Fossil Is Walking Away From Sales and Calling It a Win

Losing sales used to be a crisis — for FossilFOSL

, it’s the plan. Under new leadership, the watchmaker has sacrificed revenue, consolidated itself, and exited smartwatches in a gambit to rescue margins. The “shrink to stabilize” playbook aims to stop the bleeding before attempting growth — a necessary reset as the broader watch industry gets squeezed.

• This year, Fossil closed 50 stores, trimmed its workforce, and halved e-commerce markdowns — shrinking from 14 brands to just five while eliminating $100M in costs.
• Amid eight straight quarters of falling sales, Fossil’s multi-billion-dollar valuation plummeted to just $213M — but losses are narrowing, with margins jumping 6% from last year.

Pricing paradox: As Fossil looks to raise prices, luxury watchmakers are doing the same through “premiumization.” While tariffs, gold prices, and a strong Swiss Franc weigh on the latter’s margins, emerging cohorts don’t want to pay more. Around 40% of millennials and Gen Z are already planning pre-owned watch purchases in the next year — prioritizing affordability over new timepieces. For now, the pricing push continues, but younger buyers are proving that affordability never goes out of fashion.