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]

Company Overview - Movado (MOV) shares increased by 7.4% to close at $14.49, supported by higher trading volume compared to normal sessions, despite a 25.1% decline over the past four weeks [1] - The upcoming quarterly earnings for Movado are projected at $0.39 per share, reflecting a year-over-year decrease of 29.1%, with expected revenues of $181.63 million, a slight increase of 1.1% from the previous year [2] - The consensus EPS estimate for Movado has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] Industry Insights - Movado operates within the Zacks Retail - Jewelry industry, which includes other companies like Brilliant Earth Group, Inc. (BRLT), whose stock rose by 5.1% to $1.45, with a 4.6% return over the past month [3] - Brilliant Earth Group's consensus EPS estimate has seen a significant change of -166.7% over the past month, now projected at -$0.01, which is a 133.3% decline from the previous year's report [4] - Both Movado and Brilliant Earth Group currently hold a Zacks Rank of 3 (Hold), indicating a neutral outlook for these stocks [3][4]

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

Core Insights - Movado Group, Inc. has launched a new Artist Series collaboration with Derrick Adams, a prominent Black artist, focusing on the celebration of the Black experience through contemporary cubism and vibrant colors [1][2][3] - The limited-edition collection includes five watch designs, each with 125 pieces, and a total of 25 collectors sets, marking the first time Movado has designed a clock in an Artist Series collaboration [2][3] Company Overview - Movado Group, Inc. designs, sources, and globally distributes a variety of watch brands including MOVADO®, MVMT®, OLIVIA BURTON®, and others, while also operating Movado Company Stores in the U.S. and Canada [5] Artist Profile - Derrick Adams is a multidisciplinary artist based in Brooklyn, New York, recognized for his vibrant and contemporary-cubist style that reflects the richness of Black culture [4]

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

Financial Performance - Net sales for the three months ended October 31, 2024 were $182.7 million, representing a $5.0 million or 2.6% decrease from the prior year period[117]. - The Watch and Accessory Brands segment net sales were $161.9 million, down $3.3 million or 2.0% compared to the prior year period, primarily due to unfavorable sales mix and decreased volumes[118]. - In the United States, net sales for the Watch and Accessory Brands segment were $51.6 million, a decrease of $3.7 million or 6.7%, with owned brands category sales down $5.4 million or 13.1%[120]. - International net sales for the Watch and Accessory Brands segment were $110.3 million, an increase of $0.4 million or 0.4%, positively impacted by foreign currency exchange rates[121]. - Net sales for the nine months ended October 31, 2024 were $478.7 million, a decrease of $14.3 million or 2.9% from the prior year[136]. - Net sales in the Watch and Accessory Brands segment for the nine months ended October 31, 2024 were $415.2 million, down $9.6 million or 2.3% from the prior year[137]. - The U.S. locations of the Watch and Accessory Brands segment experienced net sales of $137.2 million for the nine months ended October 31, 2024, a decrease of $4.7 million or 3.3%[138]. Profitability - Gross profit for the three months ended October 31, 2024 was $98.4 million, or 53.8% of net sales, compared to $102.3 million or 54.5% in the prior year[123]. - Operating income in the Watch and Accessory Brands segment for the three months ended October 31, 2024 was $5.3 million, down $13.2 million from $18.5 million in the prior year period[125]. - Net income attributable to Movado Group, Inc. for the three months ended October 31, 2024 was $5.1 million, down from $17.4 million in the prior year[133]. - For the nine months ended October 31, 2024, the Company recorded operating income of $7.5 million in the Watch and Accessory Brands segment, a decrease from $31.9 million in the same period of 2023[145]. - The Company Stores segment recorded operating income of $5.4 million for the nine months ended October 31, 2024, a decrease from $9.3 million in the same period of 2023[149]. - Net income attributable to Movado Group, Inc. was $11.7 million for the nine months ended October 31, 2024, down from $34.6 million in 2023[153]. Expenses - SG&A expenses for the three months ended October 31, 2024 were $91.8 million, an increase of $10.2 million or 12.5% from the prior year period[124]. - SG&A expenses for the nine months ended October 31, 2024 were $247.4 million, an increase of $15.0 million or 6.5% from the prior year[144]. Cash Flow and Capital Management - The Company had cash and cash equivalents of $181.5 million as of October 31, 2024, compared to $201.0 million in the prior year[154]. - Working capital decreased to $398.4 million as of October 31, 2024, from $412.1 million in 2023[155]. - Cash used in operating activities was $40.6 million for the nine months ended October 31, 2024, compared to cash provided of $7.4 million in the same period of 2023[157]. - Cash used in investing activities increased to $11.9 million for the nine months ended October 31, 2024, from $8.8 million in 2023[158]. - The Company declared and paid cash dividends totaling $23.3 million for the nine months ended October 31, 2024, compared to $45.4 million in the same period of 2023[168]. - The Company has authorized a total of $100.0 million for share repurchase programs, with $15.2 million remaining under the November 23, 2021 program and the full $50.0 million available under the December 5, 2024 program[169]. - During the nine months ended October 31, 2024, the Company repurchased 120,000 shares at an average cost of $21.90 per share, totaling $2.6 million, compared to 85,722 shares at an average cost of $27.40 per share, totaling $2.3 million in the same period of 2023[169]. Risk Management - The Company employs a hedging program to manage foreign currency exchange risks, particularly with Swiss Francs, Euros, and British Pounds[172]. - The Company uses forward exchange contracts to offset exposure to foreign currency receivables and liabilities, with changes in fair value recognized in earnings[174]. - The Company has a comprehensive risk management strategy that includes hedging against currency fluctuations and commodity price changes[172]. - As of October 31, 2024, the Company's net forward contracts hedging portfolio included 30.0 million Swiss Francs and 33.0 million Euros, with various expiry dates through April 10, 2025[175]. - The Company reported a potential gain of $0.1 million if Swiss Franc forward contracts were settled as of October 31, 2024, and a $0.2 million gain for Euro forward contracts[175]. - The Company did not hold any futures contracts in its gold hedge portfolio as of October 31, 2024, meaning fluctuations in gold prices will directly affect the cost of sales[176]. - The Company had zero floating rate debt as of October 31, 2024, and 2023, with no weighted average borrowings during the nine months ended October 31, 2024[177]. - The Company has no off-balance sheet financing or unconsolidated special-purpose entities, indicating a straightforward financial structure[170].