Fossil Group (FOSL) Misses Q4 EPS by 17c, provides guidance

Fossil Group (NASDAQ: FOSL) reported Q4 EPS of ($0.15), $0.17 worse than the analyst estimate of $0.02. Revenue for the quarter came in at $280.5 million versus the consensus estimate of $280 million.

Turnaround Plan and Financial Outlook

Building on the strong execution and financial performance of 2025, the Company introduced the next evolution of its Turnaround Plan, consisting of three key pillars: 1) Returning to Profitable Growth by fueling innovation, deepening consumer engagement and powering the traditional watch business; 2) Optimizing the Operating Model by further improving the cost structure, strengthening go-to-market execution and delivering infrastructure improvements; and 3) Building Shareholder Value by improving profitability, strategically investing for growth and generating positive free cash flow.

The Company is providing the following financial guidance for full year 2026:

Worldwide net sales are expected to decline 4% to 6%, with a return to growth in the fourth quarter
Adjusted operating margin(1) is expected to be in the range of 3% to 5%
Break-even free cash flow(2)

Worldwide net sales and adjusted operating margin guidance exclude impacts from foreign currency.

The Company is raising its long-term financial targets. For the full year 2028, the Company expects to achieve the following:

Worldwide net sales growth in the low-to-mid single digits
Adjusted operating margin(1) in the high single digits
Positive free cash flow(2)

For earnings history and earnings-related data on Fossil Group (FOSL) click here.

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