EarningsQ2 2026 Earnings Report
DE:FSL Q2 2026 EPS Results
Actual EPS-€0.12
Consensus EPS-€0.32
Beat/MissBeat by +€0.20
One Year Ago EPS-€0.09
DE:FSL Q2 2026 Revenue Results
Actual Revenue€187.09M
Expected Revenue€177.84M
Beat/MissBeat by +€9.24M
YoY Revenue Growth-4.86%
Earnings Announcement Details
QuarterQ2 2026
Date08/12/2026
TimeAfter Close
Conference CallWednesday, August 12, 2026
DE:FSL Upcoming Earnings
Fossil Group's next earnings date is estimated for November 11, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
DE:FSL Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call emphasized strong operational progress: materially expanded gross margins (+490 bps), doubled adjusted operating income, raised full-year guidance, and improved regional/product momentum (U.S., India, traditional watches). These positive developments were balanced against continuing top-line pressure (Q2 sales down 4%) driven largely by store portfolio actions, EMEA geopolitical headwinds, and a modest royalty-related margin offset (~1.5 pts). Management projects a return to revenue growth in Q4 and positive free cash flow for 2026, reflecting confidence in the turnaround. Overall, achievements and improving profitability signals meaningfully outweigh the near-term revenue and regional challenges.Company Guidance
Gross Margin Expansion
Q2 gross margin of 62.4%, up ~490 basis points year-over-year, driven by a full-price selling model, supply chain benefits and lower tariffs. Management now expects full-year gross margins to be in the upper 50s (assuming no additional tariff refunds).
Adjusted Operating Income and Profitability Improvement
Q2 adjusted operating income roughly $8.6–$9.0 million, approximately 2x year-over-year. Year-to-date adjusted operating income of $18.1 million, up 35% versus $13.4 million a year ago. GAAP operating income also materially improved versus prior year.
Raised Full-Year Guidance and Positive Free Cash Flow Outlook
Company raised 2026 guidance: worldwide net sales decline narrowed to a -3% to -5% range (from prior -4% to -6%); adjusted operating margin guidance increased to 4%–6% (from 3%–5%). Management now expects positive free cash flow for full-year 2026 and a return to top-line growth beginning in Q4.
Regional and Product Strength — U.S., India, and Traditional Watches
Q2 net sales $211 million (decline of 4% YoY but better than expectations). Americas stabilized with mid-single-digit growth in the U.S.; Asia region up 4% with strong double-digit growth in India. Traditional watches: Fossil brand traditional watch wholesale up ~12% globally; U.S. wholesale traditional watch growth of ~16%.
Operational Improvements and Cost Discipline
SG&A essentially flat at $123 million (excluding an $11M prior-year gain), benefits from fewer stores, lower comp and admin costs. Tactical actions include AI deployment in back office, South Africa move to distributor model, Malaysia/Singapore hybrid model, lease extensions on >25 strong Americas stores, and execution of a new North American fulfillment center in Sunnyvale, Texas. Inventory ~$178 million, roughly flat YoY.
Product Innovation and Marketing Momentum
Multiple new product initiatives and collaborations (Big Tic, World Flags, Star Wars, Marvel) and new premium 'Signature' Swiss-made collection planned for fall. Marketing examples: K-pop event in Malaysia that generated ~600,000 impressions in one day; nominations for WatchPro Awards and continued investment in demand creation to drive brand heat and new customer acquisition.
DE:FSL Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed