[Filing Information](index=1&type=section&id=Filing%20Information) Key filing details for MOVADO GROUP, INC.'s Form 10-Q for the quarter ended July 31, 2025 - Registrant: **MOVADO GROUP, INC.**[2](index=2&type=chunk) - Filing Type: **Quarterly Report on Form 10-Q** for the period ended July 31, 2025[2](index=2&type=chunk) Securities Registered | Title of each class | Symbol(s) | Name of each exchange on which registered | | :------------------ | :-------- | :---------------------------------------- | | Common Stock, par value $0.01 per share | MOV | New York Stock Exchange | - Filer Status: **Accelerated filer**[5](index=5&type=chunk) - Shares Outstanding (August 22, 2025): **Common Stock: 15,682,096**; **Class A Common Stock: 6,455,602**[5](index=5&type=chunk) [Part I – Financial Information (Unaudited)](index=3&type=section&id=Part%20I%20%E2%80%93%20Financial%20Information%20(Unaudited)) This part presents the unaudited consolidated financial statements and management's analysis of performance [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Presents the unaudited consolidated financial statements and accompanying notes for the reporting period [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Details the company's assets, liabilities, and equity as of July 31, 2025 Key Balance Sheet Data (in thousands) | Metric | July 31, 2025 | January 31, 2025 | July 31, 2024 (As Restated) | | :-------------------------- | :------------ | :--------------- | :-------------------------- | | Cash and cash equivalents | $180,493 | $208,501 | $198,251 | | Inventories | $211,504 | $156,738 | $183,160 | | Total current assets | $516,191 | $489,941 | $507,232 | | Total assets | $748,719 | $729,231 | $742,480 | | Total current liabilities | $131,424 | $112,960 | $114,390 | | Total liabilities | $256,484 | $245,652 | $248,068 | | Total equity | $492,235 | $483,579 | $494,412 | - Total assets increased by **$19.5 million** from January 31, 2025 ($729.2 million) to July 31, 2025 ($748.7 million)[10](index=10&type=chunk) - Inventories increased significantly from **$156.7 million** at January 31, 2025, to **$211.5 million** at July 31, 2025, a **35% increase**[10](index=10&type=chunk) [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Summarizes revenues, expenses, and profits over the three and six-month periods ended July 31, 2025 Key Income Statement Data (in thousands, except per share) | Metric | 3 Months Ended July 31, 2025 | 3 Months Ended July 31, 2024 (As Restated) | 6 Months Ended July 31, 2025 | 6 Months Ended July 31, 2024 (As Restated) | | :---------------------------------------- | :--------------------------- | :----------------------------------------- | :--------------------------- | :----------------------------------------- | | Net sales | $161,829 | $157,000 | $293,598 | $291,379 | | Gross profit | $87,565 | $85,252 | $158,915 | $158,172 | | Operating income | $4,007 | $2,642 | $4,298 | $4,760 | | Net income attributable to Movado Group, Inc. | $2,986 | $3,469 | $4,406 | $5,484 | | Diluted EPS | $0.13 | $0.15 | $0.20 | $0.24 | - Net sales for the three months ended July 31, 2025, increased by **$4.8 million (3.1%)** year-over-year[12](index=12&type=chunk) - Net income attributable to Movado Group, Inc. decreased by **$0.483 million (13.9%)** for the three months ended July 31, 2025, compared to the prior year[12](index=12&type=chunk) [Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Reports changes in equity from non-owner sources, including net income and other comprehensive income Key Comprehensive Income Data (in thousands) | Metric | 3 Months Ended July 31, 2025 | 3 Months Ended July 31, 2024 (As Restated) | 6 Months Ended July 31, 2025 | 6 Months Ended July 31, 2024 (As Restated) | | :------------------------------------------------ | :--------------------------- | :----------------------------------------- | :--------------------------- | :----------------------------------------- | | Net income | $3,138 | $3,566 | $4,418 | $5,705 | | Foreign currency translation adjustments | $1,725 | $5,782 | $20,321 | ($4,549) | | Total other comprehensive income/(loss), net of taxes | $2,006 | $5,721 | $19,518 | ($4,533) | | Total comprehensive income attributable to Movado Group, Inc. | $4,994 | $9,179 | $23,864 | $963 | - Foreign currency translation adjustments significantly contributed to other comprehensive income, showing a gain of **$20.3 million** for the six months ended July 31, 2025, compared to a loss of **$4.5 million** in the prior year[14](index=14&type=chunk) - Total comprehensive income attributable to Movado Group, Inc. increased from **$0.963 million** to **$23.864 million** for the six months ended July 31, 2025, year-over-year[14](index=14&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Details the cash inflows and outflows from operating, investing, and financing activities Key Cash Flow Data (in thousands) | Metric | 6 Months Ended July 31, 2025 | 6 Months Ended July 31, 2024 (As Restated) | | :------------------------------------------------ | :--------------------------- | :----------------------------------------- | | Net cash used in operating activities | ($11,016) | ($35,910) | | Net cash used in investing activities | ($4,754) | ($8,305) | | Net cash used in financing activities | ($17,618) | ($17,708) | | Effect of exchange rate changes on cash | $5,467 | ($1,900) | | Net decrease in cash, cash equivalents and restricted cash | ($27,921) | ($63,823) | | Cash, cash equivalents, and restricted cash at end of period | $181,293 | $198,991 | - Cash used in operating activities decreased from **$35.9 million** in 2024 to **$11.0 million** in 2025, primarily due to changes in inventories and accrued liabilities[16](index=16&type=chunk)[165](index=165&type=chunk) - The company paid **$15.6 million** in dividends and repurchased **$1.6 million** in stock during the six months ended July 31, 2025[16](index=16&type=chunk)[169](index=169&type=chunk) [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Provides detailed explanations of the accounting policies and figures presented in the financial statements [Basis of Presentation](index=8&type=section&id=NOTE%201%20%E2%80%93%20BASIS%20OF%20PRESENTATION) Outlines the accounting principles and standards used in preparing the financial statements - Interim unaudited Consolidated Financial Statements prepared consistent with annual audited statements, in accordance with **GAAP**[18](index=18&type=chunk) - Management's estimates and assumptions affect reported amounts; **actual results may differ**[18](index=18&type=chunk) [Restatement of Previously Issued Consolidated Financial Statements](index=8&type=section&id=NOTE%201A%20%E2%80%93%20RESTATEMENT%20OF%20PREVIOUSLY%20ISSUED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) Details the reasons for and impacts of restating prior-period financial statements due to misconduct - Restatement due to **misconduct in the Dubai branch** involving overstated sales, premature revenue recognition, and underreported credit notes[19](index=19&type=chunk) - Misconduct occurred over approximately **five years**, starting in fiscal year 2021, and included using a third-party warehouse and falsifying documents[19](index=19&type=chunk) - The restatement impacted historical consolidated financial statements for fiscal years **2024 and 2023**, and interim periods within fiscal years **2025 and 2024**[20](index=20&type=chunk) - The misstatements **did not impact the Company's cash flows** or compliance with debt covenants[20](index=20&type=chunk) - The **SEC Division of Enforcement** requested documents related to the restatement on April 28, 2025, and the Company is cooperating[22](index=22&type=chunk) Impact of Restatement on Net Sales (in thousands) | Period | As Previously Reported | Adjustment | As Restated | | :--------------------------------- | :--------------------- | :--------- | :---------- | | 3 Months Ended July 31, 2024 | $159,313 | ($2,313) | $157,000 | | 6 Months Ended July 31, 2024 | $295,982 | ($4,603) | $291,379 | Impact of Restatement on Net Income Attributable to Movado Group, Inc. (in thousands) | Period | As Previously Reported | Adjustment | As Restated | | :--------------------------------- | :--------------------- | :--------- | :---------- | | 3 Months Ended July 31, 2024 | $3,721 | ($252) | $3,469 | | 6 Months Ended July 31, 2024 | $6,612 | ($1,128) | $5,484 | [Recent Accounting Pronouncements](index=14&type=section&id=NOTE%202%20%E2%80%93%20RECENT%20ACCOUNTING%20PRONOUNCEMENTS) Discusses recently issued accounting standards and their potential impact on the company's financials - ASU 2023-09 'Improvements to Income Tax Disclosures' effective for fiscal years beginning after December 15, 2024; Company is evaluating impact[36](index=36&type=chunk) - ASU 2024-03 'Disaggregation of Income Statement Expenses' effective for annual periods beginning after December 15, 2026; Company is evaluating impact[37](index=37&type=chunk) - ASU 2025-05 'Measurement of Credit Losses for Accounts Receivable and Contract Assets (Topic 326)' effective for annual periods beginning after December 15, 2025; Company is evaluating impact[38](index=38&type=chunk)[39](index=39&type=chunk) [Cost-Savings Initiative](index=15&type=section&id=NOTE%203%20%E2%80%93%20COST-SAVINGS%20INITIATIVE) Describes a plan to reduce operating expenses through headcount reductions - Company committed to a cost-savings initiative in fiscal year 2025 to reduce operating expenses through **headcount reductions**[40](index=40&type=chunk) - Recorded **$0.9 million** and **$1.5 million** in severance and employee-related charges for the three and six months ended July 31, 2025, respectively[41](index=41&type=chunk) - Expects remaining severance and employee-related expenses to be paid during the remainder of **fiscal year 2026**[42](index=42&type=chunk) [Earnings Per Share and Cash Dividends](index=15&type=section&id=NOTE%204%20%E2%80%93%20EARNINGS%20PER%20SHARE%20AND%20CASH%20DIVIDENDS) Provides data on earnings per share calculations and dividends paid to shareholders Weighted Average Shares Outstanding (in thousands) | Metric | 3 Months Ended July 31, 2025 | 3 Months Ended July 31, 2024 | 6 Months Ended July 31, 2025 | 6 Months Ended July 31, 2024 | | :----- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Basic | 22,286 | 22,303 | 22,276 | 22,278 | | Diluted | 22,571 | 22,658 | 22,479 | 22,665 | - Declared and paid two cash dividends of **$0.35 per share** each, totaling **$15.6 million** for the six months ended July 31, 2025[45](index=45&type=chunk) [Inventories](index=16&type=section&id=NOTE%205%20%E2%80%93%20INVENTORIES) Details the composition of the company's inventory, including finished goods and component parts Inventories (in thousands) | Category | July 31, 2025 | January 31, 2025 | July 31, 2024 (As Restated) | | :-------------- | :------------ | :--------------- | :-------------------------- | | Finished goods | $179,038 | $129,204 | $152,182 | | Component parts | $28,871 | $23,905 | $27,573 | | Work-in-process | $3,595 | $3,629 | $3,405 | | Total Inventories | $211,504 | $156,738 | $183,160 | - Total inventories increased by **$54.8 million (35%)** from January 31, 2025, to July 31, 2025, primarily in finished goods[46](index=46&type=chunk) [Debt and Lines of Credit](index=16&type=section&id=NOTE%206%20%E2%80%93%20DEBT%20AND%20LINES%20OF%20CREDIT) Summarizes the company's credit facilities and outstanding debt obligations - Company has a **$100.0 million** senior secured revolving credit facility maturing October 28, 2026[47](index=47&type=chunk) - **No amounts outstanding** under the facility as of July 31, 2025, and July 31, 2024; availability was **$99.7 million**[49](index=49&type=chunk) - Swiss subsidiary maintains unsecured lines of credit totaling **6.5 million Swiss Francs** ($8.0 million equivalent at July 31, 2025), with no borrowings[51](index=51&type=chunk) [Derivative Financial Instruments](index=17&type=section&id=NOTE%207%20%E2%80%93%20DERIVATIVE%20FINANCIAL%20INSTRUMENTS) Explains the use of derivatives, such as forward contracts, to manage foreign currency risk - Company uses **foreign currency forward contracts** to reduce effects of fluctuating foreign currency exchange rates, including cash flow hedges and non-designated hedges[53](index=53&type=chunk) - Net deferred gains on cash flow hedges were **($0.8) million** at July 31, 2025, compared to $0 at January 31, 2025, and $15,000 at July 31, 2024[54](index=54&type=chunk) - Reclassified **($0.7) million** and **($0.8) million** from accumulated other comprehensive income/(loss) to Net sales for the three and six months ended July 31, 2025, respectively[54](index=54&type=chunk) [Fair Value Measurements](index=18&type=section&id=NOTE%208%20%E2%80%93%20FAIR%20VALUE%20MEASUREMENTS) Discloses the fair value of financial assets and liabilities based on a three-level hierarchy - Fair value hierarchy categorizes assets/liabilities into **Level 1** (quoted prices), **Level 2** (observable inputs), and **Level 3** (unobservable inputs)[56](index=56&type=chunk)[58](index=58&type=chunk) Total Assets Measured at Fair Value (in thousands) | Date | Level 1 | Level 2 | Level 3 | Total | | :--------------- | :------- | :------ | :------- | :------- | | July 31, 2025 | $54,564 | $113 | $35,616 | $90,293 | | January 31, 2025 | $54,496 | $13 | $34,313 | $88,822 | | July 31, 2024 | $53,593 | $409 | $34,109 | $88,111 | - Defined benefit plan assets are classified as **Level 3 assets**, totaling **$35.6 million** at July 31, 2025[57](index=57&type=chunk)[60](index=60&type=chunk) - Recorded a non-cash impairment charge of **$0.4 million** for the three months ended July 31, 2025, related to an investment in a venture capital fund[62](index=62&type=chunk) [Commitments