Fossil Group Inc. has announced its financial results for the first quarter of 2025, revealing worldwide net sales of $233 million. The company reported an operating loss of $7 million, while the constant currency adjusted operating income stood at $10 million with an adjusted operating margin of 4.3%. Notably, the gross margin expanded by 890 basis points to reach 61.3%. The company maintains a total liquidity of $100 million and has reiterated its financial guidance for the full year 2025. This guidance includes an anticipated worldwide net sales decline in the range of mid to high teens and an adjusted operating income margin in the negative low single digits. These projections assume no significant changes in the macroeconomic environment or consumer demand. Fossil Group's CEO, Franco Fogliato, expressed satisfaction with the progress under the company's turnaround plan, highlighting the success in narrowing sales declines and improving gross margin. He also emphasized the company's diverse global footprint, which offers some protection against tariff exposure, and mentioned ongoing strategies to sustain the gross margin profile throughout the year.
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