NEW YORK, April 17, 2025 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Movado Group, Inc. (“Movado” or the “Company”) (NYSE: MOV).   Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980.    The investigation concerns whether Movado and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.  [Click here for information about joining the class action] On April 11, ...

Movado Group, Inc. (MOV) posted fourth-quarter fiscal 2025 results, wherein the top line met the Zacks Consensus Estimate and increased year over year. The bottom line beat the consensus mark but declined from the year-ago period. Despite a tough macroeconomic environment, the company achieved net sales growth and registered gross margin expansion, even as it ramped up marketing spend.Movado Group’s Quarterly Performance: Key InsightsMOV posted adjusted earnings per share of 51 cents, beating the Zacks Cons ...

Financial Data and Key Metrics Changes - For the fiscal year, sales were $653.4 million, a decline of 1.7% from $664.4 million last year [9][37] - Adjusted operating income for the year was $27.1 million, down from $48.5 million last year [10][39] - Adjusted earnings per share for the quarter and the year were 51 cents and $1.12 respectively [11][37] - Cash at the end of the fiscal year was $208.5 million, with no outstanding debt [11][40] Business Line Data and Key Metrics Changes - In the fourth quarter, sales grew by 3.3% to $181.5 million, with international net sales increasing by 8.8% [10][34] - U.S. net sales decreased by 2.9%, while international net sales increased by 12.2% on a constant currency basis [34][35] - Gross profit as a percentage of sales was 54.2%, up from 53.5% in the previous year [35] Market Data and Key Metrics Changes - U.S. net sales declined by 4% for the fiscal year, while international sales decreased by 0.2% but increased by 0.6% on a constant currency basis [37][38] - The company is closely monitoring the impact of tariffs, particularly a 10% tariff on all global imports and over 100% on certain Chinese products [12][42] Company Strategy and Development Direction - The company is focusing on brand building efforts and has launched a new marketing campaign featuring notable personalities [15][16] - Plans to mitigate cost increases from tariffs include selective price increases and partnerships with vendors [12][42] - The company is committed to maintaining a good, better, best pricing strategy across its brands to cater to varying consumer needs [56] Management's Comments on Operating Environment and Future Outlook - Management expressed uncertainty regarding future sales due to global economic conditions and tariffs [49][50] - The company will not provide a fiscal 2026 outlook at this time due to the unpredictable impact of tariffs [44][42] - Management emphasized the importance of execution and controlling variable expenses in the current environment [52][58] Other Important Information - The company has restated its financials for the past three fiscal years due to irregularities in the Dubai sales office [6][7] - A charge of $1.8 million was taken in the fourth quarter to cover severance costs related to organizational restructuring [13][36] Q&A Session Summary Question: Could you talk about your marketing strategy this year, given that you plan to spend less - The company will focus more on digital marketing venues for timely adjustments and enhancing messaging with retail partners [47] Question: Are you expecting sales to increase - Management indicated that predicting sales is difficult due to global uncertainties and the impact of tariffs [49][50] Question: Is there a focus on specific product lines or price points - The company is assessing the tariff structure to implement sustainable price increases while maintaining value-oriented price points [55][56] Question: Are there more cost savings initiatives to generate free cash flow this year - The company aims to generate free cash flow and is focused on managing inventory levels and variable expenses [58]

