Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED September 30, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ___________ TO___________ Commission file number 1-16671 CENCORA, INC. (Exact name of registrant as specified in its charter) | Delaware | | | 23-3079390 | | ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission file number 001-39265 WOODWARD, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organi ...

Sales Performance - Total retail sales for Q3 2025 were $153.7 million, a 6% increase from $144.6 million in Q3 2024, driven by a 10% increase in same-store sales [72]. - For the nine months ended November 1, 2025, total retail sales reached $496.8 million, a 2% increase from $486.8 million in the same period last year [72]. Cost and Expenses - Cost of goods sold for Q3 2025 was $104.5 million, or 68.0% of retail sales, down from 71.2% in Q3 2024, reflecting lower buying and distribution costs [74]. - Selling, general and administrative expenses were $57.0 million, or 37.1% of retail sales in Q3 2025, compared to $57.9 million, or 40.0% in Q3 2024 [75]. - Gross margin increased by 18.0% to $49.2 million in Q3 2025, compared to $41.7 million in Q3 2024 [74]. Store Operations - The company operated 1,101 stores as of November 1, 2025, down from 1,167 stores at the end of the previous fiscal year's third quarter, with an expectation to close approximately 50 stores in fiscal 2025 [72]. Revenue and Other Income - Other revenue for Q3 2025 was $1.7 million, slightly up from $1.5 million in Q3 2024, with credit revenue remaining flat at $0.7 million [73]. Tax and Income - The effective income tax rate for the first nine months of fiscal 2025 was (11.9%), compared to (67.5%) for the same period in fiscal 2024, primarily due to a reduction in foreign income taxes [78]. Financial Outlook - The company anticipates that product acquisition costs will be negatively impacted by tariffs, particularly on products sourced from China and Southeast Asia [70]. - The company believes its cash and cash equivalents, along with cash flows from operations, will be adequate to fund regular operating requirements for the next 12 months [79]. Cash Flow and Working Capital - Cash provided by operating activities increased by $16.5 million to $3.2 million in the first nine months of fiscal 2025, compared to a net loss in the prior year [80]. - Working capital rose to $58.3 million as of November 1, 2025, up from $34.9 million at February 1, 2025, primarily due to increased cash and cash equivalents [81]. Credit Facilities and Capital Expenditures - The Company established an asset-based revolving credit facility of up to $35.0 million, with $30.0 million available as of November 1, 2025 [82][83]. - Capital expenditures for the first nine months of fiscal 2025 totaled $2.9 million, down from $6.5 million in the same period last year, with an expected total of approximately $5.9 million for the full fiscal year [84][85]. Investment Activities - Net cash used in investing activities was negligible in the first nine months of fiscal 2025, compared to $21.5 million net cash provided in the same period of 2024 [86]. Financing Activities - Net cash used in financing activities decreased to $0.9 million in the first nine months of fiscal 2025, down from $12.6 million in the comparable period of fiscal 2024, primarily due to the elimination of dividend payments [87]. Deferred Compensation and Risk Management - Deferred compensation plan assets increased to $9.8 million as of November 1, 2025, up from $9.3 million at February 1, 2025 [89]. - The Company does not use derivative financial instruments and maintains an investment portfolio primarily in corporate bonds and taxable governmental debt securities [88]. - The ABL Credit Agreement is committed through May 2027 and is secured primarily by inventory and third-party credit card receivables [83]. - The Company does not believe its exposure to market rate risk from interest rate changes is material [91].

