Movado Group, Inc. Announces Second Quarter Fiscal 2027 Results
Key Terms
ieepa regulatory
gaap financial
non-gaap financial
constant-currency financial
basis points financial
~ Net Sales of
~ Operating Income of
~ EPS of
~ Board Declares Quarterly Dividend of
Second Quarter Fiscal 2027 Highlights*
-
Net sales of
$169.8 million $161.8 million -
Gross margin of
59.4% , or57.5% excluding$3.2 million 54.1% in the second quarter of fiscal 2026; -
Operating income of
$14.9 million $4.0 million -
Adjusted operating income of
$15.1 million $7.0 million -
Diluted earnings per share of
$0.53 $0.13 -
Adjusted diluted earnings per share of
$0.54 $0.23 -
The quarter ended with
$211.6 million
*Second quarter Fiscal 2027 GAAP and Adjusted results include |
Efraim Grinberg, Chairman and Chief Executive Officer, stated: "I am pleased to report strong top- and bottom-line results for the second quarter, capping an excellent first half for Movado Group. In the second quarter of fiscal 2027, net sales grew
“We also ended the first half of the year with a strong balance sheet, including a higher cash balance than at the same time last year and no debt. At quarter-end, cash totaled
“We enter the third quarter excited about our business prospects, with compelling innovation and marketing efforts set to build on the momentum we're seeing across our fashion watch and jewelry brands, particularly in smaller-sized watches and distinctive shapes. Combined with our sharp focus on execution, we believe we are well positioned to navigate the dynamic environment, advance our strategic priorities, and generate long-term profitable growth and value creation for our shareholders,” Mr. Grinberg concluded.
Non-GAAP Items (See attached table for GAAP and Non-GAAP measures)
Second quarter fiscal 2027 results of operations included a
Second quarter fiscal 2026 results of operations included a
In this press release, references to “adjusted” results exclude the impact of the above charges and the impact of the items described in the Non-GAAP Items section of the Company’s earnings release for the first quarter of fiscal 2027. Please refer to the attached GAAP and Non-GAAP measures table for a detailed reconciliation of the Company’s reported results to its adjusted, non-GAAP results.
Second Quarter Fiscal 2027 Results (See attached table for GAAP and Non-GAAP measures)
-
Net sales increased
4.9% to$169.8 million 4.4% on a constant-dollar basis, compared to$161.8 million U.S . net sales increased4.9% as compared to the second quarter of last year. International net sales also increased4.9% (4.1% on a constant-dollar basis) as compared to the second quarter of last year. -
Gross profit was
$100.8 million 59.4% of net sales, compared to$87.6 million 54.1% of net sales, in the second quarter of fiscal 2026. The 530 basis-point improvement in gross margin included$3.2 million -
Operating expenses were
$85.9 million $83.6 million 50.6% of net sales from51.6% in the prior-year period primarily due to leverage of expenses given the increase in net sales. Adjusted operating expenses were$85.7 million 50.5% of net sales, compared to$80.6 million 49.8% of net sales, in the second quarter of fiscal 2026. -
Operating income was
$14.9 million $4.0 million $15.1 million 8.9% of net sales, compared to$7.0 million 4.3% of net sales, in the second quarter of fiscal 2026. Both operating income and adjusted operating income in the second quarter of fiscal 2027 included$3.2 million -
The Company recorded a tax provision of
$3.5 million $2.0 million $3.6 million 22.1% . This compares to an adjusted tax provision of$2.7 million 32.9% , in the second quarter of fiscal 2026. -
Net income for the second quarter of fiscal 2027 was
$12.3 million $0.53 $3.0 million $0.13 $12.5 million $0.54 $5.3 million $0.23 $2.5 million
First Half Fiscal 2027 Results (See attached table for GAAP and Non-GAAP measures)
-
Net sales for the first six months of fiscal 2027 increased
6.3% to$312.2 million 4.5% on a constant-dollar basis, compared to$293.6 million U.S . net sales increased6.6% as compared to the first six months of last year. International net sales increased6.1% (2.9% on a constant-dollar basis) as compared to the first six months of last year. -
Gross profit was
$182.4 million 58.4% of net sales, compared to$158.9 million 54.1% of net sales, in the first six months of fiscal 2026. The 430-basis-point improvement in gross margin included$3.2 million -
