Movado Group, Inc. (MOV) Q2 2026 Earnings Conference Call Transcript
Sales Sales grew by 3% to $161.8 million year-over-year. The increase was driven by growth in licensed brands and company stores, partially offset by a decrease in owned brands.
Adjusted Operating Profit Adjusted operating profit more than doubled to $7 million from $2.6 million last year, despite a $2.2 million impact from unmitigated U.S. tariff expenses. The improvement was due to higher revenue and gross profit, along with a decline in operating expenses.
Gross Margins Gross margins were 54.1% compared to 54.3% in Q2 of last year, a slight decline due to increased tariffs and unfavorable foreign exchange, partially offset by favorable channel and product mix.
International Business International business grew by 6.9% or 3.9% on a constant currency basis, led by strong performance in Europe, Latin America, and India. This was offset by weaker performance in the Middle East due to team rebuilding.
U.S. Business U.S. business declined by 1.6% year-over-year as the company focused on rebalancing chain jewelry store distribution. However, there was improved performance in domestic department stores and e-commerce channels.
Outlet Storage Segment The outlet storage segment grew by 2.4% for the quarter, driven by recent initiatives and accelerating trends in that channel.
Net Income Net income increased to $5.3 million or $0.23 per diluted share, compared to $3.5 million or $0.15 per diluted share in the year-ago period. The increase was driven by higher operating income and other non-operating income.
Cash Position The company maintained a strong balance sheet with over $180 million in cash and no debt, although cash decreased from $198.3 million in the same period last year.
Inventory Inventory increased by $28.3 million or 15.5% year-over-year, with $5.1 million of the increase due to foreign currency and $4.6 million due to reciprocal tariffs. The company built a strong inventory position of Swiss-made watches in the U.S. to cover a substantial portion of the year's needs.
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Three Overlooked Stocks That Wall Street Supports—And There's a Good Reason Why
Market Trends: Despite major gains by smaller mega-cap tech firms in 2025, investors are increasingly looking at lesser-known stocks with strong potential, such as Lumentum Holdings and AST SpaceMobile, which have shown impressive growth.
Movado Group Performance: Movado Group has reported steady growth in sales and operating income, despite facing challenges from tariffs. The company remains optimistic about its brand strength and product momentum, with expectations for significant earnings growth in the coming year.
Nomad Foods Outlook: Nomad Foods experienced a tough year in 2025, with declining shares due to reduced promotions and weather challenges. However, the company is optimistic about new leadership and goals for accelerating organic growth, aiming to maintain strong cash flow and dividend yields.
Mosaic Company Challenges: Mosaic Company has faced a significant decline in shares due to tariff impacts and changes in global trade patterns. Despite these challenges, demand for agricultural products remains strong, and analysts predict potential recovery in share prices as the company navigates the changing ecosystem.
Ideal Stock Portfolio: December 2025 Update
Global Market Trends: Investors are currently favoring narratives over financial fundamentals, leading to many companies trading below their book value despite strong balance sheets and financial health, particularly in the U.S., Europe, Japan, and China.
U.S. Market Insights: In the U.S., many asset-intensive businesses, especially in the financial sector, are undervalued despite solid capital positions and liquidity, reflecting a market mindset of crisis rather than current financial realities.
European Financial Strength: European banks and industrial companies are well-capitalized and generating profits, yet they are trading below tangible book value due to market perceptions of impending downturns, creating investment opportunities.
Japanese and Chinese Opportunities: Japan's companies often have strong balance sheets with net cash positions, while in China, a distinction exists between companies with solid financials and those facing real risks, presenting a selective investment landscape focused on financial strength.
Movado Reports 3.1% Increase in Q3 Net Sales to $186.1 Million
- Sales Growth: Movado's Q3 net sales reached $186.1 million, reflecting a 3.1% increase from the previous year, demonstrating the company's sustained appeal in the fashion watch market, particularly with a 6.9% growth in the U.S. market.
- Margin Improvement: Gross margin expanded from 53.5% to 54.3%, an increase of 80 basis points, indicating effective product mix and channel optimization despite rising U.S. tariff pressures.
- Enhanced Profitability: Operating income for Q3 was $11.7 million, nearly doubling from $6.0 million in the same quarter last year, showcasing the company's effective strategies in cost control and sales enhancement.
- Shareholder Returns: The Board declared a quarterly dividend of $0.35 per share, reflecting strong cash flow and a debt-free financial position, providing a solid foundation for future growth investments.
Movado Group Reports Increase in Q3 Earnings
Earnings Growth: Movado Group reported a significant increase in third-quarter earnings, totaling $9.583 million or $0.42 per share, compared to $4.827 million or $0.21 per share from the previous year.
Adjusted Earnings: Excluding certain items, the company's adjusted earnings were $10.239 million or $0.45 per share for the quarter.
Revenue Increase: The company's revenue rose by 3.1% to $186.132 million, up from $180.524 million in the same period last year.
Dividend Announcement: Movado Group declared a cash dividend of $0.35 per share, set to be paid on December 22 to shareholders of record as of December 8.
Movado Group to Hold Q3 2026 Earnings Conference Call at 9:00 AM ET
Conference Call Announcement: Movado Group (MOV) will hold a conference call on November 25, 2025, at 9:00 AM ET to discuss its Q3 26 earnings results.
Access Information: The live webcast can be accessed at Movado Group's investor relations website, and listeners can join the call by dialing (877) 407-0784 with Conference ID 85359.
