Movado Group Reports 8.1% Net Sales Increase to $142.4 Million

Movado Group, Inc. reported a net sales increase of 8.1% for the three months ended April 30, 2026, reaching $142.4 million compared to $131.8 million in the same period last year. The company's gross profit also rose significantly, amounting to $81.6 million, or 57.3% of net sales, up from $71.4 million, which represented 54.1% of net sales in the prior year. This increase in gross profit was attributed to higher sales volumes and an improved sales mix, which positively impacted gross margins by approximately 320 basis points.

The company's operating income for the quarter was $7.0 million, a notable recovery from an operating loss of $0.3 million in the previous year. This turnaround was driven by a $10.2 million increase in gross profit, which was partially offset by a $3.5 million rise in selling, general, and administrative (SG&A) expenses. The SG&A increase was primarily due to higher professional fees, marketing expenses, and performance-based compensation. Notably, the company recorded net income attributable to Movado Group, Inc. of $6.9 million, compared to $1.4 million in the prior year.

In terms of operational developments, Movado's Watch and Accessory Brands segment saw net sales of $123.7 million, an increase of 7.7% from the previous year. The growth was driven by both owned and licensed brands, with the owned brands category increasing by 7.5% and the licensed brands category by 6.5%. The company also reported a positive impact from foreign currency fluctuations, which contributed $4.7 million to net sales. The Company Stores segment also performed well, with net sales rising 10.2% to $18.7 million, aided by an increase in online sales and the opening of a new store.

Looking ahead, Movado Group, Inc. remains focused on strategic initiatives to enhance operational efficiency and align expenses with current business trends. The company has implemented cost-saving measures, including workforce reductions, to better position itself in a challenging consumer spending environment. Additionally, Movado continues to evaluate its capital structure and has a share repurchase program in place, with $44.6 million remaining available for future purchases. The company’s liquidity position remains strong, with cash and cash equivalents totaling $225.3 million as of April 30, 2026, compared to $203.1 million a year earlier.