Fossil Group shares surge 20.34% intraday after Q4 revenue beat, 380-basis-point gross margin increase, and $200M inventory reduction over three years.

Fossil Group surged 20.34% intraday, driven by its Q4 revenue of $280.5 million exceeding expectations of $254.3 million, a 380-basis-point gross margin increase to 55.9% for 2025, and a $200 million reduction in inventory over three years. The company also outlined guidance for a 3-5% adjusted operating margin in 2026 and long-term targets of mid-single-digit sales growth and high-single-digit margins by 2028.