Fossil (FOSL) 10-Q 13 Aug 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Jul. 05, 2014	Aug. 07, 2014
Document and Entity Information	'	'
Entity Registrant Name	'Fossil Group, Inc.	'
Entity Central Index Key	'0000883569	'
Document Type	'10-Q	'
Document Period End Date	5-Jul-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-28	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Large Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	52,908,759
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q2	'

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Jul. 05, 2014	Dec. 28, 2013
In Thousands, unless otherwise specified
Current assets:	'	'
Cash and cash equivalents	$272,642	$320,479
Accounts receivable - net of allowances of $67,764 and $74,841, respectively	304,621	454,762
Inventories	664,185	570,719
Deferred income tax assets-net	46,529	46,986
Prepaid expenses and other current assets	122,048	86,516
Total current assets	1,410,025	1,479,462
Property, plant and equipment - net of accumulated depreciation of $345,802 and $314,787, respectively	359,917	355,666
Goodwill	206,365	206,954
Intangible and other assets-net	184,279	188,332
Total long-term assets	750,561	750,952
Total assets	2,160,586	2,230,414
Current liabilities:	'	'
Accounts payable	176,983	165,433
Short-term debt	13,652	13,443
Accrued expenses:	'	'
Compensation	61,633	80,573
Royalties	39,123	65,117
Co-op advertising	15,543	25,599
Transaction taxes	25,229	35,134
Other	80,488	79,860
Income taxes payable	21,046	26,747
Total current liabilities	433,697	491,906
Long-term income taxes payable	17,750	15,720
Deferred income tax liabilities	97,437	98,168
Long-term debt	533,174	494,711
Other long-term liabilities	62,861	54,542
Total long-term liabilities	711,222	663,141
Commitments and contingencies (Note 13)	'	'
Stockholders' equity:	'	'
Common stock, 53,193 and 54,708 shares issued and outstanding at July 5, 2014 and December 28, 2013, respectively	532	547
Additional paid-in capital	162,427	154,376
Retained earnings	812,824	877,063
Accumulated other comprehensive income	33,385	36,691
Total Fossil Group, Inc. stockholders' equity	1,009,168	1,068,677
Noncontrolling interest	6,499	6,690
Total stockholders' equity	1,015,667	1,075,367
Total liabilities and stockholders' equity	$2,160,586	$2,230,414

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Jul. 05, 2014	Dec. 28, 2013
In Thousands, unless otherwise specified
CONDENSED CONSOLIDATED BALANCE SHEETS	'	'
Accounts receivable - allowances (in dollars)	$67,764	$74,841
Property, plant and equipment, accumulated depreciation (in dollars)	$345,802	$314,787
Common stock, shares issued	53,193	54,708
Common stock, shares outstanding	53,193	54,708

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Jul. 05, 2014	Jun. 29, 2013	Jul. 05, 2014	Jun. 29, 2013
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME	'	'	'	'
Net sales	$773,820	$706,249	$1,550,365	$1,387,148
Cost of sales	329,218	297,348	662,542	599,776
Gross profit	444,602	408,901	887,823	787,372
Selling, general and administrative expenses	359,844	301,953	698,366	586,103
Operating income	84,758	106,948	189,457	201,269
Interest expense	3,887	1,749	7,593	2,979
Other income (expense)-net	-1,097	-961	-1,448	8,823
Income before income taxes	79,774	104,238	180,416	207,113
Provision for income taxes	24,875	33,829	56,355	62,723
Net income	54,899	70,409	124,061	144,390
Less: Net income attributable to noncontrolling interest	2,382	2,696	5,201	4,490
Net income attributable to Fossil Group, Inc.	52,517	67,713	118,860	139,900
Other comprehensive income (loss), net of taxes:	'	'	'	'
Currency translation adjustment	1,524	2,984	399	-16,853
Securities available for sale-net change	0	-12	0	-83
Derivative instruments-net change	-651	1,599	-412	4,990
Pension plan activity	-3,293	0	-3,293	0
Total other comprehensive income (loss)	-2,420	4,571	-3,306	-11,946
Total comprehensive income	52,479	74,980	120,755	132,444
Less: Comprehensive income attributable to noncontrolling interest	2,382	2,696	5,201	4,490
Comprehensive income attributable to Fossil Group, Inc.	$50,097	$72,284	$115,554	$127,954
Earnings per share:	'	'	'	'
Basic (in dollars per share)	$0.98	$1.16	$2.21	$2.37
Diluted (in dollars per share)	$0.98	$1.15	$2.20	$2.36
Weighted average common shares outstanding:	'	'	'	'
Basic (in shares)	53,494	58,600	53,821	58,997
Diluted (in shares)	53,678	58,890	54,028	59,335

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Jul. 05, 2014	Jun. 29, 2013
Operating Activities:	'	'
Net income	$124,061	$144,390
Adjustments to reconcile net income to net cash provided by operating activities:	'	'
Depreciation, amortization and accretion	48,978	38,669
Stock-based compensation	9,637	6,968
Decrease in allowance for returns-net of inventory in transit	-3,685	-4,581
Loss (gain) on disposal of assets	423	-272
Impairment losses	5,501	0
Gain on equity method investment	0	-6,510
Decrease in allowance for doubtful accounts	-887	-6,568
Excess tax benefits from stock-based compensation	-950	-6,204
Deferred income taxes and other	-973	7,035
Changes in operating assets and liabilities:	'	'
Accounts receivable	158,595	123,256
Inventories	-95,426	-76,865
Prepaid expenses and other current assets	-36,280	-23,082
Accounts payable	9,377	-839
Accrued expenses	-60,033	-33,315
Income taxes payable	-2,842	-3,380
Net cash provided by operating activities	155,496	158,702
Investing Activities:	'	'
Additions to property, plant and equipment	-43,506	-42,959
Increase in intangible and other assets	-6,598	-5,122
Proceeds from the sale of property, plant, equipment and other	66	1,972
Net change in restricted cash	0	398
Business acquisitions-net of cash acquired	0	-14,896
Net investment hedge settlement	410	0
Net cash used in investing activities	-49,628	-60,607
Financing Activities:	'	'
Acquisition of common stock	-187,158	-231,870
Distribution of noncontrolling interest earnings and other	-5,392	-4,679
Excess tax benefits from stock-based compensation	950	6,204
Debt borrowings	401,800	676,500
Debt payments	-363,694	-411,748
Proceeds from exercise of stock options	1,508	4,534
Net cash (used in) provided by financing activities	-151,986	38,941
Effect of exchange rate changes on cash and cash equivalents	-1,719	-964
Net (decrease) increase in cash and cash equivalents	-47,837	136,072
Cash and cash equivalents:	'	'
Beginning of period	320,479	177,236
End of period	$272,642	$313,308

FINANCIAL_STATEMENT_POLICIES

FINANCIAL STATEMENT POLICIES	6 Months Ended
	Jul. 05, 2014
FINANCIAL STATEMENT POLICIES	'
FINANCIAL STATEMENT POLICIES	'
	1. FINANCIAL STATEMENT POLICIES
	Basis of Presentation. The condensed consolidated financial statements include the accounts of Fossil Group, Inc., a Delaware corporation, and its wholly and majority-owned subsidiaries (the “Company”).
	The condensed consolidated financial statements reflect all adjustments that are, in the opinion of management, necessary to present a fair statement of the Company’s financial position as of July 5, 2014, and the results of operations for the thirteen-week periods ended July 5, 2014 (“Second Quarter”) and June 29, 2013 (“Prior Year Quarter”), respectively, and the twenty-seven week period ended July 5, 2014 (“Year To Date Period”) and the twenty-six week period ended June 29, 2013 (“Prior Year YTD Period”). All adjustments are of a normal, recurring nature. The Company’s fiscal year periodically results in a 53-week year instead of a normal 52-week year. The current fiscal year ending January 3, 2015 is a 53-week year, with the additional week included in the first quarter of the fiscal year. Accordingly, the information presented herein includes twenty-seven weeks of operations for the Year To Date Period as compared to twenty-six weeks in the Prior Year YTD Period.
	These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Annual Report on Form 10-K filed by the Company pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”), for the fiscal year ended December 28, 2013 (the “2013 Form 10-K”). Operating results for the Second Quarter and Year To Date Period are not necessarily indicative of the results to be achieved for the full fiscal year.
	The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), which require the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the periods reported. Actual results could differ from those estimates. The Company has not made any changes in its significant accounting policies from those disclosed in the 2013 Form 10-K.
	Business. The Company is a global design, marketing and distribution company that specializes in consumer fashion accessories. Its principal offerings include an extensive line of men’s and women’s fashion watches and jewelry, handbags, small leather goods, belts, sunglasses, soft accessories and clothing. In the watch and jewelry product categories, the Company has a diverse portfolio of globally recognized owned and licensed brand names under which its products are marketed. The Company’s products are distributed globally through various distribution channels, including wholesale in countries where it has a physical presence, direct to the consumer through its retail stores and commercial websites and through third-party distributors in countries where the Company does not maintain a physical presence. The Company’s products are offered at varying price points to meet the needs of its customers, whether they are value-conscious or luxury oriented. Based on its extensive range of accessory products, brands, distribution channels and price points, the Company is able to target style-conscious consumers across a wide age spectrum on a global basis.
	Hedging Instruments. The Company is exposed to certain market risks relating to foreign exchange rates and interest rates. The Company actively monitors and attempts to manage these exposures using derivative instruments including foreign currency forward contracts and an interest rate swap. The Company’s foreign subsidiaries periodically enter into foreign exchange forward contracts to hedge the future payment of intercompany inventory transactions denominated in U.S. dollars. If the Company was to settle its Euro, British Pound, Canadian Dollar, Japanese Yen, Australian Dollar, and Mexican Peso forward contracts as of July 5, 2014, the net result would have been a net loss of approximately $1.9 million, net of taxes. To help protect against adverse fluctuations in interest rates, the Company has entered into an interest rate swap agreement to effectively convert a portion of its variable rate debt obligations to a fixed rate. To reduce exposure to changes in currency exchange rates adversely affecting the Company’s investment in a Euro-denominated subsidiary, the Company entered into a forward contract designated as a net investment hedge that was settled during the Second Quarter. The Company does not hold or issue derivative financial instruments for trading or speculative purposes.
	The Company applies the hedge accounting rules as required by Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging (“ASC 815”). See “Note 10—Derivatives and Risk Management” for additional disclosures about the Company’s use of derivatives.
	Earnings Per Share (“EPS”). Basic EPS is based on the weighted average number of common shares outstanding during each period. Diluted EPS adjusts basic EPS for the effects of dilutive common stock equivalents outstanding during each period using the treasury stock method.
	The following table reconciles the numerators and denominators used in the computations of both basic and diluted EPS (in thousands, except per share data):
		For the 13		For the 13		For the 27		For the 26
		Weeks Ended		Weeks Ended		Weeks Ended		Weeks Ended
		July 5, 2014		June 29, 2013		July 5, 2014		June 29, 2013
	Numerator:
	Net income attributable to Fossil Group, Inc.	$	52,517	$	67,713	$	118,860	$	139,900
	Denominator:
	Basic EPS computation:
	Basic weighted average common shares outstanding	53,494		58,600		53,821		58,997
	Basic EPS	$	0.98	$	1.16	$	2.21	$	2.37
	Diluted EPS computation:
	Basic weighted average common shares outstanding	53,494		58,600		53,821		58,997
	Stock options, stock appreciation rights and restricted stock units	184		290		207		338
	Diluted weighted average common shares outstanding	53,678		58,890		54,028		59,335
	Diluted EPS	$	0.98	$	1.15	$	2.2	$	2.36
	Approximately 322,000, 295,000, 273,000 and 273,000 shares issuable under stock-based awards were not included in the diluted EPS calculation at the end of the Second Quarter, Year To Date Period, Prior Year Quarter, and Prior Year YTD Period, respectively, because they were antidilutive.
	Recently Issued Accounting Standards. In June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-12, Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (“ASU 2014-12”). ASU 2014-12 requires that a performance target, that affects vesting and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. ASU 2014-12 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015, with early adoption permitted. The Company is evaluating the effect of adopting ASU 2014-12, but does not expect adoption will have a material impact on the Company’s consolidated results of operations or financial position.
	In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 provides alternative methods of retrospective adoption and is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is not permitted. The Company is evaluating the effect of adopting ASU 2014-09, but does not expect adoption will have a material impact on the Company’s consolidated results of operations or financial position.
	In April 2014, FASB issued ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”). Under ASU 2014-08, only disposals of a component of an entity, or a group of components of an entity, that represent a strategic shift that has (or will have) a major effect on the entity’s results and operations would qualify as discontinued operations. ASU 2014-08 also provides guidance on the financial statement presentations and disclosures of discontinued operations. ASU 2014-08 is effective prospectively for all disposals, or components classified as held for sale, for fiscal years, and interim periods within those years, beginning on or after December 15, 2014. Early adoption is permitted but only for disposals that have not been previously reported. The Company is evaluating the effect of adopting ASU 2014-08, but does not expect adoption will have a material impact on the Company’s consolidated results of operations or financial position.
	Recently Adopted Accounting Standards. In July 2013, FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”). ASU 2013-11 requires, unless certain conditions exist, an unrecognized tax benefit to be presented as a reduction to a deferred tax asset in the financial statements for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. The guidance in ASU 2013-11 was effective for the Company beginning fiscal year 2014 and did not have a material impact on the Company’s consolidated results of operations or financial position.
	In March 2013, FASB issued ASU 2013-05, Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (“ASU 2013-05”). ASU 2013-05 addresses the accounting for the cumulative translation adjustment when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. The guidance outlines the events when cumulative translation adjustments should be released into net income and is intended by FASB to eliminate some disparity in current accounting practice. The guidance in ASU 2013-05 was effective for the Company beginning fiscal year 2014 and did not have a material impact on the Company’s consolidated results of operations or financial position.
	In December 2011, FASB issued ASU 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities (“ASU 2011-11”), to address certain comparability issues between financial statements prepared in accordance with GAAP and those prepared in accordance with International Financial Reporting Standards. In January 2013, FASB issued ASU 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities (“ASU 2013-01”), which clarifies which instruments and transactions are subject to the offsetting disclosure requirements established by ASU 2011-11. ASU 2011-11 requires an entity to provide enhanced disclosures about certain financial instruments and derivatives, as defined in ASU 2013-01, to enable users to understand the effects of offsetting in the financial statements as well as the effects of master netting arrangements on an entity’s financial condition. The amendments in ASU 2011-11 and ASU 2013-01 became effective for the Company in fiscal year 2014 and did not have a material impact on the Company’s consolidated results of operations or financial position.

