Fossil Group Narrows Net Loss Despite Sales Decline, Focuses on Key Brand Initiatives

Fossil Group's Q2 net sales declined 15.2% to $220.4 million, but the company's net loss narrowed to $4.1 million, a significant improvement from a loss of $36.6 million in the same period last year. Adjusted EBITDA improved to $7 million, or 3.2% of total sales, and gross margin improved by 480 basis points to 57.4%. The company plans to focus on key brand initiatives in the second half of the year.

Fossil Group, Inc. (FOSL) reported its fiscal 2025 Q2 earnings on August 15, 2025, with mixed results. The company's net sales declined by 15.2% to $220.4 million, driven by a 15.2% drop in total revenue compared to the same period last year. However, the company's net loss narrowed to $4.1 million, a significant improvement from a loss of $36.6 million in the same period last year. Adjusted EBITDA improved to $7 million, or 3.2% of total sales, and gross margin improved by 480 basis points to 57.4%.

The company's CEO, Kosta Kouvelakis, emphasized the strategic shift towards premium offerings and digital innovation, highlighting growth drivers such as the expanding direct-to-consumer model and luxury-inspired product lines in North America and Europe. Despite the mixed performance, Kouvelakis expressed cautious optimism, noting that the company is increasing investments in design and technology to strengthen brand equity and customer loyalty.

Looking ahead, Fossil Group plans to focus on key brand initiatives in the second half of the year, including a global campaign featuring celebrity ambassador Nick Jonas. The company expects to benefit from product innovation, marketing campaigns, and improved cost leverage in the second half of 2025.

References:
[1] https://www.ainvest.com/news/fossil-group-2025-q2-earnings-narrowed-losses-94-6-reduction-net-loss-2508/
[2] https://www.barchart.com/story/news/34253315/fosl-incurs-narrower-y-y-loss-in-q2-lifts-2025-outlook