Fossil Group reports encouraging figures as part of turnaround plan

Fossil Group, Inc. has reported its financial results from Q4 and the full year 2025.

The group saw net sales fall 12% worldwide to $1 billion, but a significantly improved operating loss of $19 million, which is an $85 million improvement on 2024.

In fact, if one-off restructuring costs are removed and the adjusted profit/loss figure is used instead, then the company actually made $12 million last year.

The numbers chime with Fossil Group’s ‘transform and grow’ approach, which led to the company exiting low-margin categories like smartwatches, laying off huge numbers of staff, and closing down underperforming stores.

It also helps explain why gross margin was up 390 basis points to 56.1%, as it moves away from its previous high volume, high discount strategy.

“The bold initiatives under the Turnaround Plan we announced one year ago gained traction quickly, enabling us to deliver operating and financial performance above our expectations for 2025,” said Franco Fogliato, CEO. 

“We focused on our core brands, channels and geographies, improved our cost structure and strengthened our balance sheet. We have more work ahead, but we have entered 2026 from a position of strength, with sustained momentum. 

“As we continue to advance our brand-led, consumer-focused operating model, we are entering the next evolution of our Turnaround Plan — designed to return the company to top line growth, meaningfully improve profitability, and build long-term shareholder value.”