and Contingencies](index=19&type=section&id=NOTE%209%20%E2%80%93%20COMMITMENTS%20AND%20CONTINGENCIES) Outlines future obligations under contracts and potential liabilities from legal matters - Company has minimum commitments related to license agreements, endorsement agreements, and service agreements, including minimum annual royalty and advertising amounts[63](index=63&type=chunk) - U.S. Customs and Border Protection (CBP) audit in 2016 challenged the company's watch component cost allocation methodology, potentially implying **$5.1 million** of underpaid duties, though the statute of limitations has lapsed for the audit period[65](index=65&type=chunk) - Company is involved in ordinary course legal proceedings and claims, with reserves recorded for probable and estimable losses; **no material effect** on financial condition or cash flows expected beyond accrued amounts[66](index=66&type=chunk) [Income Taxes](index=21&type=section&id=NOTE%2010%20%E2%80%93%20INCOME%20TAXES) Details the provision for income taxes and factors affecting the effective tax rate Income Tax Provision and Effective Tax Rate | Period | Income Tax Provision (in thousands) | Effective Tax Rate | | :--------------------------------- | :---------------------------------- | :----------------- | | 3 Months Ended July 31, 2025 | $1,961 | 38.5% | | 3 Months Ended July 31, 2024 | $843 | 19.1% | | 6 Months Ended July 31, 2025 | $2,621 | 37.2% | | 6 Months Ended July 31, 2024 | $2,876 | 33.5% | - Effective tax rate changes primarily due to shifts in **jurisdictional earnings mix**, affecting valuation allowances against foreign losses and limitations on GILTI tax credits/deductions[68](index=68&type=chunk)[70](index=70&type=chunk) - No deferred tax liability for **$239.4 million** of undistributed foreign earnings, as the company intends to permanently reinvest them[71](index=71&type=chunk) - The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, is **not expected to have a material impact** on consolidated financial statements[72](index=72&type=chunk) [Equity](index=22&type=section&id=NOTE%2011%20%E2%80%93%20EQUITY) Provides a breakdown of shareholders' equity, including common stock and retained earnings Key Equity Balances (in thousands) | Metric | July 31, 2025 | January 31, 2025 | July 31, 2024 (As Restated) | | :---------------------------------------- | :------------ | :--------------- | :-------------------------- | | Total Movado Group, Inc. shareholders' equity | $489,913 | $481,329 | $492,044 | | Retained earnings | $435,553 | $446,704 | $449,346 | | Accumulated other comprehensive income | $99,499 | $79,981 | $87,802 | - Total Movado Group, Inc. shareholders' equity increased by **$8.6 million** from January 31, 2025, to July 31, 2025[10](index=10&type=chunk) - Class A Common Stock holders are entitled to **10 votes per share** and can convert to common stock at any time[76](index=76&type=chunk) [Treasury Stock](index=24&type=section&id=NOTE%2012%20%E2%80%93%20TREASURY%20STOCK) Reports on the company's share repurchase activities and programs - Board approved a new **$50.0 million share repurchase program** on December 5, 2024, through December 5, 2027[79](index=79&type=chunk) - Repurchased **100,000 shares for $1.6 million** (average $15.94/share) during the six months ended July 31, 2025[80](index=80&type=chunk) - **$48.4 million remains available** for purchase under the December 5, 2024, repurchase program as of July 31, 2025[81](index=81&type=chunk) [Accumulated Other Comprehensive Income](index=24&type=section&id=NOTE%2013%20%E2%80%93%20ACCUMULATED%20OTHER%20COMPREHENSIVE%20INCOME) Breaks down the components of accumulated other comprehensive income, such as currency adjustments Accumulated Other Comprehensive Income (in thousands) | Component | July 31, 2025 | January 31, 2025 | July 31, 2024 (As Restated) | | :---------------------------------------------- | :------------ | :--------------- | :-------------------------- | | Foreign currency translation adjustments | $101,840 | $81,519 | $89,291 | | Cash flow hedges | ($800) | $0 | $15 | | Total accumulated other comprehensive income | $99,499 | $79,981 | $87,802 | - **Foreign currency translation adjustments** are the largest component, increasing from **$81.5 million** to **$101.8 million** from January 31, 2025, to July 31, 2025[83](index=83&type=chunk) [Revenue](index=24&type=section&id=NOTE%2014%20%E2%80%93%20REVENUE) Disaggregates revenue by customer type and describes revenue recognition policies Net Sales by Customer Type (in thousands) | Customer Type | 3 Months Ended July 31, 2025 | 3 Months Ended July 31, 2024 (As Restated) | 6 Months Ended July 31, 2025 | 6 Months Ended July 31, 2024 (As Restated) | | :------------------ | :--------------------------- | :----------------------------------------- | :--------------------------- | :----------------------------------------- | | Wholesale | $117,561 | $113,906 | $221,708 | $219,376 | | Direct to consumer | $43,420 | $42,206 | $70,227 | $70,353 | | After-sales service | $848 | $888 | $1,663 | $1,650 | | Net Sales | $161,829 | $157,000 | $293,598 | $291,379 | - **Wholesale revenue** is the largest component, increasing by **3.2%** for the three months and **1.1%** for the six months ended July 31, 2025, year-over-year[84](index=84&type=chunk) - Revenue is recognized at the point in time **control is transferred** to the customer[85](index=85&type=chunk)[86](index=86&type=chunk)[87](index=87&type=chunk)[89](index=89&type=chunk) [Stock-Based Compensation](index=25&type=section&id=NOTE%2015%20%E2%80%93%20STOCK-BASED%20COMPENSATION) Discloses expenses related to employee stock awards and options - Total compensation expense for stock awards was **$1.0 million** and **$2.1 million** for the three and six months ended July 31, 2025, respectively[94](index=94&type=chunk) - Unrecognized compensation cost for unvested stock awards was approximately **$7.5 million** as of July 31, 2025, expected to be recognized over **2.2 years**[94](index=94&type=chunk) - **No stock options** were granted during the six months ended July 31, 2025 and 2024[91](index=91&type=chunk) [Segment and Geographic Information](index=27&type=section&id=NOTE%2016%20%E2%80%93%20SEGMENT%20AND%20GEOGRAPHIC%20INFORMATION) Provides a breakdown of financial performance by operating segment and geographic region - Company operates in two segments: **Watch and Accessory Brands** and **Company Stores**[98](index=98&type=chunk) - Watch and Accessory Brands segment includes owned brands (Movado, Concord, EBEL, Olivia Burton, MVMT) and licensed brands (Coach, Tommy Hilfiger, Hugo Boss, Lacoste, Calvin Klein)[113](index=113&type=chunk) Net Sales by Segment (in thousands) | Segment | 3 Months Ended July 31, 2025 | 3 Months Ended July 31, 2024 (As Restated) | 6 Months Ended July 31, 2025 | 6 Months Ended July 31, 2024 (As