Fossil Reports Q2 Earnings with Mixed Performance Across Regions
Fossil (NASDAQ: FOSL) reported second-quarter results for fiscal year 2026, showing a net sales decline of 4.9% to $209.7 million due primarily to weakness in the direct-to-consumer channel and store closures. Despite this, gross margin expanded by 490 basis points to 62.4%, driven by improved product margins from full-price selling strategies. The company raised its full-year sales guidance to a -3% to -5% decline range (up from -4% to -6%) and adjusted operating margin guidance to 4%-6%. Regional performance varied, with the Americas showing slight growth in constant currency while Europe declined sharply due to geopolitical issues. Asia saw modest gains led by India's double-digit brand growth. Fossil reported a net loss of $10.6 million or $0.18 per diluted share compared to a prior-year loss of $2.3 million, with SG&A expenses at $123.5 million and total debt reaching $203 million.
Tickers: $FOSL
Topics: financial_performance sales_guidance segment_revenue