Fossil Group's Q1 revenue falls 3.6% on shorter quarter

Fossil

13/05/2026 21:18

Overview

U.S. lifestyle accessories maker's Q1 revenue fell 3.6% yr/yr, impacted by shorter quarter

Adjusted operating income and EBITDA improved from prior year, aided by lower operating expenses

Company reiterated 2026 outlook, expects sales growth to return in Q4

Outlook

Fossil sees 2026 worldwide net sales declining 4% to 6%, with growth in Q4

Company expects 2026 adjusted operating margin of 3% to 5%

Fossil targets break-even free cash flow for full year 2026

Result Drivers

SHORTER QUARTER - Co said sales were unfavorably impacted by the Q1 2026 period having 13 weeks versus 14 weeks in the prior year

STORE CLOSURES & SMARTWATCH DECLINES - Store rationalization initiatives and declines in smartwatch sales comprised about 280 basis points of the sales decline

OPERATING COST REDUCTIONS - Lower operating expenses, mainly from cost reductions and efficiencies from restructuring, supported improved operating income

Company press release: ID:nGNX6rLZVd

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Beat
$225 mln
$204.74 mln (2 Analysts)
Q1 Adjusted Net Income
Beat
-$1.90 mln
-$19.18 mln (1 Analyst)
Q1 Adjusted EBITDA
Beat
$14.50 mln
$4.18 mln (2 Analysts)
Q1 Gross Margin
59.90%
Q1 Adjusted Operating Income
$10 mln
Q1 Adjusted Operating Margin
4.40%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the apparel & accessories peer group is "buy"

Wall Street's median 12-month price target for Fossil Group Inc is $7.00, about 77.2% above its May 12 closing price of $3.95

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)