Movado Group(MOV) - 2026 Q2 - Quarterly Results

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]