Restated) | | :------------------------- | :--------------------------- | :----------------------------------------- | :--------------------------- | :----------------------------------------- | | Watch and Accessory Brands | $135,677 | $131,611 | $250,479 | $248,723 | | Company Stores | $26,152 | $25,389 | $43,119 | $42,656 | | Consolidated total | $161,829 | $157,000 | $293,598 | $291,379 | - International operations accounted for **33.5% (Europe)**, **11.6% (Americas ex-US)**, **6.8% (Asia)**, and **5.2% (Middle East)** of total net sales for the three months ended July 31, 2025[99](index=99&type=chunk) - Watch and Accessory Brands segment recorded an operating loss of **$0.2 million** for both the three and six months ended July 31, 2025, including unallocated corporate expenses and intercompany profits[100](index=100&type=chunk)[101](index=101&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk) - Company Stores segment operating income increased to **$4.2 million** (3 months) and **$4.4 million** (6 months) for July 31, 2025, from $3.7 million and $4.1 million respectively in the prior year[100](index=100&type=chunk)[101](index=101&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Provides management's perspective on financial performance, condition, and key operational factors [Forward-Looking Statements](index=33&type=section&id=Forward-Looking%20Statements) Cautions readers that statements about future expectations are subject to risks and uncertainties - Statements in this report that are not historical are **forward-looking**, subject to risks and uncertainties[108](index=108&type=chunk) - Risks include general economic conditions, inflation, geopolitical concerns, tariffs, supply disruptions, changes in consumer preferences, and the impact of 'smart' watches[108](index=108&type=chunk) - Company undertakes **no obligation** to update or revise forward-looking statements[109](index=109&type=chunk) [Critical Accounting Policies and Estimates](index=34&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Highlights the accounting policies that require significant management judgment and estimation - Financial statements prepared using GAAP, requiring management judgments and estimates (e.g., sales discounts, inventories, income taxes)[110](index=110&type=chunk) - **No material changes** to critical accounting policies as of July 31, 2025[111](index=111&type=chunk) [Overview](index=34&type=section&id=Overview) Provides a high-level summary of the company's business structure and brand portfolio - Company operates in two segments: **Watch and Accessory Brands** (design, manufacturing, distribution of owned and licensed brands, after-sales service) and **Company Stores** (retail outlet business in US and Canada)[112](index=112&type=chunk) - Owned brands include Movado, Concord, EBEL, Olivia Burton, MVMT; licensed brands include Coach, Tommy Hilfiger, Hugo Boss, Lacoste, Calvin Klein[113](index=113&type=chunk) - **Owned brands** generally yield **higher gross margins** than licensed brands due to royalty payments[114](index=114&type=chunk) [Recent Developments and Initiatives](index=34&type=section&id=Recent%20Developments%20and%20Initiatives) Discusses recent events, including the impact of tariffs and cost-saving measures - U.S. imports of Chinese-origin watch bands, jewelry, and packaging are subject to **special incremental tariffs** (7.5% for bands/jewelry, 25% for packaging)[115](index=115&type=chunk) - Additional special tariffs apply: **30%** on China-origin goods, **15%** on Japan-origin goods, and **39%** on Switzerland-origin goods[116](index=116&type=chunk) - Tariffs are expected to **materially increase U.S. cost of sales** and negatively impact sales volumes, despite mitigation efforts like price increases and sourcing changes[117](index=117&type=chunk) - Cost-savings initiative resulted in **$4.6 million** accruals in FY2025 and **$1.5 million** in 1H FY2026 for severance and lease termination, with expected annual savings of **$10.0 million**[118](index=118&type=chunk) - The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, is **not expected to have a material impact** on the Company's Consolidated Financial Statements[119](index=119&type=chunk) [Results of Operations Overview](index=36&type=section&id=Results%20of%20Operations%20Overview) Analyzes the company's operational results, comparing current period performance to the prior year - Net sales for the three months ended July 31, 2025, increased by **3.1% to $161.8 million** (1.4% excluding positive foreign currency impact of $2.6 million)[123](index=123&type=chunk) - Net sales for the six months ended July 31, 2025, increased by **0.8% to $293.6 million** (0.3% excluding positive foreign currency impact of $1.4 million)[144](index=144&type=chunk) - Gross profit margin decreased by approximately **20 basis points** for both the three and six months ended July 31, 2025, primarily due to increased U.S. tariffs and negative foreign exchange impact, partially offset by favorable sales mix and lower shipping costs[129](index=129&type=chunk)[150](index=150&type=chunk) - SG&A expenses increased by **1.1% ($0.9 million)** for the three months and **0.8% ($1.2 million)** for the six months ended July 31, 2025, driven by professional fees related to the Dubai branch investigation and performance-based compensation[130](index=130&type=chunk)[151](index=151&type=chunk) - Watch and Accessory Brands segment operating loss was **$0.2 million** for both periods, while Company Stores operating income increased[100](index=100&type=chunk)[101](index=101&type=chunk) - Net income attributable to Movado Group, Inc. decreased to **$3.0 million** (3 months) and **$4.4 million** (6 months) for July 31, 2025, from $3.5 million and $5.5 million respectively in the prior year[141](index=141&type=chunk)[162](index=162&type=chunk) [Liquidity and Capital Resources](index=47&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) Assesses the company's ability to meet its short-term and long-term financial obligations Cash and Working Capital (in thousands) | Metric | July 31, 2025 | July 31, 2024 | | :---------------------- | :------------ | :------------ | | Cash and cash equivalents | $180,493 | $198,251 | | Working capital | $384,800 | $392,800 | - Cash used in operating activities decreased significantly to **$11.0 million** for the six months ended July 31, 2025, from **$35.9 million** in the prior year, despite a **$44.4 million increase in inventories**[165](index=165&type=chunk) - Cash used in investing activities was **$4.8 million** (2025) vs. **$8.3 million** (2024), primarily for capital expenditures and long-term investments[167](index=167&type=chunk)[168](index=168&type=chunk) - Cash used in financing activities was **$17.6 million** (2025) vs. **$17.7 million** (2024), including **$15.6 million in dividends paid** and **$1.6 million in stock repurchases**[169](index=169&type=chunk) - Company