Iconic lifestyle mall retailer Fossil Group quietly closes 7 stores, plans more

Walk into any suburban shopping mall on a Tuesday, and it's easy to adopt a widespread belief that the American mall is dead. However, behind the closed storefronts and half-empty parking lots lies a different narrative: retail splitting.

Industry data reveals a massive visitor gap between tiers. While smaller malls lose leading retailers, the largest show resilience.

According to a Cushman & Wakefield report citing Green Street data, Class A properties sit just 4% below pre-pandemic traffic benchmarks, while B malls lag with a 9% drop. Occupancy follows a similar trend, boasting 95% at the top tier, 89% in the middle, and plunging to 72% for C-rated malls and below.

It's a trajectory that The Wall Street Journal retail reporter Kate King warned of, noting that "hundreds of low-end malls across the U.S. have either closed or are slowly dying" as department stores pull their anchors.

Legacy chains like Macy's, JCPenney, and Forever 21 have undergone massive footprint downsizings, fracturing traditional mall-tenant dynamics. Earlier this year, iconic brands like Banana Republic, Tommy Bahama, and Madewell quietly exited the Towson Town Center Mall in Maryland.

Now, yet another beloved lifestyle mall staple has confirmed it is shrinking its physical footprint, confirming seven storefront closures in the first quarter with plans to systematically shutter more before the year ends.

Fossil Group quietly closed 7 stores in the first quarter of 2026

A legendary American fashion design and manufacturing company with headquarters in Richardson, Texas, Fossil Group, reported its fiscal first quarter earnings results on May 13.

The company known for creating, marketing, and distributing classic fashion watches, smartwatches, jewelry, and leather goods, disclosed net sales of $224.8 million, down by 3.6% on a reported basis and 6.5% in constant currency compared to the same period in 2025. Sales numbers were affected because this quarter had 13 weeks instead of last year's 14 weeks, Fossil Group noted in its press release.

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Its first quarter net loss amounted to $800,000, compared to $17.6 million in the first quarter of 2025.

During the company's earnings call, the company's Chief Financial Officer Randy Greben talked about the company's recent store closures.

"During Q1, we closed 7 stores and expect to close up to 15 in total this year. This would put us at 185 locations globally at the end of 2026," Greben said according to the earnings call transcript provided by Insider Monkey.

Greben added that the company is continuing to concentrate on optimizing its operating model by "capturing efficiencies and rationalizing investments across key areas of the business, including go-to-market and information technology. I will also point out that restructuring costs have come down considerably, totaling just $2 million in Q1 of 2026 versus $16 million a year ago."

The executives haven't disclosed the locations of the stores already closed for good, and neither the locations of stores planned to close this year.

Photo by BalkansCat on Getty Images

Fossil Group's latest closures come after Chapter 15 bankruptcy protection

In late 2025, Fossil Group's British subsidiary (Fossil UK) filed for Chapter 15 bankruptcy protection in Texas to address the growing debt concerns: a $150 million loan from JPMorgan Chase and $150 million in bonds due in 2026.

The debtor filed its proposed restructuring plan in the High Court of Justice Business and Property Courts of England and Wales. The restructuring plan would also provide $32.5 million in new money financing to the debtor, reported TheStreet's Kirk O'Neil.

Fossil Group's traditional watch sales were affected by the fierce competition from 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, the declaration said," wrote O'Neil.

Its revenue in 2024 dropped to $1.1 billion from $1.7 billion and net loss reached $106 million from $44 million in 2022. To make matters worse, the classic watch maker faced further challenges from new U.S. import tariffs on goods made in China, which affected the company's remaining profits.

Fossil did not file for Chapter 15 to liquidate its stores. On the contrary, the company did it strictly as a legal shield to protect an ongoing debt restructuring deal they were pushing through the United Kingdom court system.

The U.K. High Court approved the restructuring, and a Texas bankruptcy judge officially enforced it on U.S. soil under Chapter 15.

