Fossil Group (NASDAQ:FOSL) Posts Earnings Results, Beats Expectations By $0.23 EPS

Fossil Group (NASDAQ:FOSL) posted its earnings results on Tuesday. The accessories brand company reported $0.19 EPS for the quarter, topping analysts’ consensus estimates of ($0.04) by $0.23, RTT News reports. Fossil Group had a negative return on equity of 59.76% and a negative net margin of 7.09%. The business had revenue of $271.20 million for the quarter, compared to analysts’ expectations of $248.66 million. During the same quarter in the previous year, the firm earned ($0.76) earnings per share.

Here are the key takeaways from Fossil Group’s conference call:

• Fossil Group reported Q3 net sales growth of 2% to $276 million, with its namesake brand up 14% and traditional watch sales up 6%. Management said growth extended across channels and highlighted continued strength in the U.S. and India.
• Adjusted operating income rose to $30 million, while gross margin expanded to 59.9%. The company raised full-year sales guidance to $980–$990 million and adjusted operating margin guidance to 5.5%–6.5%, and continues to expect positive free cash flow.
• Q3 sales benefited from about $10 million of wholesale shipments shifted forward from Q4, while store closures also affected the comparison. Management said the timing shift is reflected in its Q4 outlook, making the underlying quarterly growth trajectory important to watch.
• Product launches are contributing to momentum: Machine X1 and the new Swiss-made Signature collection are reportedly selling ahead of expectations. Fossil also extended its Diesel licensing partnership through 2032 and renewed its global partnership with Nick Jonas.
• Some Q3 margin improvement reflected lower royalty guarantees and lower tariff rates, so the quarter’s margin expansion may not fully represent ongoing performance. Management expects Q4 SG&A to rise to the low 50s as it steps up demand-generation investment, and noted that European trends remain a recovery effort despite recent improvement.

Fossil Group Price Performance

Shares of NASDAQ FOSL traded up $1.99 during trading on Wednesday, hitting $9.86. 6,424,647 shares of the company were exchanged, compared to its average volume of 840,517. The company has a debt-to-equity ratio of 2.74, a current ratio of 1.76 and a quick ratio of 1.05. Fossil Group has a 1 year low of $1.70 and a 1 year high of $10.55. The company has a market cap of $583.12 million, a price-to-earnings ratio of -7.70 and a beta of 1.61. The firm’s fifty day moving average price is $6.37 and its 200 day moving average price is $4.95.

Trending Headlines about Fossil Group

Here are a few of the latest headlines about FOSL:

• Positive Sentiment: Fossil reported third-quarter EPS of $0.19, versus analyst expectations for a loss, while revenue of $271 million exceeded estimates. Sales rose 0.4% year over year, or 2% at constant currency—the company’s first return to sales growth in four years. Fossil Group third-quarter results
• Positive Sentiment: The company raised its fiscal 2026 revenue guidance to $980 million–$990 million, above the roughly $965 million analyst consensus. CEO commentary that the turnaround is ahead of plan added to optimism. Fossil CEO says turnaround is ahead of plan
• Positive Sentiment: Fossil extended its global Diesel licensing agreement for five years, providing continued access to a major brand partnership. Diesel licensing agreement extension

Insider Activity at Fossil Group

In related news, Director Pamela J. Edwards acquired 7,208 shares of Fossil Group stock in a transaction that occurred on Thursday, August 20th. The stock was purchased at an average price of $5.58 per share, for a total transaction of $40,220.64. Following the completion of the purchase, the director directly owned 50,251 shares of the company’s stock, valued at approximately $280,400.58. This trade represents a 16.75% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 3.80% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

FOSL has been the topic of several research analyst reports. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Fossil Group in a research report on Thursday, October 15th. Lake Street Capital started coverage on shares of Fossil Group in a research report on Wednesday, October 7th. They issued a “buy” rating and a $10.00 price target for the company. Northland Securities set a $8.00 price target on shares of Fossil Group in a research note on Thursday, August 13th. Finally, Craig Hallum assumed coverage on shares of Fossil Group in a research report on Thursday, September 10th. They set a “buy” rating and a $12.00 price objective on the stock. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $9.25.

Fossil Group Company Profile

Fossil Group, Inc. is a global design, sourcing, marketing and distribution company focused primarily on watches and accessories. Its products include traditional watches, jewelry, handbags, small leather goods and other fashion accessories sold through company-operated and third-party retail stores, e-commerce channels and wholesale partners. The company markets products under its Fossil, Skagen, Michele and Relic brands, as well as through various licensed brand relationships. Fossil Group was founded in 1984 and is headquartered in Richardson, Texas.