has a **$100.0 million revolving credit facility** with **$99.7 million available** as of July 31, 2025[170](index=170&type=chunk)[172](index=172&type=chunk) - Committed to invest up to **$21.5 million** in venture capital funds, with **$16.0 million funded** through July 31, 2025, and **$5.6 million remaining commitments**[176](index=176&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=51&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Details the company's exposure to market risks, primarily foreign currency and commodity risks - Primary market risk exposure is **foreign currency exchange risk**, particularly Swiss Franc, Euro, British Pound, Chinese Yuan, and Japanese Yen[182](index=182&type=chunk) - Company uses a **hedging program** with derivative financial instruments (forward and option contracts) to reduce foreign currency exposure, including qualified cash flow hedges and non-designated hedges[182](index=182&type=chunk)[183](index=183&type=chunk) - As of July 31, 2025, the net forward contracts hedging portfolio included **30.0 million Swiss Francs** equivalent, **28.9 million U.S. dollars** equivalent, **36.0 million Euros** equivalent, and **2.7 million British Pounds** equivalent[184](index=184&type=chunk) - Commodity risk is primarily related to **gold prices**; the company did not hold any gold futures contracts as of July 31, 2025 and 2024[187](index=187&type=chunk) - **No floating rate debt** or interest rate hedges were held as of July 31, 2025 and 2024[188](index=188&type=chunk) [Item 4. Controls and Procedures](index=53&type=section&id=Item%204.%20Controls%20and%20Procedures) Discloses a material weakness in internal controls and outlines the corresponding remediation plan - Disclosure controls and procedures were **not effective** at a reasonable assurance level as of July 31, 2025[190](index=190&type=chunk) - **Material weakness** identified in the risk assessment process regarding the lack of functional segregation of duties in the **Dubai branch** of the Swiss subsidiary[190](index=190&type=chunk) - Remediation plan includes enhancing risk assessment and oversight, personnel changes (e.g., terminating former managing director), switching to functional reporting lines, and increasing policy awareness/compliance training[191](index=191&type=chunk) - Material weakness will not be considered remediated until controls operate effectively for a sufficient period and are tested[191](index=191&type=chunk) [Part II – Other Information](index=54&type=section&id=Part%20II%20%E2%80%93%20Other%20Information) Contains supplementary information including legal proceedings, risk factors, and exhibit filings [Item 1. Legal Proceedings](index=54&type=section&id=Item%201.%20Legal%20Proceedings) Outlines routine legal proceedings and contingencies, which are not expected to be material - Company is involved in ordinary course legal proceedings and claims; reserves are recorded for probable and estimable losses[194](index=194&type=chunk) - A 2016 CBP audit report challenged the company's watch component cost allocation, implying **$5.1 million** of underpaid duties, but the statute of limitations has lapsed[195](index=195&type=chunk) - Resolution of current legal proceedings and contingencies is **not expected to materially affect** financial condition, future results of operations, or cash flows beyond accrued amounts[196](index=196&type=chunk) [Item 1A. Risk Factors](index=54&type=section&id=Item%201A.%20Risk%20Factors) Confirms no material changes to risk factors previously disclosed in the Annual Report on Form 10-K - **No material changes** to risk factors reported in the 2025 Annual Report on Form 10-K as of July 31, 2025[197](index=197&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=54&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details the company's common stock repurchases under its authorized share buyback program - Board approved a new **$50.0 million share repurchase program** on December 5, 2024, through December 5, 2027[198](index=198&type=chunk) - Repurchased **100,000 shares** of common stock for **$1.6 million** (average $15.94 per share) during the three months ended July 31, 2025[198](index=198&type=chunk)[201](index=201&type=chunk) - **$48.4 million remains available** under the repurchase program as of July 31, 2025[201](index=201&type=chunk) [Item 5. Other Information](index=55&type=section&id=Item%205.%20Other%20Information) Reports no changes to director or officer trading arrangements under Rule 10b5-1 - No directors or officers reported changes to **Rule 10b5-1** or non-Rule 10b5-1 trading arrangements during the quarter ended July 31, 2025[202](index=202&type=chunk) [Item 6. Exhibits](index=56&type=section&id=Item%206.%20Exhibits) Lists all documents filed as exhibits to the Form 10-Q, including certifications and iXBRL data - Includes certifications of CEO and CFO pursuant to **Sarbanes-Oxley Act** (Sections 302 and 906)[205](index=205&type=chunk) - Financial information (Consolidated Balance Sheets, Statements of Operations, Comprehensive Income, Cash Flows, and Notes) is filed in **Inline Extensible Business Reporting Language (iXBRL)**[205](index=205&type=chunk) [Signature](index=57&type=section&id=Signature) Confirms the official authorization and signing of the report by a corporate officer - Report signed by **Linda Feeney**, Senior Vice President, Principal Accounting Officer[208](index=208&type=chunk) - Dated: **August 28, 2025**[208](index=208&type=chunk)

Financial Data and Key Metrics Changes - Sales increased by 3% to $161.8 million compared to $157 million last year, with adjusted operating profit more than doubling to $7 million from $2.6 million despite a $2.2 million impact from U.S. tariff expenses [5][17] - Gross profit margin was 54.1% compared to 54.3% in the same quarter last year, primarily affected by increased tariffs and unfavorable foreign exchange [18][19] - Net income for the quarter was $5.3 million or $0.23 per diluted share, up from $3.5 million or $0.15 per diluted share in the prior year [20] Business Line Data and Key Metrics Changes - The company's owned brands experienced a 5.6% sales decline, while licensed brands grew by 6.5% on a constant currency basis or 9.5% on a reported basis [7][12] - The Movado brand saw a return to growth in wholesale distribution, with a 6% growth in its own e-commerce site [10] - The outlet stores segment grew by 2.4% for the quarter, indicating positive trends in that channel [9] Market Data and Key Metrics Changes - U.S. net sales declined by 1.6%, while international net sales increased by 6.9% or 3.9% on a constant currency basis, with strong performances in Europe, Latin America, and India [8][18] - The Middle East market is currently being rebuilt, which has impacted overall performance [8] Company Strategy and Development Direction - The company is focused on