Fossil Group 2025 Q2 Earnings Narrowed Losses with 94.6% Reduction in Net Loss

Fossil Group reported its fiscal 2025 Q2 earnings on August 15, 2025. The results reflected a significant reduction in losses compared to the prior year. The company narrowed its net loss to $-2.10 million, a 94.6% improvement from $-38.84 million in 2024 Q2, while also reducing its loss per share from $0.73 to $0.04. Although the company missed revenue expectations, it provided positive guidance for improved profitability in the coming quarters.

Revenue
Fossil Group’s total revenue for 2025 Q2 declined by 15.2% year-over-year to $220.39 million, compared to $259.99 million in 2024 Q2. The drop was primarily driven by a contraction in its core watch segment, which brought in $179.85 million in revenue, down from $179.80 million a year ago. Leathers and jewelry segments reported slight declines as well, with revenues at $16.95 million and $19.39 million, respectively. The “Other” category contributed $4.21 million, marginally below $4.30 million in the prior year. Consolidated figures align closely with the total revenue reported.

Earnings/Net Income
Fossil Group significantly narrowed its losses, reducing net income losses by 94.6% year-over-year to $-2.10 million. The loss per share also dropped to $0.04 from $0.73. The improvement reflects cost discipline and strategic realignment, although the overall performance remains in negative territory, indicating that the company has not yet returned to profitability.

Price Action
Following the earnings report, Fossil Group’s stock price surged 20.51% during the latest trading day, 37.43% for the week, and 47.80% month-to-date. The strong price reaction suggests a positive market perception of the company’s earnings and guidance.

Post-Earnings Price Action Review
The buy-and-hold strategy of purchasing FOSL following a positive earnings report and holding for 30 days underperformed significantly, returning -59.83% versus a benchmark underperformance of 144.96%. This outcome highlights the high volatility and risk associated with the stock, despite the short-term price surge. The strategy recorded a maximum drawdown of 0.00% and a Sharpe ratio of -0.21, underscoring its poor risk-adjusted returns.

CEO Commentary
CEO Kosta Kouvelakis acknowledged the mixed performance in 2025 Q2, emphasizing that the company’s strategic shift toward premium offerings and digital innovation is on track. He highlighted growth drivers such as the expanding direct-to-consumer model and luxury-inspired product lines in North America and Europe. However, he also noted macroeconomic challenges and evolving consumer preferences. Kouvelakis expressed cautious optimism, stating that the company is increasing investments in design and technology to strengthen brand equity and customer loyalty.

Guidance
Looking ahead, Kouvelakis outlined a strategy focused on disciplined cost management and revenue diversification, with an emphasis on higher-margin product categories. While the company did not provide specific revenue or EPS targets, it expressed confidence in achieving a return to positive net income by late 2025. The guidance reflects a commitment to profitability through operational efficiency and strategic market positioning.

Additional News
On the same date as Fossil Group’s earnings report, Nigeria’s Punch newspaper highlighted a range of significant national news. A veteran Nollywood actor, Chief Kanran, passed away at the age of 70, drawing tributes from the entertainment industry. In political developments, a group urged the Federal Government to remove a prominent individual, Mr. Igboho, from the list of wanted persons. Additionally, Roche and the NHIA announced a partnership to reduce cancer drug costs by 80% for UPTH insured patients, signaling progress in healthcare affordability. Nigeria’s inflation rate also declined to 21.88% in July, as reported by the National Bureau of Statistics.