[First Quarter Fiscal 2026 Financial Highlights](index=1&type=section&id=First%20Quarter%20Fiscal%202026%20Financial%20Highlights) Movado Group reported a slight decrease in Q1 FY2026 net sales, with reduced operating income and EPS, while maintaining a strong balance sheet and approving a quarterly dividend Q1 FY2026 Key Financial Metrics | Metric | Q1 FY2026 | Q1 FY2025 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $131.8 million | $134.4 million | -1.9% | | Operating Income | $0.3 million | $2.1 million | -86.2% | | Adjusted Operating Income | $0.9 million | N/A | N/A | | Diluted EPS | $0.06 | $0.09 | -33.3% | | Adjusted Diluted EPS | $0.08 | N/A | N/A | - The company ended the quarter with a strong liquidity position, holding **$203.1 million** in cash and no debt[4](index=4&type=chunk)[5](index=5&type=chunk) - The Board of Directors approved a quarterly cash dividend of **$0.35** per share[1](index=1&type=chunk)[4](index=4&type=chunk)[9](index=9&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management successfully navigated a challenging retail environment through cost-saving initiatives and product innovation, with strong performance from licensed brands and optimism for future opportunities despite market volatility - Successfully navigated a challenging retail environment by focusing on operational efficiency and cost-saving initiatives[4](index=4&type=chunk) - The licensed brand portfolio performed very well, indicating renewed vibrancy in the fashion watch category. The Movado brand also saw a strong response to new product introductions[4](index=4&type=chunk) - While anticipating continued market volatility, the company is optimistic about introducing compelling innovation across its brand portfolio[4](index=4&type=chunk) [Detailed Financial Analysis](index=2&type=section&id=Detailed%20Financial%20Analysis) This section provides a detailed analysis of the first quarter's financial results, including net sales, profitability, and non-GAAP adjustments [Net Sales](index=2&type=section&id=Net%20Sales) Net sales for Q1 FY2026 decreased by **1.9%** to **$131.8 million**, primarily due to declines in owned brands, partially offset by growth in licensed brands Net Sales Performance (Q1 FY2026 vs Q1 FY2025) | Category | Value (Q1 FY26) | Change vs Q1 FY25 | Constant Dollar Change | | :--- | :--- | :--- | :--- | | **Total Net Sales** | **$131.8 million** | **-1.9%** | **-1.0%** | | U.S. Net Sales | N/A | -1.6% | N/A | | International Net Sales | N/A | -2.2% | -0.7% | - The overall decrease in net sales was attributed to declines in owned brands and Movado Company Stores, which was partially offset by an increase in licensed brands[8](index=8&type=chunk) [Profitability Analysis](index=2&type=section&id=Profitability%20Analysis) Gross margin slightly decreased to **54.1%**, while operating expenses increased to **$71.1 million**, leading to a sharp decline in operating income to **$0.3 million** and net income to **$1.4 million** - Gross margin decreased to **54.1%** from **54.3%**, primarily due to the negative impact of foreign exchange rates, increased shipping costs, and decreased leverage of fixed costs from lower sales[8](index=8&type=chunk) - Operating expenses increased to **$71.1 million** from **$70.8 million**, mainly due to higher foreign exchange losses and performance-based compensation, partially offset by lower payroll and marketing expenses[8](index=8&type=chunk) Profitability Comparison (Q1 FY2026 vs Q1 FY2025) | Metric | Q1 FY2026 | Q1 FY2025 (As Restated) | | :--- | :--- | :--- | | Gross Profit | $71.4 million | $72.9 million | | Operating Income | $0.3 million | $2.1 million | | Net Income Attributable to Movado | $1.4 million | $2.0 million | | Diluted EPS | $0.06 | $0.09 | [Non-GAAP Adjustments](index=2&type=section&id=Non-GAAP%20Adjustments) The company reported adjusted non-GAAP