returning to growth and profitability, expecting approximately $10 million in annualized savings from actions taken to reduce operating expenses [6][7] - New product launches and marketing campaigns are planned for the second half of the year, targeting both women's and men's watch categories [11][14] - The company is closely monitoring the tariff situation and developing mitigation plans while maintaining a strong balance sheet with over $180 million in cash and no debt [6][25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resurgence in the fashion watch market and the potential for growth in the mini and micro watch categories, particularly among younger consumers [27][28] - The company is not providing a fiscal 2026 outlook due to ongoing uncertainties around tariffs and the broader retail environment [25] Other Important Information - The company has built a strong inventory position of Swiss-made watches in the U.S. to mitigate tariff impacts [6][24] - Capital expenditures for the first six months were $2.8 million, and approximately 100,000 shares were repurchased under the share repurchase program [24] Q&A Session Summary Question: Insights on consumer habits regarding mini watches - Management noted a trend of smaller watches gaining popularity again, particularly among young women, driven by social media and layering with jewelry [27][28] Question: Performance during Prime Day - The company observed strong performance in its digital business during Prime Day, particularly in Europe, indicating a positive trend across its brand portfolio [29] Question: Inventory increase due to tariffs - Management explained that inventory was rebuilt after being low at year-end, with expectations to align inventory levels by year-end while managing tariff impacts [30][33] Question: Future of restructuring charges - Management indicated that restructuring charges are predominantly done, with expectations for a significant reduction in future expenses [36]

Financial Data and Key Metrics Changes - Sales grew by 3% to $161.8 million compared to $157 million last year, with adjusted operating profit more than doubling to $7 million from $2.6 million despite a $2.2 million impact from U.S. tariff expenses [5][18] - Gross profit as a percentage of sales was 54.1% compared to 54.3% in the same quarter last year, primarily driven by increased tariffs and unfavorable foreign exchange [19][20] - Net income for the second quarter was $5.3 million or $0.23 per diluted share, compared to $3.5 million or $0.15 per diluted share in the prior year [21] Business Line Data and Key Metrics Changes - The company's licensed brands grew by 9.5% on a reported basis, or 6.5% on a constant currency basis, while owned brands experienced a 5.6% sales decline [7][13] - Movado brand saw a return to growth in wholesale distribution, with a 6% growth in its own e-commerce site [10][11] - The outlet stores segment grew by 2.4% for the quarter, indicating positive trends in that channel [9] Market Data and Key Metrics Changes - U.S. net sales declined by 1.6%, while international net sales increased by 6.9%, or 3.9% on a constant currency basis, with strong performances in Europe, Latin America, and India [8][19] - The Middle East market is currently being rebuilt, which has impacted overall performance [8] Company Strategy and Development Direction - The company is focused on returning to growth and profitability, expecting approximately $10 million in annualized savings from actions taken to reduce operating expenses [7][16] - Strategic pricing actions to offset tariff impacts became effective on July 1, indicating a proactive approach to managing costs [8] - The company is optimistic about the resurgence in the fashion watch market and is committed to driving profitability while maintaining a strong balance sheet [16] Management's Comments on Operating Environment and Future Outlook - Management expressed hope for a reduction in tariff rates between the U.S. and Switzerland and is closely monitoring the situation [6][16] - The company is not providing a fiscal 2026 outlook due to ongoing uncertainty regarding tariffs and the broader retail environment [26] Other Important Information - The company has a strong balance sheet with over $180 million in cash and no debt [6] - Inventory at the end of the quarter was up 15.5% year-over-year, with a significant portion related to Swiss-made watches [25] Q&A Session Summary Question: Insights on mini watches and consumer habits - Management noted a trend towards smaller watches, particularly among young women, driven by social media and layering with jewelry, representing a significant opportunity [28][29] Question: Performance during Prime Day - The company observed strong performance in its digital business during Prime Day events, particularly in Europe, indicating a positive trend across its brand portfolio [30] Question: Inventory increase due to tariffs - Management explained that inventory was rebuilt to manage tariff impacts, with expectations to align inventory levels by year-end [31][34] Question: Restructuring charges and future visibility - Management indicated that restructuring charges are predominantly done, with expectations for a significant reduction in future expenses [38]

Financial Performance - Net sales for the second quarter of fiscal 2026 were $161.8 million, a 3.1% increase from $157.0 million in the same period of fiscal 2025[6] - Operating income for the second quarter was $4.0 million, up from $2.6 million in the same period last year, with adjusted operating income at $7.0 million[6] - International net sales increased by 6.9%, while U.S. net sales decreased by 1.6% compared to the second quarter of fiscal 2025[10] - For the first six months of fiscal 2026, net sales increased by 0.8% to $293.6 million, with international net sales up by 2.6%[17] - Total net sales for the three months ended July 31, 2025, were $161,829, representing a 3.1% increase compared to $157,000 for the same period in 2024[24] Profitability Metrics - Gross margin for the second quarter was 54.1%, slightly down from 54.3% in the prior year, primarily due to increased U.S. tariffs[10] - Diluted earnings per share (EPS) were $0.13, compared to $0.15 in the prior year, while adjusted EPS was $0.23[6] - Net income attributable to Movado Group, Inc. for the three months ended July 31, 2025, was $2,986, down from $3,469 in the same period last year, reflecting a decrease of 13.9%[26] - The company reported a diluted EPS of $0.13 for the three months ended July 31, 2025, compared to $0.15 for the same period in 2024[26] Cash and Assets - The company ended the quarter with $180.5 million in cash and no debt, positioning it well for future investments[5] - Cash and cash equivalents at the end of the period were $180,493, a decrease from $198,251 at the end of January 2025[29] - Total current assets increased