Fossil Stock Jumps as Q3 Profit Returns and 2026 Outlook Rises

Shares of watchmaker Fossil Group jumped on Wednesday, November 11, 2026, after the company swung to a third-quarter profit and raised its full-year forecast. Fossil reported net income of $11.7 million, or 19 cents a share, for the quarter, compared with a loss of $39.9 million a year earlier. The stock was up 23.13% in premarket trading at 8:14 a.m. ET, according to StockTitan.

Fossil released the results on Tuesday, November 10, and held a conference call at 5 p.m. ET that day. Its third quarter ended October 3, 2026.

Key numbers

Source: Fossil Group's earnings release.

Sales rose just 0.4%, or 2.0% when currency swings are stripped out. Even so, it marked Fossil's first sales growth in four years, according to Seeking Alpha. Store rationalization, which includes closing stores and converting some to franchise partners, cut sales by about 1.9 percentage points, the company said.

Why profit improved

The big change was margin. Gross margin rose 10.8 percentage points to 59.8%. Fossil credited lower minimum royalties on licensed brands, the timing of how those royalties were booked, and better margins on its core products from more full-price selling, better sourcing and lower tariffs. Operating expenses also fell 11.1% to $137.0 million.

By region, sales in Asia rose 15.1% in constant currency, the Americas were flat at +0.1%, and Europe fell 5.6%. Traditional watches grew 6.4% in constant currency, while leather goods fell 20.5% and jewelry fell 10.8%.

Raised 2026 outlook

Fossil now expects for 2026:

• Worldwide net sales of $980 million to $990 million
• An adjusted operating margin of 5.5% to 6.5%
• Positive free cash flow

The company said those sales and margin targets exclude currency effects. CEO Franco Fogliato said the turnaround plan is "translating to top line growth and accelerating profitability."

What to watch

Fossil ended the quarter with $77.0 million in cash and $208.0 million in total debt. Inventory was up 13.4% from a year earlier at $189.2 million, which is worth watching heading into the holiday season. Shares of small companies can swing sharply after earnings, so a one-day jump does not say where the stock goes next. Our guide on how to read an earnings report explains margins and adjusted EPS, and our market cap guide explains why small caps move more. For today's broader market, see our midday market update.

This article is for information only and is not investment advice.