Financial Data and Key Metrics Changes - Revenue increased by 2.7% to $671.3 million for fiscal 2026, with adjusted operating income growing by 28.7% to $34.8 million, reflecting strong execution across strategic priorities [4][14] - Fourth quarter sales rose by 5.6% to $191.6 million, driven by the U.S. wholesale and retail business [4][15] - Adjusted operating income for the fourth quarter grew by 6.2% to $14.4 million, with strong operating cash flow of $57.9 million and ending the year with $230 million in cash and no debt [5][19] Business Line Data and Key Metrics Changes - Wholesale sales grew over 25%, and e-commerce business increased by 18%, indicating successful brand refresh initiatives [8] - Company stores experienced a strong holiday season, with sales up 9% in the fourth quarter due to higher average selling prices and improved merchandising [6] - The Movado brand saw significant growth, particularly in the Mini Bangle collection and the Movado 1917 Heritage collection [8][10] Market Data and Key Metrics Changes - U.S. net sales increased by 11.2% in the fourth quarter, while international net sales rose by 1% [15] - International net sales decreased by 5.9% on a constant currency basis, with strong performances in Europe and Mexico offset by weaker results in the Middle East [15][18] - Gross margin remained stable at 54.1% of sales compared to 54.2% in the previous year, despite increased U.S. tariffs [15][18] Company Strategy and Development Direction - The company focuses on four strategic priorities: customer-centric operations, consumer and brand-focused innovation, compelling storytelling, and driving profitability [5][12] - Plans to introduce new products, including the Vellura women's Museum watch and the Movado BOLD Verso S, while expanding jewelry collections [9][10] - The company aims to improve profitability by shifting towards higher-margin products and enhancing operational efficiency [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to growth after a challenging fiscal 2025, while remaining cautious about the broader environment, including geopolitical uncertainties [4][13] - The company is closely monitoring the conflict in the Middle East and its potential impact on global markets [13] - No fiscal 2027 outlook was provided due to current economic and geopolitical uncertainties [21] Other Important Information - The company recorded approximately $4.5 million of other non-operating income for fiscal 2026, primarily from interest earned on cash [19] - Cash at the end of the fiscal year was $230.5 million, with no outstanding debt, providing significant financial flexibility [19][20] - The company repurchased approximately 208,000 shares during fiscal 2026, with plans to utilize the share repurchase program to offset dilution [20][21] Q&A Session Summary Question: What is driving the strong performance of movado.com? - Management indicated that the growth is driven by higher consumer engagement, new innovations, and higher price points, with D2C expected to play a significant role alongside wholesale [24][25] Question: How much of the U.S. net sales growth was volume versus price driven? - Management stated that the growth was mostly volume driven, with minimal price increases implemented to offset tariffs [26][27] Question: Can you quantify the total tariff drag on gross margin for fiscal year 2026? - The company reported that tariffs impacted gross margin by about 150 basis points for the year, with a significant impact in the fourth quarter [28][29] Question: Given the high growth rate in the wholesale segment, is it due to under-investment in inventory or actual demand? - Management clarified that the growth was driven by actual demand and sell-through, with retailers actively seeking to rebuild inventory [41] Question: Will there be operational efficiencies due to the increase in units sold? - Management noted that increased volume has allowed for leveraging supply chain infrastructure, which should help improve gross margin and cost of goods sold [42]

Financial Data and Key Metrics Changes - Revenue for fiscal 2026 increased by 2.7% to $671.3 million, with adjusted operating income growing by 28.7% to $34.8 million, reflecting strong execution across strategic priorities [4][19] - Fourth quarter sales rose by 5.6% to $191.6 million, driven by the U.S. wholesale and retail business [4][15] - Adjusted operating income for the fourth quarter increased by 6.2% to $14.4 million, with strong operating cash flow of $57.9 million and ending the year with $230 million in cash and no debt [5][20] Business Line Data and Key Metrics Changes - Wholesale sales grew over 25%, and e-commerce business increased by 18%, attributed to brand refresh initiatives [7] - Company stores experienced a strong holiday season, with sales up 9% in the fourth quarter due to higher average selling prices and improved merchandising [6] - The Movado brand saw significant growth, particularly in the Mini Bangle collection and the Movado 1917 Heritage collection [7][9] Market Data and Key Metrics Changes - U.S. net sales increased by 11.2% in the fourth quarter, while international net sales rose by 1% [16] - International net sales decreased by 5.9% on a constant currency basis, with strong performances in Europe and Mexico offset by weaker results in the Middle East [16] - Overall, the company maintained a gross margin of 54.1%, nearly flat compared to the previous year [16] Company Strategy and Development Direction - The company focuses on four strategic priorities: customer-centric operations, consumer and brand-focused innovation, compelling storytelling, and driving profitability [5][12] - Plans to introduce new products, including the Vellura women's Museum watch and expansions in jewelry collections, are in place to capitalize on market trends [8][9] - The company aims to improve profitability by shifting towards higher-margin products and enhancing operational efficiency [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the return of consumers to the fashion watch category, particularly women, and highlighted the importance of younger consumers [10][13] - The ongoing conflict in the Middle East introduces uncertainty in global markets, and the company is closely monitoring the situation [13][22] - Due to economic and geopolitical uncertainties, the company has chosen not to provide a fiscal 2027 outlook at this time [22] Other Important Information - The company recorded approximately $4.5 million of other non-operating income for fiscal 2026, primarily from interest earned on cash [20] - Cash at the end of the fiscal year was $230.5 million, with no outstanding debt [20] - The company repurchased approximately 208,000 shares during fiscal 2026, with $46.1 million remaining under the authorized repurchase program [21][22] Q&A Session Summary Question: What is driving the strong performance of movado.com? - Management indicated that higher consumer engagement, new innovations, and higher average selling prices contributed to the growth [24][25] Question: How much of the U.S. net sales growth was volume driven versus price driven? - The growth was mostly volume driven, with minimal price increases implemented to offset tariffs [27] Question: Can you quantify the total tariff drag on gross margin for fiscal year 2026? - The tariffs impacted cost of goods sold by about $10 million, translating to a 150 basis point drag on gross margin for the year [29][30] Question: What would accelerate the pace of buyback activity? - Management emphasized the importance of maintaining a solid dividend and offsetting dilution through share repurchases, especially with significant cash balances [33][34] Question: Is there potential for operational efficiency with increased units sold? - Management acknowledged that increased volume could leverage supply chain infrastructure and improve gross margins [42][43]