Fossil Group Delivers $1B 2025 Net Sales, Q4 Operating Profit of $0.9M
Full year 2025 net sales reached $1.0 billion, gross margin rose 390 basis points to 56.1%, and adjusted operating income was $12 million. Fourth quarter net sales fell 18.1% to $280.5 million while operating profit turned positive at $0.9 million versus a $16.3 million loss last year.
1. Fiscal Year 2025 Performance
Full year net sales totaled $1.0 billion, gross margin expanded 390 basis points to 56.1%, operating loss was $19 million and adjusted operating income reached $12 million with a 1.1% margin. The Company improved its cost structure, strengthened the balance sheet and delivered performance above guidance ranges.
2. Fourth Quarter Sales and Margins
Fourth quarter net sales declined 18.1% to $280.5 million, driven by a return to full price selling, shipment timing shifts and store rationalization. Gross profit rose to $161.0 million, gross margin increased 350 basis points to 57.4%, and operating income improved to $0.9 million from a $16.3 million loss.
3. Channel and Category Performance
On a constant currency basis, sales fell 23% in the Americas, 20% in Asia and 14% in Europe; wholesale declined 12% while direct-to-consumer dropped 31% with comparable store sales down 26%. Traditional watch sales declined 16%, leathers decreased 37% and jewelry fell 28% in the quarter.
4. Turnaround Plan Evolution
The Company unveiled the next phase of its Turnaround Plan focused on a brand-led, consumer-focused operating model aimed at top line growth and profitability. Long-term targets were raised, emphasizing improved product margins, cost efficiencies and sustainable shareholder value creation.