Up to 15 store closures set to close by 2026 as turnaround plan shrinks retail space
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Fossil Group plans to close up to 15 stores this year as the watch and accessories company continues to overhaul its global retail outlets under a comprehensive turnaround program focused on cost, profitability and balance sheet strength.
The Richardson, Texas-based company said in Fossil’s first-quarter earnings call that the company closed seven stores in the quarter and expects total closings to reach 15 locations by 2026. The closings will leave Fossil with about 185 stores worldwide by the end of the year, Chief Financial Officer Randy Greben told investors.
The store cuts come as Fossil works to stabilize its business after years of sales pressure. The company reported first quarter net sales of $224.8 million, down from $233.3 million last year. Its net loss attributable to Fossil Group fell to about $810,000 from $17.6 million in the year-ago quarter, while operating income improved to $12 million from an operating loss of $6.7 million.
AMERICAN FAVORITE ICE CREAM SHUTTERING STORE STORES NATIONWIDE
The store cuts come as Fossil works to stabilize its business after years of sales pressure. (Gary Hershorn/Getty Images)
Remains had 193 stores worldwide as of April 4, down from 220 a year earlier, according to its latest quarterly filing. The company closed 28 stores and opened one at that time, leaving 92 stores in the Americas, 47 in Europe and 54 in Asia.
The company has already made huge profits from selling bricks and mortar. Fossil said in its annual filing that it will close 49 underperforming stores in fiscal year 2025 as part of a turnaround plan aimed at refocusing the company on its core business, righting its cost structure and strengthening its balance sheet.
Remains had 193 stores worldwide as of April 4. (Krisztian Bocsi/Bloomberg via Getty Images)
Fossil’s turnaround plan also includes corporate staff reductions and the transition of some smaller international markets to a distributor model. The company said those moves helped it achieve nearly $100 million in selling, general and administrative cost savings in fiscal 2025 compared to fiscal 2024.
| A ticker | Security | Finally | Change | change % |
|---|---|---|---|---|
| FOSL | Company FOSSIL GROUP INC. | 4.00 | -0.03 |
-0.74% |
The company is not abandoning stores entirely. Chief executive Franco Fogliato told investors that Fossil had “significantly scaled back” its cost-cutting plan due to better performance at full-price stores. Fossil also said its 2026 strategy includes slowing the pace of store closures while focusing on profitable growth, operating model improvements and shareholder value.
Fossil products are sold in approximately 132 countries through the company’s sales subsidiaries and independent distributors. (Roberto Machado Noa/LightRocket via Getty Images)
However, Fossil acknowledged the risks associated with physical sales. In its annual filing, the company said traffic in its stores is largely dependent on the success of the malls and retail locations where they are located. Fossil has warned that a drop in supermarket traffic, supermarket closures or the closure of a large number of supermarkets where it operates could weigh on its results.
Fossil products are sold in approximately 132 countries through the company’s sales subsidiaries and independent distributors. As of Jan. 3, the company operated 88 stores and 111 stores, mainly under the Fossil brand.
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FOX Business has reached out to Fossil Group for comment.
