Movado Reports Drop in Q3 Revenue

By Bobby Samwell • Thursday, December 05 12:17 • Permanent Link

Movado Group, Inc. has announced its third quarter results for the period ended October 31, 2024. The company reported net sales of $182.7 million, a decrease from the $187.7 million in the third quarter of fiscal 2024. Gross margin was reported at 53.8%, down from 54.5% in the prior year period. Operating income was $6.6 million, a significant drop from $20.7 million in the prior year period. Adjusted operating income was $9.3 million.

The company's diluted earnings per share (EPS) stood at $0.22, down from $0.77 in the prior year period. Adjusted EPS was reported at $0.37. Movado Group ended the quarter with $181.5 million in cash and no debt.

For the first nine months of fiscal 2025, net sales decreased to $478.7 million from $493.0 million in the first nine months of fiscal 2024. Gross profit was $260.3 million, or 54.4% of net sales, compared to $273.6 million, or 55.5% of net sales in the first nine months of fiscal 2024. Operating income for the first nine months of fiscal 2025 was $12.9 million, down from $41.2 million in the first nine months of fiscal 2024. Adjusted operating income was $15.6 million.

The company has revised its fiscal year 2025 outlook, expecting net sales of approximately $665.0 million, the low end of its previous range of $665.0 million to $675.0 million. It also expects earnings of $0.90 per diluted share, at the low end of its previous range of $0.90 to $1.00 per diluted share.

Movado Group's board of directors approved a new share buyback program under which the company may purchase up to $50 million of its outstanding common shares, expiring on December 5, 2027. The company also declared a quarterly dividend of $0.35 per share.

The company has taken steps to align its expense base with expected sales, including the reduction of headcount as part of a cost-savings initiative, expected to generate approximately $6.5 million in annualized savings.

Movado Group, Inc. designs, sources, and globally distributes and sells various watch brands and, to a lesser extent, jewelry and other accessories. The company is focused on delivering a meaningful improvement in profitability for fiscal 2026. As a result of these announcements, the company's shares have moved -1.4% on the market, and are now trading at a price of $20.56. For more information, read the company's full 8-K submission here.

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