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3w ago

Fossil to Cut Up to 15 Stores in 2026 as Turnaround Shrinks Its Mall Footprint

The company says the extra closures are a cost-cutting step after reporting a sharply smaller quarterly loss.

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An image collage containing 2 images, Image 1 shows The exterior of a Fossil store in a mall with its large window display showing watches and bags, and the store's logo "FOSSIL EST. USA" above the entrance, Image 2 shows But according to Compass vice chairman Adelaide Polsinelli, the wave of closures isn’t a sign malls are dying, it’s a sorting between strong centers and weak ones, with Class A properties running near full occupancy while the bottom tier keeps sliding toward 70 percent

Overview

  • Fossil disclosed on its first-quarter earnings call that it closed seven stores in Q1 and may shutter as many as 15 locations in 2026, which would reduce its global store count to about 185 by year-end.
  • The downsizing follows more than 100 store closures since 2024, including 54 in 2024 and 49 in 2025, as the brand trims underperforming mall locations.
  • Company filings show the restructuring has included workforce reductions, moving some smaller markets to distributor models, and roughly $100 million in SG&A savings for fiscal 2025.
  • Fossil’s first-quarter results reflected the cost cuts with a much smaller net loss of about $810,000 and improved operating income compared with the prior year.
  • Retail analysts say Fossil’s pullback echoes a wider reshaping of mall real estate where apparel and accessory space is being reused for grocers, gyms, medical services, and entertainment, a shift that may affect local jobs and mall traffic.