Security Incidents - On October 15, 2025, a security incident was disclosed where a threat actor maintained long-term access to F5 systems and exfiltrated certain files[24]. Product and Service Offerings - F5's strategy focuses on solving multicloud application delivery and security challenges through its product families, including F5 BIG-IP, F5 NGINX, and F5 Distributed Cloud Services[25]. - The F5 Application Delivery and Security Platform (ADSP) was introduced in 2025 to unify traffic management with advanced application and API security across hybrid and multicloud environments[29]. - F5 is investing in expanding its SaaS-based F5 Distributed Cloud Services, which simplifies management for F5 BIG-IP and F5 NGINX customers[30]. - F5's portfolio includes solutions for web application and API protection, hybrid multicloud networking, enterprise AI delivery and security, and zero trust architecture readiness[31]. - F5 Distributed Cloud Services leverage a global private backbone to deliver performance and reliability across hybrid, multicloud, or edge environments[32]. - F5 NGINX technology suite supports hundreds of millions of websites and applications, providing a lightweight, agile ADC and API connectivity solution[33]. - The F5 BIG-IP Automation Tool Chain integrates with orchestration frameworks, enhancing deployment and configuration speed for application services[45]. Competitive Landscape - F5's competitive landscape includes vendors like Citrix, AWS, and Cloudflare, focusing on application delivery, security, and multicloud networking[38][42]. - The company emphasizes a platform approach to simplify complexity and enhance operational efficiency while competing on a point-solution basis[41]. AI Strategy - F5's AI strategy enhances application delivery and security solutions, addressing performance challenges associated with AI workloads and pursuing partnerships with global AI leaders[28]. - The company completed the acquisition of CalypsoAI Corp. in September 2025, aimed at enhancing its F5 ADSP for AI inference security[48]. - Kunal Anand has been appointed as Executive Vice President and Chief Product Officer since October 2025, focusing on AI innovation across F5's product solutions[71]. Employee Engagement and Corporate Culture - As of September 30, 2025, the company employed 6,578 individuals, with 47% based in the United States, and over 99% of employees being full-time[51]. - In fiscal year 2025, 72% of employees participated in the Global Good programs, contributing over 13,400 volunteer hours and directing $3.9 million in donations to over 3,900 non-profits[64]. - The company’s employee engagement survey indicated that 80% of employees feel a sense of belonging at F5, up from 73% the previous year[54]. Leadership Team - The company’s executive team includes François Locoh-Donou as CEO, Edward Werner as CFO, and Tom Fountain as COO, among others[66]. - John Maddison, serving as Chief Marketing Officer since October 2025, is responsible for enhancing F5's market impact and brand promise through products and partnerships[72]. - Angelique Okeke has been the Executive Vice President and General Counsel since March 2025, bringing over 20 years of legal experience, including strategic counsel at Nike[73]. - Michael Montoya, appointed as Executive Vice President and Chief Technology Operations Officer in October 2025, previously served as Chief Operating Officer at BlueVoyant[74]. Financial Outlook and Economic Factors - The company does not expect a 10% change in interest rates to materially affect its operating results or cash flows due to its current investment portfolio[241]. - Inflation has not had a material effect on the company's financial condition, but significant inflationary pressures could impact costs and customer procurement decisions[242]. - The majority of sales and expenses are in U.S. dollars, and foreign currency fluctuations have not significantly impacted financial results to date[243]. Environmental Sustainability - The company reported a 16% year-over-year reduction in Scope 1 and 2 emissions and a 10% reduction in Scope 3 emissions from fiscal year 2023 to fiscal year 2024[63]. - The company aims to reduce absolute Scope 1 and 2 emissions by 50% and Scope 3 emissions by 43% from a 2021 baseline by 2030[60]. - The company has established a robust global hardware supply chain and continuously monitors potential risks to minimize disruptions[46].

