Fossil Group stock soars 9%, raises long-term target

LootboxPhobia · 2026-03-11T23:30:49+00:00

Fossil Group announced a Q4 adjusted earnings of -$0.15 per share, with revenue of $280.5 million, slightly above expectations. The company's stock rose 9% after raising long-term financial targets and announcing a transformation plan. Gross margin improved, and while future sales are expected to decline, they are projected to recover and grow by 2026.

LootboxPhobia

2026-03-11 23:30:49

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Richardson, Texas - Fossil Group, Inc. (NASDAQ:FOSL) announced its fourth quarter adjusted earnings per share of -$0.15, below analysts’ expectations of $0.02, while revenue of $280.5 million slightly exceeded the market consensus of $280 million. The company’s stock surged 9% after the announcement, as it raised its long-term financial targets and revealed the next phase of its transformation plan.

Revenue for the fourth quarter declined 18.1% year-over-year, from $342.3 million in the same period last year to $280.5 million, mainly due to the company’s shift to a full-price sales model and the transfer of some wholesale shipments to the third quarter. Store rationalization initiatives accounted for about four percentage points of the sales decline.

CEO Franco Fogliato stated, “The bold initiatives in our transformation plan announced a year ago have quickly gained traction, enabling us to achieve operational and financial performance above our 2025 expectations. We have more work to do, but we are in a strong position entering 2026 and maintaining momentum.”

Gross margin expanded by 350 basis points, from 53.9% in the same period last year to 57.4%, driven by improved product margins through full-price sales and procurement initiatives. Operating income reached $900,000, compared to a operating loss of $16.3 million in Q4 2024.

For fiscal 2026, Fossil Group expects global net sales to decline 4% to 6%, with a recovery in growth in the fourth quarter. The company projects an adjusted operating profit margin of 3% to 5% and breakeven free cash flow.

The company has raised its long-term targets for 2028, now expecting low to mid-single-digit sales growth, an adjusted operating profit margin in the high single digits, and positive free cash flow.

For fiscal 2025, total net sales are expected to be $1 billion, a 12.3% decrease from the previous year, with gross margin expanding by 390 basis points to 56.1%.

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