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Oct 04
Fossil Q3 2025 Earnings Report
Fossil Group, Inc. reported a decrease in net sales and an operating loss for the third quarter of fiscal year 2025.
Key Takeaways
Fossil Group, Inc. announced its third quarter 2025 financial results, reporting worldwide net sales of $270.2 million, a 6.1% decrease from the prior year. The company posted an operating loss of $21.7 million and a net loss of $39.9 million. Despite the sales decline, the company highlighted the completion of its balance sheet transformation, which significantly strengthened its financial position.
Worldwide net sales decreased by 6.1% to $270.2 million in Q3 2025, primarily due to direct-to-consumer channels and store rationalization.
The company reported an operating loss of $21.7 million, with an operating margin of (8.0)%.
Net loss for the quarter was $39.9 million, resulting in a diluted EPS of $(0.76).
Fossil Group completed its balance sheet transformation, strengthening its financial position and reiterating full-year 2025 financial guidance.
Fossil
Fossil
Fossil Revenue by Segment
Fossil Revenue by Geographic Location
Revenue by Segment
Total 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 Group reiterated its full-year 2025 financial guidance, expecting a mid-teens decline in worldwide net sales and a break-even to slightly positive adjusted operating margin.
Positive Outlook
- Completion of balance sheet transformation significantly strengthens financial position.
- Reiteration of full-year 2025 financial guidance provides stability and confidence.
- Focus on consumer-focused, brand-led operating model.
- Strengthened gross margin profile and rightsized cost structure.
- Foundational platform positioned for long-term profitable growth.
Challenges Ahead
- Expected mid-teens decline in worldwide net sales for full year 2025.
- Retail store closures are expected to impact net sales by approximately $45 million.
- Adjusted operating margin is expected to be break-even to slightly positive, indicating continued pressure on profitability.
- Guidance excludes impacts from foreign currency, which could introduce volatility.
- The company faces ongoing challenges in a competitive retail environment and changing consumer preferences.
Revenue & Expenses
Visualization of income flow from segment revenue to net income