2026 with adjusted net income per diluted share of $0.23 compared to adjusted net loss of $32.8 million with adjusted net loss per diluted share of $0.63 in the prior year third quarter.
Balance Sheet Summary
As of October 3, 2026, the Company had total liquidity of $111.7 million, consisting of $77.0 million of cash and cash equivalents and $34.7 million of availability under its asset-based revolving credit facility ("ABL"). Inventories at the end of the third quarter of 2026 totaled $189.2 million, an increase of 13.4% compared to a year ago, reflecting investments to support our product innovation and demand pipeline. Total debt was $208.0 million.
Financial Outlook
The Company is raising 2026 financial guidance to reflect the strength of year-to-date performance and continuing momentum across the business:
•Worldwide net sales in the range of $980 million to $990 million
•Adjusted operating margin(1) in the range of 5.5% to 6.5%
•Positive free cash flow(2)
Worldwide net sales and adjusted operating margin guidance exclude impacts from foreign currency.
(1) A reconciliation of adjusted operating margin, a non-GAAP financial measure, to a corresponding GAAP measure is not available on a forward-looking basis without unreasonable effort due to the high variability and low visibility of certain income and expense items that are excluded in calculating adjusted operating margin.
(2) Free cash flow is a non-GAAP financial measure, defined as net cash from operating activities less net cash used in investing activities. A corresponding reconciliation of free cash flow to a corresponding GAAP measure is not available on a forward-looking basis without unreasonable effort.
Conference Call Information
Fossil Group will host a conference call to discuss these results at 5:00 p.m. Eastern Time today, November 10, 2026. A live webcast of the conference call will be available on the investor relations section of Fossil Group’s website at https://www.fossilgroup.com/investors and will also be archived for replay.
Safe Harbor
This press release and related statements by our management contain forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). These statements include, without limitation, statements regarding our current assumptions, projections and expectations about our business, financial outlook, turnaround plan and future events. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. Any such forward-looking statements involve risks and uncertainties and are subject to change based on various important factors, many of which may be beyond our control. The inclusion of such information should not be regarded as a representation by the company, or any other person, that the expectations of the company will be achieved. Words such as "estimate,” "project,” "plan,” "goal,” "believe,” "expect,” "anticipate,” "intend,” "should,” "are confident,” "will,” "could,” "outlook,” and similar expressions may identify forward-looking statements. Except as may be required by applicable law, we assume no obligation to publicly update or revise any forward-looking statements, including any financial targets, projections, estimates, or performance outlook, whether as a result of new information, future events, or otherwise. Factors that may cause actual results to differ from those expressed in our forward-looking statements include, but are not limited to, the factors disclosed in Part I, Item 1A. "Risk Factors” of the company’s most recent Annual Report on Form 10-K, and in our subsequent reports and filings with the Securities and Exchange Commission, as well as the following factors: increased political uncertainty; acts of war, military actions or acts of terrorism; the effect of worldwide economic conditions; lower levels of consumer spending resulting from inflation, a general economic downturn or generally
reduced shopping activity caused by public safety or consumer confidence concerns; government regulation and tariffs; risks related to the success of our turnaround plan and goals; significant changes in consumer spending patterns or preferences; interruptions or delays in the supply of key components or products; the termination or non-renewal of significant license agreements; loss or shut down of key facilities; a data security or privacy breach or information systems disruptions; changes in foreign currency valuations in relation to the U.S. dollar; compliance with debt covenants and other contractual provisions and meeting debt service obligations; risks related to the success of our business strategy; impact of any minimum royalty commitments in excess of royalties payable on actual sales; risks related to foreign operations and manufacturing; the effect of any pandemic; changes in the costs of materials and labor; levels of traffic to and management of our retail stores; loss of key personnel or failure to attract and retain key employees and the outcome of current and possible future litigation. Readers of this press release should consider these factors in evaluating, and are cautioned not to place undue reliance on, the forward-looking statements contained herein.
About Fossil Group, Inc.