Operating expenses were
$160.5 million $154.6 million 51.4% of net sales versus52.7% of net sales in the first six months last year. Adjusted operating expenses for the first six months of fiscal 2027 were$159.9 million 51.2% of net sales, versus$151.0 million 51.4% of net sales, for the first six months of fiscal 2026. The increase in adjusted operating expenses versus the same period of last year was primarily due to higher performance-based compensation and increased marketing and selling expenses to support the increased sales. -
Operating income was
$21.9 million $4.3 million $22.6 million $7.9 million $3.2 million -
The Company recorded a tax provision of
$5.5 million $2.6 million $5.6 million 22.1% . This compares to an adjusted tax provision of$3.4 million 32.4% , in the first six months of fiscal 2026. -
Net income was
$19.2 million $0.84 $4.4 million $0.20 $19.7 million $0.86 $7.2 million $0.32 $2.5 million
Quarterly Dividend and Share Repurchase Program
The Company also announced that on August 26, 2026, the Board of Directors declared the payment on September 22, 2026, of a cash dividend in the amount of
During the first six months of fiscal 2027, the Company repurchased 61,000 shares under its December 5, 2024, share repurchase program. As of July 31, 2026, the Company had
IEEPA Duty Refunds
The Company is pursuing refunds of approximately
Outlook
Going forward, the Company remains committed to providing transparency and insight into its business, markets, and current trends. However, the Company has chosen to discontinue providing an annual outlook as it believes its focus is better served on the execution of its long-term strategy, which is expected to drive profitable growth and increased value for shareholders. As it relates to the second half of fiscal 2027, the Company expects to build on the momentum of the first half of the year to deliver topline growth in the mid-single-digit range and gross margin in a range of
Conference Call
The Company’s management will host a conference call and audio webcast to discuss its results today, August 26, 2026, at 9:00 a.m. Eastern Time. The conference call may be accessed by dialing (877) 407-0784. Additionally, a live webcast of the call can be accessed at www.movadogroup.com. The webcast will be archived on the Company’s website approximately one hour after the conclusion of the call. Additionally, a telephonic replay of the call will be available at 1:00 p.m. ET on August 26, 2026, until 11:59 p.m. ET on September 9, 2026, and can be accessed by dialing (844) 512-2921 and entering replay number 13762314.
Movado Group, Inc. designs, sources, and distributes MOVADO®, MVMT®, OLIVIA BURTON®, EBEL®, CONCORD®, CALVIN KLEIN®, COACH®, TOMMY HILFIGER®, HUGO BOSS®, and LACOSTE® watches, and, to a lesser extent, jewelry and other accessories, and operates Movado Company Stores in
In this release, the Company presents certain financial measures that are not calculated according to generally accepted accounting principles in
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company has tried, whenever possible, to identify these forward-looking statements using words such as “expects,” “anticipates,” “believes,” “targets,” “goals,” “projects,” “intends,” “plans,” “seeks,” “estimates,” “may,” “will,” “should” and variations of such words and similar expressions. Similarly, statements in this press release that describe the Company's business strategy, outlook, objectives, plans, intentions or goals are also forward-looking statements. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the Company's actual results, performance or achievements and levels of future dividends to differ materially from those expressed in, or implied by, these statements. These risks and uncertainties may include, but are not limited to the Company’s ability to maintain effective internal control over financial reporting in the future, general economic and business conditions which may impact disposable income of consumers in the United States and the other significant markets (including Europe) where the Company’s products are sold, uncertainty regarding such economic and business conditions, including inflation, elevated interest rates, increased commodity prices and tightness in