Fossil Group (NASDAQ:FOSL) Releases Earnings Results

Fossil Group (NASDAQ:FOSL) issued its earnings results on Tuesday. The accessories brand company reported $0.19 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.04) by $0.23, RTT News reports. The company had revenue of $271.20 million during the quarter, compared to analyst estimates of $248.66 million. Fossil Group had a negative net margin of 1.86% and a negative return on equity of 7.75%. During the same quarter last year, the business posted ($0.76) EPS.

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

• Fossil Group reported Q3 net sales growth of 2% to $276 million, with its namesake brand up 14% and traditional watch sales up 6%. Management said growth extended across channels and highlighted continued strength in the U.S. and India.
• Adjusted operating income rose to $30 million, while gross margin expanded to 59.9%. The company raised full-year sales guidance to $980–$990 million and adjusted operating margin guidance to 5.5%–6.5%, and continues to expect positive free cash flow.
• Q3 sales benefited from about $10 million of wholesale shipments shifted forward from Q4, while store closures also affected the comparison. Management said the timing shift is reflected in its Q4 outlook, making the underlying quarterly growth trajectory important to watch.
• Product launches are contributing to momentum: Machine X1 and the new Swiss-made Signature collection are reportedly selling ahead of expectations. Fossil also extended its Diesel licensing partnership through 2032 and renewed its global partnership with Nick Jonas.
• Some Q3 margin improvement reflected lower royalty guarantees and lower tariff rates, so the quarter’s margin expansion may not fully represent ongoing performance. Management expects Q4 SG&A to rise to the low 50s as it steps up demand-generation investment, and noted that European trends remain a recovery effort despite recent improvement.

Fossil Group Stock Performance

NASDAQ:FOSL traded down $0.91 during midday trading on Thursday, reaching $9.06. The stock had a trading volume of 542,426 shares, compared to its average volume of 845,160. Fossil Group has a 1-year low of $1.70 and a 1-year high of $10.55. The firm’s fifty day simple moving average is $6.47 and its 200-day simple moving average is $4.98. The company has a debt-to-equity ratio of 2.74, a current ratio of 1.76 and a quick ratio of 1.05. The stock has a market capitalization of $535.67 million, a P/E ratio of -27.38 and a beta of 1.61.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on FOSL. Northland Securities set a $8.00 price objective on shares of Fossil Group in a research report on Thursday, August 13th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Fossil Group in a research note on Thursday, October 15th. Lake Street Capital initiated coverage on shares of Fossil Group in a research report on Wednesday, October 7th. They issued a “buy” rating and a $10.00 target price for the company. Finally, Craig Hallum initiated coverage on shares of Fossil Group in a research note on Thursday, September 10th. They set a “buy” rating and a $12.00 price target on the stock. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $9.25.

Insider Buying and Selling

In other news, Director Pamela J. Edwards bought 7,208 shares of the business’s stock in a transaction on Thursday, August 20th. The stock was purchased at an average price of $5.58 per share, with a total value of $40,220.64. Following the transaction, the director directly owned 50,251 shares in the company, valued at approximately $280,400.58. The trade was a 16.75% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through the SEC website. 3.80% of the stock is owned by company insiders.

Key Headlines Impacting Fossil Group

These are some of the FOSL headlines that stood out recently:

• Positive Sentiment: Fossil reported third-quarter EPS of $0.19, ahead of the roughly $0.04 loss analysts expected, and revenue of $271.2 million versus expectations of $248.7 million. Sales returned to growth for the first time in four years, supporting management’s view that its turnaround is ahead of plan. Fossil Group Q3 results
• Positive Sentiment: The company guided to fiscal 2026 revenue of $980 million to $990 million, above the approximately $965 million analyst consensus—another sign of improving business momentum. Fossil raises sales outlook
• Neutral Sentiment: Unusually high call-option activity suggests traders are positioning for further volatility, but options activity does not establish that the rally is supported by fundamentals. Fossil options activity

Fossil Group Company Profile

Fossil Group designs, develops, markets and distributes fashion accessories, including watches, handbags, small leather goods, jewelry and other accessories. Its products are sold under company-owned brands such as Fossil, Skagen, Michele and Zodiac, as well as through licensing agreements with third-party brands. Founded in 1984, the company has built its business around combining watchmaking with fashion-oriented design. It serves customers internationally through wholesale partners, retail stores and online channels.