American mall retailer warns it may close up to 15 more stores this year

• Fossil reported Q1 net sales of $224.8 million, down from $233.3 million year-over-year, but narrowed its net loss to $810,000 from $17.6 million in the prior-year quarter
• The company closed 49 underperforming stores in fiscal 2025 and achieved approximately $100 million in selling, general and administrative cost savings compared to fiscal 2024
• Fossil's store count dropped from 220 locations a year ago to 193 as of April 4, 2026, with operations spanning 132 countries through company-owned subsidiaries and distributors

Summary: Fossil Group Store Closures and Turnaround Efforts

Key Developments:

Fossil Group announced plans to close up to 15 stores in 2026 as part of an ongoing turnaround strategy focused on cost reduction, profitability, and balance sheet improvement. The Richardson, Texas-based watch and accessories retailer closed 7 stores in Q1 2026 and expects its global store count to reach approximately 185 locations by year-end.

Financial Performance:

• Q1 2026 net sales: $224.8 million (down from $233.3 million year-over-year)
• Net loss narrowed to $810,000 from $17.6 million in prior-year quarter
• Operating income improved to $12 million from a $6.7 million operating loss
• Achieved approximately $100 million in SG&A cost savings in fiscal 2025 versus 2024

Store Footprint Reduction:

As of April 4, Fossil operated 193 stores globally (down from 220 a year earlier), consisting of 92 stores in the Americas, 47 in Europe, and 54 in Asia. The company closed 49 underperforming stores in fiscal 2025 and currently operates 88 retail stores and 111 outlet stores, primarily under the Fossil brand.

Strategic Direction:

CEO Franco Fogliato indicated the company has "significantly scaled back" downsizing plans due to improved full-price store performance. The 2026 strategy emphasizes reducing the pace of closures while prioritizing profitable growth and operational improvements. Additional restructuring included workforce reductions and transitioning smaller international markets to a distributor model.

Market Implications:

The developments reflect ongoing challenges in mall-based retail, with Fossil acknowledging risks from declining mall traffic and anchor-store closures. The company's products reach approximately 132 countries through owned subsidiaries and independent distributors.