Key Highlights

  • FOSL shares fell 4.55% pre-market to $6.50, down $0.31 from the prior close of $6.81.
  • The company will report third-quarter 2026 results after the close on November 10, with a call at 5:00 p.m. ET.
  • Second-quarter revenue of $209.7 million topped the $199.3 million estimate, and adjusted EPS of negative $0.13 beat the negative $0.29 estimate.
  • Full-year guidance was raised, with net sales now expected to decline 3% to 5% and adjusted operating margin at 4% to 6%.
  • Management will also appear at investor conferences on November 17 and December 16.

Shares Slip Ahead of the Q3 Report Date

Fossil Group (NASDAQ:FOSL) shares fell 4.55% pre-market today to $6.50, down $0.31 from the prior close of $6.81. That close followed a 0.89% gain in the regular session, and the pre-market price sits below the $6.61 to $6.83 range the stock covered that day.

The lifestyle accessories company said after the close on October 20 that it will report third-quarter 2026 results after the market closes on Tuesday, November 10, followed by a conference call at 5:00 p.m. ET the same day. The call will be streamed live on its investor relations website and archived for replay. No company statement ties the pre-market decline to a specific cause.

Second-Quarter Beat and Raised Outlook Set the Backdrop

The November 10 report follows a second-quarter print that topped expectations. Revenue came in at $209.7 million against an estimate of $199.3 million, a beat of 5.20%, and adjusted EPS of negative $0.13 improved on the negative $0.29 estimate. Shares rose 5.88% on the day of that report.

Management said gross margin expanded 490 basis points to 62.4%, driven by a full-price selling model and lower tariffs, while adjusted operating income doubled from a year earlier to between $8.6 million and $9 million. Net sales declined 4% year over year, including an impact of about 220 basis points from store closures, and the company expects a return to top-line growth in the fourth quarter.

Full-year guidance was raised. Worldwide net sales are now expected to decline 3% to 5%, versus a prior range of 4% to 6%, and adjusted operating margin is expected at 4% to 6%, up from 3% to 5%. The company now expects positive free cash flow for the year, and its full-year gross margin outlook moved to the upper 50s.

Regional Trends and Brand Portfolio

Regional performance was mixed in the second quarter. The Americas stabilized with mid-single-digit U.S. growth, and traditional watch wholesale in the U.S. grew 16%. Asia grew 4%, with double-digit growth in India, while EMEA faced headwinds from geopolitical tension in the Middle East that affected travel retail.

Fossil Group designs and sells watches, smartwatches, jewelry, handbags, small leather goods, belts and sunglasses. Its owned brands include Fossil, Michele, Relic, Skagen and Zodiac, and its licensed brands include Armani Exchange, Diesel, Emporio Armani, Michael Kors, Skechers and Tory Burch. The shares carry a forward P/E of 20.33 and trailing EPS of negative $0.91, with a 52-week range of $1.70 to $7.39.

Next Up: November 10 Report

Investors will watch the November 10 report to see whether the improving sales trend and the 62.4% gross margin hold, and whether the return to top-line growth expected for the fourth quarter comes into view. Senior management also takes part in the Craig-Hallum Alpha Select Conference in New York City on November 17 and the Northland Capital Markets Growth Conference, held virtually, on December 16.