Fossil Group, Inc. is a global design, marketing, distribution and innovation company specializing in lifestyle accessories. Under a diverse portfolio of owned and licensed brands, our offerings include watches, jewelry, handbags, small leather goods, belts and sunglasses. We are committed to delivering the best in design and innovation across our owned brands, Fossil, Michele, Relic, Skagen and Zodiac, and licensed brands, Armani Exchange, Diesel, Emporio Armani, Michael Kors, Skechers and Tory Burch. We bring each brand story to life through an extensive distribution network across numerous geographies, categories and channels. Certain press release and SEC filing information concerning the Company is also available at www.fossilgroup.com.
| Investor Relations: | Christine DiSanto (Greany) | ||||
| The Blueshirt Group | |||||
| christine@blueshirtgroup.com | |||||
| Media Relations: | Michael McMullan | ||||
| Berns & Co. | |||||
| mmcmullan@bernsandco.com | |||||
Consolidated Income Statement Data | For the 13 Weeks Ended | For the 13 Weeks Ended | For the 39 Weeks Ended | For the 40 Weeks Ended | |||||||||||||||||||
| ($ in millions, except per share data): | October 3, 2026 | October 4, 2025 | October 3, 2026 | October 4, 2025 | |||||||||||||||||||
Net sales | $ | 271.2 | $ | 270.2 | $ | 705.7 | $ | 723.9 | |||||||||||||||
Cost of sales | 108.9 | 137.8 | 277.9 | 321.8 | |||||||||||||||||||
Gross profit | 162.3 | 132.4 | 427.8 | 402.1 | |||||||||||||||||||
Gross margin | 59.8 | % | 49.0 | % | 60.6 | % | 55.6 | % | |||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Selling, general and administrative expenses | 133.9 | 146.8 | 377.9 | 391.6 | |||||||||||||||||||
| Other long-lived asset impairments | 0.2 | 0.5 | 0.9 | 0.6 | |||||||||||||||||||
Restructuring charges | 2.9 | 6.8 | 8.4 | 29.9 | |||||||||||||||||||
Total operating expenses | $ | 137.0 | $ | 154.1 | $ | 387.2 | $ | 422.1 | |||||||||||||||
Total operating expenses (% of net sales) | 50.5 | % | 57.0 | % | 54.9 | % | 58.3 | % | |||||||||||||||
Operating income (loss) | 25.3 | (21.7) | 40.6 | (20.0) | |||||||||||||||||||
Operating margin | 9.3 | % | (8.0) | % | 5.8 | % | (2.8) | % | |||||||||||||||
Interest expense | 8.9 | 4.2 | 25.7 | 13.0 | |||||||||||||||||||
Other income (expense) - net | 4.2 | (6.2) | 3.6 | (9.4) | |||||||||||||||||||
Income (loss) before income taxes | 20.6 | (32.1) | 18.5 | (42.4) | |||||||||||||||||||
| Provision (benefit) for income taxes | 9.2 | 8.0 | 18.3 | 17.6 | |||||||||||||||||||
Less: Net income attributable to noncontrolling interest | (0.3) | (0.2) | — | (0.3) | |||||||||||||||||||
| Net income (loss) attributable to Fossil Group, Inc. | $ | 11.7 | $ | (39.9) | $ | 0.2 | $ | (59.7) | |||||||||||||||
Earnings per share: | |||||||||||||||||||||||
Basic | $ | 0.20 | $ | (0.76) | $ | — | $ | (1.13) | |||||||||||||||
Diluted | $ | 0.19 | $ | (0.76) | $ | — | $ | (1.13) | |||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||||
Basic | 59.1 | 52.4 | 58.9 | 53.1 | |||||||||||||||||||
Diluted | 61.2 | 52.4 | 60.9 | 53.1 | |||||||||||||||||||
Consolidated Balance Sheet Data ($ in millions): | October 3, 2026 | October 4, 2025 | |||||||||
Assets: | |||||||||||
Cash and cash equivalents | $ | 77.0 | $ | 79.2 | |||||||
Accounts receivable - net | 150.0 | 162.5 | |||||||||
Inventories | 189.2 | 166.8 | |||||||||
Other current assets | 67.1 | 62.6 | |||||||||
Total current assets | $ | 483.3 | $ | 471.1 | |||||||
Property, plant and equipment - net | $ | 31.3 | $ | 35.9 | |||||||
Operating lease right-of-use assets | 145.9 | 122.5 | |||||||||
Intangible and other assets - net | 62.9 | 71.5 | |||||||||
Total long-term assets | $ | 240.1 | $ | 229.9 | |||||||
Total assets | $ | 723.4 | $ | 701.0 | |||||||
Liabilities and stockholders’ equity: | |||||||||||
Accounts payable, accrued expenses and other current liabilities | $ | 279.6 | $ | 295.8 | |||||||
Short-term debt | — | 7.0 | |||||||||
Total current liabilities | $ | 279.6 | $ | 302.8 | |||||||
Long-term debt | $ | 208.0 | $ | 169.1 | |||||||
Long-term operating lease liabilities | 134.8 | 108.6 | |||||||||
Other long-term liabilities | 20.3 | 24.4 | |||||||||
Total long-term liabilities | $ | 363.1 | $ | 302.1 | |||||||
Stockholders’ equity | 80.7 | 96.1 | |||||||||
Total liabilities and stockholders’ equity | $ | 723.4 | $ | 701.0 | |||||||
Constant Currency Financial Information
The following table presents the Company’s business segment and product net sales on a constant currency basis which are non-GAAP financial measures. To calculate net sales on a constant currency basis, net sales for the current fiscal year period for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average rates during the comparable period of the prior fiscal year. The Company presents constant currency information to provide investors with a basis to evaluate how its underlying business performed excluding the effects of foreign currency exchange rate fluctuations. The constant currency financial information presented herein should not be considered a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.
