Fossil Sees Improving Future as Investors Drive Stock Higher

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Fossil Group, the Richardson-based watch and accessories company, is set for a brighter future as it undergoes a turnaround under CEO Franco Fogliato. The company expects worldwide net sales to decline 4-6% in fiscal year 2026, with a return to growth in the fourth quarter, compared to a 12% decline the prior year. Investors have taken notice, driving the stock up over 9% in after-hours trading.

Why it matters

Fossil's turnaround efforts, focused on innovation, consumer engagement, and improving the traditional watch business and cost structure, appear to be gaining traction with investors. The company's improved financial outlook and long-term growth targets signal a potential resurgence for the North Texas brand.

The details

Fossil is focusing on fueling innovation, boosting consumer engagement, and powering the traditional watch business, in addition to improving the cost structure. For fiscal year 2026, the company expects adjusted operating margin to be in the range of 3-5% and break-even free cash flow. Fossil has also raised its long-term financial targets, expecting to achieve worldwide net sales growth in the low-to-mid single digits and positive free cash flow by 2028.

• Fossil's fiscal year 2026 is expected to see a 4-6% decline in worldwide net sales, with a return to growth in the fourth quarter.
• In the fourth quarter of fiscal year 2025, which ended in early January, Fossil's sales fell 18% as the company returned to a full-price selling model and shifted some wholesale shipments.

What they’re saying

What’s next

Fossil's long-term financial targets for 2028 include achieving worldwide net sales growth in the low-to-mid single digits and positive free cash flow.