Movado Group Stock Earnings Reports

Movado Group reported softer results in Q3 FY2025 as the company navigates a challenging retail environment in the U.S. and Europe. Q3 net sales were $182.7 million (down 2.6% YoY; -3.5% in constant dollars) and nine-month sales were $478.7 million (down 2.9% YTD). U.S. sales declined meaningfully (-7.1% Q3) while international was broadly flat (+0.4% Q3). Gross margin compressed to 53.8% in Q3 (54.4% YTD) due to unfavorable channel/product mix and deleverage on lower sales; Q3 operating income fell to $9.3 million from $20.7 million a year ago and YTD operating income declined to $15.6 million from $41.2 million. Q3 net income was $8.3 million ($0.37/share) versus $17.4 million ($0.77) a year ago; YTD net income was $14.9 million ($0.66) versus $34.6 million ($1.53) prior year. The company finished the quarter with a strong balance sheet (~$181.5–182 million cash) and no debt. Management emphasized continued investment in marketing and brand-building (Movado.com traffic and new campaigns showed strength), progress in licensed brands and jewelry growth, and expansion opportunities in markets like India and Southeast Asia. To improve profitability, Movado announced cost-reduction actions (expected to yield ~$6.5 million of annualized savings), is rationalizing discretionary/marketing spend, and is prioritizing the holiday season. The Board approved a new $50 million share repurchase authorization while management says the buyback is currently focused on offsetting dilution. Updated FY guidance sits at the low end of prior ranges: net sales of approximately $665 million, gross profit ~54%, operating income ~ $23 million, and expected adjusted EPS of $0.90 (25% tax rate).