Fossil Group (NASDAQ:FOSL) Posts Quarterly Earnings Results, Beats Expectations By $0.25 EPS

Fossil Group (NASDAQ:FOSL) announced its quarterly earnings results on Wednesday. The accessories brand company reported ($0.03) earnings per share for the quarter, beating the consensus estimate of ($0.28) by $0.25, FiscalAI reports. The company had revenue of $224.80 million during the quarter, compared to the consensus estimate of $204.74 million. Fossil Group had a negative net margin of 7.81% and a negative return on equity of 46.78%.

Here are the key takeaways from Fossil Group’s conference call:

• Fossil said Q1 results were ahead of expectations, with net sales of $280 million, gross margin of 59.7%, and positive adjusted operating income of $10 million as the turnaround continues to gain traction.
• Management highlighted strong wholesale demand, especially for traditional watches, with mid-single-digit wholesale growth and high-single-digit growth in core watch sales in the channel. They said this is being supported by fuller-price selling and stronger partner relationships.
• The company is seeing encouraging brand momentum from Big Tic and other marketing initiatives, which management said are driving media attention, social engagement, and a halo effect across the Fossil brand. Additional Big Tic activations, plus new Star Wars and Marvel collaborations, are planned for the rest of the year.
• Fossil reiterated full-year 2026 guidance, still expecting net sales to decline 4%–6%, adjusted operating margin of 3%–5%, and breakeven free cash flow. Management said the outlook remains cautious due to geopolitical and consumer uncertainty, even though Q1 outperformed expectations.
• The company continues to tighten its operating model, including store closures, IT simplification, and a new distributor transition in South Africa, which should reduce costs. SG&A fell 13% year over year, restructuring costs dropped sharply, and cash used in operations improved by more than 50% versus last year.

Fossil Group Stock Performance

Shares of Fossil Group stock traded up $0.15 on Wednesday, hitting $4.10. 1,484,277 shares of the company’s stock were exchanged, compared to its average volume of 657,760. The company has a 50-day simple moving average of $4.60 and a 200-day simple moving average of $3.82. The stock has a market capitalization of $242.23 million, a PE ratio of -2.81 and a beta of 1.64. Fossil Group has a 1 year low of $1.23 and a 1 year high of $5.74. The company has a debt-to-equity ratio of 2.00, a quick ratio of 1.05 and a current ratio of 1.55.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Kanen Wealth Management LLC purchased a new position in shares of Fossil Group during the 4th quarter valued at $5,515,000. Empowered Funds LLC lifted its stake in shares of Fossil Group by 10.4% during the 4th quarter. Empowered Funds LLC now owns 114,403 shares of the accessories brand company’s stock valued at $430,000 after buying an additional 10,824 shares in the last quarter. Millennium Management LLC lifted its stake in shares of Fossil Group by 115.0% during the 4th quarter. Millennium Management LLC now owns 125,578 shares of the accessories brand company’s stock valued at $472,000 after buying an additional 67,158 shares in the last quarter. Balyasny Asset Management L.P. purchased a new position in shares of Fossil Group during the 4th quarter valued at $113,000. Finally, Bridgeway Capital Management LLC lifted its stake in shares of Fossil Group by 21.3% during the 4th quarter. Bridgeway Capital Management LLC now owns 540,203 shares of the accessories brand company’s stock valued at $2,031,000 after buying an additional 94,924 shares in the last quarter. Hedge funds and other institutional investors own 61.14% of the company’s stock.

Analyst Ratings Changes

FOSL has been the subject of several analyst reports. Maxim Group raised their price target on shares of Fossil Group from $5.00 to $7.00 and gave the company a “buy” rating in a research report on Thursday, March 12th. Wall Street Zen cut shares of Fossil Group from a “hold” rating to a “sell” rating in a report on Saturday, May 2nd. Northland Securities assumed coverage on shares of Fossil Group in a report on Thursday, February 19th. They issued an “outperform” rating and a $7.00 target price on the stock. Weiss Ratings restated a “sell (d-)” rating on shares of Fossil Group in a report on Tuesday, April 21st. Finally, Zacks Research upgraded shares of Fossil Group to a “hold” rating in a report on Friday, February 20th. Two investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $7.00.

About Fossil Group

Fossil Group, Inc designs, develops, markets and distributes consumer fashion accessories, focusing on lifestyle and wearable technology. The company offers a wide range of products including analog and digital watches, smartwatches, jewelry, handbags, small leather goods and wearable devices. It sells merchandise under its own Fossil brand and via license agreements with international labels such as Michael Kors, Armani Exchange, Burberry, Diesel, DKNY, Kate Spade and Tory Burch. Through its proprietary e-commerce platforms and global retail network, Fossil Group serves markets across North America, Europe, Asia and the Middle East.

The group’s wearable technology segment combines traditional timepieces with features such as fitness tracking, heart-rate monitoring and NFC payments.