to $516,191 as of July 31, 2025, compared to $489,941 at the end of January 2025[29] - Total assets as of July 31, 2025, were $748,719, up from $729,231 at the end of January 2025[29] - Movado Group, Inc. reported a total equity of $492,235 as of July 31, 2025, compared to $483,579 at the end of January 2025, reflecting a positive trend in shareholder equity[29] Tax and Dividends - The adjusted tax provision for the second quarter was $2.7 million, reflecting an adjusted tax rate of 32.9%[10] - The company declared a quarterly dividend of $0.35 per share, payable on September 22, 2025[12] Economic Outlook - The company is not providing a fiscal 2026 outlook due to current economic uncertainty and tariff developments[14] Cash Flow Management - The company experienced a net cash used in operating activities of $11,016 for the six months ended July 31, 2025, compared to $35,910 in the prior year, indicating improved cash flow management[31] Investigation Costs - The company incurred $2,136 in professional fees related to an investigation, impacting net income for the three months ended July 31, 2025[27]

Group 1 - Movado Group has faced significant challenges, with shares down 15.8% year to date and 38.2% over the last year [1] - Following the COVID-19 pandemic, there was a notable surge in demand for quality watches, which initially benefited the industry [1]

Group 1 - Movado Group, Inc. is a watchmaker originally from Switzerland, now based in the United States, known for its clean and simple design [1] - The company has established a reputation for offering products that are not exactly cheap but are priced within a reasonable range [1] Group 2 - The focus of the analysis is primarily on small- to mid-cap companies, which are often overlooked by many investors, while also occasionally reviewing large-cap names for a broader market perspective [1]

Financial Data and Key Metrics Changes - For the first quarter, sales were $131.8 million, down 1.9% from $134.4 million last year, or down 1% on a constant currency basis [5][16] - Adjusted operating income decreased to $870,000 from $2.1 million last year [5][20] - Adjusted earnings per share were $0.08, down slightly from $0.09 last year [6][20] - Cash at the end of the quarter was $203.1 million, compared to $225.4 million at the same period last year [21] Business Line Data and Key Metrics Changes - U.S. sales decreased by 1.6%, while international sales decreased by 2.2%, or 0.7% on a constant currency basis [7][17] - Licensed brands saw strong growth with sales improving by high single digits [9] - The Movado brand refresh is progressing, with new collections receiving strong consumer responses [7] Market Data and Key Metrics Changes - The retail environment remains uncertain, impacting consumer behavior, particularly in the U.S. and Europe [25][27] - The company is experiencing pockets of growth in certain markets while facing challenges in others [25] Company Strategy and Development Direction - The company is focused on product innovation and delivering value to consumers despite a challenging retail environment [6][12] - There is an emphasis on managing costs and rationalizing expense infrastructure to improve financial performance [28] - The company is monitoring the tariff landscape and plans to implement selective price increases to mitigate cost increases [22] Management Comments on Operating Environment and Future Outlook - Management acknowledges the impact of macroeconomic uncertainties and tariff-related challenges on consumer spending [12][31] - The company is not providing a fiscal 2026 outlook due to ongoing uncertainties [22] - There is a focus on delivering quality and value, with positive signs in women's watch collections and men's jewelry offerings [13] Other Important Information - The company has a strong balance sheet with no debt and a cash position that allows for continued dividend payments [6][30] - Unrealized losses due to currency fluctuations were noted, with management indicating that these will only be realized when paid [32][33] Q&A Session Summary Question: Sales momentum and trends - Management noted that sales vary by market and brand, with some growth and some challenges, but they are satisfied with current sales levels [25] Question: Impact of tariffs on consumer behavior - Management indicated that the journey to improve sales is a long-term strategy, with renewed interest from younger consumers in new products [26][27] Question: Alignment of earnings per share and cash dividend - Management expressed confidence in improving operating cash flow and strengthening the balance sheet in the second half of the year [30] Question: Unrealized loss in foreign exchange - Management clarified that the unrealized loss was due to a decline in the U.S. Dollar and will only be realized when paid [32][33]

Financial Data and Key Metrics Changes - For the first quarter, sales were $131.8 million, down 1.9% from $134.4 million last year, or down 1% on a constant currency basis [5][15] - Adjusted operating income decreased to $870,000 from $2.1 million last year [5][18] - Adjusted earnings per share were $0.08, down from $0.09 last year [6][18] - Cash at the end of the quarter was $203.1 million, compared to $225.4 million at the same time last year [19] Business Line Data and Key Metrics Changes - U.S. sales decreased by 1.6%, while international sales were down 2.2%, or 0.7% on a constant currency basis [7][16] - Licensed brands saw strong growth with sales improving by high single digits [8] - Movado brand refresh initiatives, including new product introductions, have received a strong consumer response [7] Market Data and Key Metrics Changes - The retail environment remains uncertain, impacting consumer behavior, particularly in the U.S. and Europe [24] - The outlet division saw an improved trend with sales down only 1.7%, continuing into the second quarter [10] Company Strategy and Development Direction - The company is focused on managing controllables and operating with flexibility while delivering innovation and value [12] - Strategic initiatives include product innovation and cost savings measures, such as reducing marketing expenditures [5][17] - The company is rationalizing its expense infrastructure to improve financial performance [26] Management Comments on Operating Environment and Future Outlook - Management noted that the current economic environment and tariff-related uncertainties have impacted consumer discretionary spending [11][20] - The company is not providing a fiscal 2026 outlook due to macroeconomic uncertainties [20] - There is resilience in the category with young consumers embracing trend-forward watches and jewelry [12] Other Important Information - The company recorded approximately $1.6 million of other non-operating income, primarily from interest earned on its global cash position [18] - Unrealized losses due to currency fluctuations were noted, with management indicating that these will only be realized when paid [30][31] Q&A Session Summary Question: Insights on sales momentum and trends - Management indicated that sales vary by market and brand, with pockets of growth and challenges, but they are satisfied with current sales levels [23] Question: Impact of tariffs on consumer behavior - Management acknowledged that discretionary purchases are challenged and emphasized the importance of delivering value to consumers [24][25] Question: Alignment of earnings per share and cash dividend - Management highlighted a strong balance sheet and expected improved operating cash flow in the second half of the year [28] Question: Unrealized loss in foreign exchange - Management explained that the unrealized loss was due to a decline in the U.S. Dollar and will be mitigated in future quarters [30][31]

