Fossil Group, Inc. (FOSL) Earnings Call Transcripts

Fossil Group, Inc.'s Latest Earnings Call - Q1 FY2026

In Q1 2026, Fossil Group, Inc. reported net sales of $218 million, reflecting a 6% decline year-over-year, primarily due to the impact of store closures and a prior year extra week. However, the company achieved a gross margin of 59.7% and positive adjusted operating income of $10 million, indicating effective cost management and a focus on full-price selling. Management reiterated its full-year guidance, expecting a net sales decline of 4% to 6%, but expressed confidence in a return to top-line growth in Q4 2026, driven by ongoing turnaround initiatives.

Reported metrics

Guidance from management

Fossil reiterated its full-year guidance, expecting worldwide net sales to decline by 4% to 6%, with a return to top-line growth anticipated in Q4 2026. Adjusted operating margin is expected to remain in the range of 3% to 5%.

What management said

The only thing that I would add is the combined power of not only having the traditional watch category perform in a manner of strength that it hasn't in some time, but coupling that with full price selling, you really see that flow through the gross margin. And this is a quarter where we've demonstrated the ability to translate that gross margin through to the bottom line. It's a tangible proof point of the strategy...

It's a great question. Look, we're absolutely focused on driving, generally speaking, AI as an opportunity for the company, in particular Agentic AI. We're seeing -- we're making great progress. We're at the beginning of a journey where a lot of areas in the company from marketing, e-com, supply chain where we're applying AI already. We've got a great vision for the company, and we're just at the beginning of the jou...

What analysts pressed on

Analysts expressed concerns about the sustainability of the recent growth in traditional watches and the potential impact of geopolitical uncertainties on consumer behavior. There were questions regarding inventory management and the risk associated with new product launches at higher price points.

Main topics on the call

• Turnaround Progress — Fossil's management highlighted the effectiveness of their turnaround strategy, stating, "Our turnaround pillars are delivering results today while advancing our path to long-term profitable growth." The company is focus...
• Wholesale Performance — Management noted strong performance in wholesale, particularly in traditional watches, with sales up high single digits. Franco stated, "We're still doing a lot of work from our DTC... but overall, we're very encouraged....
• E-commerce Enhancements — Fossil is modernizing its e-commerce platform to improve customer engagement, with new navigation features aimed at reducing friction in the shopping experience. This aligns with their strategy to build a cohesive brand ...
• Store Closures — The company closed 7 stores in Q1 and plans to close approximately 15 locations in 2026. Management indicated that this decision is due to improving performance in full-price stores, stating, "We have significantly scale...

Read the full Fossil Group, Inc. transcript (Q1 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 26 Fossil Group, Inc. earnings call transcripts on record, spanning February 26, 2020 to May 13, 2026. Based on this history, Fossil Group, Inc. reports quarterly. The most recent call on file is dated May 13, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

FOSL

Exchange

NasdaqGS

Country

US

Sector

Consumer Discretionary

Industry

Textiles, Apparel and Luxury Goods

Calls on record

26

First call

February 26, 2020

Most recent

May 13, 2026

Reporting cadence

quarterly