Fossil Group plans to close up to 15 stores by 2026 as part of a broader corporate turnaround strategy.
Fossil Group Chief Financial Officer Randy Greben announced that the watch and accessories company expects to shutter up to 15 stores by 2026. This move is part of a comprehensive turnaround plan designed to improve profitability, reduce costs, and strengthen the company's balance sheet. The company reported first-quarter net sales of $224.8 million, a slight decrease from the previous year. However, Fossil Group successfully narrowed its net loss to approximately $810,000 and improved its operating income to $12 million. To achieve these results, the company has already closed 49 underperforming stores in fiscal 2025 and transitioned several international markets to a distributor model. CEO Franco Fogliato noted that the company has scaled back its downsizing plan due to better performance in full-price stores. While Fossil Group continues to reduce its physical retail footprint, it remains focused on profitable growth and shareholder value. The company warned that future results may depend on the continued success of the malls and retail centers where its products are sold.