Fossil returns to a quarterly profit and sales growth, and raises 2026 guidance
Net sales were $271.2 million, up 0.4%, and net income was $11.7 million, or $0.19 a share. The company raised 2026 sales guidance to $980 million to $990 million.
By Marcus Rodriguez ·
Why it matters: A return to profit and sales growth, with a higher 2026 outlook, is an early test of Fossil's turnaround after years of declining sales.
For information only, not investment advice. Prices delayed.
Tickers: FOSL
Fossil Group reported a net profit and a return to sales growth for the fiscal third quarter ended October 3, 2026.1 Net sales were $271.2 million, up 0.4% from $270.2 million, or 2.0% in constant currency.1 Net income was $11.7 million, or $0.19 per diluted share, compared with a net loss of $39.9 million, or $0.76 a share, a year earlier.1 Operating income was $25.3 million, versus an operating loss of $21.7 million.1 Gross margin increased 10.8 percentage points to 59.8%.1
CNBC said the company last reported a year-over-year sales increase in the first fiscal quarter of 2022 and last posted quarterly net income in the third fiscal quarter of 2022.2
Fossil raised 2026 guidance to net sales of $980 million to $990 million, adjusted operating margin of 5.5% to 6.5%, and positive free cash flow. The sales and adjusted operating-margin ranges exclude foreign-currency impacts.1 CEO Franco Fogliato said year-to-date results are outpacing the company's expectations, supporting the higher outlook.1 CNBC said the prior sales outlook had been a decline of 3% to 5%, and that the new range would mark a slight decline from just over $1 billion last year.2 In an exclusive interview with CNBC, Fogliato said Fossil is improving profitability through disciplined full-price selling and cost management, and had not expected sales growth for another year and a half.2
In constant currency, Asia sales rose 15.1% and traditional watch sales rose 6.4%.1 Direct-to-consumer sales decreased 5.9%, and store rationalization unfavorably affected sales by about 190 basis points.1 Total debt was $208.0 million, with $111.7 million of liquidity, as of October 3, 2026.1
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Tags: earnings · guidance · retail-consumer