"The transaction is significant as the first known instance of a U.S.-listed company restructuring U.S.-law debt through an English plan of arrangement. The article highlights the growing relevance of English restructuring tools as an alternative to U.S. exchange offers and Chapter 11, particularly where participation thresholds cannot otherwise be met," explained Harvard Law School.

Fossil Group is the engine behind Armani, Diesel, Chaps by Ralph Lauren, and more

Fossil Group has been around for more than 40 years, designing timepieces and accessories that "symbolize quality, craftsmanship and exceptional value. Our products evoke self-expression and instill confidence," reads the company's About Us page.

Its core business heavily focused on three main categories:

• Watches and timepieces: Mainly traditional analog and hybrid watches
• Leather goods: Handbags, wallets, backpacks, messenger bags, and travel accessories
• Jewelry: Fashion jewelry, rings, necklaces, and bracelets

Fossil Group has not just been selling its own Fossil and Skagen Denmark brands. It's also the name behind many major luxury fashion houses. A number of watches or pieces of jewelry from a high-end department store have actually been designed and manufactured by Fossil Group.

Some of its major licensed partnerships include:

• Michael Kors
• Emporio Armani / Armani Exchange
• BMW
• Diesel
• DKNY
• Kate Spade New York
• Tory Burch
• Marc Jacobs
• Chaps by Ralph Lauren
• Puma
  
  Source: Fossil Group's Form 10-K.

Why Fossil Group is closing stores and what's next for the company

Fossil Group is primarily shutting down mall-based brick-and-mortar retail locations and outlet stores. While historically, the company has relied on key positions within major American shopping malls and high-traffic shopping centers, it has now shifted its strategy.

As part of a larger multiyear "turnaround plan" led by CEO Franco Fogliato to cut $100 million in costs and combat declining mall foot traffic, the company is downsizing, reported Retail Dive.

In 2024, the company closed a net 54 stores globally, ending 2024 with 248, including 114 in the Americas. In 2025, it closed another 49 stores according to its Q4 earnings release.

In 2026, however, Fossil Group will close fewer than previously anticipated.

"It is worth noting that we have 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 more engaging customer experience are bearing fruit," Fossil Group CEO Fogliato said during the Q1 2026 earnings call.

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Closures are not the only big change the company has made in recent years in an effort to adapt to the current market trends and economic headwinds. In 2024, Fossil Group confirmed it is exiting the smartwatch category.

In a statement to The Verge, Jeff Boyer, Fossil Executive Vice President and Chief Operating Officer said that the company "made the strategic decision to exit the smartwatch business," citing the industry's evolving landscape.

"Fossil Group is redirecting resources to support our core strength and the core segments of our business that continue to provide strong growth opportunities for us: designing and distributing exciting traditional watches, jewelry, and leather goods under our own as well as licensed brand names," Boyer added.

The company's latest big bet is on one particular market: India. The company executives highlighted the growing opportunities in this large market.

"Well, I got to say our India business is one of our strongest assets. We're very pleased with our performances. We called that out as a pillar. We remain not only a leader in the region, but we're very well performing. We're excited about the opportunities," the CEO said.

The new reality of the mall footprint

Modern consumers are no longer visiting malls just to browse physical storefront for apparel and accessories. Instead, shopping malls are relying on dining, service providers, and entertainment to bring crowds back in.

"Physical retail is undergoing its most significant shift in decades. Customer expectations have accelerated faster in the past five years than in the previous twenty, shaped by hybrid work, digital saturation and a growing focus on wellbeing," reveals Malls & Stores of the Future report.

While February data from Placer.Ai reveals that traffic was up year over year across all mall formats for the second month in a row, results vary across mall types. Open-air centers led the category with a 7.3% year-over-year increase in visits, followed closely behind by outlet malls with a foot traffic gain of 7.2%. Indoor malls, meanwhile, saw a 5% visit growth.

Fossil's plan to scale back its closure list due to "improving performance in full-price stores" aligns with the resilience of top-tier malls.

The company's results suggest that for legacy brands, it is no longer important to have a store in every suburban market. Instead, survival is dependent on key locations in premium malls and markets.

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This story was originally published May 18, 2026 at 7:17 AM.