Fossil Group sees operating profit and sales dip YoY in Q2

Fossil Group has reported its financial results for the quarter ended July 4, beating its own expectations but seeing revenue and operating profit dip, year-on-year.

Worldwide net sales were down to $209.7 million from $220.4 million in the same period last year, a reduction of -4.9% (or -4.4% in constant currency).

Meanwhile, operating profit hit $3.2 million, which is -62% down on the $8.5 million that it reported in Q2 of last year. The company put this decline down primarily to an $11 million gain on a warehouse sale included in the prior-year period’s SG&A [Selling, General, and Administrative Expenses].

Taking the first two quarters on aggregate, net sales were down -4%, but operating profit was up +800%.

“We delivered another quarter ahead of our expectations, driven by broad-based strength across our core brands, channels and many of our key geographies,” said Franco Fogliato, CEO. “Top line performance, gross margin expansion and disciplined cost management fueled a doubling of constant currency adjusted operating income compared to the second quarter of last year, demonstrating continuing progress under our turnaround plan and the underlying strength of our operating model.

“Strong business performance in the first half of 2026 and ongoing business momentum are enabling us to

confidently raise our full year financial outlook, which is highlighted by an expected return to top line growth in the fourth quarter, improved profitability and positive free cash flow generation. It is clear that our evolution to a brandled, consumer-focused operating model — combined with healthy watch industry fundamentals — is positioning us to deliver long-term profitable growth and shareholder value.”