$FOSL

FOSSIL INC

CIK:0000883569|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) UNAUDITED - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2026	Jul. 05, 2025	Jul. 04, 2026	Jul. 05, 2025
Income Statement [Abstract]
Net sales	$ 209,688	$ 220,388	$ 434,449	$ 453,681
Cost of sales	78,894	93,659	168,951	183,960
Gross profit	130,794	126,729	265,498	269,721
Operating expenses:
Selling, general and administrative expenses	123,472	110,946	244,032	244,784
Other long-lived asset impairments	682	0	743	79
Restructuring expenses	3,440	7,295	5,474	23,116
Total operating expenses	127,594	118,241	250,249	267,979
Operating income (loss)	3,200	8,488	15,249	1,742
Interest expense	8,330	4,321	16,781	8,788
Other income (expense) - net	(1,742)	(38)	(586)	(3,307)
Income (loss) before income taxes	(6,872)	4,129	(2,118)	(10,353)
Provision (benefit) for income taxes	3,723	6,230	9,154	9,598
Net income (loss)	(10,595)	(2,101)	(11,272)	(19,951)
Less: Net income (loss) attributable to noncontrolling interests	33	193	166	(81)
Net income (loss) attributable to Fossil Group, Inc.	(10,628)	(2,294)	(11,438)	(19,870)
Other comprehensive income (loss), net of taxes:
Currency translation adjustment	840	11,511	(2,776)	20,802
Cash flow hedges - net change	0	0	0	(474)
Total other comprehensive income (loss)	840	11,511	(2,776)	20,328
Total comprehensive income (loss)	(9,755)	9,410	(14,048)	377
Less: Comprehensive income (loss) attributable to noncontrolling interests	33	193	166	(81)
Comprehensive income (loss) attributable to Fossil Group, Inc.	$ (9,788)	$ 9,217	$ (14,214)	$ 458
Earnings (loss) per share:
Basic (in dollars per share)	$ (0.18)	$ (0.04)	$ (0.19)	$ (0.37)
Diluted (in dollars per share)	$ (0.18)	$ (0.04)	$ (0.19)	$ (0.37)
Weighted average common shares outstanding:
Basic (in shares)	59,036	53,624	58,705	53,435
Diluted (in shares)	59,036	53,624	58,705	53,435

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS UNAUDITED - USD ($) $ in Thousands	6 Months Ended
	Jul. 04, 2026	Jul. 05, 2025
Operating Activities:
Net income (loss)	$ (11,272)	$ (19,951)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation, amortization and accretion	4,785	6,412
Non-cash lease expense	27,731	28,656
Stock-based compensation	2,333	1,193
Decrease in allowance for returns and markdowns	(7,193)	(6,489)
Net gain on disposal of assets	(1,067)	(12,502)
Gain on sale of subsidiary	(752)	0
Property, plant and equipment and other long-lived asset impairment losses	743	79
Other non-cash items	6,383	565
Changes in operating assets and liabilities:
Accounts receivable	31,690	47,676
Inventories	(29,232)	9,132
Prepaid expenses and other current assets	5,762	(959)
Accounts payable	(78)	(38,543)
Accrued expenses	(31,063)	(35,412)
Income taxes	1,081	4,479
Operating lease liabilities	(30,808)	(35,269)
Net cash (used in) provided by operating activities	(30,957)	(50,933)
Investing Activities:
Additions to property, plant and equipment	(1,818)	(1,089)
Decrease in intangible and other assets	715	610
Proceeds from the sale of property, plant and equipment	738	21,416
Net proceeds from the sale of subsidiary	2,321	0
Net cash provided by investing activities	1,956	20,937
Financing Activities:
Acquisition of common stock	(1,067)	(132)
Distribution of noncontrolling interest earnings	0	(4,299)
Debt borrowings	36,128	75,816
Debt payments	(14,905)	(62,676)
Debt issuance costs	(7,411)	0
Net cash provided by financing activities	12,745	8,709
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	1,463	8,084
Net decrease in cash, cash equivalents, and restricted cash	(14,793)	(13,203)
Cash, cash equivalents, and restricted cash:
Beginning of period	99,426	126,592
End of period	$ 84,633	$ 113,389

CONDENSED CONSOLIDATED BALANCE SHEETS UNAUDITED - USD ($) $ in Thousands	Jul. 04, 2026	Jan. 03, 2026
Current assets:
Cash and cash equivalents	$ 78,950	$ 95,842
Accounts receivable - net of allowances for doubtful accounts of $10,024 and $12,991, respectively	111,182	144,569
Inventories	177,910	151,796
Prepaid expenses and other current assets	69,695	75,623
Total current assets	437,737	467,830
Property, plant and equipment - net of accumulated depreciation of $295,733 and $309,285, respectively	30,841	34,126
Operating lease right-of-use assets	120,493	118,302
Intangible and other assets-net	64,069	68,996
Total long-term assets	215,403	221,424
Total assets	653,140	689,254
Current liabilities:
Accounts payable	124,164	132,514
Short-term debt	13	3,985
Accrued expenses:
Current operating lease liabilities	32,056	34,768
Compensation	28,318	48,695
Royalties	10,372	17,909
Customer liabilities	20,772	29,186
Transaction taxes	3,947	5,109
Other	16,093	17,310
Income taxes payable	12,695	12,287
Total current liabilities	248,430	301,763
Long-term income taxes payable	5,987	5,481
Deferred income tax liabilities	548	607
Long-term debt	203,006	173,847
Long-term operating lease liabilities	106,868	104,442
Other long-term liabilities	14,307	16,338
Total long-term liabilities	330,716	300,715
Commitments and contingencies (Note 13)
Stockholders’ equity:
Common stock, 59,107 and 58,354 shares issued and outstanding at July 4, 2026 and January 3, 2026, respectively	591	584
Treasury stock, at cost, 2,500 shares at July 4, 2026 and January 3, 2026	(4,525)	(4,525)
Additional paid-in capital	330,491	329,232
Retained (deficit) earnings	(174,005)	(162,567)
Accumulated other comprehensive income (loss)	(62,665)	(59,889)
Total Fossil Group, Inc. stockholders’ equity	89,887	102,835
Noncontrolling interests	(15,893)	(16,059)
Total stockholders’ equity	73,994	86,776
Total liabilities and stockholders’ equity	$ 653,140	$ 689,254