Fossil Group, Inc. (NASDAQ: FOSL) is a company that designs and sells fashion accessories, including watches, jewelry, and handbags. The company operates in a competitive retail environment and is currently executing a turnaround plan to improve its business. On August 12, 2026, Fossil Group reported its second-quarter earnings, which showed progress by beating analyst expectations.
The company announced an earnings per share (EPS) of -$0.13. This result was significantly better than the consensus analyst estimate of a -$0.29 loss per share. As highlighted by Zacks, this represents a positive earnings surprise of over 55%. This indicates Fossil Group managed its expenses better than anticipated despite reporting a net loss.
Fossil Group also posted quarterly revenue of $209.70 million. This figure surpassed the analyst expectation of $199.33 million. While this revenue beat is a positive sign, it is important to note that sales were down from the $220.40 million reported in the same quarter of the previous year, as the company continues its turnaround.
The better-than-expected results are supported by improvements in profitability. The company's gross margin, which is the profit made on sales before other expenses, expanded by 490 basis points to 62.4%. Furthermore, its constant currency adjusted operating income, a measure of core business profitability, doubled to $9.00 million.
Following these results, Fossil Group raised its full-year financial outlook. CEO Franco Fogliato credits the progress to the company's turnaround plan. As highlighted by MarketBeat, Fossil Group's performance was helped by a stabilization in the Americas region and a 4% increase in sales across Asia, showing strength in key markets.
