Skip to content
    MOV
    Earnings call· Apr 2026(Q1 FY27)

    MOVADO GROUP Q1 FY27 earnings call MOV

    May 27, 2026 Source

    Executive summary

    Movado Group, Inc. Q1 FY27 — Strong Sales Growth and Dividend Increase

    Movado Group delivered a strong start to the fiscal year, driven by robust sales growth, improved profitability, and increased direct-to-consumer momentum. The company raised its quarterly dividend, reflecting confidence in its financial health, despite navigating geopolitical uncertainties and electing not to provide full-year guidance. Focus remains on brand investment, operational efficiency, and long-term profitability.

    Highlights

    5

    • Sales increased 8.1% as reported to $142.4 million, or 4.5% on a constant currency basis.

    • Adjusted operating profit increased to $7.5 million from $900,000 in Q1 last year.

    • Adjusted EPS increased to $0.32 from $0.08.

    • Gross margin improved 320 basis points to 57.3%.

    • Quarterly cash dividend increased by $0.05 per share to $0.40 per share.

    Concerns

    3

    • Middle East region was "extremely challenging" due to ongoing conflict, impacting sales.

    • Sales growth expected to moderate in Q2, particularly on a constant currency basis, following strong Q1 replenishment activity.

    • Company is not providing fiscal 2027 outlook due to economic and geopolitical uncertainty.

    Guidance & targets

    1
    CategoryTargetConfidence
    Sales growth
    moderate
    medium materiality
    Medium

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    U.S.
    Strong overall sales performance.
    		—8.7%——
    International
    Growth driven by improving trends in Europe, partially offset by weak performance in the Middle East.
    Constant currency growth: 1.6%
    		—7.6%——

    Operational metrics

    13
    Adjusted Operating Profit
    $7.5 millionfrom $900,000 in Q1 FY26
    Q1 FY27

    Increased from prior year.

    Operating Income Increase
    $6.6 millionvs. Q1 FY26
    Q1 FY27

    Resulted from higher sales and gross margin dollars offsetting increased operating expenses.

    Other Non-Operating Income
    approximately $2 millioncompared to $1.8 million in Q1 FY26
    Q1 FY27

    Primarily comprised of interest earned on global cash and distributions from a venture capital fund.

    Accounts Receivable
    $80 millioncompared to $87.3 million for the same period last year
    End of Q1 FY27

    Reduction due to timing and mix of business.

    Capital Expenditures
    $1.2 million
    First 3 months FY27
    Shares Repurchased
    approximately 61,000 shares
    Q1 FY27
    Movado.com Sales Growth
    12.8%
    Q1 FY27

    Reflecting strong direct-to-consumer demand.

    Company Stores Sales Growth
    10.2%
    Q1 FY27
    Licensed Brand Sales Growth
    6.5%over last year
    Q1 FY27

    New shapes and sizes driving results.

    Marketing Expenses
    increasedvs. Q1 FY26
    Q1 FY27

    Contributed to the increase in operating expenses.

    Performance-Based Compensation
    increasedvs. Q1 FY26
    Q1 FY27

    Contributed to the increase in operating expenses.

    IEEFA Tariffs Recovery Recognition
    not recognized
    Q1 FY27

    Company elected not to recognize the gain until the cash refund is received, despite temporary favorability in gross margin due to elimination of tariffs on residual inventory.

    GAAP Net Income (prior year)
    $1.9 million
    Q1 FY26

    Reported GAAP net income for the year-ago period. Typically omitted as a raw statement line, but included per specific instruction.

