Movado Group, Inc. Announces Second Quarter Results
Movado Group (NYSE: MOV) reported Q2 fiscal 2025 results with net sales of $159.3 million, down 0.7% year-over-year. The company achieved operating income of $3.0 million and EPS of $0.16. Movado brand sales increased 1.4%, with Movado.com sales up 21%. However, overall performance was impacted by a challenging consumer spending environment.
The company updated its fiscal 2025 outlook, now expecting net sales of $665.0-$675.0 million, down from previous guidance of $700.0-$710.0 million. Earnings per share are now projected at $0.90-$1.00, reduced from $1.20-$1.30 previously. Movado ended Q2 with $198 million in cash and no debt. The Board declared a quarterly dividend of $0.35 per share.
Movado Group (NYSE: MOV) ha riportato i risultati del secondo trimestre fiscale 2025 con vendite nette di 159,3 milioni di dollari, in calo dello 0,7% rispetto all'anno precedente. L'azienda ha raggiunto un reddito operativo di 3,0 milioni di dollari e un utile per azione di 0,16 dollari. Le vendite del marchio Movado sono aumentate dell'1,4%, con un incremento delle vendite su Movado.com del 21%. Tuttavia, le prestazioni complessive sono state influenzate da un ambiente di spesa dei consumatori difficile.
L'azienda ha aggiornato le proprie previsioni per l'anno fiscale 2025, ora aspettandosi vendite nette di 665,0-675,0 milioni di dollari, in diminuzione rispetto alle precedenti stime di 700,0-710,0 milioni di dollari. Gli utili per azione sono ora previsti a 0,90-1,00 dollari, ridotti rispetto a 1,20-1,30 dollari di prima. Movado ha concluso il secondo trimestre con 198 milioni di dollari in contante e senza debiti. Il Consiglio ha dichiarato un dividendo trimestrale di 0,35 dollari per azione.
Movado Group (NYSE: MOV) informó los resultados del segundo trimestre fiscal 2025 con ventas netas de 159,3 millones de dólares, una disminución del 0,7% en comparación con el año anterior. La compañía logró un ingreso operativo de 3,0 millones de dólares y un EPS de 0,16 dólares. Las ventas de la marca Movado aumentaron un 1,4%, con un incremento del 21% en las ventas de Movado.com. Sin embargo, el rendimiento general se vio afectado por un entorno de gasto del consumidor desafiante.
La compañía actualizó su perspectiva fiscal 2025, ahora esperando ventas netas de 665,0-675,0 millones de dólares, por debajo de la guía anterior de 700,0-710,0 millones de dólares. Se proyecta que las ganancias por acción sean ahora de 0,90-1,00 dólares, reducidas desde 1,20-1,30 dólares previamente. Movado cerró el segundo trimestre con 198 millones de dólares en efectivo y sin deudas. La Junta declaró un dividendo trimestral de 0,35 dólares por acción.
모바도 그룹 (NYSE: MOV)은 2025 회계 연도 2분기 실적을 보고했습니다. 순매출 1억 5,930만 달러 , 전년 대비 0.7% 감소했습니다. 이 회사는 운영 수익 300만 달러 및 주당순이익 0.16 달러 를 기록했습니다. 모바도 브랜드 매출이 1.4% 증가했으며, Movado.com의 매출은 21% 증가했습니다. 그러나 전반적인 성과는 어려운 소비 지출 환경의 영향을 받았습니다.
회사는 2025 년 회계 연도 전망을 업데이트했습니다. 이제 순매출 6억 6,500만-6억 7,500만 달러 를 예상하고 있으며, 이전 가이드라인인 7억-7억 1,000만 달러에서 하향 조정되었습니다. 주당순이익은 이제 0.90-1.00 달러 로 예상되며, 이전의 1.20-1.30 달러에서 감액되었습니다. 모바도는 2 분기를 마치며 1억 9,800만 달러의 현금과 무거래 상태 를 기록했습니다. 이사회는 주당 0.35 달러의 분기 배당금을 선언했습니다.
