Above Expectation Financial Performance
Fossil Group delivered second quarter financial performance above expectations, raised full-year guidance, and announced a comprehensive debt refinancing. The company achieved a third consecutive quarter of both gross margin expansion and positive adjusted operating income.
Strong Gross Margin and Cost Reduction
Gross margin expanded to more than 57%, with significant cost reduction delivering positive adjusted operating income of $4 million. SG&A savings of $48 million year-to-date, with a target of $100 million for the full year, were achieved.
Successful Brand Collaborations
Collaborations like Fossil per Shelby, Superman, and Fantastic Four drew significant media attention and delivered outsized performance. The launch of Nick Jonas as a global brand ambassador is expected to drive further brand awareness.
Effective Cost Management
Cost-cutting actions have generated nearly $50 million of savings in the first half of 2025, with SG&A savings projected to reach $100 million for the full year.
Successful Debt Refinancing
Fossil Group successfully refinanced its revolving credit facility and entered into a transaction support agreement to extend bond maturities to 2029, improving liquidity and financial flexibility.