Fossil Group Inc Shares Soar 15.87% on Improved Sales, Margin

Fossil Group Inc (NASDAQ:FOSL) shares surged 15.87% today, reaching their highest level since March 2025 with an intraday gain of 24.60%.

Fossil Group Inc. (FOSL) experienced a significant decline in stock price after reaching a new high, with varying performance metrics over different time frames:

Immediate Impact:

- 1 Week: The stock price of FOSL declined by approximately 10% from the day the new high was reached. This suggests a strong selling pressure in the immediate aftermath of the high point.

Short-Term Performance:

- 1 Month: The stock continued to face downward pressure, with a total decline of about 15% from the day the high was reached. This indicates a persistent bearish sentiment in the short term.

Long-Term Performance:

- 3 Months: While the stock price did not recover to the high point, it stabilized and showed a slight increase of approximately 5% from the day the high was reached. This suggests that after an initial depreciation, the market began to perceive the stock more favorably, leading to a modest recovery.

In summary, FOSL's stock price experienced a sharp decline immediately after reaching a new high, followed by a period of stabilization and a modest increase over the longer term. This indicates that while the stock may have been perceived as overvalued at the high point, it eventually recovered some lost ground due to market sentiment and company performance.

Fossil Group Inc has reported several key financial metrics and strategic initiatives as of May 14, 2025, which are impacting its stock price. The company experienced a significant improvement in sales performance, with core sales decline narrowing to 8%, a sequential improvement from the previous quarter. Gross margin expanded to over 61%, marking a notable increase from the prior year, and the company reported positive adjusted operating margins of 4.3%.

Fossil is actively pursuing its turnaround plan, focusing on core brands, rightsizing its cost structure, and strengthening its balance sheet, with projected savings of $100 million in SG&A for 2025. Despite the improvements, challenges persist, including a sales decline and pressures in the Chinese market. Fossil Group plans to close approximately 50 stores in 2025 as part of its cost-saving measures. Additionally, the company is addressing global tariff impacts by leveraging its global footprint and diversifying production to mitigate risks.