ACQUISITIONS_AND_GOODWILL

ACQUISITIONS AND GOODWILL	6 Months Ended
	Jul. 05, 2014
ACQUISITIONS AND GOODWILL	'
ACQUISITIONS AND GOODWILL	'
	2. ACQUISITIONS AND GOODWILL
	Fossil Spain Acquisition. On August 10, 2012, the Company’s joint venture company, Fossil, S.L. (“Fossil Spain”), entered into a Framework Agreement (the “Framework Agreement”) with several related and unrelated parties, including General De Relojeria, S.A. (“General De Relojeria”), the Company’s joint venture partner. Pursuant to the Framework Agreement, Fossil Spain was granted the right to acquire the outstanding 50% of its shares owned by General De Relojeria upon the expiration of the joint venture agreement on December 31, 2015. Upon the acquisition of these shares, Fossil Spain will become a wholly-owned subsidiary of the Company.
	Effective January 1, 2013, pursuant to the Framework Agreement, the Company assumed control over the board of directors and the day-to-day management of Fossil Spain. As a result of this change, the Company now controls Fossil Spain and began consolidating it in accordance with ASC 810, Consolidation, instead of treating it as an equity method investment.
	In accordance with ASC 805, Business Combinations, the Company re-measured its preexisting investment in Fossil Spain to fair value as of January 1, 2013, resulting in a gain of $6.5 million, which was recorded in other income (expense)-net on the Company’s condensed consolidated statements of income and comprehensive income. The results of Fossil Spain’s operations have been included in the Company’s condensed consolidated financial statements since January 1, 2013. The Company recorded approximately $10.6 million of goodwill related to the acquisition.
	The purchase price for the shares has a fixed and variable component. The fixed portion is based on 50% of the net book value of Fossil Spain as of December 31, 2012. The fixed portion was measured at 5.2 million Euros (approximately $6.8 million at the purchase date). The Company recorded a contingent consideration liability of 5.9 million Euros (approximately $7.8 million at the purchase date) related to the variable portion of the purchase price as of January 1, 2013. The variable portion will be determined based on Fossil Spain’s aggregated results of operations with a minimum annual variable price of 2.0 million Euros (approximately $2.6 million at the purchase date) and a maximum annual variable price of 3.5 million Euros (approximately $4.6 million at the purchase date) for each of the calendar years 2013, 2014, and 2015. On December 19, 2013, Fossil Spain paid cash of 1.8 million Euros (approximately $2.5 million at year end 2013) to General De Relojeria which reduced the fixed portion of the purchase price. See “Note 11 — Fair Value Measurements” for additional information about the contingent consideration liability for Fossil Spain.
	Of the total consideration for Fossil Spain, 2.2 million Euros (approximately $3.0 million) relating to the contingent consideration for calendar year 2013 was recorded in accrued expenses — other, and 9.0 million Euros (approximately $12.2 million) of the total consideration was recorded in other long-term liabilities in the condensed consolidated balance sheets at July 5, 2014.
	Bentrani Watches, LLC Acquisition. On December 31, 2012, the Company purchased substantially all of the assets of Bentrani Watches, LLC (“Bentrani”). Bentrani was a distributor of watch products in 16 Latin American countries and was based in Miami, Florida. Bentrani was the Company’s largest third-party distributor and had partnered with the Company for ten years. The purchase price was $26.6 million, comprised of $19.3 million in cash and $7.3 million in forgiveness of a payable to the Company. The Company recorded approximately $8.9 million of goodwill related to the acquisition. The results of Bentrani’s operations have been included in the Company’s condensed consolidated financial statements since the acquisition date. On June 28, 2013, the Company also obtained control of Bentrani Chile SpA (“Bentrani Chile”), and the results of Bentrani Chile’s operations have been included in the Company’s condensed consolidated financial statements since that date. The terms of the Bentrani Chile acquisition were not significant.
	Goodwill is the excess of the cost of an acquired entity over the net of the amounts assigned to assets acquired and liabilities assumed. The changes in the carrying amount of goodwill, which is not subject to amortization, were as follows (in thousands):
		North		Europe			Asia Pacific		Total
		America		Wholesale			Wholesale
		Wholesale
	Balance at December 28, 2013	$	118,147	$	77,217		$	11,590	$	206,954
	Foreign currency changes	15		(615		)	11		(589		)
	Balance at July 5, 2014	$	118,162	$	76,602		$	11,601	$	206,365

INVENTORIES

INVENTORIES	6 Months Ended
	Jul. 05, 2014
INVENTORIES	'
INVENTORIES	'
	3. INVENTORIES
	Inventories consisted of the following (in thousands):
		July 5,		December 28,
		2014		2013
	Components and parts	$	60,740	$	56,275
	Work-in-process	14,897		14,017
	Finished goods	588,548		500,427
	Inventories	$	664,185	$	570,719

WARRANTY_RESERVE

WARRANTY RESERVE	6 Months Ended
	Jul. 05, 2014
WARRANTY RESERVE	'
WARRANTY RESERVE	'
	4. WARRANTY RESERVE
	The Company’s warranty liabilities are primarily related to watch products. The Company’s FOSSIL® watch products sold in the U.S. are covered by a limited warranty against defects in materials or workmanship for a period of 11 years from the date of purchase. RELIC® watch products sold in the U.S. are covered by a comparable 12 year warranty, while certain other watches sold by the Company are covered by a comparable two year limited warranty. SKAGEN® branded watches are covered by a lifetime warranty against defects due to faulty material or workmanship, subject to normal conditions of use. The Company’s warranty liability is recorded using historical warranty repair expense and is recorded in accrued expenses-other in the condensed consolidated balance sheets. As changes in warranty costs are experienced, the warranty accrual is adjusted as necessary. Warranty liability activity consisted of the following (in thousands):
		For the 27			For the 26
		Weeks Ended			Weeks Ended
		July 5, 2014			June 29, 2013
	Beginning balance	$	15,658		$	13,383
	Settlements in cash or kind	(5,576		)	(4,715		)
	Warranties issued and adjustments to preexisting warranties (1)	5,925			4,906
	Liabilities assumed in acquisition	0			340
	Ending balance	$	16,007		$	13,914
	(1) Changes in cost estimates related to preexisting warranties are aggregated with accruals for new standard warranties issued and foreign currency changes.

INCOME_TAXES

INCOME TAXES

6 Months Ended

Jul. 05, 2014

INCOME TAXES

'

INCOME TAXES

'

5. INCOME TAXES

The Company’s income tax expense and related effective rate were as follows (in thousands, except percentage data):

For the 13

For the 13

For the 27

For the 26

Weeks Ended

Weeks Ended

Weeks Ended

Weeks Ended

July 5, 2014

June 29, 2013

July 5, 2014

June 29, 2013

Income tax expense

$

24,875

$

33,829

$

56,355

$

62,723

Income tax rate

31.2

%

32.5

%

31.2

%

30.3

%

The lower effective tax rate in the Second Quarter, as compared to the Prior Year Quarter, was primarily attributable to a change in the Company’s geographical earnings mix. The higher effective tax rate for the Year To Date Period, as compared to the Prior Year YTD period, was due to the recognition of income tax benefits in the Prior Year YTD Period from the settlement of income tax audits.

As of July 5, 2014, the total amount of unrecognized tax benefits, excluding interest and penalties, was $16.7 million, of which $11.2 million would favorably impact the effective tax rate in future periods, if recognized. During the first quarter of fiscal 2014, the U.S. Internal Revenue Service began its examination of the Company’s 2010-2012 federal income tax returns. The Company is subject to examinations in various state and foreign jurisdictions for its 2007-2013 tax years, none of which the Company believes are significant individually or in the aggregate. Audit outcomes and timing of audit settlements are subject to significant uncertainty.

The Company has classified uncertain tax positions as long-term income taxes payable, unless such amounts are expected to be paid within twelve months of the condensed consolidated balance sheet date. As of July 5, 2014, the Company had recorded $0.9 million of unrecognized tax benefits, excluding interest and penalties, for positions that could be settled within the next twelve months. Consistent with its past practice, the Company recognizes interest and/or penalties related to income tax overpayments and income tax underpayments in income tax expense and income taxes receivable/payable, respectively. The total amount of accrued income tax-related interest and penalties included in the condensed consolidated balance sheets at July 5, 2014 was $1.6 million and $0.4 million, respectively. For the Second Quarter and Year To Date Period, the Company accrued income tax-related interest expense of $0.2 million and $0.4 million, respectively.

STOCKHOLDERS_EQUITY

STOCKHOLDERS' EQUITY	6 Months Ended
	Jul. 05, 2014
STOCKHOLDERS' EQUITY	'
STOCKHOLDERS' EQUITY	'
	6. STOCKHOLDERS’ EQUITY
	Common Stock Repurchase Programs. Purchases of the Company’s common stock are made from time to time pursuant to its repurchase programs, subject to market conditions and at prevailing market prices, through the open market. Repurchased shares of common stock are recorded at cost and become authorized but unissued shares which may be issued in the future for general corporate or other purposes. The Company may terminate or limit its stock repurchase program at any time. In the event the repurchased shares are cancelled, the Company accounts for retirements by allocating the repurchase price to common stock, additional paid-in capital and retained earnings. The repurchase price allocation is based upon the equity contribution associated with historical issuances. The repurchase programs are conducted pursuant to Rule 10b-18 of the Securities Exchange Act of 1934.
	During the Year To Date Period, the Company effectively retired 1.6 million shares of common stock repurchased under its repurchase programs. The effective retirement of repurchased common stock decreased common stock by approximately $16,300, additional paid-in capital by $1.5 million, retained earnings by $183.1 million and treasury stock by $184.6 million. At December 28, 2013 and July 5, 2014, all treasury stock had been effectively retired. As of July 5, 2014, the Company had $309.1 million of repurchase authorizations remaining under its combined repurchase plans.
	The following tables reflect the Company’s common stock repurchase activity for the periods indicated (in millions):
							For the 13 Weeks Ended				For the 13 Weeks Ended
							July 5, 2014				June 29, 2013
	Fiscal Year Authorized	Dollar Value			Termination Date		Number of		Dollar Value		Number of	Dollar Value
		Authorized					Shares		Repurchased		Shares	Repurchased
							Repurchased				Repurchased
	2012	$	1,000.00		December 2016		0.6		$	67.3	1.7	$	169.2
	2010	$	30		None		0		$	0	0	$	0
							For the 27 Weeks Ended				For the 26 Weeks Ended
							July 5, 2014				June 29, 2013
	Fiscal Year Authorized	Dollar Value			Termination Date		Number of		Dollar Value		Number of	Dollar Value
		Authorized					Shares		Repurchased		Shares	Repurchased
							Repurchased				Repurchased
	2012	$	1,000.00		December 2016		1.6		$	184.6	1.8	$	187.2
	2010	$	30		None		0		$	0	0	$	0
	2010	$	750		December 2013(1)		0		$	0	0.4	$	38.6
	(1)     In the first quarter of fiscal year 2013, the Company completed this repurchase plan.
	Controlling and Noncontrolling Interest. The following tables summarize the changes in equity attributable to controlling and noncontrolling interest (in thousands):
		Fossil Group, Inc.						Total
		Stockholders’			Noncontrolling			Stockholders’
		Equity			Interest			Equity
	Balance at December 28, 2013	$	1,068,677		$	6,690		$	1,075,367
	Net income	118,860			5,201			124,061
	Currency translation adjustment	399			0			399
	Derivative instruments - net change	(412		)	0			(412		)
	Common stock issued upon exercise of stock options and stock appreciation rights	1,508			0			1,508
	Tax benefit derived from stock-based compensation	950			0			950
	Distribution of noncontrolling interest earnings and other	0			(5,392		)	(5,392		)
	Pension plan activity	(3,293		)	0			(3,293		)
	Acquisition of common stock	(187,158		)	0			(187,158		)
	Stock-based compensation expense	9,637			0			9,637
	Balance at July 5, 2014	$	1,009,168		$	6,499		$	1,015,667
		Fossil Group, Inc.						Total
		Stockholders’			Noncontrolling			Stockholders’
		Equity			Interest			Equity
	Balance at December 29, 2012	$	1,233,535		$	6,929		$	1,240,464
	Net income	139,900			4,490			144,390
	Currency translation adjustments	(16,853		)	0			(16,853		)
	Unrealized loss on securities available for sale	(83		)	0			(83		)
	Derivative instruments - net change	4,990			0			4,990
	Common stock issued upon exercise of stock options and stock appreciation rights	4,534			0			4,534
	Tax benefit derived from stock-based compensation	6,204			0			6,204
	Distribution of noncontrolling interest earnings	0			(4,679		)	(4,679		)
	Acquisition of common stock	(231,870		)	0			(231,870		)
	Stock-based compensation expense	6,968			0			6,968
	Balance at June 29, 2013	$	1,147,325		$	6,740		$	1,154,065

EMPLOYEE_BENEFIT_PLANS

EMPLOYEE BENEFIT PLANS	6 Months Ended
	Jul. 05, 2014
EMPLOYEE BENEFIT PLANS	'
EMPLOYEE BENEFIT PLANS	'
	7. EMPLOYEE BENEFIT PLANS
	Stock-Based Compensation Plans. The Company accounts for stock-based compensation in accordance with the provisions of ASC 718, Compensation-Stock Compensation (“ASC 718”), using the Black-Scholes option pricing model to determine the fair value of stock options and stock appreciation rights at the date of grant. The Company’s grants under its current stock-based compensation plans generally include: (i) stock options, restricted stock and restricted stock units for its international employees, (ii) restricted stock units for its non-employee directors and (iii) stock appreciation rights, restricted stock and restricted stock units for its U.S.-based employees.
	The following table summarizes stock options and stock appreciation rights activity during the Second Quarter:
						Weighted-
						Average
				Weighted-		Remaining	Aggregate
				Average		Contractual	Intrinsic
	Stock Options and Stock Appreciation Rights	Shares		Exercise Price		Term (Years)	Value
		in thousands					in thousands
	Outstanding at April 5, 2014	738		$	81.38	6.2	$	28,427
	Granted	2		106.89
	Exercised	(16	)	51.13			839
	Forfeited or expired	(8	)	117.23
	Outstanding at July 5, 2014	716		81.66		5.9	23,041
	Exercisable at July 5, 2014	524		$	69.43	5.4	$	22,606
	The aggregate intrinsic value shown in the table above is before income taxes and is based on (i) the exercise price for outstanding and exercisable options/rights at July 5, 2014 and (ii) the fair market value of the Company’s common stock on the exercise date for options/rights that were exercised during the Second Quarter.
	Stock Options and Stock Appreciation Rights Outstanding and Exercisable. The following table summarizes information with respect to stock options and stock appreciation rights outstanding and exercisable at July 5, 2014:
	Stock Options Outstanding						Stock Options Exercisable
						Weighted-
				Weighted-		Average			Weighted-
				Average		Remaining			Average
	Range of	Number of		Exercise		Contractual	Number of		Exercise
	Exercise Prices	Shares		Price		Term (Years)	Shares		Price
		in thousands					in thousands
	$13.65 - $21.51	73		$	15.39	4	73		$	15.39
	$21.55 - $34.59	59		29.41		2.6	59		29.41
	$35.78 - $67.10	72		39.89		5	72		39.89
	$69.53 - $106.07	105		80.89		6.8	101		80.77
	$106.08 - $131.46	172		128.09		7.6	115		128.09
	Total	481		$	75.21	5.9	420		$	67.99
	Stock Appreciation Rights Outstanding						Stock Appreciation Rights Exercisable
						Weighted-
				Weighted-		Average			Weighted-
				Average		Remaining			Average
	Range of	Number of		Exercise		Contractual	Number of		Exercise
	Exercise Prices	Shares		Price		Term (Years)	Shares		Price
		in thousands					in thousands
	$13.65 - $21.51	19		$	13.65	2.7	19		$	13.65
	$21.55 - $34.59	6		30.71		1.7	6		30.71
	$35.78 - $67.10	16		42.68		4.1	14		39.87
	$69.53 - $106.07	44		85.96		5.4	30		83.76
	$106.08 - $131.46	150		115.96		6.9	35		123.48
	Total	235		$	94.88	6	104		$	75.27
	Restricted Stock and Restricted Stock Units. The following table summarizes restricted stock and restricted stock unit activity during the Second Quarter:
	Restricted Stock and Restricted Stock Units	Number of Shares		Weighted-Average
				Grant Date Fair
				Value
		in thousands
	Nonvested at April 5, 2014	263		$	110.6
	Granted	17		102.8
	Vested	(14	)	107.67
	Forfeited	(7	)	109.24
	Nonvested at July 5, 2014	259		$	110.26
	The total fair value of restricted stock and restricted stock units vested during the Second Quarter was approximately $1.4 million.

ACCUMULATED_OTHER_COMPREHENSIV

ACCUMULATED OTHER COMPREHENSIVE INCOME	6 Months Ended
	Jul. 05, 2014
ACCUMULATED OTHER COMPREHENSIVE INCOME	'
ACCUMULATED OTHER COMPREHENSIVE INCOME	'
	8. ACCUMULATED OTHER COMPREHENSIVE INCOME
	The following table illustrates changes in the balances of each component of accumulated other comprehensive income, net of taxes (in thousands):
		For the 13 Weeks Ended July 5, 2014
		Currency			Forward			Interest Rate			Net			Pension			Total
		Translation			Contracts			Swap			Investment			Plan
		Adjustments									Hedges
	Beginning balance	$	37,027		$	(1,941	)	$	(179	)	$	162		$	736		$	35,805
	Other comprehensive income (loss) before reclassifications	1,524			(1,834		)	(912		)	155			(2,946		)	(4,013		)
	Tax (expense) benefit	0			195			333			(60		)	(347		)	121
	Amounts reclassed from accumulated other comprehensive income	0			(1,570		)	(691		)	0			0			(2,261		)
	Tax (expense) benefit	0			537			252			0			0			789
	Total other comprehensive income (loss)	1,524			(606		)	(140		)	95			(3,293		)	(2,420		)
	Ending balance	$	38,551		$	(2,547	)	$	(319	)	$	257		$	(2,557	)	$	33,385
		For the 13 Weeks Ended June 29, 2013
		Currency			Securities			Forward			Total
		Translation			Available for			Contracts
		Adjustments			Sale
	Beginning balance	$	10,344		$	(546	)	$	2,445		$	12,243
	Other comprehensive income (loss) before reclassifications	2,984			(12		)	2,774			5,746
	Tax (expense) benefit	0			0			(332		)	(332		)
	Amounts reclassed from accumulated other comprehensive income	0			0			1,348			1,348
	Tax (expense) benefit	0			0			(505		)	(505		)
	Total other comprehensive income (loss)	2,984			(12		)	1,599			4,571
	Ending balance	$	13,328		$	(558	)	$	4,044		$	16,814
		For the 27 Weeks Ended July 5, 2014
		Currency			Forward			Interest Rate			Net			Pension			Total
		Translation			Contracts			Swap			Investment			Plan
		Adjustments									Hedges
	Beginning balance	$	38,152		$	(2,091	)	$	(106	)	$	0		$	736		$	36,691
	Other comprehensive income (loss) before reclassifications	399			(2,100		)	(1,760		)	410			(2,946		)	(5,997		)
	Tax (expense) benefit	0			113			643			(153		)	(347		)	256
	Amounts reclassed from accumulated other comprehensive income	0			(2,399		)	(1,424		)	0			0			(3,823		)
	Tax (expense) benefit	0			868			520			0			0			1,388
	Total other comprehensive income (loss)	399			(456		)	(213		)	257			(3,293		)	(3,306		)
	Ending balance	$	38,551		$	(2,547	)	$	(319	)	$	257		$	(2,557	)	$	33,385
		For the 26 Weeks Ended June 29, 2013
		Currency			Securities			Forward			Total
		Translation			Available for			Contracts
		Adjustments			Sale
	Beginning balance	$	30,181		$	(475	)	$	(946	)	$	28,760
	Other comprehensive income (loss) before reclassifications	(16,853		)	(83		)	9,594			(7,342		)
	Tax (expense) benefit	0			0			(3,806		)	(3,806		)
	Amounts reclassed from accumulated other comprehensive income	0			0			1,390			1,390
	Tax (expense) benefit	0			0			(592		)	(592		)
	Total other comprehensive income (loss)	(16,853		)	(83		)	4,990			(11,946		)
	Ending balance	$	13,328		$	(558	)	$	4,044		$	16,814
	See “Note 10—Derivatives and Risk Management” for additional disclosures about the Company’s use of derivatives.

