Fossil to Close Up to 15 Stores in 2026 Amid Retail Slump

Fossil Group plans to close up to 15 of its retail stores by the end of 2026 as part of an ongoing strategy to streamline its business operations. The Texas-based company has already shuttered seven locations in early 2026 and anticipates further reductions.

These closures are driven by persistent challenges including weak consumer demand, a significant decrease in mall traffic, and a prolonged turnaround effort following years of declining sales. "We closed 7 stores and expect to close up to 15 in total this year," stated Fossil Chief Financial Officer Randy Greben during a first-quarter earnings call. "This would put us at 185 locations globally at the end of 2026."

In early 2026, Fossil reported sales of approximately $225 million, with direct-to-consumer sales also experiencing a sharp decline. Retail sales were down 15 percent, reflecting fewer shopper visits to the company's physical stores.

Fossil, established in 1984, initially built its brand on vintage-style watches before expanding into accessories like handbags and wallets. The company also designs and manufactures watches for other brands, including Michael Kors, Armani Exchange, Diesel, Kate Spade New York, and BMW.

Mangement has emphasized progress in cost reduction, citing lower operating expenses attributed to a smaller store footprint and leaner corporate spending. The company reiterated its 2026 outlook, forecasting a full-year sales decline between 4 percent and 6 percent as it continues its strategic turnaround.

This includes a renewed focus on its vintage-inspired designs and the appointment of Shannon Freeze as its new communications officer. "Fossil has made meaningful progress over the past year," Freeze said, "and I am excited to build on that foundation by helping the organization evolve its talent strategy, deepen leadership effectiveness and ensure the culture fully supports the Company's long-term strategic plan."

Fossil's retail adjustments mirror broader trends affecting long-established mall brands. Other retailers such as Francesca's, Forever 21, Macy's, Bath & Body Works, and GameStop have also closed store locations. Claire's, a jewelry retailer, filed for Chapter 11 bankruptcy for the second time last year, leading to store closures.

Fossil ended 2024 with 248 storefronts globally, with 114 of those located in malls across the Americas. The company has not disclosed which specific locations have been closed in the current round of reductions.