NASDAQ$FOSL

Fossil Group Inc. · Q3 2025 earnings

Q3 2025 earnings · · After market close · Investor relations

Briefing

Fossil Group, Inc. reported a decrease in net sales and an operating loss for the third quarter of fiscal year 2025.

Fossil Group, Inc. announced its third quarter 2025 financial results, reporting worldwide net sales of $270.2 million, a 6.1% decrease from the prior year. The company posted an operating loss of $21.7 million and a net loss of $39.9 million. Despite the sales decline, the company highlighted the completion of its balance sheet transformation, which significantly strengthened its financial position.

  • Worldwide net sales decreased by 6.1% to $270.2 million in Q3 2025, primarily due to direct-to-consumer channels and store rationalization.
  • The company reported an operating loss of $21.7 million, with an operating margin of (8.0)%.
  • Net loss for the quarter was $39.9 million, resulting in a diluted EPS of $(0.76).
  • Fossil Group completed its balance sheet transformation, strengthening its financial position and reiterating full-year 2025 financial guidance.

Headline financials

Total Revenue

$270M

Previous: $288M-6.1%
EPS (adj)

-$0.63

Previous: -$0.60-5.0%
Operating Margin

-8.0%

Previous: -8.5%+5.9%
Inventory

$167M

Previous: $226M-26.3%
SG&A Expenses

$147M

Previous: $161M-8.8%
OpEx % of Net Sales

57.0%

Previous: 57.9%-1.6%
Adjusted EBITDA

-$15M

Previous: -$15.6M+3.8%
Gross Margin

49.0%

Previous: 49.4%-0.8%
Total Operating Expenses

$154M

Previous: $167M-7.6%
Capital Expenditures

-$1.43M

Previous: -$4.72M+69.7%
Net Income

-$39.9M

Previous: -$31.9M-25.0%
Operating Income

-$21.7M

Previous: -$24.5M+11.3%
Gross Profit

$132M

Previous: $142M-6.9%

Revenue & EPS history

Fossil · Revenue · Quarterly

$270M

Q3 2025-6.1%vs Q3 2024
Beat estimate in 6 of 11 quarters(55%)
ActualEstimate

Revenue by segment

Fossil · $225M total across 4 segments · Q1 2026

  • Watches
    $190M
  • Jewelry
    $20.1M
  • Leathers
    $10.6M
  • Other
    $3.52M

Forward guidance

Fossil Group reiterated its full-year 2025 financial guidance, expecting a mid-teens decline in worldwide net sales and a break-even to slightly positive adjusted operating margin.

Tailwinds

  • Completion of balance sheet transformation significantly strengthens financial position.
  • Reiteration of full-year 2025 financial guidance provides stability and confidence.
  • Focus on consumer-focused, brand-led operating model.
  • Strengthened gross margin profile and rightsized cost structure.
  • Foundational platform positioned for long-term profitable growth.

Headwinds

  • Expected mid-teens decline in worldwide net sales for full year 2025.
  • Retail store closures are expected to impact net sales by approximately $45 million.
  • Adjusted operating margin is expected to be break-even to slightly positive, indicating continued pressure on profitability.
  • Guidance excludes impacts from foreign currency, which could introduce volatility.
  • The company faces ongoing challenges in a competitive retail environment and changing consumer preferences.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2025

Historical avgQ3 2025

+0.8%

Avg return

Earnings day

+4.1%

Avg return

5 days after

+5.9%

Avg return

30 days after

45%

29 / 65 earnings

Positive

+102.3%

Q4 2017

Best reaction

-37.8%

Q3 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+5.6%-6.1%
Q4 2025+16.8%+14.3%+24.8%
Q3 2025-9.2%-3.3%+85.7%
Q2 2025+31.5%+74.6%+72.4%
Q1 2025+18.0%+34.1%+5.6%
Q4 2024+29.1%+3.1%-23.6%
Q3 2024-10.8%-6.9%+51.5%
Q2 2024+1.8%-0.9%-2.8%
Q1 2024-4.7%+6.2%+25.8%
Q4 2023-5.6%-1.2%+4.7%
Q3 2023-34.3%-35.4%-28.1%
Q2 2023-10.4%-16.3%-17.9%
Q1 2023-9.2%-32.3%-27.2%
Q4 2022-13.4%-15.3%-24.9%
Q3 2022+10.3%+17.7%+21.6%
Q2 2022-4.2%-12.1%-40.2%
Q1 2022-10.2%-10.9%-23.3%
Q4 2021-28.3%-36.3%-25.3%
Q3 2021+16.7%+13.0%-28.2%
Q2 2021+9.1%+7.6%-3.7%
Q1 2021+0.7%+20.8%+38.6%
Q3 2020+18.1%+42.9%+111.3%
Q2 2020+10.2%+18.9%+50.1%
Q1 2020+27.1%+136.2%+29.2%
Q4 2019-19.4%-19.6%-36.2%
Q3 2019-23.4%-36.5%-42.9%
Q2 2019+9.1%-4.4%+34.6%
Q1 2019+17.0%+9.1%-10.4%
Q4 2018-5.9%-8.2%-9.6%
Q3 2018-7.7%-16.9%-25.7%
Q2 2018-18.9%-18.7%-19.4%
Q1 2018+23.1%+27.5%+90.6%
Q4 2017+102.3%+73.1%+38.4%
Q3 2017-18.8%-5.4%-3.9%
Q2 2017-20.8%-26.8%-21.7%
Q1 2017-16.9%-24.4%-38.5%
Q4 2016-15.2%-9.8%-27.1%
Q3 2016-0.6%+5.7%+27.0%
Q2 2016-0.6%+2.9%-8.4%
Q1 2016-27.9%
Q4 2015+32.9%
Q3 2015-37.8%
Q2 2015-6.0%
Q1 2015-5.6%
Q4 2014-15.0%
Q3 2014+9.0%
Q2 2014-6.5%
Q1 2014-10.8%
Q4 2013+5.3%
Q3 2013-1.3%
Q2 2013+12.8%
Q1 2013+10.7%
Q4 2012-2.1%
Q3 2012-10.8%
Q2 2012+25.2%
Q1 2012+4.8%
Q4 2011+3.6%
Q3 2011+1.2%
Q2 2011+9.5%
Q4 2009+6.9%
Q1 2011+3.1%
Q3 2010-1.3%
Q4 2010-1.1%
Q2 2010-1.1%
Q1 2010-4.6%

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