Fossil returns to profit after four years of losses
Fossil returned to profit in Q3 after years of losses.
Fossil Group returned to profitability in the third quarter after years of struggle, posting operating income of $25.3 million compared with an operating loss of $21.7 million a year earlier. Sales grew 0.4% to $271.2 million, marking the first year-over-year increase since the first quarter of 2022.
CEO Franco Fogliato, who joined in 2024, led a turnaround strategy focused on closing underperforming stores, cutting costs, and moving away from heavy discounts toward full-price sales. Growth was driven by Asia, particularly India, where sales jumped 15.1%.
Traditional watches, which make up around 86% of revenue, grew 6.4%, while the company's earlier push into smartwatches yielded minimal returns. The company raised its full-year outlook and expects positive free cash flow by year's end.
- 19 cents versus 76 cent loss prior year
- Net income per share
- 15.1 percent
- Sales growth in India
- 86 percent
- Traditional watches revenue share
Why it mattersShows a legacy brand can recover by focusing on its core product and cutting waste; signals confidence in the broader watch market beyond smartwatch competition.
AustraliaLimited direct Australian effect yet, but Fossil is widely stocked locally; success suggests watchmakers are finding ways to compete with tech gadgets.
✓ Claims checked against the source. checked 2 h ago