Replay Details: For those who wish to listen to a replay of the call, they can dial (844) 512-2921 and use Conference ID 13757189.
Disclaimer: The opinions expressed in the announcement are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
Movado Reports Non-GAAP EPS of $0.45 and Revenue of $186.1M, Exceeding Expectations by $0.21M
Q3 Financial Performance: Movado reported a Q3 Non-GAAP EPS of $0.45 and revenue of $186.13 million, reflecting a 3.1% year-over-year increase, beating expectations by $0.21 million.
Financial Position: The company ended the quarter with $183.9 million in cash and no debt, indicating a strong financial position.
Fiscal 2026 Outlook: Due to economic uncertainty and potential tariff impacts, Movado is not providing a fiscal 2026 outlook.
Cost-Saving Measures: Movado is implementing $10 million in annualized savings while addressing new 39% Swiss import tariffs.
Three Overlooked Stocks That Wall Street Supports—And There's a Good Reason Why
Market Trends: Despite major gains by smaller mega-cap tech firms in 2025, investors are increasingly looking at lesser-known stocks with strong potential, such as Lumentum Holdings and AST SpaceMobile, which have shown impressive growth.
Movado Group Performance: Movado Group has reported steady growth in sales and operating income, despite facing challenges from tariffs. The company remains optimistic about its brand strength and product momentum, with expectations for significant earnings growth in the coming year.
Nomad Foods Outlook: Nomad Foods experienced a tough year in 2025, with declining shares due to reduced promotions and weather challenges. However, the company is optimistic about new leadership and goals for accelerating organic growth, aiming to maintain strong cash flow and dividend yields.
Mosaic Company Challenges: Mosaic Company has faced a significant decline in shares due to tariff impacts and changes in global trade patterns. Despite these challenges, demand for agricultural products remains strong, and analysts predict potential recovery in share prices as the company navigates the changing ecosystem.
Ideal Stock Portfolio: December 2025 Update
Global Market Trends: Investors are currently favoring narratives over financial fundamentals, leading to many companies trading below their book value despite strong balance sheets and financial health, particularly in the U.S., Europe, Japan, and China.
U.S. Market Insights: In the U.S., many asset-intensive businesses, especially in the financial sector, are undervalued despite solid capital positions and liquidity, reflecting a market mindset of crisis rather than current financial realities.
European Financial Strength: European banks and industrial companies are well-capitalized and generating profits, yet they are trading below tangible book value due to market perceptions of impending downturns, creating investment opportunities.
Japanese and Chinese Opportunities: Japan's companies often have strong balance sheets with net cash positions, while in China, a distinction exists between companies with solid financials and those facing real risks, presenting a selective investment landscape focused on financial strength.
Movado Reports 3.1% Increase in Q3 Net Sales to $186.1 Million
- Sales Growth: Movado's Q3 net sales reached $186.1 million, reflecting a 3.1% increase from the previous year, demonstrating the company's sustained appeal in the fashion watch market, particularly with a 6.9% growth in the U.S. market.
- Margin Improvement: Gross margin expanded from 53.5% to 54.3%, an increase of 80 basis points, indicating effective product mix and channel optimization despite rising U.S. tariff pressures.
- Enhanced Profitability: Operating income for Q3 was $11.7 million, nearly doubling from $6.0 million in the same quarter last year, showcasing the company's effective strategies in cost control and sales enhancement.
- Shareholder Returns: The Board declared a quarterly dividend of $0.35 per share, reflecting strong cash flow and a debt-free financial position, providing a solid foundation for future growth investments.
Movado Group Reports Increase in Q3 Earnings
Earnings Growth: Movado Group reported a significant increase in third-quarter earnings, totaling $9.583 million or $0.42 per share, compared to $4.827 million or $0.21 per share from the previous year.
Adjusted Earnings: Excluding certain items, the company's adjusted earnings were $10.239 million or $0.45 per share for the quarter.
Revenue Increase: The company's revenue rose by 3.1% to $186.132 million, up from $180.524 million in the same period last year.
Dividend Announcement: Movado Group declared a cash dividend of $0.35 per share, set to be paid on December 22 to shareholders of record as of December 8.
Movado Group to Hold Q3 2026 Earnings Conference Call at 9:00 AM ET
Conference Call Announcement: Movado Group (MOV) will hold a conference call on November 25, 2025, at 9:00 AM ET to discuss its Q3 26 earnings results.
Access Information: The live webcast can be accessed at Movado Group's investor relations website, and listeners can join the call by dialing (877) 407-0784 with Conference ID 85359.
Replay Details: For those who wish to listen to a replay of the call, they can dial (844) 512-2921 and use Conference ID 13757189.
Disclaimer: The opinions expressed in the announcement are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
Movado Reports Non-GAAP EPS of $0.45 and Revenue of $186.1M, Exceeding Expectations by $0.21M
Q3 Financial Performance: Movado reported a Q3 Non-GAAP EPS of $0.45 and revenue of $186.13 million, reflecting a 3.1% year-over-year increase, beating expectations by $0.21 million.
Financial Position: The company ended the quarter with $183.9 million in cash and no debt, indicating a strong financial position.
Fiscal 2026 Outlook: Due to economic uncertainty and potential tariff impacts, Movado is not providing a fiscal 2026 outlook.
Cost-Saving Measures: Movado is implementing $10 million in annualized savings while addressing new 39% Swiss import tariffs.