the labor market, trends in consumer debt levels and bad debt write-offs, general uncertainty related to geopolitical concerns, the increase in tariffs and other trade barriers, the impact of international hostilities, including the Russian invasion of Ukraine and war in the Middle East, on global markets, economies and consumer spending, on energy and shipping costs, and on the Company’s supply chain and suppliers, supply disruptions, delivery delays and increased shipping costs, defaults on or downgrades of sovereign debt and the impact of any of those events on consumer spending, evolving stakeholder expectations and emerging complex laws on environmental, social, and governance matters, changes in consumer preferences and popularity of particular designs, new product development and introduction, decrease in mall traffic and increase in e-commerce, the ability of the Company to successfully implement its business strategies, competitive products and pricing, including price increases to offset increased costs, the impact of “smart” watches and other wearable tech products on the traditional watch market, seasonality, availability of alternative sources of supply in the case of the loss of any significant supplier or any supplier’s inability to fulfill the Company’s orders, the loss of or curtailed sales to significant customers, the Company’s dependence on key employees and officers, the ability to successfully integrate the operations of acquired businesses without disruption to other business activities, the possible impairment of acquired intangible assets, including long-lived assets, risks associated with the Company’s minority investments in early-stage growth companies and venture capital funds that invest in such companies, the continuation of the Company’s major warehouse and distribution centers, the continuation of licensing arrangements with third parties, losses possible from pending or future litigation and administrative proceedings, the ability to secure and protect trademarks, patents and other intellectual property rights, the ability to lease new stores on suitable terms in desired markets and to complete construction on a timely basis, the ability of the Company to successfully manage its expenses on a continuing basis, information systems failure or breaches of network security, including cybersecurity risks posed by increasing reliance on cloud services and generative artificial intelligence, complex and quickly-evolving regulations regarding privacy and data protection, regulatory restrictions and a changing marketing environment, including the movement toward a cookieless future and increased digital advertising costs, requirements to meet environmental, social and governance regulations, expectations or standards, including climate change-related risks and regulatory requirements, the impact of current or future cost reduction, streamlining, restructuring or business optimization initiatives, risks associated with laws and regulations relating to supply chain transparency and forced labor, changes to existing laws or regulations, including changes to tax laws or regulations, the continued availability to the Company of financing and credit on favorable terms, business disruptions, and general risks associated with doing business internationally, including, without limitation, import duties, tariffs (including retaliatory tariffs, the potential imposition of tariffs under alternative statutory authorities and the Company’s ability to receive additional refunds for IEEPA duties previously paid), quotas, political and economic stability, anti-corruption and anti-bribery laws, changes to existing laws or regulations, and impacts of currency exchange rate fluctuations and the success of hedging strategies related thereto, and the other factors discussed in the Company’s Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. These statements reflect the Company's current beliefs and are based upon information currently available to it. Be advised that developments subsequent to this press release are likely to cause these statements to become outdated with the passage of time. The Company assumes no duty to update its forward-looking statements and this release shall not be construed to indicate the assumption by the Company of any duty to update its outlook in the future.
