Introduction
Fossil is doing better now. The watch company made a profit in its third quarter. Its sales grew a little. The company had not grown its sales since early 2022.
Key Figures
- Net sales: $271.2 million, up 0.4% from a year ago. That means the company sold a little more stuff.
- Net income: $11.7 million, or 19 cents per share. Net income means the money left after costs.
- Operating income: $25.3 million. A year ago, it lost $21.7 million on this same measure. Operating income means money made from the main business.
- Gross margin: 59.8%, up from 49.0% a year ago. Gross margin shows how much money is left from each sale after making the product.
- Full-year sales outlook: $980 million to $990 million. An outlook is what a company expects to happen next. Fossil raised this outlook.
What Happened
Fossil shared its results on Tuesday, November 10, 2026. The quarter ended on October 3, 2026. Net sales were $271.2 million. That was up 0.4% from $270.2 million a year ago. It was the first time sales grew since the first quarter of 2022.
Fossil also made a profit. Net income was $11.7 million, or 19 cents per share. A share is a small piece of a company. A year ago, Fossil lost $39.9 million, or 76 cents per share. This was its first quarterly profit since the third quarter of 2022.
Operating expenses were $137.0 million, down 11.1% from a year ago. Operating expenses are the costs of running the business. Gross margin rose to 59.8% from 49.0%.
Sales in Asia grew 15.1%. Sales of old-style watches grew 6.4%. Old-style watches made about 86% of all sales.
Not everything grew. Sales straight to shoppers fell 5.9%. Fossil has been closing some of its own stores. It had 174 stores, down from 204 a year ago.
Why It Happened
Fossil has been fixing its business for a while. A turnaround means a plan to fix a struggling company. The company cut costs and closed some stores.
Chief Executive Franco Fogliato joined Fossil in 2024. A chief executive is the top boss of a company. He said the plan is about a year and a half ahead of the first plan. Fossil did not expect sales to grow for another year and a half.
Fossil is not the only big company cutting costs. PepsiCo cut about 1,000 jobs in North America as part of its own plan to save money. Fossil cut costs in a different way, by closing stores and spending less.
Why It Matters
A profit is a good sign for a company that had been losing money. It shows the cost cuts are helping. But one good quarter does not fix everything, and the company still has hard work ahead.
Other stores have had a hard time too. Children’s Place filed for bankruptcy and looked for a buyer. Fossil’s news shows that a fix-it plan can start to work.
What Happens Next
Fossil raised its outlook for the full year. The company shared the new outlook on Tuesday. It now expects full-year sales of $980 million to $990 million.
Fossil also expects positive free cash flow by the end of the year. Free cash flow is cash left after paying for the things a business needs to run. That would mean more cash coming in than going out.
Final Thoughts
Fossil had a good quarter after a long hard time. Sales grew a little, costs fell, and the company made a profit. The boss says the fix-it plan is ahead of time.
Quick Questions
Did Fossil make a profit in the third quarter of 2026?
Yes. Fossil made $11.7 million, or 19 cents per share.
How much did Fossil sell in the third quarter?
Fossil sold $271.2 million worth of goods. That was up 0.4% from a year ago.
What does Fossil expect for the full year?
Fossil expects sales of $980 million to $990 million for 2026.
Disclaimer: This article is for educational and informational purposes only and does not constitute financial advice.
Sources: CNBC, Fossil (FOSL) Q3 2026 earnings; Fossil Group Q3 2026 results (press release via Yahoo Finance).