Movado Group (NYSE:MOV) Posts Earnings Results, Beats Expectations By $0.19 EPS

Movado Group (NYSE:MOV) posted its quarterly earnings data on Wednesday. The company reported $0.54 EPS for the quarter, beating the consensus estimate of $0.35 by $0.19, FiscalAI reports. The business had revenue of $169.75 million for the quarter, compared to analysts’ expectations of $164.20 million. Movado Group had a net margin of 6.00% and a return on equity of 8.49%.

Here are the key takeaways from Movado Group’s conference call:

• Second-quarter sales rose 4.9% to $169.8 million, with growth across licensed brands, company stores, and owned brands, while U.S. and international sales each increased 4.9%.
• Adjusted operating profit more than doubled to $15.1 million and adjusted EPS increased to $0.54, supported by stronger sales, improved product and channel mix, strategic pricing, and reduced promotions.
• Gross margin improved to 57.5% excluding the $3.2 million IEEPA duty refund, but management said part of the benefit came from legacy inventory and is temporary; second-half gross margin is expected at 55%–56%.
• Management cited strong momentum among younger consumers returning to traditional watches, with notable growth in Latin America, India, Olivia Burton, and several fashion brands, while Kate Spade watches are scheduled to launch next fiscal year.
• Movado discontinued its annual outlook, reducing forward visibility, although it expects mid-single-digit top-line growth for the remainder of the fiscal year; the Middle East and higher shipping costs remain headwinds.

Movado Group Trading Down 1.8%

NYSE:MOV opened at $34.37 on Friday. The stock has a market capitalization of $758.80 million, a PE ratio of 19.09 and a beta of 0.97. Movado Group has a 1-year low of $16.75 and a 1-year high of $40.50. The firm has a fifty day simple moving average of $37.42 and a 200 day simple moving average of $31.20.

Movado Group Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 22nd. Stockholders of record on Tuesday, September 8th will be issued a $0.40 dividend. This represents a $1.60 annualized dividend and a dividend yield of 4.7%. The ex-dividend date of this dividend is Tuesday, September 8th. Movado Group’s dividend payout ratio is presently 114.29%.

Movado Group News Summary

Here are the key news stories impacting Movado Group this week:

• Positive Sentiment: Quarterly results exceeded expectations. Movado reported fiscal Q2 sales of approximately $169.8 million, up 4.9% year over year and above the $164.2 million analyst estimate. Adjusted earnings of $0.53-$0.54 per share also surpassed consensus estimates of roughly $0.35-$0.36 and increased from $0.13-$0.23 a year earlier. Movado Group fiscal second-quarter results
• Positive Sentiment: Profitability and balance-sheet metrics improved. Gross margin rose to 59.4% from 54.1%, while operating income increased to $14.9 million from $4.0 million. Results benefited from $3.2 million in IEEPA duty refunds, and Movado ended the quarter with $211.6 million in cash and no debt. Movado Q2 sales and earnings
• Positive Sentiment: Dividend maintained. The company declared a quarterly dividend of $0.40 per share, payable September 22 to shareholders of record September 8. The dividend represents an annualized yield of approximately 4.6% based on the provided trading data. Movado dividend and results announcement
• Neutral Sentiment: Second-half expectations remain constructive but less specific. Movado projects mid-single-digit sales growth and a 55%-56% gross margin for the second half, excluding additional duty refunds.
• Negative Sentiment: Management discontinued its annual outlook. Removing full-year guidance introduces uncertainty about expected sales, margins, and earnings, particularly because part of the quarter’s margin improvement came from duty refunds. This guidance change is the key factor offsetting the earnings beat. Movado second-half outlook

Institutional Trading of Movado Group

Large investors have recently added to or reduced their stakes in the company. Nebula Research & Development LLC increased its stake in shares of Movado Group by 15.6% during the 2nd quarter. Nebula Research & Development LLC now owns 27,889 shares of the company’s stock worth $425,000 after purchasing an additional 3,762 shares during the last quarter. Brevan Howard Capital Management LP acquired a new stake in Movado Group in the 2nd quarter valued at about $399,000. Man Group plc acquired a new stake in Movado Group in the 4th quarter valued at about $385,000. LPL Financial LLC lifted its stake in Movado Group by 21.9% in the 4th quarter. LPL Financial LLC now owns 15,350 shares of the company’s stock valued at $317,000 after purchasing an additional 2,759 shares during the last quarter. Finally, Quantinno Capital Management LP bought a new position in Movado Group during the second quarter worth about $300,000. Institutional investors and hedge funds own 72.08% of the company’s stock.

Analysts Set New Price Targets

Several analysts have issued reports on the company. Northland Securities set a $35.00 price target on Movado Group in a research note on Wednesday, May 27th. Zacks Research upgraded Movado Group from a “hold” rating to a “strong-buy” rating in a report on Friday, May 29th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Movado Group in a research report on Tuesday. Finally, BWS Financial reaffirmed a “buy” rating and set a $45.00 price target on shares of Movado Group in a research note on Monday, July 27th. Two equities research analysts have rated the stock with a Strong Buy rating, one has assigned a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat, Movado Group currently has an average rating of “Buy” and a consensus price target of $40.00.

Movado Group Company Profile

Movado Group, Inc is a global designer, manufacturer and distributor of watches and related jewelry products. The company’s portfolio encompasses both owned and licensed brands, offering a wide range of timepieces from luxury to accessible price points. Major owned brands include Movado, Concord, and Ebel, alongside newer acquisitions such as MVMT and Olivia Burton. In addition, Movado Group holds licensing agreements to produce watches under fashion names like Hugo Boss, Tommy Hilfiger, Coach, Lacoste and Scuderia Ferrari.

Movado Group’s product line spans classic dress watches, sport and dive models, fashion-forward designs and limited-edition collections.