| Metric | Value ($ M) | Q2 FY25 |
|---|---|---|
| Revenue | 224.76 | 3.7% |
| Total Income | 224.76 | 3.7% |
| Expenditure | 212.71 | 11.4% |
| PBT | 4.76 | 132.9% |
| Net Profit | -0.81 | 95.4% |
| OPM | 5.36% | 8.25pp |
| NPM | -0.36% | 7.17pp |
| EPS | -0.01 | 97.0% |
Fossil Group Reports Q2 2026 Financial Results, Raises Full Year Outlook
13 Aug 2026 · 13 Aug, 1:57 am
Summary
Fossil Group, Inc. reported second quarter 2026 net sales of $209.7 million, a 4.9% decrease year-over-year, primarily driven by direct-to-consumer channels. However, gross margin saw a substantial improvement, expanding 490 basis points to 62.4%. The company posted a net loss of $10.6 million for the quarter. Despite the sales decline, Fossil Group is raising its full year 2026 financial outlook, anticipating a return to top line growth in the fourth quarter and positive free cash flow generation.
Key Highlights
- 1
Second quarter worldwide net sales totaled $209.7 million, a decrease of 4.9% on a reported basis compared to the prior year.
- 2
Gross margin expanded significantly by 490 basis points to 62.4% in the second quarter of 2026.
- 3
Second quarter operating income was $3.2 million, with an operating margin of 1.5%, while constant currency adjusted operating income was $8.6 million with a 4.1% margin.
- 4
The company reported a net loss of $10.6 million, or $0.18 per diluted share, for the second quarter of 2026.
- 5
Inventories at the end of the second quarter of 2026 totaled $177.9 million, approximately flat compared to a year ago.
- 6
Fossil Group is raising its full year 2026 financial outlook, expecting a return to top line growth in the fourth quarter.
Management Comments
Franco Fogliato
We delivered another quarter ahead of our expectations, driven by broad-based strength across our core brands, channels and many of our key geographies. Top line performance, gross margin expansion and disciplined cost management fueled a doubling of constant currency adjusted operating income compared to the second quarter of last year, demonstrating continuing progress under our turnaround plan and the underlying strength of our operating model. Strong business performance in the first half of 2026 and ongoing business momentum are enabling us to confidently raise our full year financial outlook, which is highlighted by an expected return to top line growth in the fourth quarter, improved profitability and positive free cash flow generation. It is clear that our evolution to a brand-led, consumer-focused operating model - combined with healthy watch industry fundamentals - is positioning us to deliver long-term profitable growth and shareholder value.
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