Fossil posts first quarterly profit in years and raises 2026 outlook
Fossil Group recorded fiscal Q3 net income of $11.7 million, or 19 cents per share, versus a $39.9 million loss, or 76 cents per share, a year earlier. Net sales increased 0.4% to $271.2 million, marking the first year-over-year sales increase since the first quarter of 2022. The company lifted its 2026 net-sales outlook to $980 million-$990 million and raised its adjusted operating-margin forecast to 5.5%-6.5%.
Why it matters
The higher sales and margin outlook changes Fossil's expected 2026 earnings profile, while management also expects positive reported net income and earnings per share and maintained its expectation for positive free cash flow. Asia and wholesale growth supported the quarter, but Europe and direct-to-consumer sales declined.
Key facts
- 1Reported Q3 operating income was $25.3 million, compared with an operating loss of $21.7 million in the prior-year quarter. finance.biggo.com
- 2Q3 net sales were $271.2 million, up 0.4% year over year. finance.biggo.com
- 3Fossil's 2026 net-sales forecast is $980 million to $990 million, compared with its prior range of $955 million to $975 million. finance.biggo.com
- 4The company raised its adjusted operating-margin forecast to 5.5%-6.5% from 4%-6%. finance.biggo.com
- 5On a constant-currency basis, Asia sales rose 15.1%, wholesale sales increased 4.4%, and direct-to-consumer sales fell 5.9%. finance.biggo.com
- 6Fossil extended its Diesel licensing agreement through 2032. finance.yahoo.com
Open questions
- says Fossil extended its Nick Jonas partnership through 2028, but describe the renewed or expanded partnership without giving that end date.
Summary written by AlphAI AI Desk from 14 of 14 sources. Not investment advice. Figures are as stated by the linked sources.