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

Fossil Group (NASDAQ:FOSL) announced its quarterly earnings data on Wednesday. The accessories brand company reported ($0.03) EPS for the quarter, topping analysts’ consensus estimates of ($0.28) by $0.25, FiscalAI reports. Fossil Group had a negative return on equity of 45.93% and a negative net margin of 6.19%.The business had revenue of $224.76 million during the quarter, compared to analysts’ expectations of $204.74 million.

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 Down 7.9%

FOSL traded down $0.35 during trading on Friday, reaching $4.01. The company had a trading volume of 1,040,668 shares, compared to its average volume of 729,536. The company has a market cap of $236.62 million, a P/E ratio of -3.52 and a beta of 1.64. Fossil Group has a 12 month low of $1.27 and a 12 month high of $5.74. The company has a debt-to-equity ratio of 2.00, a current ratio of 1.55 and a quick ratio of 1.05. The business’s fifty day moving average price is $4.60 and its 200 day moving average price is $3.83.

Analyst Ratings Changes

A number of analysts recently weighed in on the stock. Maxim Group increased 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. Zacks Research upgraded shares of Fossil Group to a “hold” rating in a report on Friday, February 20th. Northland Securities began 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. Wall Street Zen cut shares of Fossil Group from a “hold” rating to a “sell” rating in a research report on Saturday, May 2nd. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Fossil Group in a research note on Tuesday, April 21st. Two research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Fossil Group has a consensus rating of “Hold” and a consensus price target of $7.00.

Institutional Investors Weigh In On Fossil Group

Several institutional investors have recently added to or reduced their stakes in FOSL. Goldman Sachs Group Inc. increased its holdings in Fossil Group by 43.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 144,375 shares of the accessories brand company’s stock worth $166,000 after purchasing an additional 43,849 shares in the last quarter. Jane Street Group LLC boosted its position in shares of Fossil Group by 93.1% during the first quarter. Jane Street Group LLC now owns 42,584 shares of the accessories brand company’s stock worth $49,000 after buying an additional 20,530 shares during the period. Acadian Asset Management LLC grew its holdings in shares of Fossil Group by 154.1% during the first quarter. Acadian Asset Management LLC now owns 459,023 shares of the accessories brand company’s stock worth $527,000 after buying an additional 278,391 shares in the last quarter. XTX Topco Ltd acquired a new stake in Fossil Group in the 2nd quarter valued at approximately $122,000. Finally, Nantahala Capital Management LLC raised its position in Fossil Group by 21.5% in the 2nd quarter. Nantahala Capital Management LLC now owns 5,087,803 shares of the accessories brand company’s stock valued at $7,530,000 after buying an additional 898,626 shares during the last quarter. 61.14% of the stock is owned by institutional investors.

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.