Overview
- Movado reported on May 27 that first-quarter net sales rose 8.1% to $142.4 million and adjusted operating profit climbed to $7.5 million from $0.9 million a year earlier.
- The board raised the quarterly cash dividend to $0.40 per share and the company finished the quarter debt-free with about $225 million in cash.
- Gross margin widened roughly 320 basis points driven by more full-price selling, a heavier owned-brand mix and retail replenishment, though management says some of that lift came from temporary tariff relief and may not persist.
- Leadership suspended fiscal 2027 guidance and warned sales should moderate in Q2 as replenishment timing normalizes and Middle East disruptions continue to weigh on results.
- Movado is prioritizing replenishing sold-out Movado inventory for key seasonal windows, slimming SKUs and suppliers, and investing in marketing to capture a renewed interest in fashion watches among younger consumers that could support longer-term growth.