Fossil Q2 FY26 net loss widens to $10.6 million; net sales fall 4.9% to $209.7 million

Fossil posted a net loss of $10.6 million, or $0.18 a share, versus a year-earlier net loss of $2.3 million.

Net sales fell 4.9% to $209.7 million, reflecting a 14.6% drop in direct-to-consumer sales.

Fossil raised its full-year outlook, projecting net sales down 3% to 5%, adjusted operating margin of 4% to 6%, and positive free cash flow.

Gross margin widened 4.9 percentage points to 62.4% on improved product margins, partly offset by earlier licensed-brand minimum royalty recognition.

Operating income slid to $3.2 million from $8.5 million, while interest expense climbed to $8.3 million from $4.3 million.