Fossil Group, the North Texas brand that’s in a turnaround, is set for a brighter future — and investors are taking notice.
The Richardson-based watch and accessories company said worldwide net sales are expected to decline 4% to 6% in the coming fiscal year 2026, with a return to growth in the fourth quarter, according to a statement on Wednesday. That would compare with a decline in net sales of about 12%.
The stock shot up about 9% in after-hours trading on Wednesday at around 3:30 p.m., building on an already strong run in the last year that’s seen the stock more than triple in the past year.
CEO Franco Fogliato is driving a turnaround at the company that he joined in 2024. The company is focusing on fueling innovation, boosting consumer engagement and powering the traditional watch business — in addition to improving the cost structure, among other efforts.
D-FW Retail News
“As we continue to advance our brand-led, consumer-focused operating model, we are entering the next evolution of our Turnaround Plan — designed to return the Company to top line growth, meaningfully improve profitability and build long-term shareholder value,” Fogliato said in the statement.
Related
For the year, the adjusted operating margin is expected to be in the range of 3% to 5%, along with break-even free cash flow.
Fossil raised its long-term financial targets. For the year 2028, it expects to achieve worldwide net sales growth in the low- to mid-single digits along with positive free cash flow.
For the fourth quarter, which ended in early January, sales fell 18% as the company returned to a full-price selling model along with a shift in some wholesale shipments. The net loss expanded to about $19 million.
“The bold initiatives under the Turnaround Plan we announced one year ago gained traction quickly, enabling us to deliver operating and financial performance above our expectations for 2025,” Fogliato said.