Movado Group(MOV) - 2025 Q3 - Quarterly Report

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$110.3 million, an increase of $0.4 million or 0.4$478.7 million, a decrease of $14.3 million or 2.9$415.2 million, down $9.6 million or 2.3$137.2 million for the nine months ended October 31, 2024, a decrease of $4.7 million or 3.3$98.4 million, or 53.8% of net sales, compared to $102.3 million or 54.5$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].