Fossil Group shares surge 18.33% intraday after Q4 revenue exceeds expectations and 2025 margin improvements.

Fossil Group surged 18.33% intraday, driven by a Q4 revenue of $280.5 million (exceeding expectations of $254.3 million), a 380-basis-point increase in annual gross margin to 55.9%, and a $200+ million reduction in inventory over three years. The company also outlined 2026 adjusted operating margin guidance of 3-5% and 2028 targets for mid-single-digit sales growth and high-single-digit margin expansion.