Fossil Group(DE:FSL)
€8.82+1.66 (+23.18%)
DE:FSL
Fossil Group earnings date
€8.82
At close:+1.66 (+23.18%)
Fossil Group (FSL) Q3 2026 Earnings Report
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DE:FSL Q3 2026 EPS Results
- Actual EPS
- EUR 0.21
- Consensus EPS
- -EUR 0.04
- Beat/Miss
- Beat by +EUR 0.24
- One Year Ago EPS
- -EUR 0.56
DE:FSL Q3 2026 Revenue Results
- Actual Revenue
- EUR 242.82M
- Expected Revenue
- EUR 222.64M
- Beat/Miss
- Beat by +EUR 20.18M
- YoY Revenue Growth
- +0.37%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 11/10/2026
- Time
- After Close
- Conference Call
- Tuesday, November 10, 2026
DE:FSL Upcoming Earnings
Fossil Group's next earnings date is estimated for March 10, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
DE:FSL Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive. Management reported broad-based Q3 growth, significant gross-margin and operating-income improvement, positive reported net income, positive free cash flow expectations, strong product and brand momentum, and raised full-year guidance. The main challenges were continued weakness in Europe, a higher expected Q4 SG&A rate, approximately breakeven year-to-date reported net income, shipment timing effects, and ongoing licensing negotiations.
Company Guidance
The company raised full year worldwide net sales guidance to the range of $980 million to $990 million, from prior guidance of down 3% to 5% or $955 million to $975 million, and raised adjusted operating margin guidance to the range of 5.5% to 6.5%, from 4% to 6%; it continues to expect positive free cash flow, a healthy gross margin profile in the upper 50s for the full year, and positive reported net income and EPS for the full year 2020, while anticipating Q4 SG&A in the low 50s and noting that implied fourth-quarter guidance includes a wholesale timing shift of approximately $10 million.
- Q3 Revenue Growth and Earnings OutperformanceNet sales grew 2% year over year to $276 million, and Q3 results exceeded expectations across all key metrics. Adjusted operating income reached $30 million, a $45 million increase versus the prior year.
- Gross Margin ExpansionGross margin expanded to 59.9%, up 10.9 percentage points versus last year. The improvement reflected lower minimum royalty guarantees, the decision to amortize expected shortfalls across all four quarters, full-price selling, supply chain optimization, and lower prevailing tariff rates.
- Improved Operating Expense LeverageSG&A declined 8% to $135 million, primarily due to fewer stores, lower compensation and administrative expenses, and the timing of demand-creation marketing investments. SG&A as a percentage of sales improved by 540 basis points to 48.9%.
- Return to Positive Earnings and Cash FlowQ3 adjusted operating margin was 11%, reported net income was $12 million, or $0.19 per diluted share, and the company expects positive reported net income and EPS for the full year. Management continues to expect positive free cash flow.
- Full-Year Guidance RaisedFull-year net sales guidance was raised to $980 million-$990 million from prior guidance of $955 million-$975 million, or down 3%-5%. Adjusted operating margin guidance was raised to 5.5%-6.5% from 4%-6%.
- Fossil Brand MomentumThe namesake Fossil brand grew 14% year over year in Q3, while traditional watch sales across all brands increased 6%. Management attributed the performance to product innovation, storytelling, direct-to-consumer optimization, licensed-brand initiatives, and the scaling of India.
- Strength Across ChannelsWholesale sales increased 4% globally in Q3, led by the Fossil brand, with growth from expanded distribution with existing partners and entry into new specialty chains and emerging retailers. Fossil.com also grew, and Fossil stores delivered positive comparable sales.
- Geographic Momentum in the United States and IndiaThe United States posted another quarter of growth, and India delivered exceptional performance across brands and channels. Management cited strong consumer response to Machine X1, Signature, brand ambassadors, and marketing campaigns in India.
- Product Innovation and PremiumizationMachine X1 sold ahead of expectations globally and generated significant media attention and social buzz. Signature, Fossil's new Swiss-made collection and premium traditional watch platform, received exceptional initial consumer response, with sales strength exceeding expectations.
- Successful Collaborations and Consumer EngagementQ3 limited-edition collaborations included Minecraft, Big Tic Mickey and Donald, Spider-Man, and Incredible Hulk. Management said the collaborations positioned Fossil at the center of culture and broadened its appeal to multiple fan bases.
- Diesel Licensing Partnership ExtendedFossil extended its licensing partnership with Diesel through 2032. Management described the relationship as long-standing and valuable and expressed confidence in building lasting growth together.
- Nick Jonas Partnership RenewedFossil signed a new contract with Nick Jonas as global Fossil brand ambassador. His campaigns have generated billions of impressions, while exclusive watch collections have been standout performers, attracting younger consumers and driving higher average unit retail.
- Progress Across Michael Kors and Armani BrandsMichael Kors built global momentum, with notable strength in U.S. wholesale, continued strength in traditional watches, and improving jewelry performance. Emporio Armani and Armani Exchange increased brand visibility through new ambassadors, campaigns, events, and product launches, including strong consumer response to Armani Exchange's new base platform.
- Operating Model and Supply Chain ImprovementsFossil completed the transition to a new, right-sized U.S. distribution center in the Dallas area, expanded manufacturing capacity at its Chandigarh factory in India, and added leadership at the facility. The company is also improving forecasting, demand planning, inventory management, automation, site search, navigation, and back-office Agentic AI capabilities.
- Store Optimization Program Essentially CompletedThe company ended Q3 with 174 stores globally, two fewer than at the end of the prior quarter. Management said the store optimization program is essentially complete and that it remains opportunistic about future openings, particularly given improving full-price Fossil store performance.
- Solid Liquidity and Inventory PositionFossil ended Q3 with $77 million of cash and cash equivalents and $35 million of ABL availability, with no utilization under its ATM program. Inventory totaled $189 million, up 13% year over year, in support of seasonal expectations and growth plans.
- Strengthened Board and Continued InvestmentThe company added two seasoned directors with expertise in global retail, enterprise technology, digital, and omnichannel commerce. Management also stated that it intends to continue investing for growth while maintaining discipline and balance.
DE:FSL Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Mar 10, 2027 | 2026 (Q4) | 0.06- | -0.13 | ― | ― |
| Nov 10, 2026 | 2026 (Q3) | -0.040.21 | -0.56 | 136.51% (+0.77) | |
| Aug 12, 2026 | 2026 (Q2) | -0.32-0.12 | -0.09 | -30.00% (-0.03) | |
| May 13, 2026 | 2026 (Q1) | -0.26-0.03 | -1.53 | 98.25% (+1.50) | |
| Mar 11, 2026 | 2025 (Q4) | 0.00-0.13 | -0.13 | -4.90% (-0.01) | |
| Nov 13, 2025 | 2025 (Q3) | -0.32-0.56 | -0.54 | -4.65% (-0.03) | |
| Aug 13, 2025 | 2025 (Q2) | -0.19-0.09 | -0.66 | 86.36% (+0.57) | |
| May 14, 2025 | 2025 (Q1) | ―-1.53 | -0.41 | -269.33% (-1.12) | |
| Mar 12, 2025 | 2024 (Q4) | ―-0.13 | -0.48 | 73.37% (+0.35) | |
| Nov 07, 2024 | 2024 (Q3) | ―-0.54 | -1.04 | 48.28% (+0.50) |
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