Financial Performance - Net sales for Q3 fiscal 2025 increased by $113 million, or 3%, compared to Q3 fiscal 2024[84] - Gross profit for Q3 fiscal 2025 was $1.67 billion, with a gross margin of 42.4%, down from 42.7% in Q3 fiscal 2024[84] - Operating income for Q3 fiscal 2025 was $334 million, compared to $355 million in Q3 fiscal 2024[84] - Net income for Q3 fiscal 2025 was $236 million, down from $274 million in Q3 fiscal 2024[84] - Diluted earnings per share for Q3 fiscal 2025 was $0.62, compared to $0.72 in Q3 fiscal 2024[84] Inventory and Sales Performance - Merchandise inventory as of Q3 fiscal 2025 increased by 5% compared to Q3 fiscal 2024[84] - Comparable sales for Old Navy Global increased by 6% in Q3 fiscal 2025, while Athleta Global saw a decline of 11%[91] Operating Expenses and Costs - Operating expenses for Q3 fiscal 2025 were $1.34 billion, representing 33.9% of net sales, an increase from 33.4% in Q3 fiscal 2024[100] - Cost of goods sold increased by 0.7 percentage points as a percentage of net sales in Q3 fiscal 2025, primarily due to tariff costs[99] Taxation - The effective income tax rate for Q3 fiscal 2025 was 30.0%, up from 24.1% in Q3 fiscal 2024[84] - Income tax expense for the third quarter of fiscal 2025 was $101 million, compared to $87 million in the same period of fiscal 2024, reflecting an effective tax rate increase from 24.1% to 30.0%[104] - The effective tax rate for the first three quarters of fiscal 2025 was 28.0%, up from 26.2% in the same period of fiscal 2024[105] Cash Flow and Liquidity - Net cash provided by operating activities decreased by $263 million in the first three quarters of fiscal 2025, totaling $607 million compared to $870 million in the same period of fiscal 2024[110] - Free cash flow for the first three quarters of fiscal 2025 was $280 million, down from $540 million in the same period of fiscal 2024[115] - Net cash used for financing activities increased by $165 million in the first three quarters of fiscal 2025, primarily due to $152 million in common stock repurchases[111] - As of November 1, 2025, the company had cash and cash equivalents of $2.26 billion and short-term investments of $255 million[107] - There were no borrowings under the ABL Facility as of November 1, 2025, indicating strong liquidity management[107] Dividends and Investments - The company paid a dividend of $0.165 per share during the third quarter of fiscal 2025 and authorized the same amount for the fourth quarter[116] - Net cash used for investing activities decreased by $249 million in the first three quarters of fiscal 2025, primarily due to $246 million fewer net purchases of short-term investments[110] Economic Factors - The company continues to monitor macroeconomic factors that may impact cash flows, including geopolitical instability and inflationary pressures[108]

Financial Performance - Net sales for Q3 fiscal 2025 increased by $113 million, or 3%, compared to Q3 fiscal 2024[84] - Gross profit for Q3 fiscal 2025 was $1.67 billion, with a gross margin of 42.4%, down from 42.7% in Q3 fiscal 2024[84] - Operating income for Q3 fiscal 2025 was $334 million, compared to $355 million in Q3 fiscal 2024[84] - Net income for Q3 fiscal 2025 was $236 million, down from $274 million in Q3 fiscal 2024[84] - Diluted earnings per share for Q3 fiscal 2025 was $0.62, compared to $0.72 in Q3 fiscal 2024[84] Sales and Inventory - Merchandise inventory as of Q3 fiscal 2025 increased by 5% compared to Q3 fiscal 2024[84] - Comparable sales for Old Navy Global increased by 6% in Q3 fiscal 2025, while Athleta Global saw a decline of 11%[91] Operating Expenses - Operating expenses for Q3 fiscal 2025 were $1.34 billion, representing 33.9% of net sales, up from 33.4% in Q3 fiscal 2024[100] - Cost of goods sold increased by 0.7 percentage points as a percentage of net sales in Q3 fiscal 2025, primarily due to tariff costs[99] Taxation - The effective income tax rate for Q3 fiscal 2025 was 30.0%, compared to 24.1% in Q3 fiscal 2024[84] - For the third quarter of fiscal 2025, the effective tax rate increased to 30.0% from 24.1% in the same quarter of fiscal 2024, primarily due to changes in jurisdictional earnings[104] - The increase in the effective tax rate for the first three quarters of fiscal 2025 was also influenced by less favorable impacts of stock-based compensation[105] Cash Flow and Liquidity - Net cash provided by operating activities decreased by $263 million during the first three quarters of fiscal 2025 compared to the same