Movado Group Reports 2.7% Net Sales Increase to $671.3 Million for Fiscal Year Ending January 31, 2026

Movado Group, Inc. reported a net sales increase of 2.7% for the fiscal year ending January 31, 2026, reaching $671.3 million, compared to $653.4 million in the previous year. The growth was bolstered by a favorable foreign currency exchange impact of $11.6 million. The company's Watch and Accessory Brands segment generated $568.3 million in sales, a 2.1% increase from the prior year, driven primarily by a 7.2% rise in the licensed brands category, which offset a decline in owned brands sales. The Company Stores segment also saw a 6.2% increase in sales, totaling $103.0 million, attributed to higher foot traffic and the opening of a new store.

In terms of profitability, Movado's gross profit rose to $363.6 million, representing 54.2% of net sales, up from 54.0% in the previous year. This increase was attributed to a favorable sales mix and improved cost management, despite challenges from increased tariffs and shipping costs. Operating income for the year was reported at $29.8 million, a significant increase from $20.0 million in fiscal 2025, reflecting both higher gross profit and a slight reduction in selling, general, and administrative expenses as a percentage of sales.

The company has also made strategic moves, including a focus on cost-saving initiatives that resulted in a reduction of $5.7 million in payroll-related expenses. Additionally, Movado is preparing to launch a new collection under the Kate Spade New York brand in spring 2027, following a licensing agreement signed in July 2025. This expansion is part of the company's ongoing strategy to enhance its brand portfolio and market presence.

Operationally, Movado's workforce consisted of 1,386 employees as of January 31, 2026, with a notable 37% of non-retail employees having been with the company for over ten years. The company continues to emphasize its commitment to employee well-being and development, which it believes is crucial for maintaining a competitive edge in the market. Furthermore, Movado's international sales accounted for 56.7% of total revenue, highlighting its significant global footprint.

Looking ahead, Movado Group, Inc. anticipates continued growth, although it acknowledges potential challenges from macroeconomic factors such as inflation and geopolitical tensions that could impact consumer spending. The company remains focused on executing its strategic initiatives, including geographic expansion and product innovation, to drive future performance.