Fossil Group, Inc.FOSL
Fossil Group, Inc. Segments Disclosure
Major Customer, Segment and Geographic Information
Major Customer
Wholesale customers of the Company consist principally of major department stores and specialty retail stores located throughout the world. No individual customer accounts for 10% or more of the Company's net sales.
Segment Information
The Company reports segment information based on the "management approach". The management approach designates the internal reporting used by management, specifically its chief operating decision maker ("CODM") for making decisions and assessing performance as the source of the Company's reportable segments. The Company's CODM is its Chief Executive Officer.
The Company manages its business primarily on a geographic basis. The Company's reportable operating segments are comprised of (i) Americas, (ii) Europe and (iii) Asia. Each reportable operating segment includes sales to wholesale and distributor customers, and sales through Company-owned retail stores and e-commerce activities based on the location of the selling entity. The Americas segment primarily includes sales to customers based in Canada, Latin America and the United States. The Europe segment primarily includes sales to customers based in European countries, the Middle East and Africa. The Asia segment primarily includes sales to customers based in Australia, China (including Hong Kong SAR, Macau SAR and Taiwan), India, Indonesia, Japan, Malaysia, New Zealand, Singapore, South Korea and Thailand. Each reportable operating segment provides similar products and services.
The Company evaluates the performance of its reportable segments based on net sales and operating income (loss). Net sales for geographic segments are based on the location of the selling entity. Operating income (loss) for each segment includes net sales to third parties, related cost of sales and operating expenses directly attributable to the segment. Corporate includes peripheral revenue generating activities from factories and intellectual property and general corporate expenses, including certain administrative, legal, accounting, technology support costs, equity compensation costs, payroll costs attributable to executive management, brand management, product development, art, creative/product design, marketing, strategy, compliance and back office supply chain expenses that are not allocated to the various segments because they are managed at the corporate level internally. The Company does not include intercompany transfers between segments for management reporting purposes.
The CODM uses net sales and operating income for each segment predominantly in the annual budget and forecasting process. The CODM considers budget-to-actual variances on a quarterly basis for both profit measures when making decisions about the allocation of operating and capital resources to each segment. The CODM also uses segment gross profit for evaluating pricing strategy and segment operating income to assess the performance of each segment by comparing the results of each segment with one another. The CODM does not review disaggregated assets by segment, therefore it is not presented below.
Summary information by operating segment was as follows (in thousands):
| Fiscal Year 2025 | |||||||||||||||||
| Americas | Europe | Asia | Corporate | Total | |||||||||||||
| Net sales | $ | 430,930 | $ | 333,247 | $ | 238,647 | $ | 1,582 | $ | 1,004,406 | |||||||
| Cost of sales | 194,229 | 125,911 | 91,364 | 29,754 | 441,258 | ||||||||||||
| Gross profit | $ | 236,701 | $ | 207,336 | $ | 147,283 | $ | (28,172) | $ | 563,148 | |||||||
| Compensation and benefits | 60,295 | 71,284 | 33,378 | 109,501 | 274,458 | ||||||||||||
| Marketing | 29,599 | 21,112 | 18,485 | 19,481 | 88,677 | ||||||||||||
| Depreciation and amortization | 3,249 | 2,729 | 1,727 | 5,117 | 12,822 | ||||||||||||
Other segment items (1) | 50,145 | 25,938 | 31,965 | 98,222 | 206,270 | ||||||||||||
| Operating income (loss) | $ | 93,413 | $ | 86,273 | $ | 61,728 | $ | (260,493) | $ | (19,079) | |||||||
| Fiscal Year 2024 | |||||||||||||||||
| Americas | Europe | Asia | Corporate | Total | |||||||||||||
| Net sales | $ | 515,152 | $ | 357,607 | $ | 270,075 | $ | 2,156 | $ | 1,144,990 | |||||||
| Cost of sales | 252,735 | 146,212 | 119,338 | 29,554 | 547,839 | ||||||||||||
| Gross profit | $ | 262,417 | $ | 211,395 | $ | 150,737 | $ | (27,398) | $ | 597,151 | |||||||
| Compensation and benefits | 67,930 | 72,888 | 35,319 | 121,042 | 297,179 | ||||||||||||
| Marketing | 52,737 | 29,748 | 26,104 | 14,466 | 123,055 | ||||||||||||
| Depreciation and amortization | 3,791 | 3,377 | 2,347 | 6,221 | 15,736 | ||||||||||||
Other segment items (1) | 60,917 | 40,642 | 46,998 | 116,571 | 265,128 | ||||||||||||
| Operating income (loss) | $ | 77,042 | $ | 64,740 | $ | 39,969 | $ | (285,698) | $ | (103,947) | |||||||
| Fiscal Year 2023 | |||||||||||||||||
| Americas | Europe | Asia | Corporate | Total | |||||||||||||
| Net sales | $ | 640,779 | $ | 437,358 | $ | 328,198 | $ | 6,049 | $ | 1,412,384 | |||||||
| Cost of sales | 342,124 | 206,887 | 151,871 | 31,921 | 732,803 | ||||||||||||
| Gross profit | $ | 298,655 | $ | 230,471 | $ | 176,327 | $ | (25,872) | $ | 679,581 | |||||||
| Compensation and benefits | 81,682 | 89,558 | 45,995 | 145,052 | 362,287 | ||||||||||||
| Marketing | 66,024 | 43,836 | 30,784 | 16,665 | 157,309 | ||||||||||||
| Depreciation and amortization | 3,734 | 4,907 | 2,508 | 13,279 | 24,428 | ||||||||||||
Other segment items (1) | 64,469 | 51,208 | 58,878 | 104,026 | 278,581 | ||||||||||||
| Operating income (loss) | $ | 82,746 | $ | 40,962 | $ | 38,162 | $ | (304,894) | $ | (143,024) | |||||||
_______________________________________________________________________________
(1) Other segment items for each reportable segment include long-lived asset impairments, restructuring charges, facility costs, overhead expenses and other operating costs.
