Movado Group (NYSE:MOV) Releases Earnings Results, Beats Estimates By $0.19 EPS

Movado Group (NYSE:MOV) announced its quarterly earnings data on Wednesday. The company reported $0.54 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.35 by $0.19, FiscalAI reports. Movado Group had a return on equity of 7.13% and a net margin of 4.70%.The firm had revenue of $169.75 million during the quarter, compared to analysts’ expectations of $164.20 million.

Here are the key takeaways from Movado Group’s conference call:

• Second-quarter sales rose 4.9% to $169.8 million, with growth across licensed brands, company stores, and owned brands, while U.S. and international sales each increased 4.9%.
• Adjusted operating profit more than doubled to $15.1 million and adjusted EPS increased to $0.54, supported by stronger sales, improved product and channel mix, strategic pricing, and reduced promotions.
• Gross margin improved to 57.5% excluding the $3.2 million IEEPA duty refund, but management said part of the benefit came from legacy inventory and is temporary; second-half gross margin is expected at 55%–56%.
• Management cited strong momentum among younger consumers returning to traditional watches, with notable growth in Latin America, India, Olivia Burton, and several fashion brands, while Kate Spade watches are scheduled to launch next fiscal year.
• Movado discontinued its annual outlook, reducing forward visibility, although it expects mid-single-digit top-line growth for the remainder of the fiscal year; the Middle East and higher shipping costs remain headwinds.

Movado Group Trading Down 1.4%

Shares of MOV stock opened at $34.49 on Thursday. The stock has a 50 day moving average of $37.50 and a 200 day moving average of $31.13. The stock has a market cap of $761.54 million, a P/E ratio of 24.64 and a beta of 0.97. Movado Group has a twelve month low of $16.75 and a twelve month high of $40.50.

Movado Group Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 22nd. Investors of record on Tuesday, September 8th will be issued a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a yield of 4.6%. The ex-dividend date of this dividend is Tuesday, September 8th. Movado Group’s dividend payout ratio (DPR) is 114.29%.

Movado Group News Summary

Here are the key news stories impacting Movado Group this week:

• Positive Sentiment: Fiscal Q2 earnings were significantly above expectations: adjusted EPS was approximately $0.54 versus the consensus estimate of $0.35-$0.36, while revenue reached $169.8 million, ahead of estimates near $164.2 million. EPS also more than doubled from $0.23 a year earlier. Movado Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Sales increased 4.9% year over year to $169.8 million, operating income rose to $14.9 million from $4.0 million, and gross margin expanded to 59.4% from 54.1%. The quarter included $3.2 million in IEEPA duty refunds; gross margin was still a solid 57.5% excluding the refunds. Movado Group Announces Second Quarter Fiscal 2027 Results
• Positive Sentiment: Movado ended the quarter with $211.6 million in cash and no debt, strengthening its balance sheet. The board also declared a quarterly dividend of $0.40 per share, payable September 22 to shareholders of record September 8, representing an annualized yield of roughly 4.6%.
• Neutral Sentiment: Management expects mid-single-digit sales growth and a 55%-56% gross margin during the second half of fiscal 2027, excluding additional duty refunds. These targets indicate continued growth but imply some margin normalization from the reported Q2 level. Movado Expects Mid-Single-Digit Sales Growth and 55%-56% Second-Half Gross Margin
• Negative Sentiment: Movado discontinued its annual fiscal 2027 outlook, limiting visibility into full-year revenue, earnings and margin performance. Investors may view the withdrawal as a sign of uncertainty around tariffs, consumer demand or the durability of the quarter’s unusually strong results.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on MOV shares. Weiss Ratings reiterated a “hold (c)” rating on shares of Movado Group in a research report on Tuesday. BWS Financial reissued a “buy” rating and set a $45.00 price target on shares of Movado Group in a research report on Monday, July 27th. Zacks Research upgraded shares of Movado Group from a “hold” rating to a “strong-buy” rating in a research note on Friday, May 29th. Finally, Northland Securities set a $35.00 price objective on shares of Movado Group in a report on Wednesday, May 27th. Two analysts have rated the stock with a Strong Buy rating, one has given a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Buy” and an average price target of $40.00.

Institutional Investors Weigh In On Movado Group

Several hedge funds have recently bought and sold shares of the stock. PNC Financial Services Group Inc. increased its holdings in shares of Movado Group by 39.1% during the 4th quarter. PNC Financial Services Group Inc. now owns 1,598 shares of the company’s stock valued at $33,000 after purchasing an additional 449 shares in the last quarter. Comerica Bank boosted its holdings in Movado Group by 99.0% during the third quarter. Comerica Bank now owns 1,785 shares of the company’s stock worth $34,000 after buying an additional 888 shares in the last quarter. CANADA LIFE ASSURANCE Co boosted its holdings in Movado Group by 70.2% during the fourth quarter. CANADA LIFE ASSURANCE Co now owns 1,756 shares of the company’s stock worth $36,000 after buying an additional 724 shares in the last quarter. State of Wyoming acquired a new stake in Movado Group during the second quarter valued at $40,000. Finally, Quantbot Technologies LP acquired a new stake in Movado Group during the second quarter valued at $188,000. Hedge funds and other institutional investors own 72.08% of the company’s stock.

About Movado Group

Movado Group, Inc is a global designer, manufacturer and distributor of watches and related jewelry products. The company’s portfolio encompasses both owned and licensed brands, offering a wide range of timepieces from luxury to accessible price points. Major owned brands include Movado, Concord, and Ebel, alongside newer acquisitions such as MVMT and Olivia Burton. In addition, Movado Group holds licensing agreements to produce watches under fashion names like Hugo Boss, Tommy Hilfiger, Coach, Lacoste and Scuderia Ferrari.

Movado Group’s product line spans classic dress watches, sport and dive models, fashion-forward designs and limited-edition collections.