    Industry KPIs

    11
    MetricValueDetails
    Effective tax rate—
    Inventory position—
    Revenue by channel$142.4 millionUSD
    Gross margin bridge57.3%%
    Revenue by geography—
    Operating margin sg a$7.5 millionUSD
    Store fleet door investment—
    Share buyback capital return$0.40 per shareUSD
    Tariff cost exposure recovery—
    Wholesale order book direction—
    Franchise product cycle performance—

    Product announcements

    16
    ProductTypeDetails
    Movado BOLD Verso S collectionlaunch
    Movado Kingmatic collectionlaunch
    23-millimeter Baby Face watchlaunch
    Coach Sammy Oval familyupdate
    Coach 22-millimeter Iris familylaunch
    Lacoste LC33 executionupdate
    Lacoste Renee collectionlaunch
    HUGO BOSS Grand Prix Vitesselaunch
    HUGO BOSS North Pendantlaunch
    Tommy Hilfiger MIA collectionupdate
    Tommy Hilfiger McKinsey collectionslaunch
    Calvin Klein Mini Pulse familyupdate
    Calvin Klein sophisticated squarelaunch
    Calvin Klein 39-millimeter Motion familylaunch
    Olivia Burton Mini Grove collectionsupdate
    Olivia Burton Mini Grosvenor collectionsupdate

    Risks & headwinds

    3
    Geopolitical uncertainty and Middle East conflictQ1 FY27, ongoing

    Middle East region was extremely challenging

    Mitigation: Focus on controlling what we can control, investing behind our brands, deepening consumer engagement, improving operational efficiencies.

    Economic uncertaintyFiscal 2027

    Not providing fiscal 2027 outlook

    Mitigation: Focus on controlling what we can control, investing behind our brands, deepening consumer engagement, improving operational efficiencies.

    Sales growth moderation in Q2Q2 FY27

    Expect sales growth to moderate in the second quarter, particularly on a constant currency basis

    Mitigation: Focus on brand investment, operational efficiencies, and driving long-term profitability.

    Q&A highlights

    5

    How much of the Q1 gross margin expansion is structural versus one-time, and what's the right baseline for the rest of the year?

    Management expects higher gross margin than last year, but not at the Q1 level. Structural improvements are driven by actions like reducing SKU counts and rationalizing suppliers, which are expected to provide long-term benefits. Sallie confirmed the expectation for an improvement, but not at the Q1 rate.

    “We would expect based on the balance of the year to generate higher gross margin than last year, but not at this level that we did in Q1. So, it's probably somewhere between halfway across both of those, Sallie, would you say that's true?”

    asked by Owen Rickert · answered by Efraim Grinberg

    1 min read5 chapters

    Detailed Narrative

    01

    Strong Q1 Performance and Strategic Execution

    Movado Group reported an 8.1% increase in sales to $142.4 million, or 4.5% constant currency, driven by strong U.S. momentum, improving European trends, increased retailer replenishment, and robust direct-to-consumer growth. Adjusted operating profit rose significantly to $7.5 million, and adjusted EPS reached $0.32, demonstrating effective execution against strategic priorities.

    02

    Product Innovation and Brand Momentum

    The company highlighted strong performance across its brand portfolio, with Movado seeing renewed interest in new designs and classics, and licensed brands growing 6.5% (9.2% constant currency excluding Middle East). Key product launches like the Movado Bangle collection, Museum Velura, and new Mini Bold Evolution Tank, alongside successful introductions in Coach, Lacoste, HUGO BOSS, Tommy Hilfiger, Calvin Klein, and Olivia Burton, are driving consumer engagement, particularly among younger demographics.

    03

    Direct-to-Consumer and Digital Growth

    Movado.com sales increased 12.8%, and company stores saw a 10.2% sales increase, reflecting strong direct-to-consumer demand and enhanced digital capabilities. The company is leveraging analytics and customer engagement tools to optimize assortments and better understand consumer preferences across all channels.

    04

    Margin Expansion and Financial Strength

    Gross margin improved by 320 basis points to 57.3%, primarily due to a favorable sales mix and increased full-price selling. The company ended the quarter with a strong cash position of $225.3 million and no debt, providing significant financial flexibility. This financial strength supported a $0.05 per share increase in the quarterly cash dividend to $0.40.

    05

    Geopolitical Headwinds and Outlook

    The Middle East region presented significant challenges due to ongoing conflict, impacting sales. While the company is not providing full fiscal 2027 guidance due to economic and geopolitical uncertainty🌐, it expects sales growth to moderate in Q2 following strong Q1 replenishment activity. Management remains focused on brand investment, operational efficiencies, and long-term profitability.

    AI-generated summary of the company’s earnings call. Not investment advice.