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

Movado

28/08/2025 12:03

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

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$161.83 mln
$156.80 mln (1 Analyst)
Q2 Net Income
$3.14 mln
Q2 Gross Profit
$87.56 mln
Q2 Operating Income
$4.01 mln
Q2 Pretax Profit
$5.10 mln


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

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)