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Fossil GroupFOSL +0.27%47 Degree of Operating Leverage is 7.57 as of Jun. 2026. GuruFocus rates FOSL with a GF Score™ of 47/100 and a GF Value™ of $1.20 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,023 Manufacturing - Apparel & Accessories companies, Fossil Group ranks worse than 79.37% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Fossil Group's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 7.57. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Fossil Group's Degree of Operating Leverage or its related term are showing as below:
FOSL's Degree of Operating Leverage is ranked worse than 79.37% of 1023
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 1.09
vs FOSL: 7.57
Fossil Group (NAS:FOSL) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
Fossil Group Degree of Operating Leverage Related Terms
Fossil Group Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Fossil Group's Degree of Operating Leverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FOSL vs DBI, FWDI, RCKY: Degree of Operating Leverage Comparison
For the Footwear & Accessories subindustry, Fossil Group's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Fossil Group Degree of Operating Leverage vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Fossil Group's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Fossil Group's Degree of Operating Leverage falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Operating Leverage of 7.57 mean?
Fossil Group (FOSL) has a Degree of Operating Leverage of 7.57 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Fossil Group and its competitors. According to the industry distribution chart, Fossil Group ranks #812 out of 1023 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 79.4%.
Is Fossil Group's Degree of Operating Leverage too high?
Fossil Group's current Degree of Operating Leverage is 7.57. The Manufacturing - Apparel & Accessories industry median Degree of Operating Leverage is 1.09. Fossil Group's value of 7.57 is 594.5% above this industry median. Based on the distribution chart, Fossil Group ranks #812 out of 1023 companies in the Manufacturing - Apparel & Accessories industry, which is in the bottom quartile relative to peers. Overall, Fossil Group has a GF Score™ of 47/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Fossil Group's Degree of Operating Leverage compare to DBI and FWDI?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Fossil Group ranks #812 out of 1023 companies for Degree of Operating Leverage. This places Fossil Group in the lower half of its industry. The industry median Degree of Operating Leverage is 1.09. Fossil Group's value of 7.57 is 594.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Manufacturing - Apparel & Accessories company?
The median Degree of Operating Leverage among Manufacturing - Apparel & Accessories companies is 1.09, based on 1,023 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Fossil Group's current Degree of Operating Leverage of 7.57 is 594.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Fossil Group and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Degree of Operating Leverage is 1.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fossil Group's current Degree of Operating Leverage is 7.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fossil Group stock overvalued right now?
Based on GuruFocus' analysis, Fossil Group (FOSL) is currently considered Significantly Overvalued. The stock's GF Value™ is $1.20, compared to a current price of $5.62 — trading 367.9% above its estimated fair value. The current Degree of Operating Leverage is 7.57 and 594.5% above the Manufacturing - Apparel & Accessories industry median of 1.09. Fossil Group's overall GF Score™ is 47/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Fossil Group (FOSL), the current Degree of Operating Leverage is 7.57 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Fossil Group (FOSL) Overvalued in 2026?
Based on GuruFocus' analysis, Fossil Group stock appears to be overvalued.
The current stock price of $5.62 is trading 367.9% above its estimated GF Value™ of $1.20.
GuruFocus considers Fossil Group to be Significantly Overvalued.
Key valuation signals for FOSL:
Degree of Operating Leverage: 7.57
GF Value™: $1.20 vs. price of $5.62 (367.9% above fair value)
Industry Position: 594.5% above the Manufacturing - Apparel & Accessories median (#812 of 1023)
No single metric tells the full story. See the FOSL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fossil Group Inc is a design, innovation, and distribution company in consumer fashion accessories, offering products such as watches, jewelry, handbags, small leather goods, belts, and sunglasses. It designs, develops, markets, and distributes products under its owned brands FOSSIL, SKAGEN, MICHELE, RELIC, and ZODIAC. It operates through Americas, Europe, and Asia segments, each including sales to wholesale and distributor customers, as well as Company-owned retail stores and e-commerce activities based on the location of the selling entity. The Americas segment contributes the majority of revenue and includes sales across Canada, Latin America, and the United States, while the Europe and Asia segments cover their respective regions. Each segment provides similar products and services.
47GF Score
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