Fossil Group reported a decrease in worldwide net sales to $288 million, a 16% drop compared to the previous year, impacted by strategic actions to exit the smartwatch category and optimize retail stores. However, gross margins expanded by 240 basis points to 49.4%, and operating expenses decreased by 16% due to efficiencies from the TAG Plan. The company's operating loss improved to $24 million from $46 million year-over-year, and inventory decreased by 31% to $226 million.