Two brothers, Tom Kartsotis and Kosta Kartsotis, own approximately 30% of Fossil stock. The company name represents the nickname the brothers had for their father. 

Fossil was founded in 1984 as Overseas Products International. Their main product was fashion watches with a retro look. In 1990, they introduced leather goods under the Fossil brand, and the Relic line of watches. Fossil had an IPO in 1993. Zodiac was a Swiss brand that had been operating since 1882 when Fossil acquired it in 2001 to give them a higher end brand. Fossil's desire to establish a Swiss presence led to the purchase of the Zodiac Watch brand and a complete retooling of that line to reflect a retro modern 1970s style in a higher end watch. The 2004 purchase of Michele Watch completed the cycle by offering a high-end Swiss watch with a designer flair. 

Fossil has been very successful with its own brands and this success has led to companies coming to Fossil to create licensed watch lines. The licensed watch lines that Fossil designs, manufactures, and distributes include Burberry, DKNY, Emporio Armani, Columbia Sportswear, Diesel, Frank Gehry, Philippe Starck, Michael Kors, Callaway Golf, Davis Cup, Marc Jacobs and Adidas. When referencing Fossil's watch lines, they are generally regarded as a "manufacturer"; However, Fossil only assembles watches, using pre-made movements and only designing the cases and dials of the watch. 

In addition, the company produces collectibles, some of which are based on popular films or pop culture characters. Previous designs have included: Superman Watch (, Batman, Wonder Woman, Elvis Presley, "Pirates of the Caribbean", Flash, Green Lantern, Snoopy, Pokémon, Star Wars, "Chronicles of Narnia" and Disney's "Cars".

The company released Wrist PDA which is a tiny Palm OS-based PDA worn like a watch. In 2006, Fossil released a Caller ID watch. Also in 2006, Fossil teamed up with the NFL to make the official watch collection for each team. Fossil also caters to special markets that seek to customize products. 

Fossil won awards for "Most Effective Use of Online Creative" and "Best of Show" awards for the 6th Annual DFWIMA Excellence in Interactive Marketing (in 2006)