SEGMENT_INFORMATION

SEGMENT INFORMATION	6 Months Ended
	Jul. 05, 2014
SEGMENT INFORMATION	'
SEGMENT INFORMATION	'
	9. SEGMENT INFORMATION
	The Company manages its business primarily on a geographic basis. The Company’s reportable operating segments are comprised of North America wholesale, Europe wholesale, Asia Pacific wholesale and Direct to consumer. The North America wholesale, Europe wholesale and Asia Pacific wholesale reportable segments do not include activities related to the Direct to consumer segment. The North America wholesale segment primarily includes sales to wholesale or distributor customers based in Canada, Mexico, the United States and countries in South America. The Europe wholesale segment primarily includes sales to wholesale or distributor customers based in European countries, the Middle East and Africa. The Asia Pacific wholesale segment primarily includes sales to wholesale or distributor customers based in Australia, China (including the Company’s assembly and procurement operations), India, Indonesia, Japan, Malaysia, New Zealand, Singapore, South Korea, Taiwan and Thailand. The Direct to consumer segment includes Company-owned retail stores, e-commerce activities and catalog costs. Each reportable operating segment provides similar products and services.
	The Company evaluates the performance of its reportable segments based on net sales and operating income. Net sales for geographic segments are generally based on the location of the customers. Operating income for each segment includes net sales to third-parties, related cost of sales and operating expenses directly attributable to the segment. General corporate expenses, including certain administrative, legal, accounting, technology support costs, equity compensation costs, payroll costs attributable to executive management and amounts related to intercompany eliminations are not allocated to the various segments. Intercompany sales of products between segments are referred to as intersegment items. Intercompany profit attributable to the Company’s factory operations is included in the Asia Pacific wholesale and Europe wholesale segments in accordance with the geographic location of the factories. These intercompany factory profits are eliminated in consolidation.
	Summary information by operating segment was as follows (in thousands):
		For the 13 Weeks Ended						For the 13 Weeks Ended
		July 5, 2014						June 29, 2013
		Net Sales			Operating			Net Sales			Operating
					Income						Income
	North America wholesale:
	External customers	$	265,223		$	50,912		$	260,692		$	66,321
	Intersegment	42,778						49,016
	Europe wholesale:
	External customers	202,377			43,762			170,759			36,451
	Intersegment	50,392						38,713
	Asia Pacific wholesale:
	External customers	105,731			31,508			96,187			30,473
	Intersegment	252,137						252,894
	Direct to consumer	200,489			9,746			178,611			16,105
	Intersegment items	(345,307		)				(340,623		)
	Corporate				(51,170		)				(42,402		)
	Consolidated	$	773,820		$	84,758		$	706,249		$	106,948
		For the 27 Weeks Ended						For the 26 Weeks Ended
		July 5, 2014						June 29, 2013
		Net Sales			Operating			Net Sales			Operating
					Income						Income
	North America wholesale:
	External customers	$	538,019		$	103,791		$	515,858		$	126,729
	Intersegment	90,969						94,962
	Europe wholesale:
	External customers	408,041			95,722			344,663			74,998
	Intersegment	99,590						79,401
	Asia Pacific wholesale:
	External customers	209,291			62,628			182,963			58,023
	Intersegment	496,284						455,090
	Direct to consumer	395,014			26,032			343,664			23,217
	Intersegment items	(686,843		)				(629,453		)
	Corporate				(98,716		)				(81,698		)
	Consolidated	$	1,550,365		$	189,457		$	1,387,148		$	201,269
	The following tables reflect net sales for each class of similar products in the periods presented (in thousands, except percentage data):
		For the 13 Weeks Ended					For the 13 Weeks Ended
		July 5, 2014					June 29, 2013
		Net Sales			Percentage of		Net Sales			Percentage of
					Total					Total
	Watches	$	611,208		79	%	$	547,225		77.5	%
	Leathers	87,325			11.3		91,748			13
	Jewelry	56,183			7.2		47,042			6.7
	Other	19,104			2.5		20,234			2.8
	Total	$	773,820		100	%	$	706,249		100	%
		For the 27 Weeks Ended					For the 26 Weeks Ended
		July 5, 2014					June 29, 2013
		Net Sales			Percentage of		Net Sales			Percentage of
					Total					Total
	Watches	$	1,212,596		78.2	%	$	1,060,242		76.4	%
	Leathers	187,047			12.1		194,536			14
	Jewelry	112,701			7.3		89,356			6.5
	Other	38,021			2.4		43,014			3.1
	Total	$	1,550,365		100	%	$	1,387,148		100	%

DERIVATIVES_AND_RISK_MANAGEMEN

DERIVATIVES AND RISK MANAGEMENT

6 Months Ended

Jul. 05, 2014

DERIVATIVES AND RISK MANAGEMENT

'

DERIVATIVES AND RISK MANAGEMENT

'

10. DERIVATIVES AND RISK MANAGEMENT

Cash Flow Hedges. The primary risks managed by using derivative instruments are the fluctuations in global currencies that will ultimately be used by non-U.S. dollar functional currency subsidiaries to settle future payments of intercompany inventory transactions denominated in U.S. dollars. Specifically, the Company projects future intercompany purchases by its non-U.S. dollar functional currency subsidiaries generally over a period of up to 18 months. The Company enters into foreign currency forward contracts (“forward contracts”) generally for up to 65% of the forecasted purchases to manage fluctuations in global currencies that will ultimately be used to settle such U.S. dollar denominated inventory purchases. Forward contracts represent agreements to exchange the currency of one country for the currency of another country at an agreed-upon settlement date and exchange rate. These forward contracts are designated as single cash flow hedges. Fluctuations in exchange rates will either increase or decrease the Company’s U.S. dollar equivalent cash flows from these intercompany inventory transactions, which will affect the Company’s U.S. dollar earnings. Gains or losses on the forward contracts are expected to offset these fluctuations to the extent the cash flows are hedged by the forward contracts.

These forward contracts meet the criteria for hedge eligibility, which requires that they represent foreign-currency-denominated forecasted intra-entity transactions in which (i) the operating unit that has the foreign currency exposure is a party to the hedging instrument and (ii) the hedged transaction is denominated in a currency other than the hedging unit’s functional currency.

At the inception of each forward contract designated as a cash flow hedge the hedging relationship is expected to be highly effective in achieving offsetting cash flows attributable to the hedged risk. The Company assesses hedge effectiveness under the critical terms matched method at inception and at least quarterly throughout the life of the hedging relationship. If the critical terms (i.e., amounts, currencies and settlement dates) of the forward contract match the terms of the forecasted transaction, the Company concludes that the hedge is effective.

For a derivative instrument that is designated and qualifies as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income (loss), net of taxes and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. Due to the high degree of effectiveness between the hedging instruments and the underlying exposures being hedged, the Company’s hedges resulted in no ineffectiveness in the condensed consolidated statements of income and comprehensive income, and there were no components excluded from the assessment of hedge effectiveness for the Second Quarter, Prior Year Quarter, Year To Date Period, or Prior Year YTD Period.

All derivative instruments are recognized as either assets or liabilities at fair value in the condensed consolidated balance sheets. Derivatives designated as cash flow hedges are recorded at fair value at each balance sheet date and the change in fair value is recorded to accumulated other comprehensive income within the equity section of the Company’s condensed consolidated balance sheet until such derivative’s gains or losses become realized or the cash flow hedge relationship is terminated. If the cash flow hedge relationship is terminated, the derivative’s gains or losses that are recorded in accumulated other comprehensive income will be recognized in earnings when the hedged cash flows occur. However, for cash flow hedges that are terminated because the forecasted transaction is not expected to occur in the original specified time period, the derivative’s gains or losses are immediately recognized in earnings. There were no gains or losses reclassified into earnings as a result of the discontinuance of cash flow hedges in the Second Quarter, Prior Year Quarter, Year To Date Period or Prior Year YTD Period. Hedge accounting is discontinued if it is determined that the derivative is not highly effective. The Company records all forward contract hedge assets and liabilities on a gross basis as they do not meet the balance sheet netting criteria because the Company does not have master netting agreements established with the derivative counterparties that would allow for net settlement.

As of July 5, 2014, the Company had the following outstanding forward contracts that were entered into to hedge the future payments of intercompany inventory transactions (in millions):

Functional Currency

Contract Currency

Type

Amount

Type

Amount

Euro

181.7

U.S. Dollar

247

British Pound

28.2

U.S. Dollar

46

Canadian Dollar

33.8

U.S. Dollar

31.3

Japanese Yen

2,370.00

U.S. Dollar

23.7

Australian Dollar

14.8

U.S. Dollar

13.5

Mexican Peso

171

U.S. Dollar

12.9

The Company is also exposed to interest rate risk related to its $250 million U.S.-based term loan (“Term Loan”). To manage the interest rate risk related to this loan, the Company entered into an interest rate swap agreement on July 26, 2013 with a term of approximately five years. The objective of this hedge is to offset the variability of future payments associated with interest rates on the Term Loan. The interest rate swap agreement hedges the 1-month London Interbank Offer Rate (“LIBOR”) based variable rate debt obligations under the Term Loan. Under the terms of the swap, the Company pays a fixed interest rate of 1.288% per annum to the swap counterparty.  The notional amount will amortize over the remaining life of the Term Loan to coincide with the amortization of the underlying loan. The Company will receive interest from the swap counterparty at a variable rate based on 1-month LIBOR. This hedge is designated as a cash flow hedge.

Net Investment Hedge. The Company is also exposed to risk that adverse changes in foreign currency exchange rates could impact its net investment in foreign operations. To manage this risk, during the first quarter of fiscal year 2014, the Company entered into a forward contract designated as a net investment hedge to reduce exposure to changes in currency exchange rates on €25.0 million of its total investment in a wholly-owned Euro-denominated foreign subsidiary. The hedge was settled in the Second Quarter. The effective portion of derivatives designated as net investment hedges are recorded at fair value at each balance sheet date and the change in fair value is recorded as a component of other comprehensive income (loss) in the Company’s condensed consolidated statements of income and comprehensive income. The Company uses the hypothetical derivative method to assess the ineffectiveness of net investment hedges. Should any portion of a net investment hedge become ineffective, the ineffective portion will be reclassified to other income (expense)-net on the Company’s condensed consolidated statements of income and comprehensive income. Gains and losses reported in accumulated other comprehensive income will not be reclassified into earnings until the Company’s underlying investment is liquidated or dissolved.

Non-designated Hedges. The Company also periodically enters into forward contracts to manage exchange rate risks associated with certain non-inventory intercompany transactions and to which the Company does not elect hedge treatment. All of the Company’s outstanding forward contracts were designated as hedging instruments as of July 5, 2014 and December 28, 2013. Changes in the fair value of derivatives not designated as hedging instruments are recognized in earnings when they occur.

The effective portion of gains and losses on derivative instruments that was recognized in other comprehensive income (loss), net of taxes during the Second Quarter, Prior Year Quarter, Year To Date Period and Prior Year YTD Period is set forth below (in thousands):

Derivative Contracts

For the 13 Weeks

For the 13 Weeks

Under ASC 815

Ended

Ended

July 5, 2014

June 29, 2013

Cash flow hedges:

Foreign exchange forward contracts

$

(1,639

)

$

2,442

Interest rate swap

(579

)

0

Net investment hedge

95

0

Total (loss) gain recognized in other comprehensive income (loss), net of taxes

$

(2,123

)

$

2,442

For the 27 Weeks

For the 26 Weeks

Derivative Contracts

Ended

Ended

Under ASC 815

July 5, 2014

June 29, 2013

Cash flow hedges:

Foreign exchange forward contracts

$

(1,987

)

$

5,788

Interest rate swap

(1,117

)

0

Net investment hedge

257

0

Total (loss) gain recognized in other comprehensive income (loss), net of taxes

$

(2,847

)

$

5,788

The following table illustrates the effective portion of gains and losses on derivative instruments recorded in other comprehensive income (loss), net of taxes during the term of the hedging relationship and reclassified into earnings, and gains and losses on derivatives not designated as hedging instruments recorded directly to earnings during the Second Quarter, Prior Year Quarter, Year To Date Period, and Prior Year YTD Period (in thousands):

Condensed

Consolidated

Statements of Income

and Comprehensive

For the 13 Weeks

For the 13 Weeks

Derivative Contracts

Income

Ended

Ended

Under ASC 815

Location

July 5, 2014

June 29, 2013

Foreign exchange contracts designated as cash flow hedging instruments

Other income (expense)-net

Total (loss) gain reclassified from other comprehensive income (loss)

$

(1,033

)

$

843

Foreign exchange contracts not designated as hedging instruments

Other income (expense)-net

Total loss recognized in income

$

0

$

(74

)

Interest rate swap designated as a cash flow hedging instrument

Interest expense

Total loss reclassified from other comprehensive income (loss)

$

(439

)

$

0

Condensed

Consolidated

Statements of Income

and Comprehensive

For the 27 Weeks

For the 26 Weeks

Derivative Contracts

Income

Ended

Ended

Under ASC 815

Location

July 5, 2014

June 29, 2013

Foreign exchange contracts designated as cash flow hedging instruments

Other income (expense)-net

Total (loss) gain reclassified from other comprehensive income (loss)

$

(1,531

)

$

798

Foreign exchange contracts not designated as hedging instruments

Other income (expense)-net

Total loss recognized in income

$

(148

)

$

(74

)

Interest rate swap designated as a cash flow hedging instrument

Interest expense

Total loss reclassified from other comprehensive income (loss)

$

(904

)

$

0

The following table discloses the fair value amounts for the Company’s derivative instruments as separate asset and liability values, presents the fair value of derivative instruments on a gross basis, and identifies the line items in the condensed consolidated balance sheets in which the fair value amounts for these categories of derivative instruments are included (in thousands):

Asset Derivatives

Liability Derivatives

July 5, 2014

December 28, 2013

July 5, 2014

December 28, 2013

Condensed

Condensed

Condensed

Condensed

Consolidated

Consolidated

Consolidated

Consolidated

Derivative Contracts Under

Balance

Fair

Balance

Fair

Balance

Fair

Balance

Fair

ASC 815

Sheets Location

Value

Sheets Location

Value

Sheets Location

Value

Sheets Location

Value

Foreign exchange contracts designated as cash flow hedging instruments

Prepaid expenses and other current assets

$

1,910

Prepaid expenses and other current assets

$

3,289

Accrued expenses- other

$

4,818

Accrued expenses- other

$

7,651

Interest rate swap designated as a cash flow hedging instrument

Prepaid expenses and other current assets

0

Prepaid expenses and other current assets

0

Accrued expenses- other

2,534

Accrued expenses- other

2,783

Foreign exchange contracts designated as cash flow hedging instruments

Intangible and other assets- net

384

Intangible and other assets- net

219

Other long-term liabilities

275

Other long-term liabilities

563

Interest rate swap designated as a cash flow hedging instrument

Intangible and other assets- net

2,977

Intangible and other assets- net

4,307

Other long-term liabilities

946

Other long-term liabilities

1,693

Total

$

5,271

$

7,815

$

8,573

$

12,690

At the end of the Second Quarter, the Company had forward contracts with maturities extending through December 2015. The estimated net amount of the existing gains or losses at July 5, 2014 that is expected to be reclassified into earnings within the next twelve months is a loss of $1.9 million. See “Note 1—Financial Statement Policies” for additional disclosures on foreign currency hedging instruments.

