Fossil Q2 2026 results benefit from full-price selling, lifting gross margin to 62.4% company says

Fossil posted Q2 net sales of USD 211 million, down 4%, as store closures cut sales by about 220 basis points.

Gross margin rose 490 basis points to 62.4%, driven by full-price selling, supply-chain gains, and lower tariffs.

Adjusted operating income doubled to about USD 9 million as margin expansion offset higher marketing spend.

Performance was supported by mid-single-digit U.S. growth, 4% Asia growth led by double-digit India gains, and 12% Fossil-brand wholesale watch growth.

Full-year outlook was raised, with net sales seen down 3%–5%, adjusted operating margin 4%–6%, and positive free cash flow expected.