| Net Sales For the 13 Weeks Ended | Net Sales For the | ||||||||||||||||||||||||||||||||||||||||||||||
| October 3, 2026 | October 4, 2025 | 39 Weeks Ended October 3, 2026 | 40 Weeks Ended October 4, 2025 | ||||||||||||||||||||||||||||||||||||||||||||
| ($ in millions) | As Reported | Impact of Foreign Currency Exchange Rates | Constant Currency | As Reported | As Reported | Impact of Foreign Currency Exchange Rates | Constant Currency | As Reported | |||||||||||||||||||||||||||||||||||||||
| Segment: | |||||||||||||||||||||||||||||||||||||||||||||||
| Americas | $ | 110.0 | $ | (0.2) | $ | 109.8 | $ | 109.7 | $ | 303.5 | $ | (2.9) | $ | 300.6 | $ | 303.2 | |||||||||||||||||||||||||||||||
| Europe | 85.2 | 0.9 | 86.1 | 91.2 | 212.5 | (5.3) | 207.2 | 235.7 | |||||||||||||||||||||||||||||||||||||||
| Asia | 75.7 | 3.7 | 79.4 | 69.0 | 188.5 | 7.0 | 195.5 | 183.7 | |||||||||||||||||||||||||||||||||||||||
| Corporate | 0.3 | — | 0.3 | 0.3 | 1.2 | — | 1.2 | 1.3 | |||||||||||||||||||||||||||||||||||||||
| Total net sales | $ | 271.2 | $ | 4.4 | $ | 275.6 | $ | 270.2 | $ | 705.7 | $ | (1.2) | $ | 704.5 | $ | 723.9 | |||||||||||||||||||||||||||||||
| Product categories: | |||||||||||||||||||||||||||||||||||||||||||||||
| Watches: | |||||||||||||||||||||||||||||||||||||||||||||||
| Traditional watches | $ | 232.3 | $ | 4.1 | $ | 236.4 | $ | 222.2 | $ | 596.8 | $ | 0.1 | $ | 596.9 | $ | 585.3 | |||||||||||||||||||||||||||||||
| Smartwatches | 0.9 | (0.1) | 0.8 | 3.8 | 4.0 | — | 4.0 | 9.3 | |||||||||||||||||||||||||||||||||||||||
| Total watches | $ | 233.2 | $ | 4.0 | $ | 237.2 | $ | 226.0 | $ | 600.8 | $ | 0.1 | $ | 600.9 | $ | 594.6 | |||||||||||||||||||||||||||||||
| Leathers | 12.0 | — | 12.0 | 15.1 | 34.3 | (0.5) | 33.8 | 49.2 | |||||||||||||||||||||||||||||||||||||||
| Jewelry | 22.0 | 0.4 | 22.4 | 25.1 | 59.4 | (0.7) | 58.7 | 66.7 | |||||||||||||||||||||||||||||||||||||||
| Other | 4.0 | — | 4.0 | 4.0 | 11.2 | (0.1) | 11.1 | 13.4 | |||||||||||||||||||||||||||||||||||||||
| Total net sales | $ | 271.2 | $ | 4.4 | $ | 275.6 | $ | 270.2 | $ | 705.7 | $ | (1.2) | $ | 704.5 | $ | 723.9 | |||||||||||||||||||||||||||||||
Adjusted EBITDA, Adjusted Operating Income (Loss), Constant Currency Adjusted Operating Income (Loss), Adjusted Net Income (Loss) and Adjusted Earnings (Loss) per Share
Adjusted EBITDA, Adjusted operating income (loss), Constant currency adjusted operating income (loss), Adjusted net income (loss) and Adjusted earnings (loss) per share are non-GAAP financial measures. We define Adjusted EBITDA as our income (loss) before the impact of income taxes, plus interest expense, amortization and depreciation, impairment expense, other non-cash charges, stock-based compensation expense, restructuring expense and unamortized debt issuance costs included in loss on extinguishment of debt, minus the gain on sale of our subsidiary, gains on asset divestitures, IEEPA refund claims for tariffs incurred in the prior year and interest income. We define Adjusted operating income (loss) as operating income (loss) before impairment expense, restructuring expense, gains on asset divestitures, IEEPA refund claims for tariffs incurred in the prior year and unamortized debt issuance costs included in loss on extinguishment of debt. We define Constant currency adjusted operating income (loss) as operating income (loss) before impairment expense, restructuring