(Tables to follow)
| MOVADO GROUP, INC. | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (In thousands, except per share data) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| July 31, | July 31, | |||||||||||||||
|
|
|
2026 |
|
|
|
2025 |
|
|
|
2026 |
|
|
|
2025 |
|
| Net sales | $ |
169,752 |
|
$ |
161,829 |
|
$ |
312,154 |
|
$ |
293,598 |
|
||||
| Cost of sales |
|
68,927 |
|
|
74,264 |
|
|
129,736 |
|
|
134,683 |
|
||||
| Gross profit |
|
100,825 |
|
|
87,565 |
|
|
182,418 |
|
|
158,915 |
|
||||
| Total operating expenses |
|
85,947 |
|
|
83,558 |
|
|
160,525 |
|
|
154,617 |
|
||||
| Operating income |
|
14,878 |
|
|
4,007 |
|
|
21,893 |
|
|
4,298 |
|
||||
| Non-operating income/(expense): | ||||||||||||||||
| Other income, net |
|
1,255 |
|
|
1,202 |
|
|
3,216 |
|
|
2,962 |
|
||||
| Interest expense |
|
(108 |
) |
|
(110 |
) |
|
(210 |
) |
|
(221 |
) |
||||
| Income before income taxes |
|
16,025 |
|
|
5,099 |
|
|
24,899 |
|
|
7,039 |
|
||||
| Provision for income taxes |
|
3,535 |
|
|
1,961 |
|
|
5,483 |
|
|
2,621 |
|
||||
| Net income |
|
12,490 |
|
|
3,138 |
|
|
19,416 |
|
|
4,418 |
|
||||
| Less: Net income attributable to noncontrolling interests |
|
191 |
|
|
152 |
|
|
187 |
|
|
12 |
|
||||
| Net income attributable to Movado Group, Inc. | $ |
12,299 |
|
$ |
2,986 |
|
$ |
19,229 |
|
$ |
4,406 |
|
||||
| Diluted Income Per Share Information | ||||||||||||||||
| Net income per share attributable to Movado Group, Inc. | $ |
0.53 |
|
$ |
0.13 |
|
$ |
0.84 |
|
$ |
0.20 |
|
||||
| Weighted diluted average shares outstanding |
|
23,085 |
|
|
22,571 |
|
|
22,924 |
|
|
22,479 |
|
||||
| MOVADO GROUP, INC. | |||||||||
| GAAP AND NON-GAAP MEASURES | |||||||||
| (In thousands, except for percentage data) | |||||||||
| (Unaudited) | |||||||||
Three Months Ended |
% Change |
||||||||
July 31, |
|||||||||
|
|
2026 |
|
2025 |
|
|
|||
| Total net sales, as reported | $ |
169,752 |
$ |
161,829 |
4.9 |
% |
|||
| Total net sales, constant dollar basis | $ |
169,020 |
$ |
161,829 |
4.4 |
% |
|||
Six Months Ended |
% Change |
||||||||
July 31, |
|||||||||
|
|
2026 |
|
2025 |
|
|
|||
| Total net sales, as reported | $ |
312,154 |
$ |
293,598 |
6.3 |
% |
|||
| Total net sales, constant dollar basis | $ |
306,761 |
$ |
293,598 |
4.5 |
% |
|||
| MOVADO GROUP, INC. | |||||||||||||||||||||||||
| GAAP AND NON-GAAP MEASURES | |||||||||||||||||||||||||
| (In thousands, except per share data) | |||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||
| Net Sales | Gross Profit | Total Operating Expenses | Operating Income | Pre-tax Income | Provision/(Benefit) for Income Taxes | Net Income Attributable to Movado Group, Inc. | Diluted EPS | ||||||||||||||||||
| Three Months Ended July 31, 2026 | |||||||||||||||||||||||||
| As Reported (GAAP) | $ |
169,752 |
$ |
100,825 |
$ |
85,947 |
|
$ |
14,878 |
$ |
16,025 |
$ |
3,535 |
$ |
12,299 |
$ |
0.53 |
||||||||
| Costs related to the |
|
- |
|
- |
|
(198 |
) |
|
198 |
|
198 |
|
47 |
|
151 |
|
0.01 |
||||||||
| Adjusted Results (Non-GAAP) | $ |
169,752 |
$ |
100,825 |
$ |
85,749 |
|
$ |