figures, excluding a **$0.6 million** pre-tax charge related to a cost-savings initiative, resulting in an adjusted operating income of **$0.9 million** and adjusted diluted EPS of **$0.08** - First quarter fiscal 2026 results included a pre-tax charge of **$0.6 million**, or **$0.02** per diluted share, associated with a corporate cost-savings initiative[6](index=6&type=chunk) GAAP to Non-GAAP Reconciliation (Q1 FY2026, in thousands, except EPS) | Metric | As Reported (GAAP) | Adjustment | Adjusted (Non-GAAP) | | :--- | :--- | :--- | :--- | | Operating Income | $291 | $579 | $870 | | Net Income | $1,420 | $460 | $1,880 | | Diluted EPS | $0.06 | $0.02 | $0.08 | [Capital Allocation](index=3&type=section&id=Capital%20Allocation) The Board of Directors approved a quarterly cash dividend of **$0.35** per share, with no share repurchases made during the quarter, leaving **$50.0 million** available under the program - The Board of Directors approved a cash dividend of **$0.35** per share, payable on June 26, 2025, to shareholders of record as of June 12, 2025[9](index=9&type=chunk) - No shares were repurchased during the first quarter of fiscal 2026. As of April 30, 2025, **$50.0 million** remained available under the share repurchase program[10](index=10&type=chunk) [Business Outlook](index=3&type=section&id=Fiscal%202026%20Outlook) Movado Group has elected not to provide a fiscal 2026 outlook due to economic uncertainty and unpredictable tariff impacts, but is planning actions to mitigate these effects - The company has chosen not to provide a fiscal 2026 outlook, citing economic uncertainty and unpredictable tariff impacts[11](index=11&type=chunk) - To mitigate the impact of recent tariff changes, the company is planning actions such as select price increases at wholesale and retail levels[11](index=11&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) This section presents the unaudited consolidated financial statements for the period ended April 30, 2025 [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) For Q1 FY2026, Movado Group generated **$131.8 million** in net sales and **$71.4 million** in gross profit, with operating income at **$0.3 million** and net income at **$1.4 million** Consolidated Statements of Operations (in thousands) | Account | Three Months Ended April 30, 2025 | Three Months Ended April 30, 2024 (As Restated) | | :--- | :--- | :--- | | Net sales | $131,769 | $134,379 | | Gross profit | $71,350 | $72,920 | | Operating income | $291 | $2,118 | | Net income attributable to Movado Group, Inc. | $1,420 | $2,015 | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) As of April 30, 2025, the company reported total assets of **$747.2 million**, total liabilities of **$253.8 million**, and total shareholders' equity of **$493.2 million**, with **$203.1 million** in cash Key Balance Sheet Items (in thousands) | Account | April 30, 2025 | April 30, 2024 (As Restated) | | :--- | :--- | :--- | | Cash and cash equivalents | $203,086 | $225,372 | | Inventories | $189,298 | $165,170 | | Total current assets | $511,007 | $501,886 | | Total assets | $747,178 | $735,995 | | Total current liabilities | $125,555 | $103,370 | | Total equity | $495,400 | $491,856 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities for Q1 FY2026 was **$7.2 million**, an improvement from the prior year, with the period ending with a cash balance of **$203.1 million** Statements of Cash Flows Summary (in thousands) | Cash Flow Activity | Three Months Ended April 30, 2025 | Three Months Ended April 30, 2024 (As Restated) | | :--- | :--- | :--- | | Net cash used in operating activities | ($7,214) | ($18,074) | | Net cash used in investing activities | ($2,837) | ($4,796) | | Net cash used in financing activities | ($467) | ($9,917) | | Net change in cash | ($5,341) | ($36,735) | | Cash at end of period | $203,873 | $226,079 |

