Fossil now expects worldwide net sales of $980 million to $990 million for the year. Its previous forecast called for a 3% to 5% decline, equivalent to sales of $950 million to $970 million.

Sales rose 0.4% in the most recent quarter to $271.2 million, topping analysts’ $248.7 million estimate, according to FactSet. Fossil had expected growth to begin in the fourth quarter. The company reported a third-quarter profit of $11.7 million, or 19 cents a share, compared with a loss of $39.9 million, or 76 cents a share, a year earlier. Adjusted profit was 23 cents a share; analysts polled by FactSet had expected a loss of 4 cents.

Traditional watch sales increased 6.4%, offsetting a 21% drop in leather sales and an 11% decline in jewelry sales. Chief Executive Franco Fogliato said the turnaround plan was translating into revenue growth and profitability. As part of the effort to reduce costs, Fossil closed 49 stores and cut jobs in 2025.

Fossil shares rose to $9.31 in late trading after closing the regular session at $7.87. They have climbed almost fourfold over the past year. The company also said musician Nick Jonas will remain its watch ambassador through 2028 and that it extended its Diesel licensing agreement by five years.