Movado Group (NYSE: MOV) a publié les résultats du deuxième trimestre de l'exercice 2025 avec un chiffre d'affaires net de 159,3 millions de dollars, en baisse de 0,7% par rapport à l'année précédente. L'entreprise a réalisé un résultat d'exploitation de 3,0 millions de dollars et un BPA de 0,16 dollar. Les ventes de la marque Movado ont augmenté de 1,4%, avec des ventes sur Movado.com en hausse de 21%. Cependant, la performance globale a été affectée par un environnement de consommation difficile.
L'entreprise a mis à jour ses prévisions pour l'exercice 2025, s'attendant désormais à un chiffre d'affaires net compris entre 665,0 et 675,0 millions de dollars, en baisse par rapport aux prévisions précédentes de 700,0 à 710,0 millions de dollars. Le bénéfice par action est désormais estimé à 0,90-1,00 dollar, contre 1,20-1,30 dollar précédemment. Movado a terminé le deuxième trimestre avec 198 millions de dollars en liquidités et aucune dette. Le Conseil a déclaré un dividende trimestriel de 0,35 dollar par action.
Die Movado Group (NYSE: MOV) hat die Ergebnisse des zweiten Quartals des Geschäftsjahres 2025 veröffentlicht, mit Nettoverkaufszahlen von 159,3 Millionen Dollar, was einem Rückgang von 0,7% im Jahresvergleich entspricht. Das Unternehmen erzielte einen Betriebsgewinn von 3,0 Millionen Dollar und EPS von 0,16 Dollar. Die Umsätze der Marke Movado stiegen um 1,4%, während sich die Umsätze über Movado.com um 21% erhöhten. Die Gesamtleistung wurde jedoch von einem herausfordernden Umfeld für Verbraucherausgaben beeinträchtigt.
Das Unternehmen hat seine Prognose für das Geschäftsjahr 2025 aktualisiert und erwartet nun Nettoverkäufe von 665,0 bis 675,0 Millionen Dollar, was eine Senkung der vorherigen Schätzung von 700,0 bis 710,0 Millionen Dollar darstellt. Der Gewinn pro Aktie wird nun auf 0,90 bis 1,00 Dollar geschätzt, was von vorher 1,20 bis 1,30 Dollar reduziert wurde. Movado schloss das zweite Quartal mit 198 Millionen Dollar in bar und keinen Schulden. Der Vorstand beschloss eine vierteljährliche Dividende von 0,35 Dollar pro Aktie.
- Movado brand sales increased 1.4% with Movado.com sales up 21%
- Company maintains strong financial position with $198 million in cash and no debt
- Quarterly dividend of $0.35 per share declared
- Launch of new Movado Bold Quest collection showing positive momentum
- Major marketing campaign planned to support Movado Icons initiative
- Net sales decreased 0.7% to $159.3 million year-over-year
- Operating income declined to $3.0 million from $9.6 million in Q2 fiscal 2024
- EPS decreased to $0.16 from $0.36 in the prior year period
- Gross margin decreased to 54.2% from 55.7% in Q2 fiscal 2024
- Fiscal 2025 outlook revised downward for net sales and EPS
Insights
Movado's Q2 results paint a mixed picture. While net sales only declined slightly by
The company's revised outlook for FY2025 is notably bearish, with expected net sales reduced by
On a positive note, Movado maintains a strong balance sheet with
Movado's results reveal interesting consumer behavior trends in the watch market. The
The success of the Bold Quest collection, starting at
The upcoming marketing campaign featuring celebrities like Julianne Moore and Jessica Alba is a bold move to increase brand visibility. However, its effectiveness in translating to sales remains to be seen, especially given the current market headwinds.
Movado's performance reflects broader challenges in the luxury retail sector. The slight decline in U.S. sales (
The company's focus on omnichannel strategy is evident, with strong online growth offsetting brick-and-mortar declines. This adaptation is important for survival in the evolving retail landscape.
