Fossil Group Q2 revenue falls 4.9% on store closures

Fossil

12/08/2026 21:29

Overview
U.S. lifestyle accessories maker's Q2 revenue fell 4.9% yr/yr, driven by direct-to-consumer decline
Gross margin rose 490 basis points to 62.4% on improved product margins and sourcing initiatives
Company raised full-year 2026 outlook, sees return to top-line growth in Q4

Outlook
Fossil raises 2026 outlook, sees net sales down 3% to 5%, with Q4 return to growth
Company expects 2026 adjusted operating margin of 4% to 6%
Fossil anticipates positive free cash flow for full-year 2026

Result Drivers
DIRECT-TO-CONSUMER WEAKNESS - Sales decline was driven by lower direct-to-consumer revenue, including store closures and an 8% drop in comparable retail sales
GROSS MARGIN GAINS - Gross margin rose due to improved product margins from full-price selling, sourcing initiatives, and reduced tariffs
REGIONAL SALES MIX - Europe sales fell 18.2% in constant currency, while Asia grew 3.7% and the Americas were flat

Company press release: ID:nGNXy7t0T

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$210 mln
$199.33 mln (2 Analysts)
Q2 Adjusted Net Loss
Beat
$7.9 mln
$24.43 mln (1 Analyst)
Q2 Adjusted EBITDA
Beat
$8.6 mln
-$4.39 mln (2 Analysts)
Q2 Gross Margin
 
62.4%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the apparel & accessories peer group is "buy"
Wall Street's median 12-month price target for Fossil Group Inc is $7.00, about 33.6% above its August 11 closing price of $5.24

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Aug 12 - Jeweller Pandora raises 2026 guidance as new designs draw in shoppers
Aug 10 - Nu Skin Q2 revenue falls on lower customers and affiliates

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)