Quarterly ResultMay 13, 2026, 04:08 PM
Fossil Group Q1 Net Sales $224.8M; Operating Income $12M; Net Loss $0.8M
AI Summary
Fossil Group reported first quarter 2026 financial results, with worldwide net sales totaling $224.8 million, a 3.6% decrease on a reported basis. Despite the sales decline, the company significantly improved its profitability, achieving an operating income of $12.0 million compared to a $6.7 million loss in the prior year, and narrowing its net loss to $0.8 million. The CEO highlighted strong execution against the turnaround plan and healthy watch industry trends. The company reiterated its full-year 2026 outlook, expecting a return to top-line growth in the fourth quarter.
Key Highlights
- Net sales totaled $224.8 million, a 3.6% decrease on a reported basis year-over-year.
- Operating income was $12.0 million, a significant improvement from a $6.7 million loss in Q1 2025.
- Net loss narrowed to $0.8 million, or $0.01 per diluted share, from $17.6 million loss in Q1 2025.
- Gross margin decreased 140 basis points to 59.9% from 61.3% in the prior year.
- Americas net sales declined 3% to $95.0 million and Europe declined 14% to $66.1 million in constant currency.
- Inventories decreased 14.3% year-over-year to $156.1 million.
- Reiterated full-year 2026 guidance: net sales decline 4-6%, adjusted operating margin 3-5%, free cash flow break-even.