Fossil Group (NASDAQ:FOSL) Issues Quarterly Earnings Results

Fossil Group (NASDAQ:FOSL) posted its quarterly earnings results on Tuesday. The accessories brand company reported $0.19 EPS for the quarter, topping the consensus estimate of ($0.04) by $0.23, RTT News reports. The business had revenue of $271.20 million during the quarter, compared to the consensus estimate of $248.66 million. Fossil Group had a negative net margin of 7.09% and a negative return on equity of 59.76%. During the same quarter in the previous year, the firm posted ($0.76) earnings per share.

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 Up 25.3%

Shares of FOSL traded up $1.99 during mid-day trading on Wednesday, reaching $9.86. The company’s stock had a trading volume of 6,424,647 shares, compared to its average volume of 840,517. The company has a debt-to-equity ratio of 2.74, a current ratio of 1.76 and a quick ratio of 1.05. Fossil Group has a 12-month low of $1.70 and a 12-month high of $10.55. The stock has a market cap of $583.12 million, a PE ratio of -7.70 and a beta of 1.61. The company’s 50 day moving average is $6.37 and its 200 day moving average is $4.95.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the company. Craig Hallum assumed coverage on Fossil Group in a research report on Thursday, September 10th. They issued a “buy” rating and a $12.00 price target on the stock. Lake Street Capital initiated coverage on shares of Fossil Group in a research note on Wednesday, October 7th. They set a “buy” rating and a $10.00 target price on the stock. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Fossil Group in a report on Thursday, October 15th. Finally, Northland Securities set a $8.00 target price on shares of Fossil Group in a report on Thursday, August 13th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $9.25.

Insiders Place Their Bets

In other Fossil Group news, Director Pamela J. Edwards purchased 7,208 shares of the stock in a transaction that occurred on Thursday, August 20th. The stock was purchased at an average cost of $5.58 per share, with a total value of $40,220.64. Following the completion of the acquisition, the director directly owned 50,251 shares of the company’s stock, valued at $280,400.58. This trade represents a 16.75% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 3.80% of the stock is currently owned by insiders.

Key Fossil Group News

Investors following FOSL have been watching these news items:

• Positive Sentiment: Fossil reported third-quarter EPS of $0.19, versus analyst expectations for a loss, while revenue of $271 million exceeded estimates. Sales rose 0.4% year over year, or 2% at constant currency—the company’s first return to sales growth in four years. Fossil Group third-quarter results
• Positive Sentiment: The company raised its fiscal 2026 revenue guidance to $980 million–$990 million, above the roughly $965 million analyst consensus. CEO commentary that the turnaround is ahead of plan added to optimism. Fossil CEO says turnaround is ahead of plan
• Positive Sentiment: Fossil extended its global Diesel licensing agreement for five years, providing continued access to a major brand partnership. Diesel licensing agreement extension

Fossil Group Company Profile

Fossil Group, Inc. is a global design, sourcing, marketing and distribution company focused primarily on watches and accessories. Its products include traditional watches, jewelry, handbags, small leather goods and other fashion accessories sold through company-operated and third-party retail stores, e-commerce channels and wholesale partners. The company markets products under its Fossil, Skagen, Michele and Relic brands, as well as through various licensed brand relationships. Fossil Group was founded in 1984 and is headquartered in Richardson, Texas.