FAIR_VALUE_MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jul. 05, 2014
FAIR VALUE MEASUREMENTS	'
FAIR VALUE MEASUREMENTS	'
	11. FAIR VALUE MEASUREMENTS
	The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date.
	ASC 820, Fair Value Measurement and Disclosures (“ASC 820”), establishes a fair value hierarchy, which prioritizes the inputs used in measuring fair value into three broad levels as follows:
	·             Level 1 — Quoted prices in active markets for identical assets or liabilities.
	·             Level 2 — Inputs, other than quoted prices in active markets, that are observable either directly or indirectly.
	·             Level 3 — Unobservable inputs based on the Company’s assumptions.
	ASC 820 requires the use of observable market data if such data is available without undue cost and effort.
	The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of July 5, 2014 (in thousands):
		Fair Value at July 5, 2014
		Level 1		Level 2		Level 3		Total
	Assets:
	Forward contracts	$	0	$	2,294	$	0	$	2,294
	Deferred compensation plan assets:
	Investment in publicly traded mutual funds	2,450		0		0		2,450
	Interest rate swap	0		2,977		0		2,977
	Total	$	2,450	$	5,271	$	0	$	7,721
	Liabilities:
	Contingent consideration	$	0	$	0	$	10,123	$	10,123
	Forward contracts	0		5,093		0		5,093
	Interest rate swap	0		3,480		0		3,480
	Total	$	0	$	8,573	$	10,123	$	18,696
	The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of December 28, 2013 (in thousands):
		Fair Value at December 28, 2013
		Level 1		Level 2		Level 3		Total
	Assets:
	Forward contracts	$	0	$	3,508	$	0	$	3,508
	Deferred compensation plan assets:
	Investment in publicly traded mutual funds	2,360		0		0		2,360
	Interest rate swap	0		4,307		0		4,307
	Total	$	2,360	$	7,815	$	0	$	10,175
	Liabilities:
	Contingent consideration	$	0	$	0	$	8,084	8,084
	Forward contracts	0		8,214		0		8,214
	Interest rate swap	0		4,476		0		4,476
	Total	$	0	$	12,690	$	8,084	$	20,774
	The fair values of the Company’s deferred compensation plan assets are based on quoted prices. The deferred compensation plan assets are recorded in intangible and other assets-net in the Company’s condensed consolidated balance sheets. The fair values of the Company’s forward contracts are based on published quotations of spot currency rates and forward points, which are converted into implied forward currency rates.
	The Company has evaluated its short-term and long-term debt as of July 5, 2014 and December 28, 2013 and believes, based on the interest rates, related terms and maturities, that the fair values of such instruments approximated their carrying amounts. As of July 5, 2014 and December 28, 2013, the carrying values of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximated their values due to the short-term maturities of these accounts.
	The fair value of the contingent consideration liability related to Fossil Spain was determined using Level 3 inputs. See “Note 2 — Acquisitions and Goodwill” for additional disclosure about the acquisition. The contingent consideration is based on Fossil Spain’s forecasted earnings during the three year period from January 1, 2013 to December 31, 2015. The contingent consideration for calendar years 2013 and 2014 will be paid each year, generally within thirty days of calculation of the amount. The contingent consideration for calendar year 2015 will be paid upon the execution of the purchase agreement in 2016. The fair value of the contingent consideration was determined using present value techniques with forecasted future cash flows for Fossil Spain as the significant unobservable input. Future revenue growth based on management’s projections for calendar years 2014 and 2015 ranges from 3% to 10%. Operating expenses are projected to be approximately 28% of revenues for calendar years 2014 and 2015. A discount rate of 19% was used to calculate the present value of the contingent consideration. An increase in future cash flows may result in a higher estimated fair value of the contingent consideration liability. Alternatively, a decrease in future cash flows may result in a lower estimated fair value of the contingent consideration liability. Future changes in the estimated fair value of the contingent consideration liability, if any, will be reflected in earnings.
	The fair values of the interest rate swap asset and liability are determined using valuation models based on market observable inputs, including forward curves, mid-market price, foreign exchange spot or forward rates, and volatility levels. See “Note 10—Derivatives and Risk Management” for additional disclosures about the interest rate swap.
	The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a nonrecurring basis for the Year To Date Period (in thousands):
		For the 27 Weeks		Fair Value Measurements Using						Total
		Ended								Impairment
		July 5, 2014		Level 1		Level 2		Level 3		Charge
	Assets:
	Specific Company-owned stores	$	0	$	0	$	0	$	0	$	(5,501	)
	In accordance with the provisions of ASC 360, Property, Plant and Equipment, property, plant and equipment—net with a carrying amount of $5.5 million related to Company-owned retail store leasehold improvements and fixturing was fully impaired, resulting in an impairment charge of $5.5 million for the Year To Date Period.
	The fair values of assets related to the Company-owned retail stores were determined using Level 3 inputs. If undiscounted cash flows estimated to be generated through the operation of Company-owned retail stores are less than the carrying value of the underlying assets, the assets are impaired. If it is determined that the assets are impaired, the fair value of the assets is calculated using future estimated discounted cash flows, and then an impairment loss is recorded for the amount by which the assets’ book value exceeds their fair value. Impairment expenses related to Company-owned retail stores are recorded in selling, general and administrative expense within the Direct to consumer segment.

INTANGIBLE_AND_OTHER_ASSETS

INTANGIBLE AND OTHER ASSETS	6 Months Ended
	Jul. 05, 2014
INTANGIBLE AND OTHER ASSETS	'
INTANGIBLE AND OTHER ASSETS	'
	12. INTANGIBLE AND OTHER ASSETS
	The following table summarizes intangible and other assets (in thousands):
				July 5, 2014				December 28, 2013
		Useful		Gross		Accumulated		Gross		Accumulated
		Lives		Amount		Amortization		Amount		Amortization
	Intangibles-subject to amortization:
	Trademarks	10 yrs.		$	4,175	$	2,824	$	4,175	$	2,695
	Customer lists	5-10 yrs.		43,248		16,086		43,367		14,065
	Patents	3-20 yrs.		2,273		1,632		2,273		1,360
	Noncompete agreement	6 yrs.		1,908		715		1,913		558
	Other	7-20 yrs.		307		246		263		207
	Total intangibles-subject to amortization			51,911		21,503		51,991		18,885
	Intangibles-not subject to amortization:
	Trade names			83,657				83,659
	Other assets:
	Key money deposits			35,875		18,699		35,535		17,038
	Other deposits			23,729				22,574
	Deferred compensation plan assets			2,450				2,360
	Deferred tax asset-net			10,152				10,044
	Restricted cash			749				752
	Shop-in-shop			18,682		9,719		16,334		7,767
	Interest rate swap			2,977				4,307
	Other			4,018				4,466
	Total other assets			98,632		28,418		96,372		24,805
	Total intangible and other assets			$	234,200	$	49,921	$	232,022	$	43,690
	Total intangible and other assets-net					$	184,279			$	188,332
	Key money is the amount of funds paid to a landlord or tenant to acquire the rights of tenancy under a commercial property lease for a certain property. Key money represents the “right to lease” with an automatic right of renewal. This right can be subsequently sold by the Company or can be recovered should the landlord refuse to allow the automatic right of renewal to be exercised. Key money is amortized over the initial lease term, which ranges from approximately four to 18 years.
	Amortization expense for intangible assets was approximately $1.3 million in each of the Second Quarter and Prior Year Quarter, and $2.6 million in each of the Year to Date Period and Prior Year YTD Period. Estimated aggregate future amortization expense by fiscal year for intangible assets is as follows (in thousands):
	Fiscal Year	Amortization
		Expense
	2014 (remaining)	$	2,586
	2015	4,784
	2016	4,646
	2017	4,387
	2018	4,021
	2019	3,923

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jul. 05, 2014
COMMITMENTS AND CONTINGENCIES	'
COMMITMENTS AND CONTINGENCIES	'
	13. COMMITMENTS AND CONTINGENCIES
	Litigation. The Company is occasionally subject to litigation or other legal proceedings in the normal course of its business. The Company does not believe that the outcome of any currently pending legal matters, individually or collectively, will have a material effect on the business or financial condition of the Company.

DEBT_ACTIVITY

DEBT ACTIVITY	6 Months Ended
	Jul. 05, 2014
DEBT ACTIVITY	'
DEBT ACTIVITY	'
	14. DEBT ACTIVITY
	On May 23, 2014, the Company, entered into a First Amendment (the “Amendment”) to the Credit Agreement dated May 17, 2013. The Amendment increased the credit limit on the Company’s U.S. revolving line of credit (the “Revolver”) by $300 million to $1,050 million.
	The Company made principal payments of $3.1 million and $9.4 million under its Term Loan during the Second Quarter and Year To Date Period, respectively. The Company also had net borrowings of $8.0 million and $48.0 million under its Revolver during the Second Quarter and Year To Date Period, respectively, which were primarily used to fund common stock repurchases, capital expenditures and normal operating expenses. As of July 5, 2014, $237.5 million and $298.0 million were outstanding under the Term Loan and the Revolver, respectively. Amounts available under the Revolver are reduced by any amounts outstanding under standby letters of credit. As of July 5, 2014, the Company had available borrowing capacity of approximately $750.9 million under the Revolver. The Company incurred approximately $1.5 million and $3.2 million of interest expense related to the Term Loan during the Second Quarter and Year To Date Period, respectively, including the impact of the related interest rate swap. The Company incurred approximately $1.4 million and $2.7 million of interest expense related to the Revolver during the Second Quarter and Year To Date Period, respectively. The Company was in compliance with all covenants in the Term Loan and Revolver as of July 5, 2014.

FINANCIAL_STATEMENT_POLICIES_P

FINANCIAL STATEMENT POLICIES (Policies)	6 Months Ended
	Jul. 05, 2014
FINANCIAL STATEMENT POLICIES	'
Basis of Presentation	'
	Basis of Presentation. The condensed consolidated financial statements include the accounts of Fossil Group, Inc., a Delaware corporation, and its wholly and majority-owned subsidiaries (the “Company”).
	The condensed consolidated financial statements reflect all adjustments that are, in the opinion of management, necessary to present a fair statement of the Company’s financial position as of July 5, 2014, and the results of operations for the thirteen-week periods ended July 5, 2014 (“Second Quarter”) and June 29, 2013 (“Prior Year Quarter”), respectively, and the twenty-seven week period ended July 5, 2014 (“Year To Date Period”) and the twenty-six week period ended June 29, 2013 (“Prior Year YTD Period”). All adjustments are of a normal, recurring nature. The Company’s fiscal year periodically results in a 53-week year instead of a normal 52-week year. The current fiscal year ending January 3, 2015 is a 53-week year, with the additional week included in the first quarter of the fiscal year. Accordingly, the information presented herein includes twenty-seven weeks of operations for the Year To Date Period as compared to twenty-six weeks in the Prior Year YTD Period.
	These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Annual Report on Form 10-K filed by the Company pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”), for the fiscal year ended December 28, 2013 (the “2013 Form 10-K”). Operating results for the Second Quarter and Year To Date Period are not necessarily indicative of the results to be achieved for the full fiscal year.
	The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), which require the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the periods reported. Actual results could differ from those estimates. The Company has not made any changes in its significant accounting policies from those disclosed in the 2013 Form 10-K.
Business	'
	Business. The Company is a global design, marketing and distribution company that specializes in consumer fashion accessories. Its principal offerings include an extensive line of men’s and women’s fashion watches and jewelry, handbags, small leather goods, belts, sunglasses, soft accessories and clothing. In the watch and jewelry product categories, the Company has a diverse portfolio of globally recognized owned and licensed brand names under which its products are marketed. The Company’s products are distributed globally through various distribution channels, including wholesale in countries where it has a physical presence, direct to the consumer through its retail stores and commercial websites and through third-party distributors in countries where the Company does not maintain a physical presence. The Company’s products are offered at varying price points to meet the needs of its customers, whether they are value-conscious or luxury oriented. Based on its extensive range of accessory products, brands, distribution channels and price points, the Company is able to target style-conscious consumers across a wide age spectrum on a global basis.
Hedging Instruments	'
	Hedging Instruments. The Company is exposed to certain market risks relating to foreign exchange rates and interest rates. The Company actively monitors and attempts to manage these exposures using derivative instruments including foreign currency forward contracts and an interest rate swap. The Company’s foreign subsidiaries periodically enter into foreign exchange forward contracts to hedge the future payment of intercompany inventory transactions denominated in U.S. dollars. If the Company was to settle its Euro, British Pound, Canadian Dollar, Japanese Yen, Australian Dollar, and Mexican Peso forward contracts as of July 5, 2014, the net result would have been a net loss of approximately $1.9 million, net of taxes. To help protect against adverse fluctuations in interest rates, the Company has entered into an interest rate swap agreement to effectively convert a portion of its variable rate debt obligations to a fixed rate. To reduce exposure to changes in currency exchange rates adversely affecting the Company’s investment in a Euro-denominated subsidiary, the Company entered into a forward contract designated as a net investment hedge that was settled during the Second Quarter. The Company does not hold or issue derivative financial instruments for trading or speculative purposes.
	The Company applies the hedge accounting rules as required by Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging (“ASC 815”). See “Note 10—Derivatives and Risk Management” for additional disclosures about the Company’s use of derivatives.
Earnings Per Share ("EPS")	'
	Earnings Per Share (“EPS”). Basic EPS is based on the weighted average number of common shares outstanding during each period. Diluted EPS adjusts basic EPS for the effects of dilutive common stock equivalents outstanding during each period using the treasury stock method.
	The following table reconciles the numerators and denominators used in the computations of both basic and diluted EPS (in thousands, except per share data):
		For the 13		For the 13		For the 27		For the 26
		Weeks Ended		Weeks Ended		Weeks Ended		Weeks Ended
		July 5, 2014		June 29, 2013		July 5, 2014		June 29, 2013
	Numerator:
	Net income attributable to Fossil Group, Inc.	$	52,517	$	67,713	$	118,860	$	139,900
	Denominator:
	Basic EPS computation:
	Basic weighted average common shares outstanding	53,494		58,600		53,821		58,997
	Basic EPS	$	0.98	$	1.16	$	2.21	$	2.37
	Diluted EPS computation:
	Basic weighted average common shares outstanding	53,494		58,600		53,821		58,997
	Stock options, stock appreciation rights and restricted stock units	184		290		207		338
	Diluted weighted average common shares outstanding	53,678		58,890		54,028		59,335
	Diluted EPS	$	0.98	$	1.15	$	2.2	$	2.36
	Approximately 322,000, 295,000, 273,000 and 273,000 shares issuable under stock-based awards were not included in the diluted EPS calculation at the end of the Second Quarter, Year To Date Period, Prior Year Quarter, and Prior Year YTD Period, respectively, because they were antidilutive.

FINANCIAL_STATEMENT_POLICIES_T

FINANCIAL STATEMENT POLICIES (Tables)	6 Months Ended
	Jul. 05, 2014
FINANCIAL STATEMENT POLICIES	'
Numerators and denominators used in the computations of both basic and diluted EPS	'
	The following table reconciles the numerators and denominators used in the computations of both basic and diluted EPS (in thousands, except per share data):
		For the 13		For the 13		For the 27		For the 26
		Weeks Ended		Weeks Ended		Weeks Ended		Weeks Ended
		July 5, 2014		June 29, 2013		July 5, 2014		June 29, 2013
	Numerator:
	Net income attributable to Fossil Group, Inc.	$	52,517	$	67,713	$	118,860	$	139,900
	Denominator:
	Basic EPS computation:
	Basic weighted average common shares outstanding	53,494		58,600		53,821		58,997
	Basic EPS	$	0.98	$	1.16	$	2.21	$	2.37
	Diluted EPS computation:
	Basic weighted average common shares outstanding	53,494		58,600		53,821		58,997
	Stock options, stock appreciation rights and restricted stock units	184		290		207		338
	Diluted weighted average common shares outstanding	53,678		58,890		54,028		59,335
	Diluted EPS	$	0.98	$	1.15	$	2.2	$	2.36

ACQUISITIONS_AND_GOODWILL_Tabl

ACQUISITIONS AND GOODWILL (Tables)	6 Months Ended
	Jul. 05, 2014
ACQUISITIONS AND GOODWILL	'
Schedule of changes in the carrying amount of goodwill	'
	The changes in the carrying amount of goodwill, which is not subject to amortization, were as follows (in thousands):
		North		Europe			Asia Pacific		Total
		America		Wholesale			Wholesale
		Wholesale
	Balance at December 28, 2013	$	118,147	$	77,217		$	11,590	$	206,954
	Foreign currency changes	15		(615		)	11		(589		)
	Balance at July 5, 2014	$	118,162	$	76,602		$	11,601	$	206,365

INVENTORIES_Tables

INVENTORIES (Tables)	6 Months Ended
	Jul. 05, 2014
INVENTORIES	'
Schedule of inventories	'
	Inventories consisted of the following (in thousands):
		July 5,		December 28,
		2014		2013
	Components and parts	$	60,740	$	56,275
	Work-in-process	14,897		14,017
	Finished goods	588,548		500,427
	Inventories	$	664,185	$	570,719

WARRANTY_RESERVE_Tables

WARRANTY RESERVE (Tables)	6 Months Ended
	Jul. 05, 2014
WARRANTY RESERVE	'
Schedule of warranty liability activity	'
	Warranty liability activity consisted of the following (in thousands):
		For the 27			For the 26
		Weeks Ended			Weeks Ended
		July 5, 2014			June 29, 2013
	Beginning balance	$	15,658		$	13,383
	Settlements in cash or kind	(5,576		)	(4,715		)
	Warranties issued and adjustments to preexisting warranties (1)	5,925			4,906
	Liabilities assumed in acquisition	0			340
	Ending balance	$	16,007		$	13,914
	(1) Changes in cost estimates related to preexisting warranties are aggregated with accruals for new standard warranties issued and foreign currency changes.

