Luxury watchmaker Movado's Q2 sales beat expectations, withholds guidance

Overview

• Movado fiscal Q2 net sales rise 3.1% to $161.8 mln, beating expectations

• Adjusted EPS for fiscal Q2 at $0.23, reflecting improved operational efficiency

• International markets drive performance, while U.S. sales decline 1.6%

Outlook

• Company not providing fiscal 2026 guidance due to economic uncertainty and tariff impacts

• Company to continue introducing new watch and jewelry offerings globally

• Movado confident in long-term profitable growth strategy

Result Drivers

• INTERNATIONAL STRENGTH - International markets led performance with a 6.9% sales increase, driven by licensed brands and Company Stores

• TARIFF IMPACT - Gross margin slightly decreased due to increased U.S. tariffs and foreign exchange rate fluctuations

• DIGITAL GROWTH - Growth in global digital business contributed to sales performance, particularly in women's watch collections and men's jewelry

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the apparel & accessories peer group is "hold."

• Wall Street's median 12-month price target for Movado Group Inc is $31.50, about 44.4% above its August 27 closing price of $17.52

Press Release: ID:nBw1S8qDya