• Reported GAAP EPS of -$0.01 up 96.97% YoY • Reported revenue of $224.8M down -3.64% YoY • Fossil Group reiterated its full year 2026 guidance for worldwide net sales to decline 4% to 6%, with a return to growth in the fourth quarter, and adjusted operating margin in the range of 3% to 5%.
Bullish
Fossil Group achieved improved operating income and reduced operating expenses through restructuring, while also decreasing inventories. The company saw growth in wholesale sales and certain licensed brands.
Bearish
Fossil Group experienced declining net sales, particularly in smartwatches and direct-to-consumer channels, alongside gross margin compression from tariffs and increased interest expense, impacting overall profitability.