Fossil Group Q4 sales drops amid full-price shift and store closures

Fossil

11/03/2026 20:19

Corrects Q4 adjusted EPS in Key Details table to -0.15 from 0.15

Overview

U.S. lifestyle accessories maker's Q4 net sales fell 18% yr/yr on full-price shift, store closures

Gross margin rose to 57.4% from 53.9% on improved product margins and sourcing initiatives

Outlook

Fossil Group expects 2026 net sales to decline 4% to 6%, with growth in Q4

Company forecasts 2026 adjusted operating margin between 3% and 5%

Fossil Group raises 2028 targets to net sales growth in low-to-mid single digits

Result Drivers

FULL-PRICE MODEL - Co said sales fell mainly due to a return to full-price selling and timing shift of wholesale shipments

STORE RATIONALIZATION - Store closures accounted for about four points of the Q4 sales decline

GROSS MARGIN GAINS - Gross margin rose due to improved product margins from full-price selling and sourcing initiatives

Company press release: ID:nGNX6wBwmb

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
Beat
$280.5 mln
$249.28 mln (2 Analysts)
Q4 Adjusted EPS
Beat
-$0.15
-$0.02 (1 Analyst)
Q4 Adjusted Net Income
Miss
-$8.20 mln
-$4.80 mln (1 Analyst)
Q4 Adjusted EBITDA
Beat
$15.8 mln
$7.25 mln (2 Analysts)
Q4 Gross Margin
57.40%
Q4 Adjusted Operating Income
Beat
$11.4 mln
$3.94 mln (2 Analysts)
Q4 Adjusted Operating Margin
4.20%


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 $6.00, about 48.9% above its March 10 closing price of $4.03

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.)