Fossil Group reduces global store count to 176 amid smartwatch competition

Fossil Group has significantly reduced its global physical retail footprint, shrinking from 395 stores in April 2021 to 176 by July 2026. This reduction of 219 locations was driven by shifting consumer preferences toward wearable technology, such as the Apple Watch and Samsung Galaxy Watch, which has pressured the traditional watch market.

Regional data shows the contraction was most severe in Europe, where store counts dropped from 137 to 35. In the United States, locations fell from 170 to 90, while Asian locations decreased from 88 to 51. The company also transferred 11 stores in South Africa to a distributor.

Financially, Fossil Group reported a reduction in operating losses, falling from $103.9 million in 2025 to $19.1 million. However, the company faces ongoing challenges, including import tariffs on Chinese-made products in the U.S. and debt management. To address these issues, Fossil UK filed for Chapter 15 bankruptcy protection in Texas to restructure debt involving a $150 million loan from JPMorgan Chase and $150 million in bonds. Under CEO Franco Fogliato, the company is pursuing a transformation plan aimed at $100 million in cost savings.