Fossil, the American watchmaker, announced it will close 50 of its stores as part of a restructuring plan, which also includes employee layoffs. If you’re a fan of the brand, here’s everything we know about it.
Why will Fossil close its stores?
In a statement, the company said that by closing stores, it aims to optimize its cost structure and strengthen its balance sheet. International markets, it added, will now be served through distributors, and the wholesale business will be streamlined. This is expected to result in savings of up to $100 million by 2025. This comes amid a 19% drop in the company’s revenue to $342.3 million, affecting all regions and distribution channels.
Fossil had launched a transformation and expansion program with the goal of generating annual savings of $300 million by 2025. However, in the past two years, the company has only managed to achieve $280 million in operational savings.
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How many stores has Fossil closed?
In 2024 alone, the company closed 54 stores worldwide, ending the year with 248, including 114 in the Americas. The remaining locations will be modernized to prioritize the sale of traditional watches.
“When analyzing our direct-to-consumer business, we believe there is a significant opportunity to strengthen our model by reducing our presence, but significantly increasing profitability. We are implementing a dual approach: prioritizing the wholesale channel and transforming our direct-to-consumer business model,” said CEO Franco Fogliato.
What brands does Fossil sell?
The company sells its own branded products, such as Fossil, Michele, Relic, Skagen, and Zodiac, but also has licensing agreements with other brands, including:
- Armani Exchange
- Diesel
- Emporio Armani
- Kate Spade New York
- Michael Kors
- Skechers
- Tory Burch
History of Fossil
The company was founded in 1984 in the United States by brothers Tom and Kosta Kartsotis with the idea of merging traditional craftsmanship with modern design. Their mission was to create sophisticated, high-quality watches at affordable prices.
After years of consolidation, in 2001, the company made the decision to establish itself in Switzerland, the country famous for its watchmaking industry, by acquiring Zodiac Watches, a historic Swiss brand founded in 1882 that was still in operation. Fossil completely renovated it to reflect a retro-modern style inspired by the 1970s, resulting in a high-end watch.
In 2004, it added Michele Watch to its portfolio, completing its offering with a luxury Swiss watch with an exclusive design touch. Over time, it continued adding more brands to its list, transforming into the important conglomerate we know today.
Thanks to this vision, Fossil has established itself as a leader in the watchmaking industry, recognized for its unique style and lasting quality. Today, the company designs pieces that combine American vintage style with futuristic touches. Its catalog includes watches, smartwatches, and a variety of accessories such as bags, wallets, and jewelry.
How can I tell if my Fossil watch is real?
Thanks to Optical Character Recognition (OCR) technology, customers can quickly verify the authenticity of their watch by simply focusing the code on the back with their smartphone camera. The fraud detection system patented by Certiogo takes care of the rest, instantly detecting possible counterfeits.
What is the most expensive Fossil watch?
The most expensive watch from the brand is the Fossil Quartz Limited Edition LE1100, which costs $310 on Amazon. This wristwatch features an elegant and versatile design, with a 45mm matte gray case, a black dial with luminous hands and markers, and a titanium bracelet.
Next is the Fossil ME3240 Townsman Automatic, priced at $270 on Amazon, and the Fossil ME3239 Automatic for men, which costs $260 on the same sales platform.
