Fossil Group, Inc. reported a decline in financial performance for the third quarter of fiscal 2025, with net sales of $270.2 million, a decrease of 6.1% from $287.8 million in the same period last year. The company's gross profit also fell to $132.4 million, down from $142.2 million, resulting in a gross profit margin of 49.0%. The operating loss for the quarter was $21.7 million, an improvement from a loss of $24.5 million in the prior year. The net loss attributable to Fossil Group was $39.9 million, or $0.76 per diluted share, compared to a net loss of $32.0 million, or $0.60 per diluted share, in the previous year.
The decline in sales was attributed to a reduction in direct-to-consumer channels, particularly due to a smaller store base and decreased promotional activity. The company has been actively rationalizing its store footprint, closing 44 retail locations in the year-to-date period, which contributed approximately 260 basis points to the sales decline. In contrast, wholesale sales increased by 4.0%, indicating some resilience in that segment. The Americas and Europe segments experienced notable sales declines, while the Asia segment remained flat.
Fossil Group has been implementing a Turnaround Plan aimed at refocusing on core businesses, rightsizing its cost structure, and strengthening its balance sheet. The company expects to achieve approximately $100 million in selling, general, and administrative (SG&A) cost savings in fiscal 2025 compared to fiscal 2024. This includes a strategic reduction in force and the transition of smaller international markets to a distributor model. The company incurred restructuring expenses of $6.8 million in the third quarter, contributing to a total of $29.9 million for the year-to-date period.
In terms of liquidity, Fossil Group ended the quarter with cash and cash equivalents of $79.2 million, down from $106.3 million a year earlier. The company has also entered into a new revolving credit facility of $150 million, which replaced its previous facility. As of October 4, 2025, Fossil had $21.0 million outstanding under this new facility and $150.0 million in long-term debt. The company is actively pursuing initiatives to improve working capital and strengthen liquidity, particularly in light of ongoing economic uncertainties and tariff impacts.
Looking ahead, Fossil Group anticipates continued challenges in the retail environment, including potential impacts from tariffs and changing consumer spending patterns. The company is focused on executing its Turnaround Plan and optimizing its business model to drive future profitability.
About Fossil Group, Inc.
Fossil Group designs, markets, and distributes fashion accessories, primarily watches, jewelry, handbags, and small leather goods. It owns brands like Fossil, Skagen, Michele, Relic, and Zodiac, and licenses brands such as Michael Kors and Armani Exchange. Serving global markets through retail stores, e-commerce, and wholesale channels, the company emphasizes innovation, brand strength, and a multi-channel distribution model to attract style-conscious consumers.
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