Shares of Fossil Group jumped about 26% in premarket trading on Wednesday after the watch and accessories maker swung to a third-quarter profit and raised its full-year forecast. The stock was at $9.91 shortly before 9 a.m. Eastern time, up $2.04, or 25.9%, from Tuesday’s close of $7.87, according to Nasdaq and Yahoo Finance data. That is above the top of its 52-week trading range of $1.70 to $8.25.
For the quarter ended Oct. 3, Fossil reported operating income of $25.3 million, compared with an operating loss of $21.7 million a year earlier. Net income was $11.7 million, or 19 cents a diluted share, compared with a net loss of $39.9 million, or 76 cents a share. Gross margin rose 10.8 percentage points to 59.8%. Net sales rose 0.4% to $271.2 million, or 2.0% in constant currency.
The company now expects 2026 net sales of $980 million to $990 million, up from an earlier forecast of a 3% to 5% decline, and an adjusted operating margin of 5.5% to 6.5%, up from 4% to 6%. It also expects positive free cash flow.
“Our strong third quarter results reflect momentum across brands, channels and geographies and demonstrate that our product innovation and storytelling is connecting with consumers around the globe,” Chief Executive Franco Fogliato said in the company’s release, which was issued after Tuesday’s close. Sales of traditional watches rose 6.4% in constant currency, while the Fossil brand grew 13.6% in constant currency.
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