Fossil Group designs, markets, and distributes fashion watches and accessories. Watches account for roughly 82% of net sales, making everything else — jewelry, handbags, leather goods, and sunglasses — secondary. Fossil sells watches under two portfolios: owned brands (Fossil, Skagen, Michele, Relic, and Zodiac) and licensed brands (Emporio Armani, Armani Exchange, Michael Kors, Diesel, Tory Burch, and Skechers). Licensed brands generate roughly 47% of net sales, with proprietary brands at roughly 49%. Fossil targets style-conscious consumers seeking fashion accessories, not purely functional timekeeping. Fossil sells through wholesale (department stores and specialty retailers), 199 company-owned retail and outlet stores, e-commerce, and independent distributors, reaching approximately 132 countries. Fossil is primarily a design, brand, and distribution business — most products are sourced from third-party manufacturers in Asia. Gross margin is driven by the gap between sourcing cost and selling price; Fossil has been shifting away from heavy discounting toward full-price selling, which has improved gross margins. A key complication is minimum royalty guarantees under licensed brand agreements, which have created a drag on gross margin as licensed brand revenues have declined. Fossil is in a multi-year turnaround under a new CEO who joined in late 2024. Phase 1 involved exiting the smartwatch category, cutting costs, closing underperforming stores, and eliminating promotional discounting. Phase 2 targets a return to top-line growth, with India identified as a priority growth market where Fossil holds strong brand positions across multiple brands and channels.