Fossil Group (NASDAQ:FOSL – Get Free Report) issued its quarterly earnings results on Tuesday. The accessories brand company reported $0.19 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.04) by $0.23, RTT News reports. Fossil Group had a negative return on equity of 59.76% and a negative net margin of 7.09%. The firm had revenue of $271.20 million during the quarter, compared to analyst estimates of $248.66 million. During the same period last year, the company earned ($0.76) EPS.
Here are the key takeaways from Fossil Group’s conference call:
- Fossil Group reported Q3 net sales growth of 2% to $276 million, with its namesake brand up 14% and traditional watch sales up 6%. Management said growth extended across channels and highlighted continued strength in the U.S. and India.
- Adjusted operating income rose to $30 million, while gross margin expanded to 59.9%. The company raised full-year sales guidance to $980–$990 million and adjusted operating margin guidance to 5.5%–6.5%, and continues to expect positive free cash flow.
- Q3 sales benefited from about $10 million of wholesale shipments shifted forward from Q4, while store closures also affected the comparison. Management said the timing shift is reflected in its Q4 outlook, making the underlying quarterly growth trajectory important to watch.
- Product launches are contributing to momentum: Machine X1 and the new Swiss-made Signature collection are reportedly selling ahead of expectations. Fossil also extended its Diesel licensing partnership through 2032 and renewed its global partnership with Nick Jonas.
- Some Q3 margin improvement reflected lower royalty guarantees and lower tariff rates, so the quarter’s margin expansion may not fully represent ongoing performance. Management expects Q4 SG&A to rise to the low 50s as it steps up demand-generation investment, and noted that European trends remain a recovery effort despite recent improvement.
Fossil Group Stock Up 25.3%
Shares of NASDAQ:FOSL traded up $2.00 during trading on Wednesday, reaching $9.87. The stock had a trading volume of 6,556,534 shares, compared to its average volume of 841,300. The firm’s 50-day simple moving average is $6.37 and its 200 day simple moving average is $4.95. The company has a current ratio of 1.76, a quick ratio of 1.05 and a debt-to-equity ratio of 2.74. Fossil Group has a one year low of $1.70 and a one year high of $10.55. The company has a market capitalization of $583.42 million, a P/E ratio of -7.70 and a beta of 1.61.
Insider Activity at Fossil Group
In other news, Director Pamela J. Edwards acquired 7,208 shares of Fossil Group stock in a transaction that occurred on Thursday, August 20th. The stock was purchased at an average price of $5.58 per share, for a total transaction of $40,220.64. Following the purchase, the director directly owned 50,251 shares in the company, valued at $280,400.58. The trade was a 16.75% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this link. 3.80% of the stock is currently owned by company insiders.
Wall Street Analyst Weigh In
Several analysts have recently weighed in on FOSL shares. Lake Street Capital assumed coverage on Fossil Group in a research report on Wednesday, October 7th. They set a “buy” rating and a $10.00 target price for the company. Weiss Ratings restated a “sell (d-)” rating on shares of Fossil Group in a report on Thursday, October 15th. Craig Hallum started coverage on Fossil Group in a research note on Thursday, September 10th. They set a “buy” rating and a $12.00 price target on the stock. Finally, Northland Securities set a $8.00 target price on shares of Fossil Group in a research report on Thursday, August 13th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $9.25.
Read Our Latest Stock Analysis on FOSL
Top Fossil Group Stories
These are some of the FOSL stories that stood out recently:
- Positive Sentiment: Fossil reported third-quarter EPS of $0.19, versus analyst expectations for a loss, while revenue of $271 million exceeded estimates. Sales rose 0.4% year over year, or 2% at constant currency—the company’s first return to sales growth in four years. Fossil Group third-quarter results
- Positive Sentiment: The company raised its fiscal 2026 revenue guidance to $980 million–$990 million, above the roughly $965 million analyst consensus. CEO commentary that the turnaround is ahead of plan added to optimism. Fossil CEO says turnaround is ahead of plan
- Positive Sentiment: Fossil extended its global Diesel licensing agreement for five years, providing continued access to a major brand partnership. Diesel licensing agreement extension
Fossil Group Company Profile
Fossil Group, Inc. is a global design, sourcing, marketing and distribution company focused primarily on watches and accessories. Its products include traditional watches, jewelry, handbags, small leather goods and other fashion accessories sold through company-operated and third-party retail stores, e-commerce channels and wholesale partners. The company markets products under its Fossil, Skagen, Michele and Relic brands, as well as through various licensed brand relationships. Fossil Group was founded in 1984 and is headquartered in Richardson, Texas.
Read More
- Five stocks we like better than Fossil Group
- Powering Up the Moon: Redwire’s $40 Million NASA Award
- Can Constellation Energy’s Contracts Power a Stock Rebound?
- Why Apple Stock Looks Like a Safe Haven After the Midterms
- IonQ Raised the Bar, But 3 Quantum Rivals Face Tough Questions
Receive News & Ratings for Fossil Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Fossil Group and related companies with MarketBeat.com's FREE daily email newsletter.
