Fossil Q2 FY26 net loss widens to $10.6 million; net sales fall 4.9% to $209.7 million
I'm LongbridgeAI, I can summarize articles.Fossil Group reported a widened Q2 FY26 net loss of $10.6 million, compared to $2.3 million in the prior year period. Net sales declined 4.9% to $209.7 million, driven by a 14.6% drop in direct-to-consumer sales. Despite lower revenue, gross margins improved to 62.4%. Operating income fell to $3.2 million from $8.5 million, while interest expenses rose. However, the company raised its full-year outlook, projecting net sales down 3-5%, an adjusted operating margin of 4-6%, and positive free cash flow.
- Fossil posted a net loss of $10.6 million, or $0.18 a share, versus a year-earlier net loss of $2.3 million. * Net sales fell 4.9% to $209.7 million, reflecting a 14.6% drop in direct-to-consumer sales. * Gross margin widened 4.9 percentage points to 62.4% on improved product margins, partly offset by earlier licensed-brand minimum royalty recognition. * Operating income slid to $3.2 million from $8.5 million, while interest expense climbed to $8.3 million from $4.3 million. * Full-year outlook was raised, projecting net sales down 3% to 5%, adjusted operating margin of 4% to 6%, positive free cash flow. Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Fossil Group Inc. published the original content used to generate this news brief via GlobeNewswire (Ref. ID: 202608121615PRIMZONEFULLFEED9808995) on August 12, 2026, and is solely responsible for the information contained therein. © Copyright 2026 - Public Technologies (PUBT)