Financial Data and Key Metrics Changes - Revenue growth of 3.1% to $186.1 million, with a 5.9% increase excluding the Middle East [4][14] - Gross margin improved by 80 basis points to 54.3% compared to 53.5% last year, despite a $4.5 million impact from U.S. tariffs [5][15] - Adjusted operating income grew over 40% to $12.6 million, with positive operating cash flow of $1.3 million for the first nine months [5][16] - Net income for the third quarter was $10.2 million, or $0.45 per diluted share, compared to $8.5 million, or $0.37 per diluted share in the previous year [17] Business Line Data and Key Metrics Changes - Movado brand sales grew 17.7% on a comparable store basis, with overall sales in Movado company stores increasing by 9.4% [9] - Licensed brands saw a 6.4% growth overall, with a 2.9% increase on a constant currency basis [10] - Strong performance in jewelry and watches, particularly from brands like Coach and Hugo Boss [10][11] Market Data and Key Metrics Changes - U.S. net sales increased by 6.9%, while international net sales increased by 0.6%, with strong performances in Europe and Latin America [15] - The Middle East showed softer results, but the company is working on rebuilding its strategy in that region [4][15] Company Strategy and Development Direction - Focus on building brands sustainably, driving innovation, and improving financial results [4][6] - Plans to return to growth in the Middle East next year and continue to invest in brand-building efforts while improving profitability [4][25] - Emphasis on capturing momentum from younger consumers embracing analog watches [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving dynamics in the fashion and accessible luxury watch categories [6] - Acknowledgment of ongoing global economic and political uncertainty, leading to no fiscal 2026 outlook provided [20] Other Important Information - The company ended the quarter with $183.9 million in cash and no debt, and a quarterly dividend of $0.35 per share was approved [6][19] - Recent trade agreements are expected to lower U.S. tariff rates on Swiss watches, allowing for better planning and reduced price-based mitigation [5][20] Q&A Session Summary Question: Is the success of watches and brands due to influencers or design trends with Gen Z? - Management indicated it is a combination of both increased social media coverage and innovative designs resonating with younger consumers [22] Question: Does having sold-out conditions impair sales? - Management clarified that sold-out conditions are planned for select product families and that they expect to replenish styles soon [23] Question: Will the success in sales change spending levels for the fiscal year? - Management emphasized a balance between investing in brand-building and improving profitability [25]

Financial Data and Key Metrics Changes - Revenue growth of 3.1% to $186.1 million in Q3 2026, with a 5.9% increase excluding the Middle East [4][5] - Gross margin improved by 80 basis points to 54.3% compared to 53.5% last year, despite a $4.5 million impact from U.S. tariffs [5][15] - Adjusted operating income grew over 40% to $12.6 million, with positive operating cash flow of $1.3 million for the first nine months [5][17] - Net income for Q3 was $10.2 million, or $0.45 per diluted share, compared to $8.5 million, or $0.37 per diluted share in the previous year [17][18] Business Line Data and Key Metrics Changes - Movado brand sales grew 17.7%, with overall sales in Movado company stores increasing by 9.4% on a comparable store basis [9] - Licensed brands saw a 6.4% growth overall, with Coach driving double-digit growth among Gen Z consumers [10][11] - Strong performance in the Museum Collection and new product launches, including the Bangle Collection and Style Set with Lab-Grown Diamonds [7][8] Market Data and Key Metrics Changes - U.S. net sales increased by 6.9%, with strong growth in the fashion brand business and direct-to-consumer channels [6][14] - International net sales increased by 0.6%, with strong performances in Europe and Latin America, offset by weaker results in the Middle East [14][15] Company Strategy and Development Direction - Focus on building brands sustainably, driving innovation, and improving financial results [5][6] - Plans to return to growth in the Middle East next year after rebuilding the team and refining strategy [4][5] - Emphasis on capturing momentum among younger consumers embracing analog watches for their design and quality [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving dynamics in the fashion and accessible luxury watch categories despite global economic uncertainties [6][12] - No fiscal 2026 outlook provided due to current economic uncertainty and unpredictable tariff developments [20] Other Important Information - The company ended the quarter with $183.9 million in cash and no debt, and a quarterly dividend of $0.35 per share was approved [6][19] - Capital expenditures for the first nine months were $3.5 million, with approximately 100,000 shares repurchased under the share repurchase program [19] Q&A Session Questions and Answers Question: Is the success seen with many watches and brands due to influencers or design trends with Gen Z? - The success is attributed to a combination of increased social media coverage and innovative designs resonating with younger consumers [22] Question: Does having sold-out conditions impair sales? - Sold-out conditions are seen as a balance of supply and demand, with plans to replenish styles in early Q1 [23] Question: Will the success in sales change spending levels for the fiscal year? - The focus remains on improving profitability while continuing to invest in brand-building efforts [24]

PARAMUS, N.J.--(BUSINESS WIRE)--Movado Group, Inc. (NYSE: MOV) today announced third quarter and nine-month results for the periods ended October 31, 2025. Fiscal 2026 Third Quarter Highlights Net sales of $186.1 million, an increase of 3.1% from $180.5 million in the third quarter of fiscal 2025; Gross margin of 54.3%, an expansion of 80 basis points compared to 53.5% in the third quarter of fiscal 2025; Operating income of $11.7 million, nearly doubling from $6.0 million in the third quarter. ...

