Fossil Returns to Profit and Sales Growth for First Time in Four Years, Raises Full-Year Outlook

Fossil Group reported a swing to profitability in its fiscal third quarter ended October 3, 2026, marking the first positive sales growth in four years and sending shares surging more than 20%. The company posted net income of $11.7 million, or 19 cents per share, reversing a net loss of $39.9 million, or 76 cents per share, in the same period a year earlier. Worldwide net sales rose 0.4% to $271.2 million, or 2.0% on a constant-currency basis, while gross margin expanded 10.8 percentage points to 59.8%. Operating income reached $25.3 million, compared to an operating loss of $21.7 million a year ago.

Building on the stronger-than-expected results, Fossil raised its full-year 2026 financial outlook on both revenue and profitability, guiding for full-year net sales of $980 million to $990 million. CEO Franco Fogliato told CNBC the company is running roughly a year and a half ahead of its original turnaround timeline, crediting disciplined cost management and a shift to a brand-led, consumer-focused operating model. Fogliato said shrinking the company was the single biggest factor in strengthening its balance sheet.

Fossil has struggled since its sales and stock peaked in the 2010s, facing mounting pressure from smartwatches and competing gadgets. The Q3 results are the clearest sign yet that the turnaround plan is gaining traction, with the CEO describing the current performance as "just the beginning" of a long-term growth journey.