15,076 |
$ |
16,223 |
$ |
3,582 |
$ |
12,450 |
$ |
0.54 |
||||||||
| Three Months Ended July 31, 2025 | |||||||||||||||||||||||||
| As Reported (GAAP) | $ |
161,829 |
$ |
87,565 |
$ |
83,558 |
|
$ |
4,007 |
$ |
5,099 |
$ |
1,961 |
$ |
2,986 |
$ |
0.13 |
||||||||
| Costs related to the |
|
- |
|
- |
|
(2,136 |
) |
|
2,136 |
|
2,136 |
|
515 |
|
1,621 |
|
0.07 |
||||||||
| Cost-Savings Initiative (2) |
|
- |
|
- |
|
(872 |
) |
|
872 |
|
872 |
|
190 |
|
682 |
|
0.03 |
||||||||
| Adjusted Results (Non-GAAP) | $ |
161,829 |
$ |
87,565 |
$ |
80,550 |
|
$ |
7,015 |
$ |
8,107 |
$ |
2,666 |
$ |
5,289 |
$ |
0.23 |
||||||||
| Net Sales | Gross Profit | Total Operating Expenses | Operating Income | Pre-tax Income | Provision/(Benefit) for Income Taxes | Net Income Attributable to Movado Group, Inc. | Diluted EPS | ||||||||||||||||||
| Six Months Ended July 31, 2026 | |||||||||||||||||||||||||
| As Reported (GAAP) | $ |
312,154 |
$ |
182,418 |
$ |
160,525 |
|
$ |
21,893 |
$ |
24,899 |
$ |
5,483 |
$ |
19,229 |
$ |
0.84 |
||||||||
| Costs related to the |
|
- |
|
- |
|
(664 |
) |
|
664 |
|
664 |
|
159 |
|
505 |
|
0.02 |
||||||||
| Adjusted Results (Non-GAAP) | $ |
312,154 |
$ |
182,418 |
$ |
159,861 |
|
$ |
22,557 |
$ |
25,563 |
$ |
5,642 |
$ |
19,734 |
$ |
0.86 |
||||||||
| Six Months Ended July 31, 2025 | |||||||||||||||||||||||||
| As Reported (GAAP) | $ |
293,598 |
$ |
158,915 |
$ |
154,617 |
|
$ |
4,298 |
$ |
7,039 |
$ |
2,621 |
$ |
4,406 |
$ |
0.20 |
||||||||
| Costs related to the |
|
- |
|
- |
|
(2,136 |
) |
|
2,136 |
|
2,136 |
|
515 |
|
1,621 |
|
0.07 |
||||||||
| Cost-Savings Initiative (2) |
|
- |
|
- |
|
(1,451 |
) |
|
1,451 |
|
1,451 |
|
309 |
|
1,142 |
|
0.05 |
||||||||
| Adjusted Results (Non-GAAP) | $ |
293,598 |
$ |
158,915 |
$ |
151,030 |
|
$ |
7,885 |
$ |
10,626 |
$ |
3,445 |
$ |
7,169 |
$ |
0.32 |
||||||||
(1) |
Costs related to the investigation of misconduct within the |
|
(2) |
Related to the establishment of a provision for a corporate cost-savings initiative. |
|
| MOVADO GROUP, INC. | |||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||
| (In thousands) | |||||||||
| (Unaudited) | |||||||||
|
|
July 31, |
|
January 31, |
|
July 31, |
|||
|
|
2026 |
|
2026 |
|
2025 |
|||
| ASSETS | |||||||||
| Cash and cash equivalents | $ |
211,612 |
$ |
230,541 |
$ |
180,493 |
|||
| Trade receivables, net |
|
94,341 |
|
102,037 |
|
94,397 |
|||
| Inventories |
|
196,463 |
|
158,331 |
|
211,504 |
|||
| Other current assets |
|
19,600 |
|
22,208 |
|
22,949 |
|||
| Income taxes receivable |
|
5,159 |
|
4,118 |
|
6,848 |
|||
| Total current assets |
|
527,175 |
|
517,235 |
|
516,191 |
|||
| Property, plant and equipment, net |
|
15,743 |
|
17,105 |
|
19,196 |
|||
| Operating lease right-of-use assets |
|
58,569 |
|
67,873 |
|
77,130 |
|||
| Deferred and non-current income taxes |
|
45,426 |
|
45,917 |
|
43,129 |
|||
| Other intangibles, net |
|
3,146 |
|
4,162 |
|
4,930 |
|||
| Other non-current assets |
|
93,285 |
|
90,329 |
|
88,143 |
|||
| Total assets | $ |
743,344 |
$ |
742,621 |
$ |
748,719 |
|||
| LIABILITIES AND EQUITY | |||||||||