Financial Data and Key Metrics Changes - Third-quarter net sales totaled $267 million, down 7% in constant currency compared to the prior year, slightly ahead of expectations [18] - Gross margin in Q3 was 48.7%, down 70 basis points year-over-year, but underlying gross margins improved compared to the prior year [18][20] - Adjusted operating loss for Q3 narrowed to $15 million from $22 million a year ago, with expectations for a break-even to slightly positive adjusted operating margin for the full year [22][25] Business Line Data and Key Metrics Changes - Traditional watch sales for the Fossil brand in Q3 were up high double digits, outperforming the market [5][6] - The wholesale channel grew mid-single digits globally, with notable strength in EMEA and Asia regions [12] - The company reported a 26% year-over-year reduction in inventory, aligning with a 7% sales decline [23][34] Market Data and Key Metrics Changes - The U.S. watch market showed low single-digit growth, with department and specialty store channels up low double digits [5] - In Asia, India and Japan experienced double-digit growth, while China remained under pressure [12][33] - The company noted a positive performance in the Asia region, particularly in traditional watches and jewelry, with gross margin expansion [32] Company Strategy and Development Direction - The company has successfully transformed its balance sheet, extending debt maturity to 2029 and bringing in over $32 million of new capital [4][24] - The turnaround plan focuses on three pillars: strengthening the core brand, right-sizing the cost structure, and improving the balance sheet [8][16] - The company is committed to a full-price selling model, which has improved margin architecture and reduced promotional activity [19][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the path to profitable growth, reiterating financial guidance for the full year [17][25] - The company acknowledged ongoing challenges in the macro environment, particularly in China, but remains optimistic about growth in other regions [33] - Management highlighted the importance of disciplined expense management and working capital improvements [22][23] Other Important Information - The company has appointed Devin Leong as General Manager for Asia, expected to enhance market presence and accelerate growth [12] - The Nick Jonas campaign has generated nearly 6 billion impressions and is attracting a younger demographic [9][10] - The company is focusing on brand investment and enhancing visibility through media and PR partnerships [11] Q&A Session Summary Question: What is driving the gap between wholesale growth and store comps? - Management clarified that the decline in store comps refers to direct-to-consumer performance, which has been intentionally reduced to improve margins [27][28] Question: Can you provide insights on the performance in Asia? - Management noted strong performance in India and Japan, while China remains challenging, with a focus on reducing promotional activity to improve gross margins [32][33] Question: What initiatives are driving inventory improvements? - Management highlighted tighter inventory control and a focus on key products, resulting in a significant reduction in SKUs and improved gross margins [34][37]

Core Viewpoint - Shares of Richemont and Swatch Group increased following U.S. President Donald Trump's announcement of negotiations with Switzerland to reduce the 39% tariff on exports [1] Company Summary - Richemont's stock performance improved as a result of potential tariff reductions [1] - Swatch Group also experienced a rise in share value due to the same tariff negotiation news [1] Industry Summary - The luxury goods industry may benefit from lower export tariffs, enhancing competitiveness in the U.S. market [1]

Rolex GMT-Master II watches watches in the window of a store in New York. Swiss watch exports fell in September, hurt by the Trump administration’s 39% tariff on imports from Switzerland to the US, the industry’s largest market. Watch exports fell 3.1% from a year earlier to 2 billion Swiss francs ($2.5 billion), the Federation of the Swiss Watch Industry said in a statement Tuesday. Increases in most markets last month were eclipsed by a 56% plunge in exports to the US. Most Read from Bloomberg That m ...

Group 1 - Movado Group, Inc. operates in a cyclical business that is sensitive to macroeconomic conditions, particularly in the context of a potential recession [1] - The current economic climate is perceived to be on the brink of a recession, which may impact consumer spending and demand for luxury goods [1] Group 2 - The company is analyzed from a value investing perspective, focusing on deep value plays and conservative financial metrics [1] - The investment strategy includes net current asset value analysis and discounted cash flow calculations to identify exceptional buying opportunities [1]

Swatch will hike its prices in the United States by between 5% and 15% after the 39% tariff President Donald Trump imposed on Switzerland last month, the Swiss watchmaker's Chief Executive Nick Hayek said in a newspaper interview. ...

Group 1 - Swiss watchmaker Swatch has launched a special edition watch featuring the numbers three and nine reversed on its face [1] - This design choice is a commentary on the 39% tariffs imposed by President Donald Trump on U.S. imports [1]

Group 1 - The decision was made to upgrade Movado Group, Inc. from a Hold to a soft Buy due to a decline in stock price prior to the upgrade [1] - The focus of Crude Value Insights is on cash flow and companies that generate it, highlighting value and growth prospects in the oil and natural gas sector [1] Group 2 - Subscribers have access to a 50+ stock model account and in-depth cash flow analyses of exploration and production firms [2] - A live chat discussion of the sector is available for subscribers, enhancing community engagement [2] - A two-week free trial is offered to new subscribers, promoting engagement with the oil and gas sector [3]