Core Viewpoint - Pomerantz LLP is investigating claims of potential securities fraud and unlawful business practices involving Movado Group, Inc. and its officers or directors [1] Group 1: Allegations and Misconduct - Movado disclosed allegations of misconduct in its Dubai branch related to sales practices in the Middle East, India, and Asia Pacific [3] - The investigation revealed that the former managing director and certain employees engaged in actions leading to an overstatement of sales, premature recognition of sales, and underreporting of credit notes over approximately five years [3] - The company has identified a material weakness in internal control over financial reporting, particularly in risk assessment and segregation of duties within the Dubai branch [3] Group 2: Financial Impact - Movado's historical consolidated financial statements for the fiscal years ended January 31, 2024, 2023, and 2022, as well as interim periods in fiscal years 2025 and 2024, will require restatement [3] - The restated interim periods for fiscal 2025 will show a reduction in operating expenses due to the reversal of certain accruals linked to lower adjusted operating results [3] - Following the news of the investigation, Movado's stock price decreased by $0.25 per share, or 1.81%, closing at $13.56 per share on April 11, 2025 [3]

Core Viewpoint - Movado Group, Inc. is under investigation for possible securities fraud related to misconduct in its Dubai branch, which may lead to a class action lawsuit for affected investors [1][3]. Group 1: Allegations and Misconduct - In late January 2025, Movado became aware of allegations of misconduct within its Dubai branch, which involved improper sales practices affecting customers in the Middle East, India, and Asia Pacific [3]. - The former managing director and certain subordinates engaged in actions that resulted in overstated and prematurely recognized sales, as well as underreported customer discounts [3][4]. - Misconduct included unauthorized use of a third-party warehouse for premature sales recognition and falsification of documents to bypass internal controls, occurring over approximately five years starting from the fiscal year ended January 31, 2021 [4]. Group 2: Financial Restatement and Internal Controls - Movado announced it would restate its consolidated financial statements for the fiscal years ended January 31, 2024, 2023, and 2022, along with interim periods for fiscal years 2025 and 2024, to accurately reflect sales and credits [5]. - The restated financials for 2025 interim periods will also show a reduction in operating expenses due to the reversal of certain accruals linked to the revised results [5]. - A material weakness in the Company's internal control over financial reporting was identified, particularly in the risk assessment process that failed to address the lack of segregation of duties within the Dubai branch [6].

NEW YORK, April 21, 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, 2025, ...

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 ...

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 Data and Key Metrics Changes - For the fiscal year, sales were $653.4 million, a decline of 1.7% from the previous 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 sales decreased by 0.2% but increased by 0.6% on a constant currency basis [34][38] - 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. sales in fashion watches and jewelry represent approximately 20% of overall fashion watch sales [12] - International net sales increased by 12.2% on a constant currency basis, indicating growth across all international regions [34] Company Strategy and Development Direction - The company is focusing on brand building efforts and has launched a new brand 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 [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] Other Important Information - The company has taken steps to improve its control environment following irregularities in its Dubai sales office [6][7] - A quarterly dividend of 35 cents was declared, reflecting the company's commitment to returning shareholder value [11] 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 increase productivity in marketing efforts [47] Question: Are you expecting sales to increase - Management indicated that predicting sales is difficult due to current uncertainties, including tariffs and trade issues [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 intends to generate free cash flow and is focused on managing inventory levels and variable expenses [58]

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]

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]

Group 1 - U.S. stock futures are higher, with Dow futures gaining approximately 0.2% [1] - Booz Allen Hamilton Holding Corporation shares fell 2.9% to $105.66 in pre-market trading after a downgrade from Goldman Sachs [1] - Goldman Sachs analyst Noah Poponak downgraded Booz Allen Hamilton from Buy to Neutral and reduced the price target from $150 to $109 [1] Group 2 - Nexa Resources S.A. shares dropped 32% to $4.01 in pre-market trading [2] - Betterware de México, S.A.P.I. de C.V. shares declined 24% to $8.21, with earnings results expected after market close on April 24 [2] - Solaris Resources Inc. shares fell 22.3% to $2.20 in pre-market trading [2] - InnovAge Holding Corp. shares decreased by 14.9% to $2.35 in pre-market trading [2] - Costamare Inc. shares fell 14.3% to $7.42 after a 5% decline on Thursday [2] - Maze Therapeutics, Inc. shares tumbled 12.8% to $6.62 after a 5% drop on Thursday [2] - Mesoblast Limited shares dipped 9.5% to $9.41 after a 6% decline on Thursday [2] - Dyne Therapeutics, Inc. shares fell 6.2% to $6.55 after an 8% dip on Thursday [2] - Movado Group, Inc. shares decreased by 4.9% to $13.14, with earnings results expected on April 16 [2]