Movado Group(MOV) - 2026 Q3 - Quarterly Results

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]