Fossil Group is continuing to reshape its global store base under its ongoing turnaround plans. The fashion accessories company plans additional store closures in 2026 while increasing investments in its digital operations.
Fossil Targets More than a Dozen Closures in 2026
The retail company’s first-quarter 2026 earnings call transcript shared by the Market Screener shows that the company closed seven locations during the period. The company also expects to close nearly 15 additional stores by the end of the year. Post these actions, Fossil is likely to have about 185 company-owned shops globally, according to the report.
Fossil Group reported first-quarter net sales of $218 million, down 6% from the same period in 2025. According to Market Screener, despite the reduced numbers, the company’s selling, general, and administrative costs dropped 13% from the prior year. Reduced operating expenses allowed Fossil to enhance its profitability.
Fossil CFO Randy Greben said the closures are part of the company’s efforts to streamline operations. The company is focusing on store rationalization, cost discipline, and operational efficiency as part of those efforts.
The company executives are hopeful that the retail brand will return to year-over-year sales growth during the fourth quarter of 2026.
Restructuring Continues to Reshape the Store Network
Fossil’s recent closures are a continuation of its operational reorganization since fiscal 2025. The details were shared through its annual report for the fiscal year ended January 3, 2026. According to the report, the company closed 49 underperforming locations by the end of 2025.
Fossil’s management has described the recent closure strategy as part of its effort to restructure operating costs. While doing so, the company’s emphasis is expected to be on strongest-performing stores, wholesale partners, and digital channels.
Technology and Digital Commerce are New Priorities Amid Turnaround
In addition to its store closure strategy, the fashion accessories company is also investing in technology centered on enhancing its operating model and customer experience.
According to company CEO Franco Fogliato, Fossil has brought in a new e-commerce platform and customer relationship management (CRM) integration in India this year. The company is also simplifying its technology infrastructure by combining systems and improving its analytics platform. It expects that these upgrades will support the future use of Agentic AI across marketing, e-commerce, supply chain operations, and other business actions.
Retail Industry Continues Shift Toward Smaller Footprints
The company’s decision to reduce its store count comes as other retailers reevaluate their physical locations.
As part of its ‘Bold New Chapter’ strategy, Macy’s is targeting the shutdown of around 150 underperforming stores by 2026-end. Following these updates, the company hopes to focus only on stronger-performing stores and digital initiatives. The NY department chain also intends to use the restructuring to improve its profitability and strengthen its remaining network.
Forever 21 shuttered four Atlanta stores after filing for Chapter 11 bankruptcy in March 2025. These outlets were part of the retailer’s plan to close around 350 U.S. stores as it downsized its brick-and-mortar presence. The chain cited growing competition from online fast-fashion retailers, declining mall traffic, and mounting operating costs.
Fossil’s latest store closures outline the large shift among mall-based retailer companies toward smaller store networks and greater investment in digital platforms. The company is expected to balance operational efficiency with improved sales growth as its turnaround efforts continue this year.
