Fossil Group, Inc. ( (FOSL) ) has released its Q2 earnings. Here is a breakdown of the information Fossil Group, Inc. presented to its investors.
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Fossil Group, Inc. is a global design and marketing company specializing in lifestyle accessories, including watches, jewelry, and leather goods, with a diverse portfolio of owned and licensed brands.
In its second quarter of 2025, Fossil Group reported positive operating income, with worldwide net sales totaling $220 million and a significant gross margin expansion. The company also announced a comprehensive refinancing plan to enhance its financial position and liquidity.
Key financial metrics showed a decrease in net sales by 15.2% compared to the previous year, largely due to category and channel softness and the exit from the smartwatch category. However, the gross margin increased to 57.5%, and operating expenses were reduced by 30.8%, leading to an operating income of $8 million. The company also reported a net loss of $2.3 million, an improvement from the previous year’s loss.
Fossil Group’s management remains optimistic about the second half of the year, focusing on brand-building initiatives and raising its financial guidance for 2025. The company expects worldwide net sales to decline in the mid-teens, with adjusted operating margins expected to be break-even to slightly positive.
Looking forward, Fossil Group aims to continue its turnaround and growth plans, supported by strategic initiatives and a strengthened financial position, as it works towards enhancing long-term shareholder value.