Sales and Revenue - Jewelry sales accounted for 8.9% of consolidated net sales in fiscal year 2025[33] - The Company's licensed brands accounted for 55.9% of net sales for the fiscal year ended January 31, 2025[123] - The second half of the fiscal years ended January 31 accounted for 55.4%, 54.2%, and 54.0% of the company's net sales for 2025, 2024, and 2023, respectively[56] - Approximately 57.4% of the Company's revenue is generated from international sources[97] - The Company's International operations account for 31.0% of total net sales from Europe, 9.9% from the Americas (excluding the U.S.), 8.9% from Asia, and 7.6% from the Middle East for fiscal 2025[211] Marketing and Advertising - Marketing expenses were 22.4%, 19.4%, and 17.0% of net sales in fiscal years 2025, 2024, and 2023, respectively[48] - The Company focuses on digital marketing and enhancing its online presence through social media and influencer partnerships[48] - The company emphasizes cooperative advertising programs with wholesale customers, enhancing relationships and facilitating new product introductions[58] - Marketing expenditures are strategically aligned to maintain or increase market share in key markets, influenced by global economic conditions[221] Business Segments and Operations - The Company operates primarily in two segments: Watch and Accessory Brands, and Company Stores[49] - The Watch and Accessory Brands segment includes the design, manufacturing, and distribution of quality owned and licensed brands[50] - The Company operates 52 retail outlet locations in the U.S. and four in Canada, along with an online outlet store[54] - The Company operates major distribution centers in New Jersey and Switzerland, and any interruptions at these facilities could materially affect its business operations[147] Supply Chain and Manufacturing - The company employs a flexible manufacturing model relying on independent manufacturers, maintaining quality control through strict standards and inspections[63] - Over 80% of the Company's product unit volume originates from Asia, with the majority coming from China[96] - The Company relies on independent manufacturers for product assembly, and any disruption in their supply chain could adversely affect customer relations and net sales[145] - The Company's cost of sales includes raw materials, component costs, royalties, and logistics management, primarily in Switzerland and Asia[218] Financial Performance and Risks - The Company faces risks related to the increasing costs of digital advertising, which could adversely affect profitability and results of operations[120] - Changes in sales mix towards lower-margin products could adversely impact gross profit margins[124] - An increase in product returns or lost products could negatively impact the Company's operating results and profitability, with recent trends showing an increase in delivery delays and lost packages[144] - The Company may seek to raise prices for products sold in the U.S. due to increased tariffs, which could result in customer loss and harm operating performance[103] Legal and Regulatory Issues - The Company is involved in legal proceedings that may result in significant expenses and reputational damage, with potential settlements exceeding accruals[164] - The Company identified a material weakness in internal controls over financial reporting, leading to restatements of financial statements for the affected periods[168][169] - Remediation of the identified material weakness requires significant resources and could result in future errors in financial statements if not addressed[171] - The Company has established reserves for potential legal claims, including a $5.1 million dispute with U.S. Customs regarding underpaid duties[190] Corporate Governance and Ownership - The Grinberg family controls a majority of the voting power of the Company's stock, potentially influencing key corporate decisions[174] - The Company's stock price may fluctuate due to changes in revenue and operating results, which are influenced by various risk factors[175][176] Cybersecurity and Data Protection - The Company has not experienced any material cybersecurity incidents in the last three fiscal years, indicating effective risk management[183] - The Audit Committee oversees management's strategies for addressing cybersecurity risks, receiving quarterly updates on the status of these risks[184] - A significant privacy breach could lead to costly government enforcement actions and private litigation, adversely impacting sales and operations[163] - The Company is subject to evolving privacy and data protection laws, which could materially affect its operations and financial results[162] Economic and Environmental Factors - Environmental factors and climate change could lead to increased operational expenses and negatively impact profitability[138] - Recent tariff increases on imports by the U.S. government may lead to reciprocal tariffs from foreign jurisdictions, creating greater uncertainty in the global economy[161]