The planned
~ Net Sales of
~ Operating Income of
~ EPS of
~ Updates Fiscal Year 2025 Outlook ~
~ Board Declares Quarterly Dividend of
Efraim Grinberg, Chairman and Chief Executive Officer, stated, “While increased marketing investment coupled with our initiatives to enhance retail performance drove improvement in our sales trend from the first quarter, second quarter sales and earnings were below our expectations due to the challenging consumer spending environment compounded by increased expenses to support future growth. Despite this, the quarter exhibited some bright spots that we expect to capitalize on during the second half of the year. The quarter saw our Movado brand sales increase by
We expect to build upon this positive momentum with the launch of a major marketing campaign in support of our Movado Icons initiative, as announced yesterday. This new advertising campaign features icons Julianne Moore, Jessica Alba, Ludacris, Tyrese Haliburton, and Christian McCaffrey, and showcases Ludacris’ iconic song, Stand Up. The campaign, which marks our largest campaign in Movado brand history, will reach millions of consumers this fall in multiple touchpoints such as print, social, outdoor, digital and television.
While we are excited by the initiatives that we have put in place, the consumer spending environment in the watch category continues to be difficult in many markets around the world and we believe this will have an impact on our second half results. As such, we have updated our outlook for the balance of the year.
As we begin to plan for next fiscal year, we are committed to reducing our operating expenses to improve profitability. At the same time, we expect the combination of our upcoming marketing initiatives, along with compelling innovation, to drive excitement for our brands and business.
We continue to be in a strong financial position, concluding the quarter with
Second Quarter Fiscal 2025 Highlights
-
Delivered net sales of
versus$159.3 million in the second quarter of fiscal 2024;$160.4 million -
Generated gross margin of
54.2% as compared to55.7% in the prior year period; -
Generated operating income of
as compared to$3.0 million in the prior year period;$9.6 million -
Achieved diluted earnings per share of
as compared to$0.16 in the prior year period; and$0.36 -
Ended the quarter with cash of
and no debt.$198.3 million
Second Quarter Fiscal 2025 Results
-
Net sales decreased
0.7% (a0.3% decline on a constant dollar basis) to compared to$159.3 million in the second quarter of fiscal 2024. The decrease in net sales reflected sales mix in Movado Company Stores and wholesale customers’ brick and mortar stores, partially offset by an increase in$160.4 million U.S. online retail.U.S. net sales decreased0.3% as compared to the second quarter of last year. International net sales decreased0.9% (a0.3% decline on a constant dollar basis) as compared to the second quarter of last year. -
Gross profit was
, or$86.4 million 54.2% of net sales, compared to , or$89.3 million 55.7% of net sales, in the second quarter of fiscal 2024. The decrease in gross margin percentage was primarily the result of the unfavorable changes in channel and product mix. -
Operating expenses were
compared to$83.3 million in the second quarter of fiscal 2024. This increase was primarily due to higher marketing expenses, partially offset by lower performance-based compensation. As a percentage of sales, operating expenses increased to$79.6 million 52.3% of net sales from49.7% in the prior year period, reflecting increased marketing spend to support strategic growth opportunities. -
Operating income was
compared to$3.0 million in the second quarter of fiscal 2024.$9.6 million -
The Company recorded a tax provision of
, or an effective tax rate of$0.9 million 19.5% , as compared to a tax provision of , or an effective tax rate of$2.9 million 26.1% , in the second quarter of fiscal 2024. -
Net income was
, or$3.7 million per diluted share, compared to net income of$0.16 , or$8.0 million per diluted share, in the second quarter of fiscal 2024.$0.36
First Half Fiscal 2025 Results
-
Net sales for the first six months of fiscal 2025 decreased
3.1% to (a$296.0 million 3.1% decrease on a constant dollar basis) compared to in the first six months of fiscal 2024. The decrease in net sales reflected sales mix in wholesale customers’ brick and mortar stores and in Movado Company Stores, partially offset by an increase in$305.3 million U.S. online retail.U.S. net sales decreased3.0% as compared to the first six months of last year. International net sales decreased3.1% (a3.1% decrease on a constant dollar basis) as compared to the first six months of last year. -
Gross profit was
, or$161.9 million 54.7% of net sales, compared to , or$171.3 million 56.1% of net sales in the first six months of fiscal 2024. The decrease in gross margin percentage was primarily the result of the unfavorable changes in channel and product mix and decreased leverage of higher fixed costs on lower sales, partially offset by reduced shipping costs. -
Operating expenses were
, as compared to$155.5 million in the first six months of fiscal 2024. This increase was primarily due to higher marketing and payroll-related costs, partially offset by lower performance-based compensation. As a percentage of sales, operating expenses increased to$150.7 million 52.5% of net sales from49.4% in the prior year period. -
Operating income was
compared to operating income of$6.3 million in the first six months of fiscal 2024.$20.5 million -
The Company recorded a tax provision of
, or an effective tax rate of$3.2 million 31.9% , as compared to a provision of , or an effective tax rate of$5.4 million 23.7% , in the first six months of fiscal 2024. -
Net income was
, or$6.6 million per diluted share, compared to net income of$0.29 , or$17.2 million per diluted share, in the first six months of last year.$0.76
Fiscal 2025 Outlook
The Company is revising its previously provided outlook to reflect second-quarter results and the expected continuing impact of a challenging environment.