expense, gains on asset divestitures and IEEPA refund claims for tariffs incurred in the prior year and excluding the effects of foreign currency exchange rate fluctuations. We define Adjusted net income (loss) and Adjusted earnings (loss) per share as net income (loss) attributable to Fossil Group, Inc. and diluted earnings (loss) per share, respectively, before impairment expense, restructuring expense, the gain on sale of our subsidiary, gains on asset divestitures, IEEPA refund claims for tariffs incurred in the prior year and unamortized debt issuance costs included in loss on extinguishment of debt. We have included Adjusted EBITDA, Adjusted operating income (loss), Constant currency adjusted operating income (loss), Adjusted net income (loss) and Adjusted earnings (loss) per share herein because they are widely used by investors for valuation and for comparing our financial performance with the performance of our competitors. We also use these non-GAAP financial measures to monitor and compare the financial performance of our operations. Our presentation of Adjusted EBITDA, Adjusted operating income (loss), Constant currency adjusted operating income (loss), Adjusted net income (loss) and Adjusted earnings (loss) per share may not be comparable to similarly titled measures other companies report. Adjusted EBITDA, Adjusted operating income (loss), Constant currency adjusted operating income (loss), Adjusted net income (loss) and Adjusted earnings (loss) per share are not intended to be used as alternatives to any measure of our performance in accordance with GAAP.
The following tables reconcile Adjusted EBITDA to the most directly comparable GAAP financial measure, which is income (loss) before income taxes. Certain line items presented in the tables below, when aggregated, may not foot due to rounding.
| Fiscal 2025 | Fiscal 2026 | ||||||||||||||||||||||||||||||||||
| ($ in millions): | Q4 | Q1 | Q2 | Q3 | Total | ||||||||||||||||||||||||||||||
| Income (loss) before income taxes | $ | (7.3) | $ | 4.8 | $ | (6.9) | $ | 20.6 | $ | 11.2 | |||||||||||||||||||||||||
| Plus: | |||||||||||||||||||||||||||||||||||
| Interest expense | 7.3 | 8.5 | 8.3 | 8.9 | 33.0 | ||||||||||||||||||||||||||||||
| Amortization and depreciation | 3.3 | 1.8 | 3.0 | 2.2 | 10.3 | ||||||||||||||||||||||||||||||
| Other long-lived asset impairments | 1.0 | 0.1 | 0.7 | 0.2 | 2.0 | ||||||||||||||||||||||||||||||
| Other non-cash charges | (0.8) | 0.3 | (0.6) | 0.2 | (0.9) | ||||||||||||||||||||||||||||||
| Stock-based compensation | 0.5 | 0.7 | 1.6 | 1.8 | 4.6 | ||||||||||||||||||||||||||||||
| Restructuring expense | 10.7 | 2.0 | 3.4 | 2.9 | 19.0 | ||||||||||||||||||||||||||||||
| Loss on extinguishment of debt | 1.4 | — | — | — | 1.4 | ||||||||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||||||||
| IEEPA tariff refund claims | — | 3.6 | — | — | 3.6 | ||||||||||||||||||||||||||||||
Gain on sale of subsidiary(1) | — | — | 0.8 | — | 0.8 | ||||||||||||||||||||||||||||||
| Interest income | 0.3 | 0.1 | 0.1 | 0.1 | 0.6 | ||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 15.8 | $ | 14.5 | $ | 8.6 | $ | 36.7 | $ | 75.6 | |||||||||||||||||||||||||
(1) Includes the gain on sale of our South Africa subsidiary
| Fiscal 2024 | Fiscal 2025 | |||||||||||||||||||||||||||||||
| ($ in millions): | Q4 | Q1 | Q2 | Q3 | Total | |||||||||||||||||||||||||||
