GlobeNewswire·Nov 10, 2026, 4:05 PM ET

Fossil Group, Inc. Reports Third Quarter 2026 Financial Results

FOSL

Fossil Group reported worldwide net sales of $271.2 million for the third quarter ended October 3, 2026, representing a 0.4% increase on a reported basis & a 2.0% increase in constant currency.
Gross margin expanded 10.8 percentage points to 59.8%, driven by reduced licensed brand minimum royalties & improved product margins.
Operating income reached $25.3 million with an operating margin of 9.3%, a significant improvement from the $21.7 million operating loss in the prior year period.
Constant currency adjusted operating income totaled $30.2 million with an adjusted operating margin of 11.0%.
Net income was $11.7 million ($0.19 per diluted share), compared to a net loss of $39.9 million ($0.76 per diluted share) in the same period last year.
The company raised its full-year 2026 financial outlook, projecting worldwide net sales between $980 million & $990 million with an adjusted operating margin of 5.5% to 6.5%.
Regional performance in constant currency showed a 15.1% increase in Asia, a 0.1% increase in the Americas, & a 5.6% decrease in Europe.
Traditional watch sales increased 6.4% in constant currency, while the leathers category decreased 20.5% & jewelry sales declined 10.8%.
The Fossil brand specifically saw sales increase 13.6% in constant currency during the quarter.
Operating expenses decreased 11.1% to $137.0 million, including $2.9 million in restructuring costs, compared to $6.8 million in the prior year.
Total liquidity stood at $111.7 million as of October 3, 2026, consisting of $77.0 million in cash & cash equivalents & $34.7 million available under the asset-based revolving credit facility.
Total debt increased to $208.0 million, while inventories rose 13.4% to $189.2 million to support product innovation & demand.
The company reduced its total store count to 174 from 204, closing 23 stores & converting 11 to franchises during the quarter.
Adjusted EBITDA for the quarter was $36.7 million, or 13.5% of net sales, compared to an adjusted loss of $15.0 million in the prior year.

Company: Fossil Group, Inc.
Keywords: Nasdaq:FOSL, Fossil Group, Inc.