| Accounts payable | $ |
35,591 |
$ |
21,138 |
$ |
35,347 |
|||
| Accrued liabilities |
|
53,097 |
|
49,748 |
|
63,766 |
|||
| Accrued payroll and benefits |
|
12,837 |
|
17,896 |
|
11,426 |
|||
| Current operating lease liabilities |
|
18,427 |
|
20,603 |
|
19,871 |
|||
| Income taxes payable |
|
3,746 |
|
3,663 |
|
1,014 |
|||
| Total current liabilities |
|
123,698 |
|
113,048 |
|
131,424 |
|||
| Deferred and non-current income taxes payable |
|
1,132 |
|
1,030 |
|
933 |
|||
| Non-current operating lease liabilities |
|
49,682 |
|
58,063 |
|
67,908 |
|||
| Other non-current liabilities |
|
61,615 |
|
60,220 |
|
56,219 |
|||
| Shareholders' equity |
|
505,616 |
|
508,842 |
|
489,913 |
|||
| Noncontrolling interest |
|
1,601 |
|
1,418 |
|
2,322 |
|||
| Total equity |
|
507,217 |
|
510,260 |
|
492,235 |
|||
| Total liabilities and equity | $ |
743,344 |
$ |
742,621 |
$ |
748,719 |
|||
| MOVADO GROUP, INC. | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (In thousands) | ||||||||
| (Unaudited) | ||||||||
|
|
Six Months Ended |
||||||
|
|
July 31, |
||||||
|
|
|
2026 |
|
|
|
2025 |
|
| Cash flows from operating activities: | ||||||||
| Net income | $ |
19,416 |
|
$ |
4,418 |
|
||
| Depreciation and amortization |
|
4,540 |
|
|
4,657 |
|
||
| Other non-cash adjustments |
|
4,750 |
|
|
5,625 |
|
||
| Changes in working capital |
|
(21,717 |
) |
|
(26,362 |
) |
||
| Changes in non-current assets and liabilities |
|
(450 |
) |
|
646 |
|
||
| Net cash provided by/(used in) operating activities |
|
6,539 |
|
|
(11,016 |
) |
||
| Cash flows from investing activities: | ||||||||
| Capital expenditures |
|
(2,347 |
) |
|
(2,826 |
) |
||
| Long-term investments |
|
(1,140 |
) |
|
(1,887 |
) |
||
| Trademarks and other intangibles |
|
(68 |
) |
|
(41 |
) |
||
| Net cash used in investing activities |
|
(3,555 |
) |
|
(4,754 |
) |
||
| Cash flows from financing activities: | ||||||||
| Dividends paid |
|
(16,642 |
) |
|
(15,557 |
) |
||
| Stock repurchases |
|
(1,541 |
) |
|
(1,594 |
) |
||
| Stock awards and options exercised and other changes |
|
116 |
|
|
(467 |
) |
||
| Debt issuance costs |
|
(340 |
) |
|
- |
|
||
| Net cash used in financing activities |
|
(18,407 |
) |
|
(17,618 |
) |
||
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
(3,542 |
) |
|
5,467 |
|
||
| Net change in cash, cash equivalents, and restricted cash |
|
(18,965 |
) |
|
(27,921 |
) |
||
| Cash, cash equivalents, and restricted cash at beginning of period |
|
231,382 |
|
|
209,214 |
|
||
| Cash, cash equivalents, and restricted cash at end of period | $ |
212,417 |
|
$ |
181,293 |
|
||
| Reconciliation of cash, cash equivalents, and restricted cash: | ||||||||
| Cash and cash equivalents | $ |
211,612 |
|
$ |
180,493 |
|
||
| Restricted cash included in other non-current assets |
|
805 |
|
|
800 |
|
||
| Cash, cash equivalents, and restricted cash | $ |
212,417 |
|
$ |
181,293 |
|
||
View source version on businesswire.com: https://www.businesswire.com/news/home/20260826462349/en/
ICR, Inc.
Allison Malkin
203-682-8200
Source: Movado Group, Inc.