Movado Posts FY2026 Rebound on Brand Refresh, Withholds Outlook Over Tariff Uncertainty

Overview

• Revenue rose 2.7% for the year, with fourth-quarter sales up 5.6% led by gains in U.S. wholesale and retail.
• Adjusted operating income increased 28.7% to $34.8 million for the year, and reached $14.4 million in the quarter.
• The company ended the year with roughly $230 million in cash, no debt, and $57.9 million in operating cash flow, with priorities to maintain the dividend and use buybacks mainly to offset dilution.
• Brand-refresh efforts drove more than 25% growth in Movado wholesale and 18% growth in e-commerce, with stronger engagement from younger consumers and a return of women drawn to smaller, jewelry-inspired designs.
• IEEPA tariffs reduced gross margin by about 150 basis points (roughly $10 million in COGS) and a 39% peak prompted import delays that slightly lifted year-end inventory, while regional conflict pressured Middle East sales.