Financial Performance - Fiscal 2025 net sales were $653.4 million, a decrease of 1.7% compared to $664.4 million in fiscal 2024[4] - Fiscal 2025 operating income was $20.0 million, down from $48.5 million in the prior year, with adjusted operating income at $27.1 million[4] - Fiscal 2025 diluted EPS was $0.81, compared to $1.83 in fiscal 2024, while adjusted diluted EPS was $1.12[4] - Gross margin for fiscal 2025 was 54.0%, down from 54.8% in fiscal 2024, primarily due to unfavorable changes in channel and product mix[11] - Operating expenses for fiscal 2025 were $333.1 million, an increase from $315.7 million in fiscal 2024, driven by higher marketing expenses[11] - Net income attributable to Movado Group, Inc. for the twelve months ended January 31, 2025, was $18,364,000, down from $41,345,000 in 2024, reflecting a decrease of 55.7%[20] - Net income for the twelve months ended January 31, 2025, was $19,209 million, down 54.5% from $42,175 million in 2024[29] - The company reported a diluted income per share of $0.36 for the three months ended January 31, 2025, down from $0.43 in the same period of 2024[20] Sales and Revenue Trends - Fourth quarter net sales increased 3.3% to $181.5 million, or 5.0% on a constant dollar basis, compared to $175.8 million in the fourth quarter of fiscal 2024[8] - Total net sales for the twelve months ended January 31, 2025, were $653,378,000, a decrease of 1.7% compared to $664,389,000 in 2024[22] - Net sales for the three months ended January 31, 2025, were $181,475,000, representing a 3.3% increase compared to $175,753,000 for the same period in 2024[20] Cost Management and Future Plans - The company plans to reduce marketing spend by $15 million to $20 million in fiscal 2026 to align with sales[5] - The company anticipates continued challenges due to economic conditions, including inflation and elevated interest rates, which may impact consumer spending[17] - Movado Group, Inc. is focusing on cost-saving initiatives and professional fees related to investigations, which may affect future financial performance[25] - The company plans to enhance its product offerings and market presence to counteract declining sales trends[17] Shareholder Returns and Equity - The board declared a quarterly dividend of $0.35 per share, payable on May 6, 2025[12] - The company repurchased approximately 120,000 shares during fiscal 2025 and has $50.0 million remaining under its share repurchase program[13] - Dividends paid decreased from $53,146 million in 2024 to $31,069 million in 2025, a reduction of 41.5%[29] - Shareholders' equity decreased from $505,890 million in 2024 to $481,329 million in 2025, a decline of approximately 4.9%[27] Asset and Liability Changes - Total assets decreased from $756,498 million in 2024 to $729,231 million in 2025, a decline of approximately 3.6%[27] - Total current liabilities increased slightly from $111,399 million in 2024 to $112,960 million in 2025, an increase of 1.4%[27] - Cash and cash equivalents at the end of the period decreased to $209,214 million from $262,814 million, a reduction of 20.4%[29] - Net cash used in operating activities was $(1,504) million in 2025, compared to $76,778 million provided in 2024[29] - Capital expenditures were $7,966 million in 2025, slightly down from $8,223 million in 2024[29] - The company reported a negative change in working capital of $(34,884) million in 2025, contrasting with a positive change of $8,770 million in 2024[29] Economic Outlook - Due to economic uncertainty, the company has not provided a fiscal 2026 outlook but plans to implement select price increases to mitigate tariff impacts[10] - The effect of exchange rate changes on cash resulted in a loss of $(2,952) million in 2025, compared to a gain of $2,927 million in 2024[29] - Non-operating income for the twelve months ended January 31, 2025, was $7,125,000, compared to $5,994,000 in 2024, showing an increase of 18.8%[20]

U.S. stock futures were higher this morning, with the Dow futures gaining around 0.2% on Friday.Shares of Booz Allen Hamilton Holding Corporation BAH fell sharply in today's pre-market trading.Goldman Sachs analyst Noah Poponak downgraded Booz Allen Hamilton from Buy to Neutral and lowered the price target from $150 to $109.Booz Allen Hamilton shares dipped 2.9% to $105.66 in the pre-market trading session.Here are some other stocks moving lower in pre-market trading.Nexa Resources S.A. NEXA shares dipped 3 ...

Movado (MOV) shares soared 7.4% in the last trading session to close at $14.49. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 25.1% loss over the past four weeks.U.S. stocks staged their biggest rally yesterday, after President Donald Trump announced a 90-day pause on reciprocal tariffs for all nations except China.This watchmaker is expected to post quarterly earnings of $0.39 per share in its upcoming report, which represents ...

Group 1 - The Culture Makers event was created and launched in 2023 to unite and celebrate the Hispanic and Latin community [1] - Jessica Alba expressed excitement about the growth of the Culture Makers event and emphasized its purpose of fostering culture, collaboration, community, and connection [1] - The event featured notable attendees including Eva Longoria, Danny Ramirez, and Robert Rodriguez, and included food from Tacos 1986 and cocktails curated by Don Julio [1]

Exclusive collaboration highlights Adams' vision of the black experience through contemporary cubism and Movado's iconic Museum Dial with limited edition watches, clocks and collectors setPARAMUS, N.J., Jan. 17, 2025 /PRNewswire/ -- Movado Group, Inc. (NYSE: MOV) is proud to announce its new Artist Series collaboration with Derrick Adams, a multidisciplinary artist, and one of the leading black artists of the 21st century. This collaboration celebrates the Black experience, employing vibrant and joyous colo ...

