General view of a Fossil store logo in the Manhattan borough of New York City, New York, U.S., January 29, 2021. REUTERS/Carlo Allegri

(Reuters) -Shares of U.S. watchmaker Fossil tumbled 31.5% in morning trading on Thursday, after the company, which has been restructuring its debt, announced plans to extend the deadline to exchange its senior notes due 2026.

The company, under pressure from declining sales for years, had announced the exchange of the senior notes for new securities in early September as it sought to reduce its debt and avoid going concern risks.

As of Thursday, more than 75% of the notes had been tendered, the company said, extending the deadline by a week to October 22 after pushing it once before.

The company, whose portfolio includes Fossil, Michele, and Skagen, along with licensed brands such as Armani Exchange and Tory Burch, among others, had a net debt of $179 million as of July 5.

Its shares have more than doubled in value this year, helped by narrowing losses, with the company now valued at nearly $202 million, according to LSEG data.

However, the stock has lost 97% of its value since it hit a record high more than a decade ago, caused by a string of missteps such as entry into the smartwatch market, late exit from physical retail and one-time reorganization charges.

The stock had risen 41% on Wednesday after a media report said the company's Indian unit could be considering an initial public offering. However, the parent said on Thursday there were no such plans.

Fossil expects cost savings of $100 million in fiscal 2025 from job cuts, store closures and debt restructuring under its turnaround plan announced in March.

The Texas-headquartered firm reported a 15% decline in second-quarter sales to $220 million, driven by overall consumer softness, while its adjusted net loss narrowed to 10 cents a share from 47 cents in the prior year, helped by lower costs.

Fossil said in August it expects its annual adjusted operating margin to be break-even to slightly positive, compared with its previous outlook of negative low single digits.

(Reporting by Prerna Bedi in Bengaluru; Editing by Leroy Leo)