Financial Performance - Net sales for the three months ended April 30, 2025 were $131.8 million, representing a $2.6 million or 1.9% decrease from the prior year period[113]. - The Watch and Accessory Brands segment net sales were $114.8 million, a decrease of $2.3 million or 2.0% compared to the prior year, primarily due to a $6.8 million or 17.0% decrease in the owned brands category[114]. - The licensed brands category saw an increase in net sales of $6.2 million or 8.3%, partially offsetting the decline in owned brands[114]. - Net sales for the U.S. Watch and Accessory Brands segment were $38.6 million, a decrease of $0.5 million or 1.4% compared to the prior year, primarily due to an unfavorable sales mix[115]. - International net sales in the Watch and Accessory Brands segment were $76.2 million, down $1.8 million or 2.3%, impacted by foreign currency fluctuations of $1.2 million[116]. - Net income attributable to Movado Group, Inc. was $1.4 million for the three months ended April 30, 2025, compared to $2.0 million in the prior year[130]. Cost and Expenses - The Company recorded $4.6 million in accruals for severance and employee-related charges during fiscal year 2025 as part of a cost-savings initiative[107]. - The Company expects annual savings of approximately $10.0 million from the cost-savings initiatives implemented[107]. - Gross profit for the three months ended April 30, 2025, was $71.4 million, representing 54.1% of net sales, a decrease from 54.3% in the prior year[118]. - SG&A expenses increased by $0.3 million or 0.4% to $71.1 million, driven by a $2.7 million rise in foreign exchange losses[119]. - The Company recorded an operating loss of less than $0.1 million in the Watch and Accessory Brands segment, compared to an operating income of $1.7 million in the prior year[120]. - The U.S. locations of the Watch and Accessory Brands segment reported an operating loss of $7.0 million, an improvement from an $8.1 million loss in the prior year[121]. - International locations recorded operating income of $7.0 million, down from $9.8 million in the prior year, due to higher SG&A expenses[124]. Cash Flow and Investments - Cash used in operating activities was $7.2 million, an improvement from $18.1 million used in the prior year[133]. - The Company had $203.1 million in cash and cash equivalents as of April 30, 2025, down from $225.4 million in the prior year[131]. - The Company committed to invest up to $21.5 million in minority investments, having funded approximately $14.1 million through fiscal 2025 and an additional $1.3 million in the first three months of fiscal 2026[143]. - Cash paid for interest was $0.1 million for both the three-month periods ended April 30, 2025, and April 30, 2024[142]. Tariffs and Foreign Exchange - The U.S. government imposed a baseline special tariff of 10% on products from all countries, which is expected to increase the Company's cost of sales[104]. - The total U.S. special tariff on Chinese watch bands and jewelry has increased to 37.5% due to recent tariff implementations[105]. - Fluctuations in foreign currency exchange rates negatively impacted net sales by $1.2 million compared to the prior year period[113]. Shareholder Returns - The Company declared a cash dividend of $0.35 per share, totaling $7.8 million, for both the three-month periods ended April 30, 2025, and April 30, 2024[144]. - The Company expects to continue declaring cash dividends in the future, subject to the Board of Directors' discretion[144]. Debt and Financial Obligations - As of April 30, 2025, the Company had unsecured lines of credit totaling 6.5 million Swiss Francs, equivalent to $7.9 million, with no borrowings against these lines[140]. - The Company had no floating rate debt as of April 30, 2025, and reported no weighted average borrowings during the three months ended April 30, 2025[153]. - The Company has guaranteed obligations to third parties totaling $1.5 million as of April 30, 2025, related to its foreign subsidiaries[141]. Hedging and Future Contracts - As of April 30, 2025, the Company's net forward contracts hedging portfolio included 30.5 million U.S. dollars equivalent and 34.6 million Euros equivalent, with various expiry dates[151]. - The Company did not hold any future contracts in its gold hedge portfolio as of April 30, 2025, meaning changes in gold purchase prices will directly affect the cost of sales[152]. Share Repurchase - During the three months ended April 30, 2024, the Company repurchased 39,000 shares at a total cost of $1.1 million, averaging $27.85 per share[145].

Core Viewpoint - Movado's quarterly earnings significantly missed expectations, indicating potential challenges in the company's performance and outlook [1][2][6] Financial Performance - Movado reported earnings of $0.08 per share, falling short of the Zacks Consensus Estimate of $0.39 per share, and down from $0.13 per share a year ago, representing an earnings surprise of -79.49% [1] - The company posted revenues of $131.77 million for the quarter, missing the Zacks Consensus Estimate by 7.28%, and down from $136.67 million year-over-year [2] - Over the last four quarters, Movado has only surpassed consensus EPS estimates once and has not beaten consensus revenue estimates [2] Stock Performance - Movado shares have declined approximately 11.5% since the beginning of the year, contrasting with the S&P 500's slight gain of 0.1% [3] - The current Zacks Rank for Movado is 3 (Hold), suggesting that the stock is expected to perform in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.57 on revenues of $164.35 million, and for the current fiscal year, it is $2.57 on revenues of $678.2 million [7] - The trend of estimate revisions for Movado is mixed, which could change following the recent earnings report [6] Industry Context - The Retail - Jewelry industry, to which Movado belongs, is currently ranked in the top 14% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Movado's stock performance [5]