period in fiscal 2024, resulting in $607 million for fiscal 2025[110] - Free cash flow for the first three quarters of fiscal 2025 was $280 million, down from $540 million in the same period of fiscal 2024[115] - Net cash used for financing activities increased by $165 million in the first three quarters of fiscal 2025, primarily due to $152 million in common stock repurchases[111] - As of November 1, 2025, the company had cash and cash equivalents of $2.26 billion and short-term investments of $255 million[107] - The company has no borrowings under the ABL Facility as of November 1, 2025, indicating strong liquidity management[107] Dividends and Investments - The company paid a dividend of $0.165 per share during the third quarter of fiscal 2025 and authorized the same amount for the fourth quarter[116] - Net cash used for investing activities decreased by $249 million during the first three quarters of fiscal 2025, mainly due to $246 million fewer net purchases of short-term investments[110] Contractual Obligations - There have been no material changes to the company's contractual obligations and commercial commitments since the last annual report[118]

Financial Performance - Net sales for the three months ended October 31, 2025, were $186.1 million, representing a $5.6 million or 3.1% increase from the prior year period[129]. - The Watch and Accessory Brands segment net sales for the same period were $162.7 million, an increase of $3.1 million or 1.9% compared to the prior year[130]. - In the licensed brands category, net sales increased by $7.0 million or 6.4%, while owned brands category net sales decreased by $4.3 million or 8.5%[130]. - U.S. net sales in the Watch and Accessory Brands segment were $54.2 million, up $2.6 million or 5.0% from the prior year[131]. - Net sales for the three months ended October 31, 2025, in the International locations of the Watch and Accessory Brands segment were $108.5 million, a 0.4% increase from the prior year, with a $3.4 million positive impact from foreign currency exchange rates[132]. - Net sales for the Company Stores segment for the three months ended October 31, 2025, were $23.4 million, representing a 12.2% increase from the prior year, driven by higher foot traffic and online sales[133]. - For the nine months ended October 31, 2025, net sales were $479.7 million, a 1.7% increase from the prior year, with foreign currency fluctuations positively impacting sales by $4.8 million[149]. - The Watch and Accessory Brands segment net sales for the nine months ended October 31, 2025, were $413.2 million, a 1.2% increase, with licensed brands up by $21.2 million, or 7.9%[150]. Profitability - Gross profit for the three months ended October 31, 2025, was $101.1 million, or 54.3% of net sales, an increase from 53.5% in the prior year, attributed to a favorable sales mix and reduced costs[134]. - Operating income for the Watch and Accessory Brands segment for the three months ended October 31, 2025, was $9.2 million, an increase of $4.4 million from the prior year, driven by higher gross profit and lower SG&A expenses[136]. - The Company recorded a net income attributable to Movado Group, Inc. of $9.6 million for the three months ended October 31, 2025, compared to $4.8 million in the prior year[146]. - Gross profit for the nine months ended October 31, 2025, was $260.0 million, or 54.2% of net sales, reflecting a slight increase in gross margin percentage from the prior year[154]. - Operating income in the Watch and Accessory Brands segment for the nine months ended October 31, 2025, was $9.0 million, an increase of $3.6 million from $5.4 million in the prior year, driven by a gross profit increase of $3.3 million[157]. - The Company recorded net income attributable to Movado Group, Inc. of $14.0 million for the nine months ended October 31, 2025, compared to $10.3 million in the prior year, reflecting an increase of $3.7 million[168]. Expenses and Cost Management - SG&A expenses for the three months ended October 31, 2025, were $89.3 million, a decrease of 1.4% from the prior year, primarily due to lower marketing and payroll expenses[135]. - SG&A expenses for the nine months ended October 31, 2025, were $243.9 million, a decrease of $0.1 million or 0.0% from the prior year, primarily due to lower marketing expenses of $8.2 million and a decrease in payroll-related expenses of $6.8 million[156]. - 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[124]. - The Company expects annual savings of approximately $10.0 million from the cost-savings initiatives[124]. Taxation - The effective tax rate for the three months ended October 31, 2025, was 25.3%, down from 31.9% in the prior year, influenced by changes in foreign currency gains and jurisdictional earnings[145]. - The effective tax rate was 29.5% for the nine months ended October 31, 2025, down from 32.8% in the prior year, influenced by changes in foreign valuation allowances and jurisdictional earnings[167]. Cash Flow and Investments - Cash and cash equivalents as of October 31, 2025, were $183.9 million, an increase from $181.5 million in the prior year, with $94.7 million held at foreign subsidiaries[169]. - Net cash provided by operating activities was $1.3 million for the nine months ended October 31, 2025, a significant improvement of approximately $41.9 million compared to net cash used of $40.6 million in the prior year[171]. - Cash used in investing activities was $6.3 million for the nine months ended October 31, 2025, a decrease from $11.9 million in the prior year, primarily due to capital expenditures related to Company stores[174]. - Cash used in financing activities was $25.4 million for the nine months ended October 31, 2025, compared to $27.0 million in the prior year, including $23.3 million in dividends paid[175]. - The Company declared and paid cash dividends of $23.3 million during the nine months ended October 31, 2025, consistent with the previous year[185]. - A share repurchase program authorized the Company to buy back up to $50.0 million of its common stock, with $48.4 million remaining available as of October 31, 2025[186]. Foreign Currency and Tariffs - Fluctuations in foreign currency exchange rates positively impacted net sales by $3.4 million for the three months ended October 31, 2025[129]. - The Company anticipates that tariffs will have a material impact on its U.S. operations despite mitigation efforts[123]. - The Company has implemented selective price increases in response to incremental tariffs, which include a 20% tariff on U.S. imports of China-origin goods[120][123]. - The Company manages foreign currency exchange risk through a hedging program, primarily involving the Swiss Franc, Euro, and British Pound[189]. - The Company did not hold any futures contracts in its gold hedge portfolio as of October 31, 2025, meaning changes in gold purchase prices will directly affect its cost of sales[194]. Other Financial Information - The One Big Beautiful Bill Act signed into law on July 4, 2025, is not expected to have a material impact on the Company's Consolidated Financial Statements[125]. - The Company recorded a non-cash impairment charge of $0.4 million related to a venture capital fund investment due to a decline in fair value[184]. - As of October 31, 2025, the Company's net forward contracts hedging portfolio included 28.0 million Swiss Francs and 37.4 million U.S. dollars equivalent, with a potential loss of $0.2 million if settled[193]. - The Company had no floating rate debt as of October 31, 2025, and reported no weighted average borrowings during the nine months ended October 31, 2025[195]. - The Company does not hedge interest rate risks and considers its exposure to commodity price fluctuations primarily related to gold used in manufacturing[194]. - The Company will continue to evaluate the carrying value of its investments regularly[184].

Financial Performance - Net sales for Q2 FY2026 decreased by $57.8 million, or 12.8%, to $394.6 million compared to the same quarter last fiscal year[3] - Net income for Q2 FY2026 was $6.1 million, or 1.5% of net sales, down from $27.7 million, or 6.1% of net sales, in the same quarter last fiscal year[3] - Adjusted EBITDA for Q2 FY2026 decreased by $20.6 million, or 34.1%, to $39.6 million, representing 10.0% of net sales, compared to 13.3% of net sales in the same quarter last fiscal year[3] - Year-to-date net sales for FY2026 decreased by $113.9 million, or 12.5%, to $797.7 million compared to the same period last fiscal year[5] - Year-to-date net income for FY2026 was $20.7 million, or 2.6% of net sales, down from $57.3 million, or 6.3% of net sales, in the same period last fiscal year[5] - Adjusted EPS per diluted share for Q2 FY2026 was $0.76, down from $2.08 in the same quarter last fiscal year[3] - Net income for the three months ended October 31, 2025, was $6,097,000, compared to $27,686,000 for the same period in 2024, reflecting a decrease of 78%[26] - Adjusted EBITDA for the six months ended October 31, 2025, was $81,878,000, down from $123,084,000 in 2024, representing a decline of 33.5%[26] - Net sales for the three months ended October 31, 2025, were $394,637,000, compared to $452,482,000 in 2024, indicating a decrease of 12.7%[26] - Free cash flow for the six months ended October 31, 2025, was $24,014,000, down from $30,141,000 in 2024, a reduction of 20.5%[32] - Adjusted net income for the three months ended October 31, 2025, was $11,170,000, compared to $32,048,000 in 2024, a decrease of 65.1%[30] - The net income margin for the three months ended October 31, 2025, was 1.5%, down from 6.1% in 2024[26] - Adjusted EBITDA margin for the three months ended October 31, 2025, was 10.0%, compared to 13.3% in 2024, reflecting a decline of 24.8%[26] Cash Flow and Liquidity - Cash provided by operating activities for the first six months of FY2026 was $44.3 million, with free cash flow totaling $24.0 million[8] - As of October 31, 2025, the Company had $52.1 million in cash and $315.2 million available under its revolving credit facility[7] Merger and Restructuring - The Company is focused on closing the merger transaction with MasterBrand, Inc. to expand its product portfolio and innovation capabilities[2] - The company incurred merger-related expenses of $6,484,000 for the three months ended October 31, 2025, related to the pending merger with MasterBrand, Inc.[28] - Restructuring charges for the three months ended October 31, 2025, totaled $1,458,000, associated with workforce reductions and facility closures[28] Tariff Impact - The estimated unmitigated tariff impact is approximately 4-4.5% of the Company's annualized net sales, varying by product category[2] Leverage Ratio - The company reported a net leverage ratio of 1.90 as of October 31, 2025, calculated as net debt of $318,719,000 divided by Adjusted EBITDA of $167,421,000[34]

Financial Performance - Preliminary full-year fiscal 2025 revenue is expected to be $1.6 billion, an increase of $40.8 million, or 2.6%, year-over-year[7] - Gross Comparable Store Sales are expected to increase by $116.9 million, or 7.5%, year-over-year[7] - Revenues from BNC First Day programs are expected to increase by $119.9 million, or 25.3%, year-over-year, with total enrollment reaching approximately 957,000 students, up 19.0% from the prior year[8] - Full-year fiscal 2025 net loss is expected to be in the range of $(68.0) to $(62.0) million, an improvement from the prior year's expected net loss of $(78.0) to $(72.0) million[8] - Adjusted EBITDA for fiscal 2025 is expected to range from $55.0 to $63.0 million, an increase of $15.0 to $29.0 million from the prior fiscal year[9] - Preliminary revenue for the first half of fiscal 2026 is expected to be approximately $933.0 million, an increase of approximately 7.8% year-over-year[11] - The company's preliminary net income for the first half of fiscal 2026 is expected to range from $3.0 to $8.0 million, an improvement of $62.0 to $73.0 million over the prior year's net loss[11] - Adjusted EBITDA for the first half of fiscal 2026 is expected to be in the range of $32.0 to $42.0 million, compared to $30.0 to $36.0 million in the prior year[12] - The company expects Adjusted EBITDA in fiscal 2026 to be in the range of $65 to $75 million, with a material reduction in interest costs compared to the previous fiscal year[16] Debt and Liquidity - Total debt at year-end is expected to be $103.1 million, a decrease from $196.3 million on April 27, 2024, with total net debt expected to be $94.0 million[10] - The company emphasizes the importance of maintaining adequate liquidity levels for ongoing inventory purchases and vendor payments[25] Risks and Challenges - The company is currently undergoing a financial restatement process, which may impact expected financial results[25] - There is a dependency on strategic service provider relationships, which could affect operational and financial stability[25] - The company faces risks from potential declines in college enrollment and decreased funding available for students[25] - Technological changes, including the adoption of artificial intelligence in educational content, are a significant factor for future operations[25] - The company operates in a competitive environment, with new risks emerging that could impact business outcomes[25] - Forward-looking statements reflect current views but are subject to various risks and uncertainties[25] - The company does not intend to update forward-looking statements after the date of the press release, except as required by law[26] - Interested parties are encouraged to review risk factors in the company's Annual Report on Form 10-K for the year ended May 3, 2025[26] Growth Expectations - Anticipated growth in the BNC First Day program is expected, although the pace of adoption may be slower than anticipated[25]

