Watchmaker Movado's Q4 net sales rise on wholesale strength

Overview

• U.S. watch and jewelry maker's fiscal Q4 net sales grew 5.6% yr/yr to $191.6 mln

• Fiscal Q4 adjusted EPS rose 11.8% yr/yr to $0.57

• Company repurchased 208,000 shares during fiscal yr; no fiscal 2027 outlook issued

Outlook

• Movado has elected not to provide fiscal 2027 guidance due to economic and geopolitical uncertainty

Result Drivers

• MOVADO BRAND GROWTH - Movado brand saw strong Q4 performance, led by 25% wholesale sales growth, 18% growth at Movado.com, and 9% growth at company stores

• U.S. SALES OUTPERFORMANCE - U.S. net sales increased 11.2% yr/yr, outpacing international sales, which grew 1.0%

• GROSS MARGIN DRIVERS - Gross margin benefited from favorable channel and product mix, positive foreign currency impact, and higher sales leverage, partly offset by increased U.S. tariffs

Company press release: ID:nBw3xFwDza

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• 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 $30.75, about 33.4% above its March 18 closing price of $23.05

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago

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