| Income (loss) before income taxes | $ | (25.2) | $ | (14.5) | $ | 4.1 | $ | (32.1) | $ | (67.7) | ||||||||||||||||||||||
| Plus: | ||||||||||||||||||||||||||||||||
| Interest expense | 4.9 | 4.5 | 4.3 | 4.2 | 17.9 | |||||||||||||||||||||||||||
| Amortization and depreciation | 3.8 | 3.4 | 3.0 | 3.3 | 13.5 | |||||||||||||||||||||||||||
| Other long-lived asset impairments | 0.6 | 0.1 | — | 0.5 | 1.2 | |||||||||||||||||||||||||||
| Other non-cash charges | 3.7 | 0.2 | (0.5) | 0.2 | 3.6 | |||||||||||||||||||||||||||
| Stock-based compensation | 0.7 | 0.6 | 0.6 | 0.6 | 2.5 | |||||||||||||||||||||||||||
| Restructuring expense | 28.2 | 15.8 | 7.3 | 6.8 | 58.1 | |||||||||||||||||||||||||||
| Restructuring cost of sales | 7.5 | — | — | — | 7.5 | |||||||||||||||||||||||||||
| Loss on extinguishment of debt | — | — | — | 1.7 | 1.7 | |||||||||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||||||||
Gains on asset divestitures(1) | — | — | 11.5 | — | 11.5 | |||||||||||||||||||||||||||
| Interest income | 1.1 | 1.0 | 0.3 | 0.2 | 2.6 | |||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 23.1 | $ | 9.1 | $ | 7.0 | $ | (15.0) | $ | 24.2 | ||||||||||||||||||||||
(1) Includes the gains on sale of our European distribution center and equipment from a Swiss manufacturing facility
The following tables reconcile Adjusted operating income (loss), Constant currency adjusted operating income (loss), Adjusted net income (loss) and Adjusted earnings (loss) per share to the most directly comparable GAAP financial measures, which are operating income (loss), net income (loss) attributable to Fossil Group, Inc. and diluted earnings (loss) per share, respectively. Certain line items presented in the tables below, when aggregated, may not foot due to rounding.
| For the 13 Weeks Ended October 3, 2026 | ||||||||||||||||||||
| ($ in millions, except per share data): | As Reported | Other Long-Lived Asset Impairment | Restructuring Expenses | As Adjusted | Impact of Foreign Currency Exchange Rates | As Adjusted Constant Currency | ||||||||||||||
| Operating income (loss) | $25.3 | $0.2 | $2.9 | $28.4 | $1.8 | $30.2 | ||||||||||||||
| Operating margin (% of net sales) | 9.3% | 10.5% | 11.0% | |||||||||||||||||
| Interest expense | (8.9) | — | — | (8.9) | ||||||||||||||||
| Other income (expense) - net | 4.2 | — | — | 4.2 | ||||||||||||||||
| Income (loss) before income taxes | 20.6 | 0.2 | 2.9 | 23.7 | ||||||||||||||||
| Provision (benefit) for income taxes | 9.2 | — | 0.6 | 9.8 | ||||||||||||||||
| Less: Net income attributable to noncontrolling interest | (0.3) | — | — | (0.3) | ||||||||||||||||
| Net income (loss) attributable to Fossil Group, Inc. | $11.7 | $0.2 | $2.3 | $14.2 | ||||||||||||||||
| Diluted earnings (loss) per share | $0.19 | $— | $0.04 | $0.23 | ||||||||||||||||
| For the 13 Weeks Ended October 4, 2025 | |||||||||||||||||
| ($ in millions, except per share data): | As Reported | Other Long-Lived Asset Impairment | Restructuring Expenses | Loss on Extinguishment of Debt | As Adjusted | ||||||||||||
| Operating income (loss) | $(21.7) | $0.5 | $6.8 | $— | $(14.4) | ||||||||||||
| Operating margin (% of net sales) | (8.0)% | (5.3)% | |||||||||||||||
| Interest expense | (4.2) | — | — | — | (4.2) | ||||||||||||
| Other income (expense) - net | (6.2) | — | — | 1.7 | (4.5) | ||||||||||||
| Income (loss) before income taxes | (32.1) | 0.5 | 6.8 | 1.7 | (23.1) | ||||||||||||