For Fiscal Year 2025, the Company currently expects:
-
Net sales in a range of approximately
to$665.0 million , as compared to its previous expectation of$675.0 million to$700.0 million ; second half sales are expected to be flat to slightly positive as compared to last year;$710.0 million -
Gross profit of approximately
54% of net sales, as compared to its previous expectation of55% ; -
Operating income in a range of
to$23.0 million , as compared to its previous expectation of$26.0 million to$32.0 million ; this revised outlook contemplates approximately$35.0 million of incremental investments in brand-building initiatives as compared to last year;$20 million -
An effective tax rate of approximately
25% , as compared to its previous expectation of22% ; and -
Earnings of
to$0.90 per diluted share, as compared to its previous expectation of$1.00 to$1.20 per diluted share.$1.30
This outlook does not contemplate further deterioration due to the impact of economic uncertainty and assumes no further significant fluctuations from prevailing foreign currency exchange rates.
Quarterly Dividend and Share Repurchase Program
The Company also announced today that on September 5, 2024, the Board of Directors approved the payment on September 30, 2024, of a cash dividend in the amount of
During the first six months of fiscal 2025, the Company repurchased approximately 39,000 shares under its November 23, 2021, share repurchase program. As of July 31, 2024, the Company had
Conference Call
The Company’s management will host a conference call and audio webcast to discuss its results today, September 5, 2024, at 9:00 a.m. Eastern Time. The conference call may be accessed by dialing (877) 407-0784. Additionally, a live webcast of the call can be accessed at www.movadogroup.com. The webcast will be archived on the Company’s website approximately one hour after the conclusion of the call. Additionally, a telephonic replay of the call will be available from 1:00 p.m. ET on September 5, 2024, until 11:59 p.m. ET on September 19, 2024, and can be accessed by dialing (844) 512-2921 and entering replay pin number 13748504.
Movado Group, Inc. designs, sources, and distributes MOVADO®, MVMT®, OLIVIA BURTON®, EBEL®, CONCORD®, CALVIN KLEIN®, COACH®, HUGO BOSS®, LACOSTE®, and TOMMY HILFIGER® watches, and, to a lesser extent, jewelry and other accessories, and operates Movado Company Stores in
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company has tried, whenever possible, to identify these forward-looking statements using words such as “expects,” “anticipates,” “believes,” “targets,” “goals,” “projects,” “intends,” “plans,” “seeks,” “estimates,” “may,” “will,” “should” and variations of such words and similar expressions. Similarly, statements in this press release that describe the Company's business strategy, outlook, objectives, plans, intentions or goals are also forward-looking statements. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the Company's actual results, performance or achievements and levels of future dividends to differ materially from those expressed in, or implied by, these statements. These risks and uncertainties may include, but are not limited to general economic and business conditions which may impact disposable income of consumers in