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Movado, with a focus on how actual results compare to estimates impacting stock price [1][2] Earnings Expectations - Movado is expected to report quarterly earnings of $0.39 per share, reflecting a +200% change year-over-year [3] - Revenue projections stand at $142.11 million, indicating a 4% increase from the previous year [3] Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, suggesting stability in analyst expectations [4] - Movado's Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [10] Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict earnings deviation from consensus, with positive readings being more reliable [6][7] - A positive Earnings ESP combined with a Zacks Rank of 1, 2, or 3 significantly increases the likelihood of an earnings beat [8] Historical Performance - In the last reported quarter, Movado exceeded expectations by delivering earnings of $0.51 per share against an estimate of $0.39, resulting in a +30.77% surprise [12] - Over the past four quarters, Movado has only beaten consensus EPS estimates once [13] Conclusion - Movado does not currently appear to be a strong candidate for an earnings beat, and investors should consider additional factors when evaluating the stock ahead of the earnings release [16]

Core Viewpoint - Movado Group, Inc. is under investigation for potential violations of federal securities laws and unlawful business practices related to misconduct in its Dubai branch, which has led to the need for restating financial statements [1][2]. Group 1: Allegations and Misconduct - In late January 2025, Movado became aware of allegations of misconduct in its Dubai branch, specifically regarding sales practices in the Middle East, India, and Asia Pacific [2]. - The investigation revealed that the former managing director and certain employees engaged in actions that resulted in an overstatement of sales, premature recognition of sales, and underreporting of credit notes owed to customers [2]. - The misconduct occurred over approximately five years, starting from the fiscal year ended January 31, 2021, and involved the use of a third-party warehouse and falsification of documents [2]. Group 2: Financial Impact - Movado announced that its historical consolidated financial statements for the fiscal years ended January 31, 2024, 2023, and 2022, as well as interim periods within fiscal years 2025 and 2024, require restatement [2]. - The restated interim periods for fiscal 2025 will reflect a reduction in operating expenses due to the reversal of certain accruals linked to lower adjusted operating results [2]. - Following the news of the investigation, Movado's stock price fell by $0.25 per share, or 1.81%, closing at $13.56 per share on April 11, 2025 [2]. Group 3: Internal Controls - Movado's management identified a material weakness in internal control over financial reporting, particularly in the risk assessment process related to the lack of functional segregation of duties in the Dubai branch [2].

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Movado Group, Inc. due to allegations of materially misleading business information issued by the company [1]. Group 1: Allegations and Company Response - On April 11, 2025, Movado disclosed allegations of misconduct within its Dubai branch related to sales practices in the Middle East, India, and Asia Pacific [3]. - The company identified 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 owed to customers [3]. - Movado's financial statements dating back to 2022 will require restatements to accurately reflect sales and credits, indicating ineffective internal controls over financial reporting [3]. Group 2: Financial Impact - Following the disclosure of these allegations, Movado's stock price fell to $13.56 per share, marking a 1.81% decrease from the previous closing price of $13.81 [3]. Group 3: Legal Action and Investor Rights - Rosen Law Firm is preparing a class action to seek recovery of investor losses, allowing affected shareholders to join without any out-of-pocket fees through a contingency fee arrangement [2]. - Investors are encouraged to select qualified legal counsel with a successful track record in securities class actions, highlighting Rosen Law Firm's experience and past achievements in this area [4].

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Movado Group, Inc. due to allegations of materially misleading business information issued by the company [1] Group 1: Allegations and Company Response - On April 11, 2025, Movado disclosed allegations of misconduct within its Dubai branch, related to sales practices in the Middle East, India, and Asia Pacific [3] - The company identified actions taken by the former managing director and certain employees that resulted in an overstatement of sales, premature recognition of sales, and underreporting of credit notes owed to customers [3] - Movado's financial statements dating back to 2022 will require restatements to accurately reflect sales and credits, indicating ineffective internal controls over financial reporting [3] Group 2: Stock Market Reaction - Following the news of the allegations, Movado's stock price fell to $13.56 per share, marking a 1.81% decrease from the previous closing price of $13.81 [3] Group 3: Legal Action and Investor Rights - Investors who purchased Movado Group securities may be entitled to compensation through a class action lawsuit, with no out-of-pocket fees due to a contingency fee arrangement [2] - The Rosen Law Firm is preparing a class action to seek recovery of investor losses and encourages affected investors to join the action [2]

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 ...