v3.26.1
RESTRUCTURING
 3 Months Ended
Apr. 04, 2026
Restructuring and Related Activities [Abstract]  
RESTRUCTURING RESTRUCTURING
In fiscal 2024, the Company announced a plan to return to profitable growth (the "Turnaround Plan"). The Turnaround Plan was originally centered on three key areas: (i) refocusing on the core, (ii) rightsizing the cost structure, and (iii) strengthening the balance sheet. The Company achieved selling, general and administrative ("SG&A") cost savings of approximately $100 million in fiscal 2025 as compared to fiscal 2024 through a series of initiatives including a strategic reduction in force which occurred in late February 2025, the reduction in costs associated with the transition of smaller international markets to a distributor model, and the closing of 49 FOSSIL retail stores during fiscal 2025. Beginning in fiscal year 2026, the Company moved forward to a new chapter in its Turnaround Plan, with a focus on three new strategic pillars: (i) driving profitable growth, (ii) optimizing our operating model, and (iii) building shareholder value. The Company incurred $41 million and $7 million in charges under the Turnaround Plan in fiscal years 2025 and 2024, respectively, and expects to incur approximately $15 million in charges in fiscal year 2026 as it completes the plan.
The following table shows a summary of the Turnaround Plan charges (in thousands):
For the 13 Weeks Ended April 4, 2026For the 14 Weeks Ended April 5, 2025
Restructuring expenses2,034 15,821 
Consolidated$2,034 $15,821 
Turnaround Plan restructuring charges by operating segment were as follows (in thousands):
For the 13 Weeks Ended April 4, 2026For the 14 Weeks Ended April 5, 2025
Americas$538 $598 
Europe124 2,011 
Asia(175)443 
Corporate1,547 12,769 
Consolidated$2,034 $15,821 
The following table shows a rollforward of the accrued liability related to the Company’s Turnaround Plan (in thousands):
For the 13 Weeks Ended April 4, 2026
LiabilitiesLiabilities
January 3, 2026ChargesCash PaymentsNon-cash ItemsApril 4, 2026
Store closures$— $16 $— $16 $— 
Professional services and other5,561 769 1,791 — 4,539 
Severance and employee-related benefits6,268 1,249 4,884 — 2,633 
Total$11,829 $2,034 $6,675 $16 $7,172 
For the 14 Weeks Ended April 5, 2025
LiabilitiesLiabilities
December 28, 2024ChargesCash PaymentsNon-cash ItemsApril 5, 2025
Store closures$— $10 $— $10 $— 
Professional services— 6,485 1,145 — 5,340 
Severance and employee-related benefits— 9,326 1,934 49 7,343 
Total$— $15,821 $3,079 $59 $12,683 
In fiscal year 2024, the Company concluded its Transform and Grow plan ("TAG") as it transitioned to initiatives under the Turnaround Plan. TAG was launched in early 2023 to reduce operating costs, improve operating margins, and advance the Company’s commitment to profitable growth. The Company had expanded the scope and duration of TAG to focus on a more comprehensive review of its global business operations. The expansion of TAG put greater emphasis on initiatives aimed at restructuring or optimizing operations, exiting or minimizing certain product offerings, brands and distribution channels, strengthening gross margins through improvements in sourcing and improving working capital efficiency. Under the expanded TAG plan, the Company achieved annualized operating income benefits of $280 million over the two year period.
The following table shows a rollforward of the accrued liability related to the Company’s TAG plan (in thousands):
For the 14 Weeks Ended April 5, 2025
LiabilitiesLiabilities
December 28, 2024Cash PaymentsApril 5, 2025
Store closures$1 $1 $— 
Professional services9,501 6,529 2,972 
Severance and employee-related benefits7,341 6,712 629 
Charges related to exits of certain product offerings300 — 300 
Total$17,143 $13,242 $3,901