Fossil (FOSL) Q3 2026 earnings

Key Points:

• Fossil Group returned to profitability in its fiscal third quarter, posting $25.3 million in operating income compared to a $21.7 million loss last year, alongside a slight 0.4% increase in net sales to $271.2 million.
• The company reported net income of $11.7 million, or 19 cents per share, reversing a net loss of $39.9 million the previous year, while operating expenses fell 11.1% to $137 million.
• CEO Franco Fogliato highlighted a strategic shift focusing on full-price sales, cost management, store closures, and product diversification as key drivers of the turnaround.
• Fossil raised its full-year net sales guidance to $980 million–$990 million and expects positive free cash flow by year-end, signaling improved financial health despite a slight overall sales decline.
• Growth was notably strong in Asia, particularly India, with traditional analog watches driving sales growth, while smartwatch sales remained minimal, reflecting a renewed focus on Fossil’s core product strengths.