Markets 
Fossil Group plans to close up to 15 stores this year as the watch and accessories company continues trimming its global retail footprint under a broader turnaround plan focused on costs, profitability and balance-sheet strength.
Executives for the Richardson, Texas-based company said on Fossil’s first-quarter earnings call that the company shuttered seven stores during the quarter and expects total closures to reach up to 15 locations in 2026. The closures would leave Fossil with about 185 stores globally by the end of the year, Chief Financial Officer Randy Greben told investors.
The store cuts come as Fossil works to stabilize its business after years of pressure on sales. The company reported first-quarter net sales of $224.8 million, down from $233.3 million a year earlier. Its net loss attributable to Fossil Group narrowed to about $810,000 from $17.6 million in the prior-year quarter, while operating income improved to $12 million from an operating loss of $6.7 million.
BELOVED AMERICAN ICE CREAM CHAIN SHUTTERING DOZENS OF STORES NATIONWIDE
Fossil had 193 stores worldwide as of April 4, down from 220 a year earlier, according to its latest quarterly filing. The company closed 28 stores and opened one over that period, leaving it with 92 stores in the Americas, 47 in Europe and 54 in Asia.
The company has already made a larger pullback from brick-and-mortar retail. Fossil said in its annual filing that it closed 49 underperforming retail stores in fiscal 2025 as part of a turnaround plan aimed at refocusing the company on its core business, rightsizing its cost structure and strengthening its balance sheet.
Fossil’s turnaround plan also included a corporate workforce reduction and the transition of certain smaller international markets to a distributor model. The company said those moves helped it achieve about $100 million in selling, general and administrative cost savings in fiscal 2025 compared with fiscal 2024.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| FOSL | FOSSIL GROUP INC. | 4.00 | -0.03 | -0.74% |
The company is not abandoning stores altogether. CEO Franco Fogliato told investors that Fossil had “significantly scaled back” its downsizing plan because of improved performance in full-price stores. Fossil has also said its 2026 strategy includes reducing the pace of store closures while focusing on profitable growth, operating-model improvements and shareholder value.
Still, Fossil has acknowledged risks tied to physical retail. In its annual filing, the company said traffic to its stores depends heavily on the success of the malls and retail centers where they are located. Fossil warned that declining mall traffic, anchor-store closures or the closure of a significant number of malls where it operates could weigh on its results.
Fossil’s products are sold in about 132 countries through company-owned sales subsidiaries and independent distributors. As of Jan. 3, the company operated 88 retail stores and 111 outlet stores, primarily under the Fossil brand.
CLICK HERE TO GET FOX BUSINESS ON THE GO
FOX Business reached out to Fossil Group for comment.
Read the full article here
