Luxury watchmaker Movado's Q3 sales slightly beat estimates

Overview

• Movado fiscal Q3 net sales slightly beat analyst expectations, growing 3.1% yr/yr

• Adjusted EPS for fiscal Q3 misses analyst expectations

• Company reports doubling of diluted EPS yr/yr despite tariff cost increases

Outlook

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

• Movado anticipates growth in sales and profitability from reduced tariffs and innovation

Result Drivers

• FASHION WATCH DEMAND - Increased interest among younger consumers in fashion watches drove sales, especially in Europe and the U.S.

• GROSS MARGIN EXPANSION - Gross margin expanded due to favorable channel and product mix changes, despite increased U.S. tariffs

• OPERATING EXPENSES - Lower marketing expenses contributed to a decrease in operating expenses, aiding operating income growth

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

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

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

• Wall Street's median 12-month price target for Movado Group Inc is $31.50, about 38.3% above its November 24 closing price of $19.45

Press Release: ID:nBw8TzG91a

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