By Nicholas G. Miller

Shares of Fossil Group fell after S&P Global Ratings downgraded the company's credit rating and the watch maker reported a wider third-quarter loss.

The stock dropped 10% to $1.89. It is up 13% this year.

On Thursday Fossil announced a refinancing that extended the maturity of its debt by three years and included $32.5 million additional financing.

S&P Global Ratings said it viewed the transaction as distressed. "We believe there would have been risk of a traditional default had the restructuring not been completed," S&P said. "In addition, we do not believe it provided adequate compensation to its noteholders for the maturity extension."

S&P lowered its issuer credit rating on Fossil to SD from CC and its issue-level rating on Fossil's senior unsecured notes to D from CC.

S&P said it would evaluate the company's revised capital structure, liquidity and operating prospects, after which it said it would likely raise its issue credit rating on the company to CCC.

Also on Thursday, the Richardson, Texas-based company posted a third-quarter loss of $39.9 million, or 76 cents a share, compared with a loss of $32 million, or 60 cents a share, a year earlier. Revenue fell 6.1% to $270.2 million.

Write to Nicholas G. Miller at nicholas.miller@wsj.com.

(END) Dow Jones Newswires

November 14, 2025 13:29 ET (18:29 GMT)

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