Fossil Group Inc. (FOSL) on Wednesday reported a narrower first-quarter loss, as lower restructuring expenses and reduced operating costs offset a decline in sales.
Net loss attributable to Fossil Group narrowed to $0.8 million, or $0.01 loss per share, from a net loss of $17.6 million, or $0.33 loss per share, in the year-ago quarter.
Adjusted net loss improved to $1.9 million, or $0.03 loss per share, from a net loss of $5.0 million, or $0.10 loss per share, last year.
Net sales declined 3.6% to $224.8 million from $233.3 million a year earlier. The company said sales were negatively impacted by the current quarter containing 13 weeks compared with 14 weeks in the prior-year quarter, along with store rationalization initiatives and declining smartwatch sales.
Gross margin narrowed to 59.9% from 61.3%, primarily due to higher tariffs and accelerated licensed brand royalty recognition.
Wholesale sales increased 5% on a constant-currency basis, while direct-to-consumer sales declined 29%. Traditional watch sales were roughly flat year-over-year in constant currency, while leather sales fell 41% and jewelry sales declined 14%.
Fossil reiterated its fiscal 2026 outlook and continues to expect net sales to decline 4% to 6%, with a return to sales growth in the fourth quarter.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.