Fossil Group (NASDAQ:FOSL) Announces Earnings Results

by · The Cerbat Gem

Fossil Group (NASDAQ:FOSL – Get Free Report) released its earnings results on Wednesday. The accessories brand company reported ($0.03) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.28) by $0.25, FiscalAI reports. Fossil Group had a negative return on equity of 46.78% and a negative net margin of 7.81%.The business had revenue of $224.80 million for the quarter, compared to analyst estimates of $204.74 million.

Here are the key takeaways from Fossil Group’s conference call:

  • Fossil said Q1 results were ahead of expectations, with net sales of $280 million, gross margin of 59.7%, and positive adjusted operating income of $10 million as the turnaround continues to gain traction.
  • Management highlighted strong wholesale demand, especially for traditional watches, with mid-single-digit wholesale growth and high-single-digit growth in core watch sales in the channel. They said this is being supported by fuller-price selling and stronger partner relationships.
  • The company is seeing encouraging brand momentum from Big Tic and other marketing initiatives, which management said are driving media attention, social engagement, and a halo effect across the Fossil brand. Additional Big Tic activations, plus new Star Wars and Marvel collaborations, are planned for the rest of the year.
  • Fossil reiterated full-year 2026 guidance, still expecting net sales to decline 4%–6%, adjusted operating margin of 3%–5%, and breakeven free cash flow. Management said the outlook remains cautious due to geopolitical and consumer uncertainty, even though Q1 outperformed expectations.
  • The company continues to tighten its operating model, including store closures, IT simplification, and a new distributor transition in South Africa, which should reduce costs. SG&A fell 13% year over year, restructuring costs dropped sharply, and cash used in operations improved by more than 50% versus last year.

Fossil Group Stock Up 3.7%

FOSL traded up $0.15 on Thursday, hitting $4.25. The company had a trading volume of 1,253,106 shares, compared to its average volume of 714,377. The stock has a fifty day moving average price of $4.60 and a 200-day moving average price of $3.82. Fossil Group has a 12-month low of $1.24 and a 12-month high of $5.74. The company has a debt-to-equity ratio of 2.00, a quick ratio of 1.05 and a current ratio of 1.55. The stock has a market capitalization of $251.09 million, a price-to-earnings ratio of -2.91 and a beta of 1.64.

Hedge Funds Weigh In On Fossil Group

Several institutional investors and hedge funds have recently added to or reduced their stakes in FOSL. Goldman Sachs Group Inc. grew its stake in Fossil Group by 43.6% in the first quarter. Goldman Sachs Group Inc. now owns 144,375 shares of the accessories brand company’s stock valued at $166,000 after purchasing an additional 43,849 shares during the last quarter. Jane Street Group LLC grew its stake in Fossil Group by 93.1% in the first quarter. Jane Street Group LLC now owns 42,584 shares of the accessories brand company’s stock valued at $49,000 after purchasing an additional 20,530 shares during the last quarter. Acadian Asset Management LLC grew its stake in Fossil Group by 154.1% in the first quarter. Acadian Asset Management LLC now owns 459,023 shares of the accessories brand company’s stock valued at $527,000 after purchasing an additional 278,391 shares during the last quarter. XTX Topco Ltd acquired a new stake in Fossil Group in the second quarter worth about $122,000. Finally, Nantahala Capital Management LLC boosted its holdings in Fossil Group by 21.5% in the second quarter. Nantahala Capital Management LLC now owns 5,087,803 shares of the accessories brand company’s stock worth $7,530,000 after acquiring an additional 898,626 shares in the last quarter. Hedge funds and other institutional investors own 61.14% of the company’s stock.

Fossil Group News Summary

Here are the key news stories impacting Fossil Group this week:

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on FOSL shares. Zacks Research upgraded Fossil Group to a “hold” rating in a research note on Friday, February 20th. Wall Street Zen lowered Fossil Group from a “hold” rating to a “sell” rating in a research note on Saturday, May 2nd. Weiss Ratings restated a “sell (d-)” rating on shares of Fossil Group in a research note on Tuesday, April 21st. Maxim Group raised their price target on Fossil Group from $5.00 to $7.00 and gave the company a “buy” rating in a research note on Thursday, March 12th. Finally, Northland Securities started coverage on Fossil Group in a research note on Thursday, February 19th. They set an “outperform” rating and a $7.00 price target on the stock. Two research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $7.00.

Check Out Our Latest Report on Fossil Group

Fossil Group Company Profile

(Get Free Report)

Fossil Group, Inc designs, develops, markets and distributes consumer fashion accessories, focusing on lifestyle and wearable technology. The company offers a wide range of products including analog and digital watches, smartwatches, jewelry, handbags, small leather goods and wearable devices. It sells merchandise under its own Fossil brand and via license agreements with international labels such as Michael Kors, Armani Exchange, Burberry, Diesel, DKNY, Kate Spade and Tory Burch. Through its proprietary e-commerce platforms and global retail network, Fossil Group serves markets across North America, Europe, Asia and the Middle East.

The group’s wearable technology segment combines traditional timepieces with features such as fitness tracking, heart-rate monitoring and NFC payments.

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