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FOSL Fossil Group+26.7%Stock moveEarnings and guidance

Fossil Stock Jumps 26.7% After Third-Quarter Profit and Raised 2026 Outlook

The company swung to operating income in the quarter and lifted its full-year sales and margin targets.

By Zintick Team · Editor: Kratik Mehta
Published

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Photo: Photo Hedge/Shutterstock.com

Key points

  • Fossil shares rose 26.7% on Nov. 11, 2026, after third-quarter results and a raised 2026 outlook
  • Q3 operating income of $25.3 million versus a $21.7 million loss a year earlier
  • Gross margin rose 10.8 points to 59.8%; net sales $271.2 million, up 0.4%
  • 2026 guidance raised to $980 million to $990 million in net sales

Fossil Group (Nasdaq: FOSL) shares jumped 26.7% on Wednesday, Nov. 11, 2026, closing at $9.97 from a previous close of $7.87. The S&P 500 ETF (SPY) rose 1.32% that session. Trading volume was about 12.7 times its usual level. The move followed the company's third-quarter results and raised full-year guidance, which it released after the close on Tuesday.

The results were disclosed in an 8-K filed Nov. 10, with the earnings press release attached. The company reported net sales of $271.2 million for the quarter ended Oct. 3, 2026, up 0.4% as reported and 2.0% in constant currency. Gross margin rose 10.8 percentage points to 59.8%, and operating income was $25.3 million, compared with a loss of $21.7 million a year earlier. Net income was $11.7 million, or $0.19 a diluted share. Adjusted net income was $14.2 million, or $0.23 a diluted share.

Raised full-year outlook

Fossil now expects 2026 worldwide net sales of $980 million to $990 million and an adjusted operating margin of 5.5% to 6.5%. It also expects positive free cash flow. The company said the sales and margin guidance excludes currency effects. Chief Executive Franco Fogliato said year-to-date results were outpacing the company's expectations.

Costs and cash position

Operating expenses fell 11.1% to $137.0 million, and selling, general and administrative expenses fell 8.8%. The company credited cost reductions and restructuring programs. Interest expense rose to $8.9 million from $4.2 million, which the company attributed to higher debt issuance cost amortization, higher debt balances and higher interest rates.

At the end of the quarter, Fossil had $77.0 million in cash and cash equivalents and total liquidity of $111.7 million. Total debt was $208.0 million. Inventories rose 13.4% from a year earlier to $189.2 million, which the company said reflected investments to support product innovation and demand.

The press release did not give a specific reason for the size of the share price move.

Sources

Written with AI from SEC filings and market data, and checked against those sources before publishing. Our editorial standards.

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Filings, figures and price history are on the Fossil Group page.