Fossil Group returns to profit as analogue watch sales rise
Fossil Group ended the third quarter of 2026 with a net profit of $11.7 million, after a loss of $39.9 million in the same period last year, and raised its full-year outlook. Sales of analogue watches grew 6.4% at constant currency.
In the three months to 3 October, the American group's net sales reached $271.2 million, up 0.4% on a year earlier, or 2% at constant currency, according to results published on 10 November. Watch sales totalled $233.2 million, against $226 million. Gross margin rose 10.8 percentage points to 59.8%, and the operating result swung from a $21.7 million loss to a $25.3 million profit, a margin of 9.3%.
Asia grows, Europe falls back
At constant currency, sales rose 15.1% in Asia, were practically flat in the Americas, up 0.1%, and fell 5.6% in Europe. According to WatchPro, India led the growth in Asia and Fossil-branded watches sold 13.6% more, while leather goods fell 20.5% and jewellery 10.8%.
The group's own store network shrank from 204 to 174 in a year: 23 closed, 11 were converted to franchises and four opened. This reorganisation took about 1.9 percentage points off the quarter's sales.
Outlook raised
For 2026, the company now expects worldwide net sales of $980 million to $990 million, an adjusted operating margin of 5.5% to 6.5% and positive free cash flow. "Year-to-date results are outpacing our expectations," said chief executive Franco Fogliato, who joined Fossil in September 2024. "We believe we are just at the beginning of our long-term growth journey."
The recovery follows the restructuring of $150 million of unsecured debt agreed with creditors in November 2025, according to WatchPro. In October, the brand unveiled the Swiss-made Signature CS-1 collection, marking its return to Swiss watchmaking.
Find out more on the company's website.
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