American mall retailer warns it may close up to 15 more stores this year

Key Points:

• Fossil Group plans to close up to 15 stores in 2026 as part of its ongoing turnaround strategy focused on cost reduction, profitability, and balance-sheet strength, leaving about 185 stores globally by year-end.
• The company has already closed 28 stores and opened one in the past year, reducing its total from 220 to 193 stores worldwide, with significant closures in fiscal 2025 totaling 49 underperforming stores.
• Fossil reported a decline in first-quarter net sales to $224.8 million from $233.3 million a year earlier but improved its net loss to approximately $810,000 and achieved $12 million in operating income.
• The turnaround plan also includes workforce reductions, shifting smaller international markets to distributor models, and has resulted in about $100 million in cost savings.
• Despite store closures, Fossil is scaling back downsizing due to improved full-price store performance and aims to focus on profitable growth and operating-model improvements, while acknowledging risks related to declining mall traffic and retail center challenges.