Financial Performance - Net sales for the third quarter of fiscal 2026 were $186.1 million, representing a 3.1% increase from $180.5 million in the same quarter of fiscal 2025[4] - Gross margin expanded by 80 basis points to 54.3% compared to 53.5% in the third quarter of fiscal 2025[4] - Operating income nearly doubled to $11.7 million from $6.0 million in the third quarter of fiscal 2025[4] - Diluted earnings per share (EPS) increased to $0.42, doubling from $0.21 in the third quarter of fiscal 2025[4] - For the first nine months of fiscal 2026, net sales increased by 1.7% to $479.7 million compared to $471.9 million in the same period of fiscal 2025[13] - Adjusted net income for the third quarter of fiscal 2026 was $10.2 million, or $0.45 per diluted share, compared to $8.5 million, or $0.37 per diluted share, in the prior year period[13] - Net income attributable to Movado Group, Inc. for the three months ended October 31, 2025, was $9,583,000, a significant increase from $4,827,000 in the prior year[24] - Net income for the nine months ended October 31, 2025, was $14,079 million, an increase from $10,751 million in 2024, representing a growth of approximately 30.5%[34] Cash and Debt Management - The company ended the quarter with cash of $183.9 million and no debt, providing a strong foundation for growth initiatives[5] - Cash and cash equivalents as of October 31, 2025, were $183,876,000, a decrease from $208,501,000 at the beginning of the year, indicating cash flow management challenges[32] - Cash, cash equivalents, and restricted cash at the end of the period totaled $184,684 million, slightly up from $182,301 million in the prior year[34] - The company experienced a net change in cash of $(24,530) million, an improvement from $(80,513) million in the previous year[34] - Cash and cash equivalents at the end of the period were $183,876 million, compared to $181,548 million in the previous year, indicating a slight increase[34] Sales Performance - U.S. net sales increased by 6.9% compared to the third quarter of fiscal 2025, while international net sales increased by 0.6%[13] - Total net sales for the nine months ended October 31, 2025, were $479,730,000, a 1.7% increase from $471,903,000 in the same period of 2024[26] - Net sales for the three months ended October 31, 2025, were $186,132,000, representing a 3.1% increase compared to $180,524,000 for the same period in 2024[24] Operating Efficiency - Total operating expenses for the three months ended October 31, 2025, were $89,331,000, slightly down from $90,597,000 in the previous year, indicating cost control measures[24] - Operating income increased to $11,725,000 for the three months ended October 31, 2025, compared to $6,033,000 for the same period in 2024, reflecting improved operational efficiency[24] Tax and Provision - The company reported a provision for income taxes of $3,275,000 for the three months ended October 31, 2025, compared to $2,365,000 in the prior year, reflecting higher taxable income[24] Capital Management - Capital expenditures decreased to $3,512 million from $6,368 million, indicating a reduction in investment spending[34] - Net cash used in investing activities was $6,297 million, down from $11,921 million, reflecting improved cash management[34] - Dividends paid remained relatively stable at $23,306 million compared to $23,319 million in the prior year[34] - Stock repurchases decreased to $1,594 million from $2,628 million, suggesting a more conservative approach to share buybacks[34] Economic Outlook - The company is not providing a fiscal 2026 outlook due to current economic uncertainty and unpredictable tariff impacts[16] - The company expects the recently announced trade agreement to reduce U.S. tariff rates on Swiss watches to 15%, significantly lower than previous rates[5] Asset Management - Total assets increased to $751,899,000 as of October 31, 2025, compared to $729,231,000 at the beginning of the year, reflecting growth in the company's asset base[32] Exchange Rate Impact - The effect of exchange rate changes resulted in a positive cash impact of $5,875 million, contrasting with a negative impact of $917 million in the previous year[34]