INCOME_TAXES_Tables

INCOME TAXES (Tables)	6 Months Ended
	Jul. 05, 2014
INCOME TAXES	'
Schedule of income tax expense and related effective rate	'
	The Company’s income tax expense and related effective rate were as follows (in thousands, except percentage data):
		For the 13			For the 13			For the 27			For the 26
		Weeks Ended			Weeks Ended			Weeks Ended			Weeks Ended
		July 5, 2014			June 29, 2013			July 5, 2014			June 29, 2013
	Income tax expense	$	24,875		$	33,829		$	56,355		$	62,723
	Income tax rate	31.2		%	32.5		%	31.2		%	30.3		%

STOCKHOLDERS_EQUITY_Tables

STOCKHOLDERS' EQUITY (Tables)	6 Months Ended
	Jul. 05, 2014
STOCKHOLDERS' EQUITY	'
Schedule of common stock repurchase activity	'
	The following tables reflect the Company’s common stock repurchase activity for the periods indicated (in millions):
							For the 13 Weeks Ended				For the 13 Weeks Ended
							July 5, 2014				June 29, 2013
	Fiscal Year Authorized	Dollar Value			Termination Date		Number of		Dollar Value		Number of	Dollar Value
		Authorized					Shares		Repurchased		Shares	Repurchased
							Repurchased				Repurchased
	2012	$	1,000.00		December 2016		0.6		$	67.3	1.7	$	169.2
	2010	$	30		None		0		$	0	0	$	0
							For the 27 Weeks Ended				For the 26 Weeks Ended
							July 5, 2014				June 29, 2013
	Fiscal Year Authorized	Dollar Value			Termination Date		Number of		Dollar Value		Number of	Dollar Value
		Authorized					Shares		Repurchased		Shares	Repurchased
							Repurchased				Repurchased
	2012	$	1,000.00		December 2016		1.6		$	184.6	1.8	$	187.2
	2010	$	30		None		0		$	0	0	$	0
	2010	$	750		December 2013(1)		0		$	0	0.4	$	38.6
	(1)     In the first quarter of fiscal year 2013, the Company completed this repurchase plan.
Summary of changes in equity attributable to controlling and noncontrolling interest	'
	The following tables summarize the changes in equity attributable to controlling and noncontrolling interest (in thousands):
		Fossil Group, Inc.						Total
		Stockholders’			Noncontrolling			Stockholders’
		Equity			Interest			Equity
	Balance at December 28, 2013	$	1,068,677		$	6,690		$	1,075,367
	Net income	118,860			5,201			124,061
	Currency translation adjustment	399			0			399
	Derivative instruments - net change	(412		)	0			(412		)
	Common stock issued upon exercise of stock options and stock appreciation rights	1,508			0			1,508
	Tax benefit derived from stock-based compensation	950			0			950
	Distribution of noncontrolling interest earnings and other	0			(5,392		)	(5,392		)
	Pension plan activity	(3,293		)	0			(3,293		)
	Acquisition of common stock	(187,158		)	0			(187,158		)
	Stock-based compensation expense	9,637			0			9,637
	Balance at July 5, 2014	$	1,009,168		$	6,499		$	1,015,667
		Fossil Group, Inc.						Total
		Stockholders’			Noncontrolling			Stockholders’
		Equity			Interest			Equity
	Balance at December 29, 2012	$	1,233,535		$	6,929		$	1,240,464
	Net income	139,900			4,490			144,390
	Currency translation adjustments	(16,853		)	0			(16,853		)
	Unrealized loss on securities available for sale	(83		)	0			(83		)
	Derivative instruments - net change	4,990			0			4,990
	Common stock issued upon exercise of stock options and stock appreciation rights	4,534			0			4,534
	Tax benefit derived from stock-based compensation	6,204			0			6,204
	Distribution of noncontrolling interest earnings	0			(4,679		)	(4,679		)
	Acquisition of common stock	(231,870		)	0			(231,870		)
	Stock-based compensation expense	6,968			0			6,968
	Balance at June 29, 2013	$	1,147,325		$	6,740		$	1,154,065

EMPLOYEE_BENEFIT_PLANS_Tables

EMPLOYEE BENEFIT PLANS (Tables)	6 Months Ended
	Jul. 05, 2014
EMPLOYEE BENEFIT PLANS	'
Summary of stock options and stock appreciation rights activity	'
						Weighted-
						Average
				Weighted-		Remaining	Aggregate
				Average		Contractual	Intrinsic
	Stock Options and Stock Appreciation Rights	Shares		Exercise Price		Term (Years)	Value
		in thousands					in thousands
	Outstanding at April 5, 2014	738		$	81.38	6.2	$	28,427
	Granted	2		106.89
	Exercised	(16	)	51.13			839
	Forfeited or expired	(8	)	117.23
	Outstanding at July 5, 2014	716		81.66		5.9	23,041
	Exercisable at July 5, 2014	524		$	69.43	5.4	$	22,606
Summary of stock options and stock appreciation rights outstanding and exercisable	'
	The following table summarizes information with respect to stock options and stock appreciation rights outstanding and exercisable at July 5, 2014:
	Stock Options Outstanding						Stock Options Exercisable
						Weighted-
				Weighted-		Average			Weighted-
				Average		Remaining			Average
	Range of	Number of		Exercise		Contractual	Number of		Exercise
	Exercise Prices	Shares		Price		Term (Years)	Shares		Price
		in thousands					in thousands
	$13.65 - $21.51	73		$	15.39	4	73		$	15.39
	$21.55 - $34.59	59		29.41		2.6	59		29.41
	$35.78 - $67.10	72		39.89		5	72		39.89
	$69.53 - $106.07	105		80.89		6.8	101		80.77
	$106.08 - $131.46	172		128.09		7.6	115		128.09
	Total	481		$	75.21	5.9	420		$	67.99
	Stock Appreciation Rights Outstanding						Stock Appreciation Rights Exercisable
						Weighted-
				Weighted-		Average			Weighted-
				Average		Remaining			Average
	Range of	Number of		Exercise		Contractual	Number of		Exercise
	Exercise Prices	Shares		Price		Term (Years)	Shares		Price
		in thousands					in thousands
	$13.65 - $21.51	19		$	13.65	2.7	19		$	13.65
	$21.55 - $34.59	6		30.71		1.7	6		30.71
	$35.78 - $67.10	16		42.68		4.1	14		39.87
	$69.53 - $106.07	44		85.96		5.4	30		83.76
	$106.08 - $131.46	150		115.96		6.9	35		123.48
	Total	235		$	94.88	6	104		$	75.27
Summary of restricted stock and restricted stock unit activity	'
	Restricted Stock and Restricted Stock Units	Number of Shares		Weighted-Average
				Grant Date Fair
				Value
		in thousands
	Nonvested at April 5, 2014	263		$	110.6
	Granted	17		102.8
	Vested	(14	)	107.67
	Forfeited	(7	)	109.24
	Nonvested at July 5, 2014	259		$	110.26

ACCUMULATED_OTHER_COMPREHENSIV1

ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables)	6 Months Ended
	Jul. 05, 2014
ACCUMULATED OTHER COMPREHENSIVE INCOME	'
Schedule of changes in the balances of each component of accumulated other comprehensive income, net of taxes	'
	The following table illustrates changes in the balances of each component of accumulated other comprehensive income, net of taxes (in thousands):
		For the 13 Weeks Ended July 5, 2014
		Currency			Forward			Interest Rate			Net			Pension			Total
		Translation			Contracts			Swap			Investment			Plan
		Adjustments									Hedges
	Beginning balance	$	37,027		$	(1,941	)	$	(179	)	$	162		$	736		$	35,805
	Other comprehensive income (loss) before reclassifications	1,524			(1,834		)	(912		)	155			(2,946		)	(4,013		)
	Tax (expense) benefit	0			195			333			(60		)	(347		)	121
	Amounts reclassed from accumulated other comprehensive income	0			(1,570		)	(691		)	0			0			(2,261		)
	Tax (expense) benefit	0			537			252			0			0			789
	Total other comprehensive income (loss)	1,524			(606		)	(140		)	95			(3,293		)	(2,420		)
	Ending balance	$	38,551		$	(2,547	)	$	(319	)	$	257		$	(2,557	)	$	33,385
		For the 13 Weeks Ended June 29, 2013
		Currency			Securities			Forward			Total
		Translation			Available for			Contracts
		Adjustments			Sale
	Beginning balance	$	10,344		$	(546	)	$	2,445		$	12,243
	Other comprehensive income (loss) before reclassifications	2,984			(12		)	2,774			5,746
	Tax (expense) benefit	0			0			(332		)	(332		)
	Amounts reclassed from accumulated other comprehensive income	0			0			1,348			1,348
	Tax (expense) benefit	0			0			(505		)	(505		)
	Total other comprehensive income (loss)	2,984			(12		)	1,599			4,571
	Ending balance	$	13,328		$	(558	)	$	4,044		$	16,814
		For the 27 Weeks Ended July 5, 2014
		Currency			Forward			Interest Rate			Net			Pension			Total
		Translation			Contracts			Swap			Investment			Plan
		Adjustments									Hedges
	Beginning balance	$	38,152		$	(2,091	)	$	(106	)	$	0		$	736		$	36,691
	Other comprehensive income (loss) before reclassifications	399			(2,100		)	(1,760		)	410			(2,946		)	(5,997		)
	Tax (expense) benefit	0			113			643			(153		)	(347		)	256
	Amounts reclassed from accumulated other comprehensive income	0			(2,399		)	(1,424		)	0			0			(3,823		)
	Tax (expense) benefit	0			868			520			0			0			1,388
	Total other comprehensive income (loss)	399			(456		)	(213		)	257			(3,293		)	(3,306		)
	Ending balance	$	38,551		$	(2,547	)	$	(319	)	$	257		$	(2,557	)	$	33,385
		For the 26 Weeks Ended June 29, 2013
		Currency			Securities			Forward			Total
		Translation			Available for			Contracts
		Adjustments			Sale
	Beginning balance	$	30,181		$	(475	)	$	(946	)	$	28,760
	Other comprehensive income (loss) before reclassifications	(16,853		)	(83		)	9,594			(7,342		)
	Tax (expense) benefit	0			0			(3,806		)	(3,806		)
	Amounts reclassed from accumulated other comprehensive income	0			0			1,390			1,390
	Tax (expense) benefit	0			0			(592		)	(592		)
	Total other comprehensive income (loss)	(16,853		)	(83		)	4,990			(11,946		)
	Ending balance	$	13,328		$	(558	)	$	4,044		$	16,814

SEGMENT_INFORMATION_Tables

SEGMENT INFORMATION (Tables)	6 Months Ended
	Jul. 05, 2014
SEGMENT INFORMATION	'
Summary information by operating segment	'
	Summary information by operating segment was as follows (in thousands):
		For the 13 Weeks Ended						For the 13 Weeks Ended
		July 5, 2014						June 29, 2013
		Net Sales			Operating			Net Sales			Operating
					Income						Income
	North America wholesale:
	External customers	$	265,223		$	50,912		$	260,692		$	66,321
	Intersegment	42,778						49,016
	Europe wholesale:
	External customers	202,377			43,762			170,759			36,451
	Intersegment	50,392						38,713
	Asia Pacific wholesale:
	External customers	105,731			31,508			96,187			30,473
	Intersegment	252,137						252,894
	Direct to consumer	200,489			9,746			178,611			16,105
	Intersegment items	(345,307		)				(340,623		)
	Corporate				(51,170		)				(42,402		)
	Consolidated	$	773,820		$	84,758		$	706,249		$	106,948
		For the 27 Weeks Ended						For the 26 Weeks Ended
		July 5, 2014						June 29, 2013
		Net Sales			Operating			Net Sales			Operating
					Income						Income
	North America wholesale:
	External customers	$	538,019		$	103,791		$	515,858		$	126,729
	Intersegment	90,969						94,962
	Europe wholesale:
	External customers	408,041			95,722			344,663			74,998
	Intersegment	99,590						79,401
	Asia Pacific wholesale:
	External customers	209,291			62,628			182,963			58,023
	Intersegment	496,284						455,090
	Direct to consumer	395,014			26,032			343,664			23,217
	Intersegment items	(686,843		)				(629,453		)
	Corporate				(98,716		)				(81,698		)
	Consolidated	$	1,550,365		$	189,457		$	1,387,148		$	201,269
Schedule of net sales for each class of similar products	'
	The following tables reflect net sales for each class of similar products in the periods presented (in thousands, except percentage data):
		For the 13 Weeks Ended					For the 13 Weeks Ended
		July 5, 2014					June 29, 2013
		Net Sales			Percentage of		Net Sales			Percentage of
					Total					Total
	Watches	$	611,208		79	%	$	547,225		77.5	%
	Leathers	87,325			11.3		91,748			13
	Jewelry	56,183			7.2		47,042			6.7
	Other	19,104			2.5		20,234			2.8
	Total	$	773,820		100	%	$	706,249		100	%
		For the 27 Weeks Ended					For the 26 Weeks Ended
		July 5, 2014					June 29, 2013
		Net Sales			Percentage of		Net Sales			Percentage of
					Total					Total
	Watches	$	1,212,596		78.2	%	$	1,060,242		76.4	%
	Leathers	187,047			12.1		194,536			14
	Jewelry	112,701			7.3		89,356			6.5
	Other	38,021			2.4		43,014			3.1
	Total	$	1,550,365		100	%	$	1,387,148		100	%

DERIVATIVES_AND_RISK_MANAGEMEN1

DERIVATIVES AND RISK MANAGEMENT (Tables)

6 Months Ended

Jul. 05, 2014

Derivatives

'

Schedule of outstanding forward contracts

'

As of July 5, 2014, the Company had the following outstanding forward contracts that were entered into to hedge the future payments of intercompany inventory transactions (in millions):

Functional Currency

Contract Currency

Type

Amount

Type

Amount

Euro

181.7

U.S. Dollar

247

British Pound

28.2

U.S. Dollar

46

Canadian Dollar

33.8

U.S. Dollar

31.3

Japanese Yen

2,370.00

U.S. Dollar

23.7

Australian Dollar

14.8

U.S. Dollar

13.5

Mexican Peso

171

U.S. Dollar

12.9

Schedule of effective portion of gains and losses on derivative instruments recognized in other comprehensive income (loss), net of taxes

'

The effective portion of gains and losses on derivative instruments that was recognized in other comprehensive income (loss), net of taxes during the Second Quarter, Prior Year Quarter, Year To Date Period and Prior Year YTD Period is set forth below (in thousands):

Derivative Contracts

For the 13 Weeks

For the 13 Weeks

Under ASC 815

Ended

Ended

July 5, 2014

June 29, 2013

Cash flow hedges:

Foreign exchange forward contracts

$

(1,639

)

$

2,442

Interest rate swap

(579

)

0

Net investment hedge

95

0

Total (loss) gain recognized in other comprehensive income (loss), net of taxes

$

(2,123

)

$

2,442

For the 27 Weeks

For the 26 Weeks

Derivative Contracts

Ended

Ended

Under ASC 815

July 5, 2014

June 29, 2013

Cash flow hedges:

Foreign exchange forward contracts

$

(1,987

)

$

5,788

Interest rate swap

(1,117

)

0

Net investment hedge

257

0

Total (loss) gain recognized in other comprehensive income (loss), net of taxes

$

(2,847

)

$

5,788

Schedule of effective portion of gains and losses on derivative instruments recorded in other comprehensive income (loss), net of taxes during the term of the hedging relationship and reclassified into earnings and gains and losses on derivatives not designated as hedging instruments recorded

'

The following table illustrates the effective portion of gains and losses on derivative instruments recorded in other comprehensive income (loss), net of taxes during the term of the hedging relationship and reclassified into earnings, and gains and losses on derivatives not designated as hedging instruments recorded directly to earnings during the Second Quarter, Prior Year Quarter, Year To Date Period, and Prior Year YTD Period (in thousands):

Condensed

Consolidated

Statements of Income

and Comprehensive

For the 13 Weeks

For the 13 Weeks

Derivative Contracts

Income

Ended

Ended

Under ASC 815

Location

July 5, 2014

June 29, 2013

Foreign exchange contracts designated as cash flow hedging instruments

Other income (expense)-net

Total (loss) gain reclassified from other comprehensive income (loss)

$

(1,033

)

$

843

Foreign exchange contracts not designated as hedging instruments

Other income (expense)-net

Total loss recognized in income

$

0

$

(74

)

Interest rate swap designated as a cash flow hedging instrument

Interest expense

Total loss reclassified from other comprehensive income (loss)

$

(439

)

$

0

Condensed

Consolidated

Statements of Income

and Comprehensive

For the 27 Weeks

For the 26 Weeks

Derivative Contracts

Income

Ended

Ended

Under ASC 815

Location

July 5, 2014

June 29, 2013

Foreign exchange contracts designated as cash flow hedging instruments

Other income (expense)-net

Total (loss) gain reclassified from other comprehensive income (loss)

$

(1,531

)

$

798

Foreign exchange contracts not designated as hedging instruments

Other income (expense)-net

Total loss recognized in income

$

(148

)

$

(74

)

Interest rate swap designated as a cash flow hedging instrument

Interest expense

Total loss reclassified from other comprehensive income (loss)

$

(904

)

$

0

Schedule of fair value amounts for derivative instruments as separate asset and liability values on a gross basis and their location on condensed consolidated balance sheets

'