Financial Data and Key Metrics - Net sales for the third quarter decreased by 2.6% to $187.7 million compared to the same period last year [20] - Gross profit margin for the quarter was 53.8%, down from 54.5% in the prior year, primarily due to unfavorable channel and product mix [21] - Operating income decreased to $9.3 million from $20.7 million in the third quarter of fiscal 2024, driven by lower sales and higher operating expenses [22] - Net income for the quarter was $8.3 million, or $0.37 per diluted share, compared to $17.4 million, or $0.77 per diluted share, in the year-ago period [23] - Year-to-date sales for the nine-month period ended October 31, 2024, were $478.7 million, a decrease of 2.9% compared to the same period last year [24] - Gross profit for the nine-month period was $260.3 million, or 54.4% of sales, down from $273.6 million, or 55.5% of sales, in the prior year [25] - Net income for the nine-month period was $14.9 million, or $0.66 per diluted share, compared to $34.6 million, or $1.53 per diluted share, in the year-ago period [26] Business Line Performance - Movado brand sales on the company's website increased by 16.9% in the quarter, with September and October sales growing by over 25% [7] - Licensed brands sales grew by 3.8% in the third quarter, driven by strong performance in Coach, Lacoste, Calvin Klein, and HUGO BOSS [9] - Coach brand performed well, driven by new product introductions, including the Sammy collection, which resonated with Gen Z consumers [9] - Tommy Hilfiger sales were led by the TH 85 Chronograph and the new Henry family of automatic watches [10] - HUGO BOSS returned to growth in the quarter, with strong sales of the Time Traveler collection and the new Bossmatic family [11] - Lacoste saw strong sales growth, particularly in its jewelry collection, with the Metropole Bracelet continuing to grow at a double-digit rate [12] - Calvin Klein brand grew overall, driven by strong sales in jewelry and the introduction of the new Pulse family for women's watches [13] Regional Performance - US net sales decreased by 7.1% in the third quarter, while international markets grew by 0.4%, with growth in Latin America, the Middle East, India, and Australia offsetting declines in Europe [14] - Movado brand performed well in India, with a 20% increase in sales, positioning it as a significant growth market [8] - Europe, the company's largest international market, continued to soften, contributing to a 1.1% decline in international sales on a constant currency basis [20] Strategic Initiatives and Industry Competition - The company has focused on introducing new product families and revitalizing marketing efforts across its brand portfolio [6] - Investments in marketing have been made to drive revenue growth and brand awareness, despite a 2.9% decline in net sales year-to-date [6] - The company is prioritizing cost reduction, brand-building initiatives, and rationalizing marketing investments to improve profitability [6] - Movado is targeting growth opportunities in jewelry and emerging markets like India and Southeast Asia, while aiming to return North America and the Movado brand to higher profitability [6] - The company has a strong balance sheet with $182 million in cash and no debt, and has announced a new $50 million share repurchase plan [6] Management Commentary on Operating Environment and Future Outlook - The retail environment in the US and Europe remains challenging, with retailers tightly managing inventories [7] - The company expects a strong holiday season, supported by the launch of its Amazon Premiere platform and a new marketing campaign [8] - Management is optimistic about the long-term potential of the Movado brand in India and other growth markets [8] - The company is focused on reducing operating costs and improving profitability, with $6.5 million in annualized savings expected from recent cost-saving initiatives [30] - For fiscal 2025, the company expects net sales of approximately $665 million, gross profit of 54% of sales, and operating income of $23 million [29] Other Important Information - The company repurchased approximately 120,000 shares under its share repurchase program in the first nine months of fiscal 2025 [27] - A new three-year $50 million share buyback program has been approved by the Board of Directors [28] Q&A Session Summary Question: New stock buyback authorization usage - The company plans to use the new buyback authorization primarily to offset dilution, with potential changes depending on cash generation [33][34] Question: Retail inventory levels and leading indicators - Retail inventory levels in the US and Europe are historically low, and the company expects a rebound as economic conditions improve [37][38] - E-commerce businesses typically carry less inventory than in-store businesses, but they represent no more than 20-25% of a retailer's overall business [39]