The US watch and accessories provider Fossil Group Inc. suffered a decline in sales and a higher loss in the third quarter of the 2025 financial year. However, the group remains on track with its reform efforts.
CEO Franco Fogliato highlighted the completion of a comprehensive refinancing last week. This is a “decisive milestone” that strengthens the company’s financial foundation, he explained in a statement. The deal comes after Fossil over the past few months initiated a transition to a “consumer-focused, brand-led business model” designed to reduce costs, increase margins and strengthen its balance sheet.
In the third quarter, which ended on October 4th, group sales fell by 6.1 percent to 270.2 million US dollars (248.6 million euros). Adjusted for currency effects, revenue fell by 7.1 percent. According to the company, the losses were primarily due to the streamlining of the branch network and the ongoing weakness in its own retail sector. Sales in this channel fell by 27 percent and on a like-for-like basis they fell by 22 percent.
In America, currency-adjusted revenues fell by nine percent and in Europe by ten percent, while in Asia they rose by two percent. Wholesale sales improved by three percent.
The individual product categories developed inconsistently: sales of traditional watches fell by one percent, of leather goods by 37 percent and of jewelry by 23 percent. Of the main brands, Diesel and Armani Exchange grew, while Fossil suffered losses.
Due to higher tariffs and license fees, the gross margin fell slightly to 49 percent. Improved product margins through increased efficiency in procurement were only able to partially compensate for the additional burdens.
Adjusted for special factors and currency effects, the operating loss, which was $22 million in the same quarter of the previous year, decreased to $14.9 million. However, the net loss increased from 32 to 39.9 million US dollars.
The company confirmed its forecasts for the full year 2025. A decline in sales of a percentage in the mid-teens is therefore still expected. The group estimated the impact of the most recent branch closures at around $45 million. The operating margin adjusted for special effects is expected to be balanced to slightly positive.
CEO Fogliato emphasized that the restructuring was largely completed and the balance sheet was strengthened. Fossil is now ready to “open a new chapter” and strive for sustainable growth in the coming years.
This article was created using digital tools translated.
FashionUnited uses artificial intelligence to speed up the translation of articles and improve the end result. They help us to make FashionUnited’s international reporting quickly and comprehensively accessible to a German-speaking readership. Articles translated using AI-based tools are proofread and carefully edited by our editors before they are published. If you have any questions or comments, please email [email protected]