Transitioned from a highly promotional model to a brand-led, full-price selling strategy, resulting in gross margin expansion of 380 basis points to 55.9%.

Achieved positive adjusted operating income of $11,000,000, a $48,000,000 year-over-year improvement driven by aggressive cost-cutting and improved product margins.

Rightsized the cost structure by reducing SG&A by over $100,000,000 in 2025, totaling over $250,000,000 in savings over the last 36 months.

Reenergized core licensed brands through strategic investments in point-of-sale and a renewed focus on specialty watch retail, yielding 2% global growth in traditional watches.

Leveraged strong momentum in the Indian market, which remains the company's fastest-growing geography with leadership across all channels.

Transformed the balance sheet to provide the liquidity and debt maturity horizon necessary to support the next phase of the turnaround.

Implemented a 'Store of the Future' strategy in the U.S. and EMEA, shifting retail culture toward proactive clienteling and personalized service.

Anticipates 2026 sales between $945,000,000 and $965,000,000, reaching the revenue low point one year earlier than previously projected.

Expects a return to top-line growth in the fourth quarter of 2026 as the benefits of the turnaround and inventory resets compound.

Projects 2026 adjusted operating margins of 3% to 5% and breakeven free cash flow, with a goal of becoming cash-generative by 2027.

Focuses on 'BigTick' and 'Signature' product launches to capture millennial nostalgia and attract premium watch collectors.

Assumes approximately 15 retail store closures in 2026, a significant reduction from the 49 closures executed in 2025.

Minimum royalty guarantee shortfalls impacted 2025 margins but are expected to be materially abated in 2026 following successful renegotiations.

The exit from the connected watch category and retail store closures contributed to a decline in full-year 2025 net sales, while Q4 net sales declined 20% due in part to store closures.

Management is closely monitoring geopolitical instability in the Middle East for potential impacts on regional employees and partners.

Tariff headwinds in 2025 were largely mitigated through supply chain agility and targeted price increases, with no material refunds embedded in 2026 guidance.

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Management expressed confidence that the shift away from promotions has permanently increased Average Unit Retail (AUR) across the marketplace.

The 'divot' in margins seen in Q3 2025 due to royalty shortfalls is not expected to recur in 2026 due to new contract terms.

Growth is expected to be driven by an 18-month product innovation pipeline and the stabilization of the Direct-to-Consumer (DTC) channel.

Wholesale partners are reportedly 'leaning in' and increasing orders as Fossil demonstrates consistent pricing and improved brand heat.

Beyond headcount and store closures, management is targeting the simplification of the technology stack and the integration of AI and automation.

The company expects to gain 'sales leverage' as it returns to growth, allowing for better absorption of fixed costs.

Management noted that while some 'deal-seeking' customers were lost, they have been replaced by higher-value consumers attracted to brand heritage.

The 'BigTick' relaunch is successfully capturing both nostalgic millennials and Gen Z consumers seeking analog-forward accessories.

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