gross margin
55–56 pct
FY 2027
management framework
MOVADO GROUP, INC.
Last · NYSE$33.97+0.34 (+1.01%)stale · yahoo · 225h ago
Market cap$757.95M16.0M sh
P/E · TTM18.8fwd — · eps 1.81
Beta0.94vs S&P 500
Div yield4.71%annual · TTM
52w range
$17.24$40.50
Volume133.1Ksession
| Revenue | $689.9M |
|---|---|
| Operating income | $47.4M |
| Net income | $41.4M |
| Free cash flow | $4.2M |
| Operating margin | 6.9% |
| Net margin | 6.0% |
| Return on equity | 8.2% |
| Period | TTM 2026-07-31 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
BuyHoldSell
Strong execution is offset by temporary duty benefits and reduced outlook visibility.
Hold: Movado delivered a solid quarter, with sales up 4.9% to $169.8 million, adjusted operating income rising to $15.1 million, and adjusted EPS of $0.54, but $0.11 of EPS and 190 bps of gross-margin improvement came from IEEPA refunds. Underlying gross margin still expanded 340 bps to 57.5%, yet management expects second-half margin to normalize to 55%-56% and has withdrawn annual guidance, limiting visibility.
Themes
- Gross Margin Normalization
- Ieepa Refunds
- Tariff Exposure
- Kate Spade Launch
- Younger Consumers
- International Tourism
Near term
Second-half sales are expected to grow in the mid-single-digit range, but the company no longer provides a full-year outlook.
Gross margin is expected to decline to 55%-56% as lower-duty legacy inventory benefits roll off and current tariffs affect incoming inventory.
The remaining $6.8 million of expected IEEPA refunds could provide future upside, but management will not recognize the benefit until cash is received.
Kate Spade watch launches next fiscal year and new product introductions could support holiday and spring demand.
Longer term
The portfolio is showing encouraging traction with younger consumers, including the Movado Baby Face launch and strength in Coach, Olivia Burton, and Calvin Klein.
Margin gains from pricing, lower promotions, product mix, and SKU rationalization may prove durable, but the call did not quantify how much of the 340-basis-point improvement is structural.
The balance sheet remains a strength, with $211.6 million of cash, no debt, and $44.6 million remaining under the repurchase authorization.
International growth is uneven: Latin America, India, and Europe are performing well, while tourism-dependent Middle Eastern markets remain weak.
Red flags
Management explicitly said the favorable lower-duty inventory mix was temporary and would not continue in the second half.
The $0.54 adjusted EPS included a $0.11 per-share IEEPA benefit, making the headline earnings growth less representative of recurring profitability.
Withdrawal of annual guidance reduces the ability to underwrite full-year earnings and may reflect increased tariff, tourism, and consumer-demand uncertainty.
Higher fuel surcharges and e-commerce shipping costs are pressuring margins, while operating expenses rose 6.3% year over year.
The company disclosed a $0.2 million charge related to misconduct at a Dubai-based Swiss subsidiary branch.
Forward outlook
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
From latest 10-K · 2026-03-19
- International Exposure
- China Sourcing
- Licensing Commitments
- Dubai Control Failure
- Revenue Restatement
- Currency Risk
- Smartwatch Competition
Red flags
- The company identified misconduct in its Dubai branch involving overstated sales, premature revenue recognition and underreported customer credit notes; it restated fiscal 2024, 2023 and 2022 financial statements and interim periods. Management says the material weakness was remediated during fiscal 2026, but the control failure lasted multiple years.
- International concentration is significant: 56.7% of total sales come from international markets, while Europe, the Americas excluding the U.S., Asia and the Middle East represented 34.1%, 9.7%, 7.0% and 5.9% of total sales, respectively.
- The company had $269.6 million of minimum commitments under license, endorsement and service agreements payable over the next six years, plus $92.6 million of enforceable supplier purchase obligations at January 31, 2026.
- The Middle East is described as a significant market while the company warns that escalating regional conflict could cause reduced sales, delivery delays, inventory imbalances, higher costs and asset impairments.
Upcoming earnings
1:30 PM UTC+1
Period
Oct 2026
Est. EPS
$0.55
Est. revenue
195.4M
Earnings transcripts
Documents
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