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Apr 05
Fossil Q1 2025 Earnings Report
Fossil reported a reduced net loss and improved margins in Q1 2025.
Key Takeaways
Fossil Group reported Q1 2025 revenue of $233.3 million, down 8.5% year-over-year, but achieved significant improvements in gross margin and reduced net loss through restructuring and cost efficiencies.
Revenue fell 8.5% year-over-year to $233.3 million, impacted by smartwatch decline and store rationalization.
Gross margin expanded 890 basis points to 61.3%, driven by favorable mix and reduced freight costs.
Net loss narrowed to $17.6 million from $24.3 million in the prior year.
Adjusted EPS improved to a loss of $0.10 from $0.30 last year.
Fossil
Fossil
Fossil Revenue by Segment
Fossil Revenue by Geographic Location
Revenue by Segment
Watches Revenue
CapyFin.comLeathers Revenue
CapyFin.comJewelry Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comEurope Revenue
CapyFin.comAsia Revenue
CapyFin.comCorporate Revenue
CapyFin.com Forward Guidance
Fossil reaffirmed its full-year guidance, expecting net sales to decline in the mid to high teens and adjusted operating margins in the negative low single digits.
Positive Outlook
- Reaffirmed full-year 2025 guidance.
- Expected retail store closures already included in guidance.
- Healthy gross margin expected to be maintained through mitigation strategies.
- Improved product mix after exiting smartwatch category.
- Cost efficiencies continue to support adjusted profitability.
Challenges Ahead
- Retail store closures will reduce sales by $45 million.
- Uncertainty remains around macroeconomic and consumer demand.
- Sales declines across most geographies and product segments.
- Net losses and negative margins still persist.
- Foreign exchange fluctuations continue to impact results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income