| Provision for income taxes | 8.0 | 0.1 | 1.4 | 0.4 | 9.9 | ||||||||||||
| Less: Net income attributable to noncontrolling interest | (0.2) | — | — | — | (0.2) | ||||||||||||
| Net income (loss) attributable to Fossil Group, Inc. | $(39.9) | $0.4 | $5.4 | $1.3 | $(32.8) | ||||||||||||
| Diluted earnings (loss) per share | $(0.76) | $0.01 | $0.10 | $0.02 | $(0.63) | ||||||||||||
| For the 39 Weeks Ended October 3, 2026 | ||||||||||||||||||||||||||
| ($ in millions, except per share data): | As Reported | Other Long-Lived Asset Impairment | Restructuring Expenses | IEEPA Tariff Refund Claims | Gain on Sale of Subsidiary (1) | As Adjusted | Impact of Foreign Currency Exchange Rates | As Adjusted Constant Currency | ||||||||||||||||||
| Operating income (loss) | $40.6 | $0.9 | $8.4 | $(3.6) | $— | $46.3 | $ | 2.0 | $ | 48.3 | ||||||||||||||||
| Operating margin (% of net sales) | 5.8% | 6.6% | 6.9 | % | ||||||||||||||||||||||
| Interest expense | (25.7) | — | — | — | — | (25.7) | ||||||||||||||||||||
| Other income (expense) - net | 3.6 | — | — | — | (0.8) | 2.8 | ||||||||||||||||||||
| Income (loss) before income taxes | 18.5 | 0.9 | 8.4 | (3.6) | (0.8) | 23.4 | ||||||||||||||||||||
| Provision (benefit) for income taxes | 18.3 | 0.2 | 1.8 | (0.8) | (0.2) | 19.3 | ||||||||||||||||||||
| Less: Net income attributable to noncontrolling interest | — | — | — | — | — | — | ||||||||||||||||||||
| Net income (loss) attributable to Fossil Group, Inc. | $0.2 | $0.7 | $6.6 | $(2.8) | $(0.6) | $4.1 | ||||||||||||||||||||
| Diluted earnings (loss) per share | $0.00 | $0.01 | $0.11 | $(0.05) | $(0.01) | $0.06 | ||||||||||||||||||||
(1) Includes the gain on sale of our South Africa subsidiary
| For the 40 Weeks Ended October 4, 2025 | ||||||||||||||||||||
| ($ in millions, except per share data): | As Reported | Other Long-Lived Asset Impairment | Restructuring Expenses | Loss on Extinguishment of Debt | Gains on Asset Divestiture(1) | As Adjusted | ||||||||||||||
| Operating income (loss) | $(19.9) | $ | 0.6 | $ | 29.9 | $ | — | $ | (11.5) | $ | (0.9) | |||||||||
| Operating margin (% of net sales) | (2.8)% | (0.1) | % | |||||||||||||||||
| Interest expense | $ | (13.0) | — | — | $ | — | — | (13.0) | ||||||||||||
| Other income (expense) - net | (9.5) | — | — | 1.7 | — | (7.8) | ||||||||||||||
| Income (loss) before income taxes | (42.4) | 0.6 | 29.9 | 1.7 | (11.5) | (21.7) | ||||||||||||||
| Provision for income taxes | 17.6 | 0.1 | 6.3 | 0.4 | (2.4) | 22.0 | ||||||||||||||
| Less: Net income attributable to noncontrolling interest | (0.3) | — | — | — | — | (0.3) | ||||||||||||||
| Net income (loss) attributable to Fossil Group, Inc. | $(59.7) | $ | 0.5 | $ | 23.6 | $ | 1.3 | $ | (9.1) | $ | (43.4) | |||||||||
| Diluted earnings (loss) per share | $(1.13) | $ | 0.01 | $ | 0.44 | $ | 0.02 | $ | (0.17) | $ | (0.83) | |||||||||
(1) Includes the gain on sale of our European distribution center and equipment from a Swiss manufacturing facility
Store Count Information
| October 4, 2025 | Opened | Closed | Converted to Franchise | October 3, 2026 | |||||||||||||||||||||||||
| Americas | 97 | 0 | 8 | 0 | 89 | ||||||||||||||||||||||||
| Europe | 49 | 0 | 3 | 11 | 35 | ||||||||||||||||||||||||
| Asia | 58 | 4 | 12 | 0 | 50 | ||||||||||||||||||||||||
| Total stores | 204 | 4 | 23 | 11 | 174 | ||||||||||||||||||||||||
END OF RELEASE