The following table discloses the fair value amounts for the Company’s derivative instruments as separate asset and liability values, presents the fair value of derivative instruments on a gross basis, and identifies the line items in the condensed consolidated balance sheets in which the fair value amounts for these categories of derivative instruments are included (in thousands):

Asset Derivatives

Liability Derivatives

July 5, 2014

December 28, 2013

July 5, 2014

December 28, 2013

Condensed

Condensed

Condensed

Condensed

Consolidated

Consolidated

Consolidated

Consolidated

Derivative Contracts Under

Balance

Fair

Balance

Fair

Balance

Fair

Balance

Fair

ASC 815

Sheets Location

Value

Sheets Location

Value

Sheets Location

Value

Sheets Location

Value

Foreign exchange contracts designated as cash flow hedging instruments

Prepaid expenses and other current assets

$

1,910

Prepaid expenses and other current assets

$

3,289

Accrued expenses- other

$

4,818

Accrued expenses- other

$

7,651

Interest rate swap designated as a cash flow hedging instrument

Prepaid expenses and other current assets

0

Prepaid expenses and other current assets

0

Accrued expenses- other

2,534

Accrued expenses- other

2,783

Foreign exchange contracts designated as cash flow hedging instruments

Intangible and other assets- net

384

Intangible and other assets- net

219

Other long-term liabilities

275

Other long-term liabilities

563

Interest rate swap designated as a cash flow hedging instrument

Intangible and other assets- net

2,977

Intangible and other assets- net

4,307

Other long-term liabilities

946

Other long-term liabilities

1,693

Total

$

5,271

$

7,815

$

8,573

$

12,690

FAIR_VALUE_MEASUREMENTS_Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jul. 05, 2014
FAIR VALUE MEASUREMENTS	'
Schedule of the fair value hierarchy of assets and liabilities measured at fair value on a recurring basis	'
	The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of July 5, 2014 (in thousands):
		Fair Value at July 5, 2014
		Level 1		Level 2		Level 3		Total
	Assets:
	Forward contracts	$	0	$	2,294	$	0	$	2,294
	Deferred compensation plan assets:
	Investment in publicly traded mutual funds	2,450		0		0		2,450
	Interest rate swap	0		2,977		0		2,977
	Total	$	2,450	$	5,271	$	0	$	7,721
	Liabilities:
	Contingent consideration	$	0	$	0	$	10,123	$	10,123
	Forward contracts	0		5,093		0		5,093
	Interest rate swap	0		3,480		0		3,480
	Total	$	0	$	8,573	$	10,123	$	18,696
	The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of December 28, 2013 (in thousands):
		Fair Value at December 28, 2013
		Level 1		Level 2		Level 3		Total
	Assets:
	Forward contracts	$	0	$	3,508	$	0	$	3,508
	Deferred compensation plan assets:
	Investment in publicly traded mutual funds	2,360		0		0		2,360
	Interest rate swap	0		4,307		0		4,307
	Total	$	2,360	$	7,815	$	0	$	10,175
	Liabilities:
	Contingent consideration	$	0	$	0	$	8,084	8,084
	Forward contracts	0		8,214		0		8,214
	Interest rate swap	0		4,476		0		4,476
	Total	$	0	$	12,690	$	8,084	$	20,774
Schedule of the fair value hierarchy of assets and liabilities measured at fair value on a nonrecurring basis	'
	The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a nonrecurring basis for the Year To Date Period (in thousands):
		For the 27 Weeks		Fair Value Measurements Using						Total
		Ended								Impairment
		July 5, 2014		Level 1		Level 2		Level 3		Charge
	Assets:
	Specific Company-owned stores	$	0	$	0	$	0	$	0	$	(5,501	)

INTANGIBLE_AND_OTHER_ASSETS_Ta

INTANGIBLE AND OTHER ASSETS (Tables)	6 Months Ended
	Jul. 05, 2014
INTANGIBLE AND OTHER ASSETS	'
Schedule of intangible and other assets	'
	The following table summarizes intangible and other assets (in thousands):
				July 5, 2014				December 28, 2013
		Useful		Gross		Accumulated		Gross		Accumulated
		Lives		Amount		Amortization		Amount		Amortization
	Intangibles-subject to amortization:
	Trademarks	10 yrs.		$	4,175	$	2,824	$	4,175	$	2,695
	Customer lists	5-10 yrs.		43,248		16,086		43,367		14,065
	Patents	3-20 yrs.		2,273		1,632		2,273		1,360
	Noncompete agreement	6 yrs.		1,908		715		1,913		558
	Other	7-20 yrs.		307		246		263		207
	Total intangibles-subject to amortization			51,911		21,503		51,991		18,885
	Intangibles-not subject to amortization:
	Trade names			83,657				83,659
	Other assets:
	Key money deposits			35,875		18,699		35,535		17,038
	Other deposits			23,729				22,574
	Deferred compensation plan assets			2,450				2,360
	Deferred tax asset-net			10,152				10,044
	Restricted cash			749				752
	Shop-in-shop			18,682		9,719		16,334		7,767
	Interest rate swap			2,977				4,307
	Other			4,018				4,466
	Total other assets			98,632		28,418		96,372		24,805
	Total intangible and other assets			$	234,200	$	49,921	$	232,022	$	43,690
	Total intangible and other assets-net					$	184,279			$	188,332
Schedule of estimated aggregate future amortization expense by fiscal year for intangible assets	'
	Estimated aggregate future amortization expense by fiscal year for intangible assets is as follows (in thousands):
	Fiscal Year	Amortization
		Expense
	2014 (remaining)	$	2,586
	2015	4,784
	2016	4,646
	2017	4,387
	2018	4,021
	2019	3,923

FINANCIAL_STATEMENT_POLICIES_D

FINANCIAL STATEMENT POLICIES (Details) (USD $)	3 Months Ended		6 Months Ended
	Jul. 05, 2014	Jun. 29, 2013	Jul. 05, 2014	Jun. 29, 2013
Hedging Instruments	'	'	'	'
Unrealized net loss on foreign currency forward contracts, if settled	'	'	$1,900,000	'
Numerator:	'	'	'	'
Net income attributable to Fossil Group, Inc.	$52,517,000	$67,713,000	$118,860,000	$139,900,000
Denominator:	'	'	'	'
Basic weighted average common shares outstanding	53,494,000	58,600,000	53,821,000	58,997,000
Basic EPS (in dollars per share)	$0.98	$1.16	$2.21	$2.37
Diluted EPS computation:	'	'	'	'
Basic weighted average common shares outstanding	53,494,000	58,600,000	53,821,000	58,997,000
Stock options, stock appreciation rights and restricted stock units (in shares)	184,000	290,000	207,000	338,000
Diluted weighted average common shares outstanding	53,678,000	58,890,000	54,028,000	59,335,000
Diluted EPS (in dollars per share)	$0.98	$1.15	$2.20	$2.36
Other EPS Disclosures	'	'	'	'
Shares issuable under stock-based awards not included in the diluted EPS calculation	322,000	273,000	295,000	273,000

ACQUISITIONS_AND_GOODWILL_Deta

ACQUISITIONS AND GOODWILL (Details)

6 Months Ended

0 Months Ended

12 Months Ended

0 Months Ended

12 Months Ended

Jul. 05, 2014

Jun. 29, 2013

Dec. 28, 2013

Dec. 31, 2012

Dec. 28, 2013

Dec. 28, 2013

Dec. 28, 2013

Jul. 05, 2014

Jul. 05, 2014

Jul. 05, 2014

Jul. 05, 2014

Jul. 05, 2014

Jul. 05, 2014

Dec. 19, 2013

Dec. 19, 2013

Aug. 10, 2012

Dec. 29, 2012

Dec. 29, 2012

USD ($)

USD ($)

USD ($)

Bentrani

Fossil Spain

Fossil Spain

Fossil Spain

Fossil Spain

Fossil Spain

Fossil Spain

Fossil Spain

Fossil Spain

Fossil Spain

Fossil Spain

Fossil Spain

Fossil Spain

Fossil Spain

Fossil Spain

USD ($)

USD ($)

Accrued expenses - other

Accrued expenses - other

Other long-term liabilities

Other long-term liabilities

Minimum

Minimum

Maximum

Maximum

General De Relojeria

General De Relojeria

General De Relojeria

General De Relojeria

General De Relojeria

item

USD ($)

EUR (€)

USD ($)

EUR (€)

USD ($)

EUR (€)

USD ($)

EUR (€)

USD ($)

EUR (€)

USD ($)

EUR (€)

Business Acquisition

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Voting interest that may be acquired upon expiration of joint venture agreement (as a percent)

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

50.00%

'

'

Remeasurement of investment in Fossil Spain to fair value

$0

$6,510,000

'

'

$6,500,000

'

'

'

'

'

'

'

'

'

'

'

'

'

Goodwill

206,365,000

'

206,954,000

8,900,000

10,600,000

'

'

'

'

'

'

'

'

'

'

'

'

'

Percentage of net book value used in the calculation of the fixed purchase price component

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

50.00%

50.00%

Fixed portion of purchase price for the shares

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

6,800,000

5,200,000

Variable price

'

'

'

'

'

'

'

'

'

2,600,000

2,000,000

4,600,000

3,500,000

'

'

'

7,800,000

5,900,000

Dividends, Common Stock, Cash

'

'

'

'

'

'

'

'

'

'

'

'

'

2,500,000

1,800,000

'

'

'

Contingent Consideration

'

'

'

'

'

3,000,000

2,200,000

12,200,000

9,000,000

'

'

'

'

'

'

'

'

'

Number of Latin American countries in which Bentrani is a distributor

'

'

'

16

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Period of partnership with Company

'

'

'

'10 years

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Acquisition amount

'

'

'

26,600,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Purchase price paid in cash

'

'

'

19,300,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Payable forgiven

'

'

'

$7,300,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

ACQUISITIONS_AND_GOODWILL_Deta1

ACQUISITIONS AND GOODWILL (Details 2) (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Jul. 05, 2014
Changes in carrying amount of goodwill	'
Beginning Balance	$206,954
Foreign currency changes	-589
Ending Balance	206,365
North America Wholesale	'
Changes in carrying amount of goodwill	'
Beginning Balance	118,147
Foreign currency changes	15
Ending Balance	118,162
Europe Wholesale	'
Changes in carrying amount of goodwill	'
Beginning Balance	77,217
Foreign currency changes	-615
Ending Balance	76,602
Asia Pacific Wholesale	'
Changes in carrying amount of goodwill	'
Beginning Balance	11,590
Foreign currency changes	11
Ending Balance	$11,601

INVENTORIES_Details

INVENTORIES (Details) (USD $)	Jul. 05, 2014	Dec. 28, 2013
In Thousands, unless otherwise specified
INVENTORIES	'	'
Components and parts	$60,740	$56,275
Work-in-process	14,897	14,017
Finished goods	588,548	500,427
Inventories	$664,185	$570,719

WARRANTY_RESERVE_Details

WARRANTY RESERVE (Details) (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Jul. 05, 2014		Jun. 29, 2013
Warranty liability activity	'		'
Beginning balance	$15,658		$13,383
Settlements in cash or kind	-5,576		-4,715
Warranties issued and adjustments to preexisting warranties	5,925	[1]	4,906	[1]
Liabilities assumed in acquisition	0		340
Ending balance	$16,007		$13,914
FOSSIL watch products	'		'
Warranty reserve	'		'
Warranty period	'11 years		'
RELIC watch products	'		'
Warranty reserve	'		'
Warranty period	'12 years		'
Other watch products	'		'
Warranty reserve	'		'
Warranty period	'2 years		'
[1]	Changes in cost estimates related to preexisting warranties are aggregated with accruals for new standard warranties issued and foreign currency changes.

INCOME_TAXES_Details

INCOME TAXES (Details) (USD $)	3 Months Ended		6 Months Ended
	Jul. 05, 2014	Jun. 29, 2013	Jul. 05, 2014	Jun. 29, 2013
INCOME TAXES	'	'	'	'
Income tax expense	$24,875,000	$33,829,000	$56,355,000	$62,723,000
Income tax rate (as a percent)	31.20%	32.50%	31.20%	30.30%
Unrecognized tax benefits	16,700,000	'	16,700,000	'
Unrecognized tax benefits that would impact effective tax rate	11,200,000	'	11,200,000	'
Unrecognized tax benefits excluding interest and penalties	900,000	'	900,000	'
Total amount of accrued income tax-related interest	1,600,000	'	1,600,000	'
Penalties accrued	400,000	'	400,000	'
Accrued income tax-related interest expense	$200,000	'	$400,000	'

STOCKHOLDERS_EQUITY_Details

STOCKHOLDERS' EQUITY (Details) (USD $)	3 Months Ended		6 Months Ended
Share data in Millions, unless otherwise specified	Jul. 05, 2014	Jun. 29, 2013	Jul. 05, 2014	Jun. 29, 2013
Common and Preferred Stock	'	'	'	'
Authorizations remaining	'	'	$309,100,000	'
Stock repurchase plans | Common stock	'	'	'	'
Common Stock Repurchase Programs	'	'	'	'
Treasury stock effectively retired (in shares)	'	'	1.6	'
Treasury stock effectively retired	'	'	16,300	'
Stock repurchase plans | Additional paid-in capital	'	'	'	'
Common Stock Repurchase Programs	'	'	'	'
Treasury stock effectively retired	'	'	1,500,000	'
Stock repurchase plans | Retained earnings	'	'	'	'
Common Stock Repurchase Programs	'	'	'	'
Treasury stock effectively retired	'	'	183,100,000	'
Stock repurchase plans | Treasury stock	'	'	'	'
Common Stock Repurchase Programs	'	'	'	'
Treasury stock effectively retired	'	'	184,600,000	'
Repurchase program with termination date of December 2016	'	'	'	'
Common Stock Repurchase Programs	'	'	'	'
Common stock authorized amount, value	1,000,000,000	1,000,000,000	1,000,000,000	1,000,000,000
Number of shares repurchased	0.6	1.7	1.6	1.8
Common stock repurchased, value	67,300,000	169,200,000	184,600,000	187,200,000
Share repurchase plan with no termination date	'	'	'	'
Common Stock Repurchase Programs	'	'	'	'
Common stock authorized amount, value	30,000,000	30,000,000	30,000,000	30,000,000
Number of shares repurchased	0	0	0	0
Common stock repurchased, value	0	0	0	0
Share repurchase plan with December 2013 termination date	'	'	'	'
Common Stock Repurchase Programs	'	'	'	'
Common stock authorized amount, value	'	'	750,000,000	750,000,000
Number of shares repurchased	'	'	0	0.4
Common stock repurchased, value	'	'	$0	$38,600,000	[1]
[1]	In the first quarter of fiscal year 2013, the Company completed this repurchase plan.

