Fossil GroupFOSL +0.50%47 Operating Margin % is 6.29% as of Mar. 2026, which is 442% above its 10-year median of 1.16. GuruFocus rates FOSL with a GF Score™ of 47/100 and a GF Value™ of $1.19 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,043 Manufacturing - Apparel & Accessories companies, Fossil Group ranks worse than 57.05% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Fossil Group's Operating Income for the
three
months ended in Mar. 2026 was $14.1 Mil. Fossil Group's Revenue for the
three
months ended in Mar. 2026 was $224.8 Mil. Therefore, Fossil Group's Operating Margin % for the quarter that ended in Mar. 2026 was 6.29%.
The historical rank and industry rank for Fossil Group's Operating Margin % or its related term are showing as below:
FOSL'
s Operating Margin % Range Over the Past 10 Years
Min: -6.91 Med: 1.16 Max: 6.62
Current: 2.82
Fossil Group's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Fossil Group's Operating Income for the
three
months ended in Mar. 2026 was $14.1 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $28.0 Mil.
Fossil Group (NAS:FOSL) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Fossil Group Operating Margin % Related Terms
Fossil Group Operating Margin % Historical Data
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The historical data trend for Fossil Group's Operating Margin % 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 RCKY, WEYS, FWDI: Operating Margin % Comparison
For the Footwear & Accessories subindustry, Fossil Group's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Operating Margin % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Fossil Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Fossil Group's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Fossil Group's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Fossil Group (FOSL) has a Operating Margin % of 6.29% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Fossil Group and its competitors. This is 442% above median its historical median of 1.16. According to the industry distribution chart, Fossil Group ranks #595 out of 1043 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 57%.
Is Fossil Group's Operating Margin % too high?
Fossil Group's current Operating Margin % of 6.29% is 442% above median its 10-year median of 1.16. The Manufacturing - Apparel & Accessories industry median Operating Margin % is 4.08. Fossil Group's value of 6.29% is 54.2% above this industry median. Based on the distribution chart, Fossil Group ranks #595 out of 1043 companies in the Manufacturing - Apparel & Accessories industry, which is below the industry midpoint. 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 Operating Margin % compare to RCKY and WEYS?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Fossil Group ranks #595 out of 1043 companies for Operating Margin %. This places Fossil Group in the lower half of its industry. The industry median Operating Margin % is 4.08. Fossil Group's value of 6.29% is 54.2% above this benchmark. While the company's 10-year median is 1.16 vs. the industry median of 4.08, Fossil Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Manufacturing - Apparel & Accessories company?
The median Operating Margin % among Manufacturing - Apparel & Accessories companies is 4.08, based on 1,043 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Fossil Group's current Operating Margin % of 6.29% is 54.2% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Fossil Group and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Operating Margin % is 4.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fossil Group's current Operating Margin % is 6.29%, which is 442% above median its own 10-year median of 1.16. 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 $1.19, compared to a current price of $4.03 — trading 238.7% above its estimated fair value. The current Operating Margin % is 6.29%, which is 442% above median its 10-year median of 1.16 and 54.2% above the Manufacturing - Apparel & Accessories industry median of 4.08. Fossil Group's overall GF Score™ is 47/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Fossil Group (FOSL), the current Operating Margin % is 6.29% as of Mar. 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 $4.03 is trading 238.7% above its estimated GF Value™ of $1.19.
GuruFocus considers Fossil Group to be Significantly Overvalued.
Key valuation signals for FOSL:
Operating Margin %: 6.29% (442% above median its 10-year median of 1.16)
GF Value™: $1.19 vs. price of $4.03 (238.7% above fair value)
Industry Position: 54.2% above the Manufacturing - Apparel & Accessories median (#595 of 1043)
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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