42-year-old iconic mall retailer quietly closes 219 stores

Earlier this year, I reported on how legendary mall staple Fossil Group quietly closed seven locations in the first quarter. 

The Texas-based company known for creating, marketing, and distributing classic fashion watches, smartwatches, jewelry, and leather goods recently reported its second-quarter results, revealing more closures in those three months alone.

Fossil Group actually closed six stores, while 11 stores transitioned to a distributor in South Africa, dropping its total store count by 17 compared to the first quarter of the year. 

“We have another two closures planned for this year and expect to end the year with approximately 178 locations globally,” CFO Randy Greben confirmed in prepared remarks. 

An analysis of the company’s previous reports reveals more serious downsizing over the last five years. 

Fossil Group quietly closed 219 stores over the last five years 

According to the company’s official reports, on April 3, 2021, Fossil Group owned and operated 395 stores globally. Out of those, 170 were located in the Americas, 137 in Europe, and 88 in Asia. 

Fossil Group’s latest press release shows that on July 4, 2026, the company’s total store count was 176 around the globe, revealing a downsizing of 219 stores over five years and three months. 

As of July 4, 2026, Fossil Group had 90 stores across the Americas, 35 in Europe, and 51 in Asia. 

This analysis is based on Fossil Group’s quarterly earnings releases and SEC filings (Form 8-K, Exhibit 99.1) from Q1 2021 through Q2 2026.

“Stepping back, we believe the hard work of optimizing the store portfolio is largely behind us,” Greben added. 

Company management shared that not many store closures are planned for the remainder of the year. Yet based on the number already provided, Fossil Group downsized an average of about 41.71 stores per year globally over the last 5 years.   

Why has Fossil Group been closing so many stores?  

TheStreet reviewed Fossil Group’s last three annual reports for the years 2023, 2024, and 2025. The analysis revealed a consecutive decline in net sales and gross profit. 

The numbers depicted a cruel reality of traditional watch sales competing with tech giants such as the Apple Watch and Samsung Galaxy Watch. 

“Evolving consumer preferences shifted toward wearable technologies, such as Apple Watch and Samsung Galaxy Watch, leading to slower-than-expected consumer demand for Fossil’s products,” reported TheStreet’s Kirk O’Neil. 

Although the company’s operating loss significantly improved in 2025, dropping to $19.1 million from $103.9 million, the legendary watchmaker battled another challenge: new U.S. import tariffs on goods made in China, which further impacted profits. 

In addition, 2025 was marked by the company’s Chapter 15 bankruptcy protection. 

The company’s British subsidiary (Fossil UK) filed for Chapter 15 bankruptcy protection in Texas to address growing debt concerns, including a $150 million loan from JPMorgan Chase and $150 million in bonds due in 2026. 

Rather than liquidating, the company accepted the U.K. High Court-approved restructuring deal, marking the first time a U.S.-listed firm used an English arrangement plan to restructure U.S. debt, according to Harvard Law School. 

Fossil Group’s turnaround plan to “return to topline growth” 

The powerhouse behind Armani, Diesel, Chaps by Ralph Lauren, and more is primarily closing mall-based brick-and-mortar retail stores and outlet locations.

While throughout its more than 40-year history, the company bet on key locations within major shopping malls, it is now optimizing its footprint to address shifting consumer habits and aggressive competition from tech companies. 

This is all part of a bigger multiyear “turnaround plan” under the leadership of CEO Franco Fogliato to reduce $100 million in costs and battle dropping mall foot traffic, Retail Dive reported. 

Store optimization is a standard strategy large retailers use to boost their profits. 

During the company’s fourth-quarter 2025 earnings call, management highlighted that selling, general, and administrative expenses dropped by 16% year over year, due to the 49 store closures and lower compensation and administrative costs.

Then, during the first-quarter 2026 earnings call, Fogliato confirmed that the company has “significantly scaled back our plans to downsize the portfolio as a result of improving performance in our full-price stores. It is clear that our initiative to deliver a more engaging customer experience are bearing fruit.” 

Fossil Group’s second-quarter 2026 financial results beat analyst expectations, and though net sales decreased 4.9% year over year, amounting to $209.7 million, management praised “strong financial performance.” 

The company also highlighted the significant strength in two of its largest markets: the U.S. and India. 

Moreover, the company raised its full-year outlook, and according to the CEO, the second quarter is successfully “setting the stage for our return to topline growth in the fourth quarter of this year.” 

Consumers still love malls, though trends have changed

Although largely popular for designing classic watches and high-quality timepieces, Fossil Group’s core portfolio also includes leather goods and fashion jewelry. Despite its 40-plus-year legacy recognized around the globe, fierce competition and declining mall traffic took a toll. 

What is happening with malls? Are they dying?

It’s true that over the last decade, the number of enclosed malls across the United States has significantly dropped. Still, the latest data show traffic is up year over year, while there’s a huge divide between mall tiers. 

According to the July 2026 Placer.ai Mall Index, foot traffic across all three mall formats actually grew year over year. Open-air shopping centers are still outperforming with 5.1% traffic growth, followed by indoor malls with 4.3% foot traffic growth. Even though lagging behind, outlet malls also posted a traffic increase of 0.5%. 

“July’s combination of rising visits and longer dwell times suggests that shopping centers are not only attracting more consumers but also creating more opportunities for discretionary spending — a positive signal for retailers and landlords alike,” wrote Placer.ai.

An analysis by Cushman & Wakefield citing Green Street data highlights this divide, confirming that top-tier malls maintain a healthy 95% occupancy rate, while lower C-rated properties languish at just 72%. 

Fossil Group’s decision to scale back 2026 store closures because of a notable improvement in full-price stores aligns with the strength of top-tier malls.

Legacy brands such as Fossil Group no longer need to have a store in every suburban market. Instead, they should focus on exclusive shopping centers and specific markets. 

Mall retail closures recently covered by TheStreet

TheStreet frequently analyzes earnings reports to discover recent operational changes among mall retailers. Recently, I’ve documented how several mall staples have been turning to similar strategies to improve their profit margins.

• Tilly’s:Closed 40 stores over the past two years. 
• Michael Kors (Capri Holdings): Shuttered 139 stores over a three-year optimization window.
• Vera Bradley: Shut down 13 underperforming retail locations.
• Marshall Rousso & Misura: Closed 14 locations, with additional consolidations planned.
• Buckle Inc.: The clothing retailer has been closing mall stores over the last 10 years, shifting into outdoor centers.