STOCKHOLDERS_EQUITY_Details_2

STOCKHOLDERS' EQUITY (Details 2) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jul. 05, 2014	Jun. 29, 2013	Jul. 05, 2014	Jun. 29, 2013
Summary of changes in equity attributable to controlling and noncontrolling interest	'	'	'	'
Balance	'	'	$1,075,367	$1,240,464
Net income	54,899	70,409	124,061	144,390
Currency translation adjustment	'	'	399	-16,853
Unrealized loss on securities available for sale	0	-12	0	-83
Derivative instruments-net change	-651	1,599	-412	4,990
Common stock issued upon exercise of stock options and stock appreciation rights	'	'	1,508	4,534
Tax benefit derived from stock-based compensation	'	'	950	6,204
Distribution of noncontrolling interest earnings	'	'	-5,392	-4,679
Pension plan activity	-3,293	0	-3,293	0
Acquisition of common stock	'	'	-187,158	-231,870
Stock-based compensation expense	'	'	9,637	6,968
Balance	1,015,667	1,154,065	1,015,667	1,154,065
Fossil Group, Inc. Stockholders' Equity	'	'	'	'
Summary of changes in equity attributable to controlling and noncontrolling interest	'	'	'	'
Balance	'	'	1,068,677	1,233,535
Net income	'	'	118,860	139,900
Currency translation adjustment	'	'	399	-16,853
Unrealized loss on securities available for sale	'	'	'	-83
Derivative instruments-net change	'	'	-412	4,990
Common stock issued upon exercise of stock options and stock appreciation rights	'	'	1,508	4,534
Tax benefit derived from stock-based compensation	'	'	950	6,204
Distribution of noncontrolling interest earnings	'	'	0	0
Pension plan activity	'	'	-3,293	'
Acquisition of common stock	'	'	-187,158	-231,870
Stock-based compensation expense	'	'	9,637	6,968
Balance	1,009,168	1,147,325	1,009,168	1,147,325
Noncontrolling Interest	'	'	'	'
Summary of changes in equity attributable to controlling and noncontrolling interest	'	'	'	'
Balance	'	'	6,690	6,929
Net income	'	'	5,201	4,490
Currency translation adjustment	'	'	0	0
Unrealized loss on securities available for sale	'	'	'	0
Derivative instruments-net change	'	'	0	0
Common stock issued upon exercise of stock options and stock appreciation rights	'	'	0	0
Tax benefit derived from stock-based compensation	'	'	0	0
Distribution of noncontrolling interest earnings	'	'	-5,392	-4,679
Pension plan activity	'	'	0	'
Acquisition of common stock	'	'	0	0
Stock-based compensation expense	'	'	0	0
Balance	$6,499	$6,740	$6,499	$6,740

EMPLOYEE_BENEFIT_PLANS_Details

EMPLOYEE BENEFIT PLANS (Details) (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Jul. 05, 2014	Apr. 05, 2014
Shares	'	'
Beginning Balance, Shares	738	'
Granted (in shares)	2	'
Exercised (in shares)	-16	'
Forfeited or expired (in shares)	-8	'
Ending Balance, Shares	716	738
Exercisable at end of period (in shares)	524	'
Weighted-Average Exercise Price Per Share	'	'
Beginning Balance, Weighted-average Exercise Price (in dollars per share)	$81.38	'
Granted (in dollars per share)	$106.89	'
Exercised (in dollars per share)	$51.13	'
Forfeited or expired (in dollars per share)	$117.23	'
Ending Balance, Weighted-average Exercise Price (in dollars per share)	$81.66	$81.38
Stock Options and Stock Appreciation Rights Exercisable, Weighted- Average Exercise Price (in dollars per share)	$69.43	'
Weighted-Average Remaining Contractual Term	'	'
Beginning of period	'5 years 10 months 24 days	'6 years 2 months 12 days
End of period	'5 years 10 months 24 days	'6 years 2 months 12 days
Exercisable at end of period	'5 years 4 months 24 days	'
Aggregate Intrinsic Value	'	'
Beginning of period	$28,427	'
Exercised	839	'
End of period	23,041	28,427
Exercisable at end of period	$22,606	'

EMPLOYEE_BENEFIT_PLANS_Details1

EMPLOYEE BENEFIT PLANS (Details 2) (USD $)	6 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Jul. 05, 2014
Stock options	'
Stock-based compensation plans disclosures	'
Stock Options Outstanding, Number Of Shares	481
Stock Options Outstanding, Weighted- Average Exercise Price (in dollars per share)	$75.21
Stock Options Outstanding, Weighted- Average Remaining Contractual Term	'5 years 10 months 24 days
Stock Options Exercisable, Number Of Shares	420
Stock Options Exercisable, Weighted- Average Exercise Price (in dollars per share)	$67.99
Stock appreciation rights	'
Stock-based compensation plans disclosures	'
Stock Appreciation Rights Outstanding, Number Of Shares	235
Stock Appreciation Rights Outstanding, Weighted- Average Exercise Price (in dollars per share)	$94.88
Stock Appreciation Rights Outstanding, Weighted- Average Remaining Contractual Term	'6 years
Stock Appreciation Rights Exercisable, Number Of Shares	104
Stock Appreciation Rights Exercisable, Weighted- Average Exercise Price (in dollars per share)	$75.27
Range Of Exercise Prices $13.65 - $21.51 | Stock options	'
Stock-based compensation plans disclosures	'
Stock Options Outstanding, lower range (in dollars per share)	$13.65
Stock Options Outstanding, upper range (in dollars per share)	$21.51
Stock Options Outstanding, Number Of Shares	73
Stock Options Outstanding, Weighted- Average Exercise Price (in dollars per share)	$15.39
Stock Options Outstanding, Weighted- Average Remaining Contractual Term	'4 years
Stock Options Exercisable, Number Of Shares	73
Stock Options Exercisable, Weighted- Average Exercise Price (in dollars per share)	$15.39
Range Of Exercise Prices $13.65 - $21.51 | Stock appreciation rights	'
Stock-based compensation plans disclosures	'
Stock Appreciation Rights Outstanding, lower range (in dollars per share)	$13.65
Stock Appreciation Rights Outstanding, upper range (in dollars per share)	$21.51
Stock Appreciation Rights Outstanding, Number Of Shares	19
Stock Appreciation Rights Outstanding, Weighted- Average Exercise Price (in dollars per share)	$13.65
Stock Appreciation Rights Outstanding, Weighted- Average Remaining Contractual Term	'2 years 8 months 12 days
Stock Appreciation Rights Exercisable, Number Of Shares	19
Stock Appreciation Rights Exercisable, Weighted- Average Exercise Price (in dollars per share)	$13.65
Range Of Exercise Prices $21.55 - $34.59 | Stock options	'
Stock-based compensation plans disclosures	'
Stock Options Outstanding, lower range (in dollars per share)	$21.55
Stock Options Outstanding, upper range (in dollars per share)	$34.59
Stock Options Outstanding, Number Of Shares	59
Stock Options Outstanding, Weighted- Average Exercise Price (in dollars per share)	$29.41
Stock Options Outstanding, Weighted- Average Remaining Contractual Term	'2 years 7 months 6 days
Stock Options Exercisable, Number Of Shares	59
Stock Options Exercisable, Weighted- Average Exercise Price (in dollars per share)	$29.41
Range Of Exercise Prices $21.55 - $34.59 | Stock appreciation rights	'
Stock-based compensation plans disclosures	'
Stock Appreciation Rights Outstanding, lower range (in dollars per share)	$21.55
Stock Appreciation Rights Outstanding, upper range (in dollars per share)	$34.59
Stock Appreciation Rights Outstanding, Number Of Shares	6
Stock Appreciation Rights Outstanding, Weighted- Average Exercise Price (in dollars per share)	$30.71
Stock Appreciation Rights Outstanding, Weighted- Average Remaining Contractual Term	'1 year 8 months 12 days
Stock Appreciation Rights Exercisable, Number Of Shares	6
Stock Appreciation Rights Exercisable, Weighted- Average Exercise Price (in dollars per share)	$30.71
Range Of Exercise Prices $35.78 - $67.10 | Stock options	'
Stock-based compensation plans disclosures	'
Stock Options Outstanding, lower range (in dollars per share)	$35.78
Stock Options Outstanding, upper range (in dollars per share)	$67.10
Stock Options Outstanding, Number Of Shares	72
Stock Options Outstanding, Weighted- Average Exercise Price (in dollars per share)	$39.89
Stock Options Outstanding, Weighted- Average Remaining Contractual Term	'5 years
Stock Options Exercisable, Number Of Shares	72
Stock Options Exercisable, Weighted- Average Exercise Price (in dollars per share)	$39.89
Range Of Exercise Prices $35.78 - $67.10 | Stock appreciation rights	'
Stock-based compensation plans disclosures	'
Stock Appreciation Rights Outstanding, lower range (in dollars per share)	$35.78
Stock Appreciation Rights Outstanding, upper range (in dollars per share)	$67.10
Stock Appreciation Rights Outstanding, Number Of Shares	16
Stock Appreciation Rights Outstanding, Weighted- Average Exercise Price (in dollars per share)	$42.68
Stock Appreciation Rights Outstanding, Weighted- Average Remaining Contractual Term	'4 years 1 month 6 days
Stock Appreciation Rights Exercisable, Number Of Shares	14
Stock Appreciation Rights Exercisable, Weighted- Average Exercise Price (in dollars per share)	$39.87
Range Of Exercise Prices $69.53 - $106.07 | Stock options	'
Stock-based compensation plans disclosures	'
Stock Options Outstanding, lower range (in dollars per share)	$69.53
Stock Options Outstanding, upper range (in dollars per share)	$106.07
Stock Options Outstanding, Number Of Shares	105
Stock Options Outstanding, Weighted- Average Exercise Price (in dollars per share)	$80.89
Stock Options Outstanding, Weighted- Average Remaining Contractual Term	'6 years 9 months 18 days
Stock Options Exercisable, Number Of Shares	101
Stock Options Exercisable, Weighted- Average Exercise Price (in dollars per share)	$80.77
Range Of Exercise Prices $69.53 - $106.07 | Stock appreciation rights	'
Stock-based compensation plans disclosures	'
Stock Appreciation Rights Outstanding, lower range (in dollars per share)	$69.53
Stock Appreciation Rights Outstanding, upper range (in dollars per share)	$106.07
Stock Appreciation Rights Outstanding, Number Of Shares	44
Stock Appreciation Rights Outstanding, Weighted- Average Exercise Price (in dollars per share)	$85.96
Stock Appreciation Rights Outstanding, Weighted- Average Remaining Contractual Term	'5 years 4 months 24 days
Stock Appreciation Rights Exercisable, Number Of Shares	30
Stock Appreciation Rights Exercisable, Weighted- Average Exercise Price (in dollars per share)	$83.76
Range Of Exercise Prices $106.08 - $131.46 | Stock options	'
Stock-based compensation plans disclosures	'
Stock Options Outstanding, lower range (in dollars per share)	$106.08
Stock Options Outstanding, upper range (in dollars per share)	$131.46
Stock Options Outstanding, Number Of Shares	172
Stock Options Outstanding, Weighted- Average Exercise Price (in dollars per share)	$128.09
Stock Options Outstanding, Weighted- Average Remaining Contractual Term	'7 years 7 months 6 days
Stock Options Exercisable, Number Of Shares	115
Stock Options Exercisable, Weighted- Average Exercise Price (in dollars per share)	$128.09
Range Of Exercise Prices $106.08 - $131.46 | Stock appreciation rights	'
Stock-based compensation plans disclosures	'
Stock Appreciation Rights Outstanding, lower range (in dollars per share)	$106.08
Stock Appreciation Rights Outstanding, upper range (in dollars per share)	$131.46
Stock Appreciation Rights Outstanding, Number Of Shares	150
Stock Appreciation Rights Outstanding, Weighted- Average Exercise Price (in dollars per share)	$115.96
Stock Appreciation Rights Outstanding, Weighted- Average Remaining Contractual Term	'6 years 10 months 24 days
Stock Appreciation Rights Exercisable, Number Of Shares	35
Stock Appreciation Rights Exercisable, Weighted- Average Exercise Price (in dollars per share)	$123.48

EMPLOYEE_BENEFIT_PLANS_Details2

EMPLOYEE BENEFIT PLANS (Details 3) (Restricted Stock and Restricted Stock Units, USD $)	3 Months Ended
In Millions, except Share data in Thousands, unless otherwise specified	Jul. 05, 2014
Restricted Stock and Restricted Stock Units	'
Nonvested, Number of Shares	'
Nonvested, beginning balance (in shares)	263
Granted (in shares)	17
Vested (in shares)	-14
Forfeited (in shares)	-7
Nonvested, ending balance (in shares)	259
Nonvested, Weighted-Average Grant Date Fair Value	'
Nonvested, beginning balance (in dollars per share)	$110.60
Granted (in dollars per share)	$102.80
Vested (in dollars per share)	$107.67
Forfeited (in dollars per share)	$109.24
Nonvested, ending balance (in dollars per share)	$110.26
Fair value of restricted stock and restricted stock units, vested	$1.40

ACCUMULATED_OTHER_COMPREHENSIV2

ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jul. 05, 2014	Jun. 29, 2013	Jul. 05, 2014	Jun. 29, 2013
Changes in the balances of each component of accumulated other comprehensive income, net of taxes	'	'	'	'
Beginning balance	$35,805	$12,243	$36,691	$28,760
Other comprehensive income (loss) before reclassifications	-4,013	5,746	-5,997	-7,342
Tax (expense) benefit	121	-332	256	-3,806
Amounts reclassed from accumulated other comprehensive income	-2,261	1,348	-3,823	1,390
Tax (expense) benefit	789	-505	1,388	-592
Total other comprehensive income (loss)	-2,420	4,571	-3,306	-11,946
Ending balance	33,385	16,814	33,385	16,814
Currency Translation Adjustments	'	'	'	'
Changes in the balances of each component of accumulated other comprehensive income, net of taxes	'	'	'	'
Beginning balance	37,027	10,344	38,152	30,181
Other comprehensive income (loss) before reclassifications	1,524	2,984	399	-16,853
Tax (expense) benefit	0	0	0	0
Amounts reclassed from accumulated other comprehensive income	0	0	0	0
Tax (expense) benefit	0	0	0	0
Total other comprehensive income (loss)	1,524	2,984	399	-16,853
Ending balance	38,551	13,328	38,551	13,328
Securities Available for Sale	'	'	'	'
Changes in the balances of each component of accumulated other comprehensive income, net of taxes	'	'	'	'
Beginning balance	'	-546	'	-475
Other comprehensive income (loss) before reclassifications	'	-12	'	-83
Tax (expense) benefit	'	0	'	0
Amounts reclassed from accumulated other comprehensive income	'	0	'	0
Tax (expense) benefit	'	0	'	0
Total other comprehensive income (loss)	'	-12	'	-83
Ending balance	'	-558	'	-558
Derivatives Designated as Cash Flow Hedges | Foreign exchange forward contracts	'	'	'	'
Changes in the balances of each component of accumulated other comprehensive income, net of taxes	'	'	'	'
Beginning balance	-1,941	2,445	-2,091	-946
Other comprehensive income (loss) before reclassifications	-1,834	2,774	-2,100	9,594
Tax (expense) benefit	195	-332	113	-3,806
Amounts reclassed from accumulated other comprehensive income	-1,570	1,348	-2,399	1,390
Tax (expense) benefit	537	-505	868	-592
Total other comprehensive income (loss)	-606	1,599	-456	4,990
Ending balance	-2,547	4,044	-2,547	4,044
Derivatives Designated as Cash Flow Hedges | Interest Rate Swap	'	'	'	'
Changes in the balances of each component of accumulated other comprehensive income, net of taxes	'	'	'	'
Beginning balance	-179	'	-106	'
Other comprehensive income (loss) before reclassifications	-912	'	-1,760	'
Tax (expense) benefit	333	'	643	'
Amounts reclassed from accumulated other comprehensive income	-691	'	-1,424	'
Tax (expense) benefit	252	'	520	'
Total other comprehensive income (loss)	-140	'	-213	'
Ending balance	-319	'	-319	'
Net Investment Hedges	'	'	'	'
Changes in the balances of each component of accumulated other comprehensive income, net of taxes	'	'	'	'
Beginning balance	162	'	0	'
Other comprehensive income (loss) before reclassifications	155	'	410	'
Tax (expense) benefit	-60	'	-153	'
Amounts reclassed from accumulated other comprehensive income	0	'	0	'
Tax (expense) benefit	0	'	0	'
Total other comprehensive income (loss)	95	'	257	'
Ending balance	257	'	257	'
Pension Plan	'	'	'	'
Changes in the balances of each component of accumulated other comprehensive income, net of taxes	'	'	'	'
Beginning balance	736	'	736	'
Other comprehensive income (loss) before reclassifications	-2,946	'	-2,946	'
Tax (expense) benefit	-347	'	-347	'
Amounts reclassed from accumulated other comprehensive income	0	'	0	'
Tax (expense) benefit	0	'	0	'
Total other comprehensive income (loss)	-3,293	'	-3,293	'
Ending balance	($2,557)	'	($2,557)	'

SEGMENT_INFORMATION_Details

SEGMENT INFORMATION (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jul. 05, 2014	Jun. 29, 2013	Jul. 05, 2014	Jun. 29, 2013
Summary information by operating segment	'	'	'	'
Net Sales	$773,820	$706,249	$1,550,365	$1,387,148
Operating Income	84,758	106,948	189,457	201,269
Intersegment	'	'	'	'
Summary information by operating segment	'	'	'	'
Net Sales	-345,307	-340,623	-686,843	-629,453
Corporate	'	'	'	'
Summary information by operating segment	'	'	'	'
Operating Income	-51,170	-42,402	-98,716	-81,698
North America wholesale	'	'	'	'
Summary information by operating segment	'	'	'	'
Net Sales	265,223	260,692	538,019	515,858
North America wholesale | Operating Segment	'	'	'	'
Summary information by operating segment	'	'	'	'
Operating Income	50,912	66,321	103,791	126,729
North America wholesale | Intersegment	'	'	'	'
Summary information by operating segment	'	'	'	'
Net Sales	42,778	49,016	90,969	94,962
Europe wholesale	'	'	'	'
Summary information by operating segment	'	'	'	'
Net Sales	202,377	170,759	408,041	344,663
Europe wholesale | Operating Segment	'	'	'	'
Summary information by operating segment	'	'	'	'
Operating Income	43,762	36,451	95,722	74,998
Europe wholesale | Intersegment	'	'	'	'
Summary information by operating segment	'	'	'	'
Net Sales	50,392	38,713	99,590	79,401
Asia Pacific wholesale	'	'	'	'
Summary information by operating segment	'	'	'	'
Net Sales	105,731	96,187	209,291	182,963
Asia Pacific wholesale | Operating Segment	'	'	'	'
Summary information by operating segment	'	'	'	'
Operating Income	31,508	30,473	62,628	58,023
Asia Pacific wholesale | Intersegment	'	'	'	'
Summary information by operating segment	'	'	'	'
Net Sales	252,137	252,894	496,284	455,090
Direct to consumer	'	'	'	'
Summary information by operating segment	'	'	'	'
Net Sales	200,489	178,611	395,014	343,664
Direct to consumer | Operating Segment	'	'	'	'
Summary information by operating segment	'	'	'	'
Operating Income	$9,746	$16,105	$26,032	$23,217