The following table shows revenue for each class of similar products for fiscal years 2025, 2024 and 2023 (in thousands):
| Fiscal Year 2025 | Fiscal Year 2024 | Fiscal Year 2023 | |||||||||||||||||||||||||||||||||
| Net Sales | Percentage of Total | Net Sales | Percentage of Total | Net Sales | Percentage of Total | ||||||||||||||||||||||||||||||
| Watches: | |||||||||||||||||||||||||||||||||||
| Traditional watches | $ | 814,616 | 81.1 | % | $ | 872,645 | 76.2 | % | $ | 1,015,077 | 71.9 | % | |||||||||||||||||||||||
| Smartwatches | 11,740 | 1.2 | 24,880 | 2.2 | 80,949 | 5.7 | |||||||||||||||||||||||||||||
| Total watches | $ | 826,356 | 82.3 | % | $ | 897,525 | 78.4 | % | $ | 1,096,026 | 77.6 | % | |||||||||||||||||||||||
| Leathers | 69,944 | 7.0 | 111,124 | 9.7 | 158,427 | 11.2 | |||||||||||||||||||||||||||||
| Jewelry | 91,109 | 9.1 | 114,450 | 10.0 | 131,410 | 9.3 | |||||||||||||||||||||||||||||
| Other | 16,997 | 1.6 | 21,891 | 1.9 | 26,521 | 1.9 | |||||||||||||||||||||||||||||
| Total | $ | 1,004,406 | 100.0 | % | $ | 1,144,990 | 100.0 | % | $ | 1,412,384 | 100.0 | % | |||||||||||||||||||||||
Geographic Information
Net sales and long-term assets related to the Company's operations in the U.S., Europe, Asia and all other international markets were as follows (in thousands):
| Fiscal Year 2025 | |||||||||||
Net Sales (1) | Long-term Assets | ||||||||||
| United States | $ | 327,909 | $ | 95,001 | |||||||
| Europe | 333,477 | (2) | 72,174 | ||||||||
| Asia | 238,868 | (3) | 33,832 | ||||||||
| All other international | 104,152 | 20,417 | |||||||||
| Consolidated | $ | 1,004,406 | $ | 221,424 | |||||||
| Fiscal Year 2024 | |||||||||||
Net Sales (1) | Long-term Assets | ||||||||||
| United States | $ | 399,989 | $ | 80,516 | |||||||
| Europe | 358,278 | (2) | 68,587 | ||||||||
| Asia | 270,504 | (3) | 44,410 | ||||||||
| All other international | 116,219 | 15,539 | |||||||||
| Consolidated | $ | 1,144,990 | $ | 209,052 | |||||||
| Fiscal Year 2023 | |||||||||||
Net Sales (1) | Long-term Assets | ||||||||||
| United States | $ | 514,666 | $ | 107,085 | |||||||
| Europe | 438,148 | (2) | 85,575 | ||||||||
| Asia | 330,869 | (3) | 64,211 | ||||||||
| All other international | 128,701 | 10,469 | |||||||||
| Consolidated | $ | 1,412,384 | $ | 267,340 | |||||||
_______________________________________________________________________________
(1) Net sales are based on the location of the selling entity (including exports).
(2) Net sales from Germany (including exports) accounted for more than 10% of the Company's consolidated net sales and were approximately $123.0 million, $137.9 million and $173.3 million in fiscal years 2025, 2024 and 2023, respectively. Additionally, net sales from Switzerland accounted for more than 10% of the Company's consolidated net sales and were approximately $109.2 million, $100.9 million, and $111.1 million in fiscal years 2025, 2024 and 2023, respectively.
(3) Net sales from India accounted for more than 10% of the Company's consolidated net sales and were approximately $117.6 million, $108.7 million, and $100.9 million in fiscal years 2025, 2024 and 2023, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 12, 2026 | Showing above |
| 2024 | Mar 12, 2025 | |
| 2023 | Mar 13, 2024 | |
| 2022 | Mar 9, 2023 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.