SEGMENT_INFORMATION_Details_2

SEGMENT INFORMATION (Details 2) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jul. 05, 2014	Jun. 29, 2013	Jul. 05, 2014	Jun. 29, 2013
Net sales for each class of similar products	'	'	'	'
Net sales	$773,820	$706,249	$1,550,365	$1,387,148
Percentage of Total	100.00%	100.00%	100.00%	100.00%
Watches	'	'	'	'
Net sales for each class of similar products	'	'	'	'
Net sales	611,208	547,225	1,212,596	1,060,242
Percentage of Total	79.00%	77.50%	78.20%	76.40%
Leathers	'	'	'	'
Net sales for each class of similar products	'	'	'	'
Net sales	87,325	91,748	187,047	194,536
Percentage of Total	11.30%	13.00%	12.10%	14.00%
Jewelry	'	'	'	'
Net sales for each class of similar products	'	'	'	'
Net sales	56,183	47,042	112,701	89,356
Percentage of Total	7.20%	6.70%	7.30%	6.50%
Other	'	'	'	'
Net sales for each class of similar products	'	'	'	'
Net sales	$19,104	$20,234	$38,021	$43,014
Percentage of Total	2.50%	2.80%	2.40%	3.10%

DERIVATIVES_AND_RISK_MANAGEMEN2

DERIVATIVES AND RISK MANAGEMENT (Details)

3 Months Ended

6 Months Ended

6 Months Ended

Jul. 05, 2014

Jun. 29, 2013

Jul. 05, 2014

Jun. 29, 2013

Jul. 05, 2014

Jun. 29, 2013

Apr. 05, 2014

Jul. 05, 2014

Jul. 05, 2014

Jul. 05, 2014

Jul. 05, 2014

Jul. 05, 2014

Jul. 05, 2014

Jul. 05, 2014

Jul. 05, 2014

Jul. 05, 2014

Jul. 05, 2014

Jul. 05, 2014

Jul. 05, 2014

Jul. 05, 2014

Jul. 05, 2014

USD ($)

USD ($)

USD ($)

USD ($)

Forward Contracts

Forward Contracts

Foreign exchange forward contracts

Foreign exchange forward contracts

Foreign exchange forward contracts

Foreign exchange forward contracts

Foreign exchange forward contracts

Foreign exchange forward contracts

Foreign exchange forward contracts

Foreign exchange forward contracts

Foreign exchange forward contracts

Foreign exchange forward contracts

Foreign exchange forward contracts

Foreign exchange forward contracts

Foreign exchange forward contracts

Interest rate swap

Interest rate swap

Amount Reclassified from AOCI

Amount Reclassified from AOCI

Net Investment Hedges

Designated

Designated

Designated

Designated

Designated

Designated

Designated

Designated

Designated

Designated

Designated

Designated

Designated

Term loan

USD ($)

USD ($)

EUR (€)

Euro

Euro

British Pound

British Pound

Canadian Dollar

Canadian Dollar

Japanese Yen

Japanese Yen

Australian Dollar

Australian Dollar

Mexican Peso

Mexican Peso

Designated

USD ($)

EUR (€)

USD ($)

GBP (£)

USD ($)

CAD

USD ($)

JPY (¥)

USD ($)

AUD

USD ($)

MXN

USD ($)

DERIVATIVES AND RISK MANAGEMENT

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Maximum period of future intercompany purchases

'

'

'18 months

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Forecasted purchases to manage fluctuations (as a percent)

65.00%

'

65.00%

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Hedges resulted ineffectiveness

$0

$0

$0

$0

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Derivatives

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Gains or losses reclassified into earnings

52,517,000

67,713,000

118,860,000

139,900,000

0

0

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Notional amount

'

'

'

'

'

'

'

247,000,000

181,700,000

46,000,000

28,200,000

31,300,000

33,800,000

23,700,000

2,370,000,000

13,500,000

14,800,000

12,900,000

171,000,000

'

'

Term of interest rate swap agreement

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'5 years

'

Fixed interest rate swap (as a percent)

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

1.29%

'

Description of base rate

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'1-month LIBOR

Hedged amount

'

'

'

'

'

'

€ 25,000,000

'

'

'

'

'

'

'

'

'

'

'

'

'

$250,000,000

DERIVATIVES_AND_RISK_MANAGEMEN3

DERIVATIVES AND RISK MANAGEMENT (Details 2) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jul. 05, 2014	Jun. 29, 2013	Jul. 05, 2014	Jun. 29, 2013
Derivatives	'	'	'	'
Total (loss) gain recognized in other comprehensive income (loss), net of taxes	($2,123)	$2,442	($2,847)	$5,788
Cash flow hedges | Foreign exchange forward contracts	'	'	'	'
Derivatives	'	'	'	'
Total (loss) gain recognized in other comprehensive income (loss), net of taxes	-1,639	2,442	-1,987	5,788
Cash flow hedges | Interest rate swap	'	'	'	'
Derivatives	'	'	'	'
Total (loss) gain recognized in other comprehensive income (loss), net of taxes	-579	0	-1,117	0
Net Investment Hedges	'	'	'	'
Derivatives	'	'	'	'
Total (loss) gain recognized in other comprehensive income (loss), net of taxes	$95	$0	$257	$0

DERIVATIVES_AND_RISK_MANAGEMEN4

DERIVATIVES AND RISK MANAGEMENT (Details 3) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jul. 05, 2014	Jun. 29, 2013	Jul. 05, 2014	Jun. 29, 2013
Foreign exchange contracts | Designated | Cash flow hedges	'	'	'	'
Effective portion of gains and losses on derivative instruments	'	'	'	'
Total (loss) gain reclassified from other comprehensive income (loss)	($1,033)	$843	($1,531)	$798
Foreign exchange contracts | Not designated as hedging instruments	'	'	'	'
Effective portion of gains and losses on derivative instruments	'	'	'	'
Total loss recognized in income	0	-74	-148	-74
Interest rate swap | Designated | Cash flow hedges	'	'	'	'
Effective portion of gains and losses on derivative instruments	'	'	'	'
Total (loss) gain reclassified from other comprehensive income (loss)	($439)	$0	($904)	$0

DERIVATIVES_AND_RISK_MANAGEMEN5

DERIVATIVES AND RISK MANAGEMENT (Details 4) (USD $)	Jul. 05, 2014	Dec. 28, 2013
Fair value of derivative instruments	'	'
Asset Derivatives, Fair Value	$5,271,000	$7,815,000
Liability Derivatives, Fair Value	8,573,000	12,690,000
Existing losses expected to be reclassified into earnings within the next twelve months	1,900,000	'
Foreign exchange forward contracts | Designated | Cash flow hedges | Prepaid expenses and other current assets	'	'
Fair value of derivative instruments	'	'
Asset Derivatives, Fair Value	1,910,000	3,289,000
Foreign exchange forward contracts | Designated | Cash flow hedges | Intangible and other assets-net	'	'
Fair value of derivative instruments	'	'
Asset Derivatives, Fair Value	384,000	219,000
Foreign exchange forward contracts | Designated | Cash flow hedges | Accrued expenses - other	'	'
Fair value of derivative instruments	'	'
Liability Derivatives, Fair Value	4,818,000	7,651,000
Foreign exchange forward contracts | Designated | Cash flow hedges | Other long-term liabilities	'	'
Fair value of derivative instruments	'	'
Liability Derivatives, Fair Value	275,000	563,000
Interest rate swap | Designated | Cash flow hedges | Prepaid expenses and other current assets	'	'
Fair value of derivative instruments	'	'
Asset Derivatives, Fair Value	0	0
Interest rate swap | Designated | Cash flow hedges | Intangible and other assets-net	'	'
Fair value of derivative instruments	'	'
Asset Derivatives, Fair Value	2,977,000	4,307,000
Interest rate swap | Designated | Cash flow hedges | Accrued expenses - other	'	'
Fair value of derivative instruments	'	'
Liability Derivatives, Fair Value	2,534,000	2,783,000
Interest rate swap | Designated | Cash flow hedges | Other long-term liabilities	'	'
Fair value of derivative instruments	'	'
Liability Derivatives, Fair Value	$946,000	$1,693,000

FAIR_VALUE_MEASUREMENTS_Detail

FAIR VALUE MEASUREMENTS (Details) (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Jul. 05, 2014	Jul. 05, 2014	Jul. 05, 2014	Jul. 05, 2014	Dec. 28, 2013	Jul. 05, 2014	Dec. 28, 2013	Jul. 05, 2014	Dec. 28, 2013	Jul. 05, 2014	Dec. 28, 2013
	Level 3	Level 3	Level 3	Fair Value Measurement, Recurring Basis	Fair Value Measurement, Recurring Basis	Fair Value Measurement, Recurring Basis	Fair Value Measurement, Recurring Basis	Fair Value Measurement, Recurring Basis	Fair Value Measurement, Recurring Basis	Fair Value Measurement, Recurring Basis	Fair Value Measurement, Recurring Basis
	Contingent consideration, Fossil Spain	Minimum	Maximum	Level 1	Level 1	Level 2	Level 2	Level 3	Level 3	Total	Total
		Contingent consideration, Fossil Spain	Contingent consideration, Fossil Spain
Assets:	'	'	'	'	'	'	'	'	'	'	'
Forward contracts	'	'	'	$0	$0	$2,294	$3,508	$0	$0	$2,294	$3,508
Investment in publicly traded mutual funds	'	'	'	2,450	2,360	0	0	0	0	2,450	2,360
Interest rate swap	'	'	'	0	0	2,977	4,307	0	0	2,977	4,307
Total	'	'	'	2,450	2,360	5,271	7,815	0	0	7,721	10,175
Liabilities:	'	'	'	'	'	'	'	'	'	'	'
Contingent Consideration	'	'	'	0	0	0	0	10,123	8,084	10,123	8,084
Forward contracts	'	'	'	0	0	5,093	8,214	0	0	5,093	8,214
Interest rate swap	'	'	'	0	0	3,480	4,476	0	0	3,480	4,476
Total	'	'	'	$0	$0	$8,573	$12,690	$10,123	$8,084	$18,696	$20,774
Future revenue growth for 2014 and 2015 (as a percent)	'	3.00%	10.00%	'	'	'	'	'	'	'	'
Projected operating expenses as a percentage of revenues	28.00%	'	'	'	'	'	'	'	'	'	'
Discount rate (as a percent)	19.00%	'	'	'	'	'	'	'	'	'	'

FAIR_VALUE_MEASUREMENTS_Detail1

FAIR VALUE MEASUREMENTS (Details 2) (USD $)	3 Months Ended	6 Months Ended
In Thousands, unless otherwise specified	Jul. 05, 2014	Jul. 05, 2014	Jun. 29, 2013	Dec. 28, 2013
Fair value hierarchy for assets and liabilities measured at fair value on a nonrecurring basis	'	'	'	'
Impairment charges	$0	($5,501)	$0	'
Property, plant and equipment-net	359,917	359,917	'	355,666
Specific Company-owned stores	'	'	'	'
Fair value hierarchy for assets and liabilities measured at fair value on a nonrecurring basis	'	'	'	'
Impairment charges	'	-5,501	'	'
Property, plant and equipment-net	5,500	5,500	'	'
Fair Value Measurement, Nonrecurring Basis | Level 1 | Specific Company-owned stores	'	'	'	'
Fair value hierarchy for assets and liabilities measured at fair value on a nonrecurring basis	'	'	'	'
Specific Company-owned stores	0	0	'	'
Fair Value Measurement, Nonrecurring Basis | Level 2 | Specific Company-owned stores	'	'	'	'
Fair value hierarchy for assets and liabilities measured at fair value on a nonrecurring basis	'	'	'	'
Specific Company-owned stores	0	0	'	'
Fair Value Measurement, Nonrecurring Basis | Level 3 | Specific Company-owned stores	'	'	'	'
Fair value hierarchy for assets and liabilities measured at fair value on a nonrecurring basis	'	'	'	'
Specific Company-owned stores	0	0	'	'
Fair Value Measurement, Nonrecurring Basis | Total | Specific Company-owned stores	'	'	'	'
Fair value hierarchy for assets and liabilities measured at fair value on a nonrecurring basis	'	'	'	'
Specific Company-owned stores	$0	$0	'	'

INTANGIBLE_AND_OTHER_ASSETS_De

INTANGIBLE AND OTHER ASSETS (Details) (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Jul. 05, 2014	Dec. 28, 2013
Intangible and other assets	'	'
Total intangibles - subject to amortization	$51,911	$51,991
Total intangibles-not subject to amortization, Carrying Amount	83,657	83,659
Total other assets, Gross Amount	98,632	96,372
Total intangible and other assets, Carrying Amount	234,200	232,022
Total intangibles-subject to amortization, Accumulated Amortization	21,503	18,885
Total other assets, Accumulated Amortization	28,418	24,805
Total intangible and other assets, Accumulated Amortization	49,921	43,690
Total intangible and other assets-net	184,279	188,332
Key money deposits	'	'
Intangible and other assets	'	'
Total other assets, Gross Amount	35,875	35,535
Total other assets, Accumulated Amortization	18,699	17,038
Key money deposits | Minimum	'	'
Intangible and other assets	'	'
Amortization period based on initial lease term	'4 years	'
Key money deposits | Maximum	'	'
Intangible and other assets	'	'
Amortization period based on initial lease term	'18 years	'
Other deposits	'	'
Intangible and other assets	'	'
Total other assets, Gross Amount	23,729	22,574
Deferred compensation plan assets	'	'
Intangible and other assets	'	'
Total other assets, Gross Amount	2,450	2,360
Deferred tax asset-net	'	'
Intangible and other assets	'	'
Total other assets, Gross Amount	10,152	10,044
Restricted cash	'	'
Intangible and other assets	'	'
Total other assets, Gross Amount	749	752
Shop-in-shop	'	'
Intangible and other assets	'	'
Total other assets, Gross Amount	18,682	16,334
Total other assets, Accumulated Amortization	9,719	7,767
Interest rate swap	'	'
Intangible and other assets	'	'
Total other assets, Gross Amount	2,977	4,307
Other assets	'	'
Intangible and other assets	'	'
Total other assets, Gross Amount	4,018	4,466
Trademarks	'	'
Intangible and other assets	'	'
Total intangibles - subject to amortization	4,175	4,175
Total intangibles-subject to amortization, Accumulated Amortization	2,824	2,695
Useful Lives	'10 years	'
Customer lists	'	'
Intangible and other assets	'	'
Total intangibles - subject to amortization	43,248	43,367
Total intangibles-subject to amortization, Accumulated Amortization	16,086	14,065
Customer lists | Minimum	'	'
Intangible and other assets	'	'
Useful Lives	'5 years	'
Customer lists | Maximum	'	'
Intangible and other assets	'	'
Useful Lives	'10 years	'
Patents	'	'
Intangible and other assets	'	'
Total intangibles - subject to amortization	2,273	2,273
Total intangibles-subject to amortization, Accumulated Amortization	1,632	1,360
Patents | Minimum	'	'
Intangible and other assets	'	'
Useful Lives	'3 years	'
Patents | Maximum	'	'
Intangible and other assets	'	'
Useful Lives	'20 years	'
Noncompete agreement	'	'
Intangible and other assets	'	'
Total intangibles - subject to amortization	1,908	1,913
Total intangibles-subject to amortization, Accumulated Amortization	715	558
Useful Lives	'6 years	'
Other	'	'
Intangible and other assets	'	'
Total intangibles - subject to amortization	307	263
Total intangibles-subject to amortization, Accumulated Amortization	$246	$207
Other | Minimum	'	'
Intangible and other assets	'	'
Useful Lives	'7 years	'
Other | Maximum	'	'
Intangible and other assets	'	'
Useful Lives	'20 years	'

INTANGIBLE_AND_OTHER_ASSETS_De1

INTANGIBLE AND OTHER ASSETS (Details 2) (USD $)	3 Months Ended		6 Months Ended
	Jul. 05, 2014	Jun. 29, 2013	Jul. 05, 2014	Jun. 29, 2013
INTANGIBLE AND OTHER ASSETS	'	'	'	'
Amortization expense for intangible assets	$1,300,000	$1,300,000	$2,600,000	$2,600,000
Estimated aggregate future amortization expense by fiscal year	'	'	'	'
2014 (remaining)	2,586,000	'	2,586,000	'
2015	4,784,000	'	4,784,000	'
2016	4,646,000	'	4,646,000	'
2017	4,387,000	'	4,387,000	'
2018	4,021,000	'	4,021,000	'
2019	$3,923,000	'	$3,923,000	'

DEBT_ACTIVITY_Details

DEBT ACTIVITY (Details) (USD $)	3 Months Ended	6 Months Ended	3 Months Ended	6 Months Ended
In Millions, unless otherwise specified	Jul. 05, 2014	Jul. 05, 2014	Jul. 05, 2014	Jul. 05, 2014	23-May-14
	Revolver	Revolver	Term loan	Term loan	Amendment
Debt Instrument	'	'	'	'	'
Increase in the Company's line of credit borrowing capacity	'	'	'	'	$300
Maximum borrowing capacity	'	'	'	'	1,050
Repayment of borrowings	'	'	3.1	9.4	'
Net borrowings	8	48	'	'	'
Amount outstanding	298	298	237.5	237.5	'
Remaining borrowing capacity	750.9	750.9	'	'	'
Interest expense incurred	$1.40	$2.70	$1.50	$3.20	'