(Tables to follow)
MOVADO GROUP, INC. | ||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended |
Six Months Ended |
|||||||||||||||
July 31, |
July 31, |
|||||||||||||||
2024 |
2023 |
2024 |
2023 |
|||||||||||||
Net sales | $ |
159,313 |
|
$ |
160,390 |
|
$ |
295,982 |
|
$ |
305,295 |
|
||||
Cost of sales |
|
72,948 |
|
|
71,104 |
|
|
134,104 |
|
|
134,006 |
|
||||
Gross profit |
|
86,365 |
|
|
89,286 |
|
|
161,878 |
|
|
171,289 |
|
||||
Total operating expenses |
|
83,335 |
|
|
79,638 |
|
|
155,537 |
|
|
150,742 |
|
||||
Operating income |
|
3,030 |
|
|
9,648 |
|
|
6,341 |
|
|
20,547 |
|
||||
Non-operating income/(expense): | ||||||||||||||||
Other income, net |
|
1,877 |
|
|
1,537 |
|
|
4,049 |
|
|
2,562 |
|
||||
Interest expense |
|
(110 |
) |
|
(113 |
) |
|
(228 |
) |
|
(226 |
) |
||||
Income before income taxes |
|
4,797 |
|
|
11,072 |
|
|
10,162 |
|
|
22,883 |
|
||||
Provision for income taxes |
|
936 |
|
|
2,885 |
|
|
3,238 |
|
|
5,419 |
|
||||
Net income |
|
3,861 |
|
|
8,187 |
|
|
6,924 |
|
|
17,464 |
|
||||
Less: Net income attributable to noncontrolling interests |
|
140 |
|
|
138 |
|
|
312 |
|
|
287 |
|
||||
Net income attributable to Movado Group, Inc. | $ |
3,721 |
|
$ |
8,049 |
|
$ |
6,612 |
|
$ |
17,177 |
|
||||
Diluted Income Per Share Information | ||||||||||||||||
Net income per share attributable to Movado Group, Inc. | $ |
0.16 |
|
$ |
0.36 |
|
$ |
0.29 |
|
$ |
0.76 |
|
||||
Weighted diluted average shares outstanding |
|
22,658 |
|
|
22,616 |
|
|
22,665 |
|
|
22,642 |
|
||||
MOVADO GROUP, INC. | ||||||||
GAAP AND NON-GAAP MEASURES | ||||||||
(In thousands, except for percentage data) | ||||||||
(Unaudited) | ||||||||
Three Months Ended |
||||||||
July 31, |
% Change |
|||||||
2024 |
2023 |
|||||||
Total net sales, as reported | $ |
159,313 |
$ |
160,390 |
- |
|||
Total net sales, constant dollar basis | $ |
159,915 |
$ |
160,390 |
- |
|||
Six Months Ended |
||||||||
July 31, |
% Change |
|||||||
2024 |
2023 |
|||||||
Total net sales, as reported | $ |
295,982 |
$ |
305,295 |
- |
|||
Total net sales, constant dollar basis | $ |
295,962 |
$ |
305,295 |
- |
|||
MOVADO GROUP, INC. |
|||||||||
CONSOLIDATED BALANCE SHEETS |
|||||||||
(In thousands) |
|||||||||
(Unaudited) |
|||||||||
July 31, |
January 31, |
July 31, |
|||||||
2024 |
2024 |
2023 |
|||||||
ASSETS | |||||||||
Cash and cash equivalents | $ |
198,251 |
$ |
262,059 |
$ |
218,909 |
|||
Trade receivables, net |
|
109,784 |
|
104,472 |
|
95,821 |
|||
Inventories |
|
176,396 |
|
148,031 |
|
181,448 |
|||
Other current assets |
|
26,421 |
|
17,962 |
|
25,206 |
|||
Income taxes receivable |
|
13,088 |
|
11,354 |
|
12,988 |
|||
Total current assets |
|
523,940 |
|
543,878 |
|
534,372 |
|||
Property, plant and equipment, net |
|
20,315 |
|
19,436 |
|
19,740 |
|||
Operating lease right-of-use assets |
|
85,350 |
|
82,661 |
|
71,358 |
|||
Deferred and non-current income taxes |
|
42,685 |
|
43,016 |
|
45,004 |
|||
Other intangibles, net |
|
6,645 |
|
7,493 |
|
8,432 |
|||
Other non-current assets |
|
80,253 |
|
72,598 |
|
70,791 |
|||
Total assets | $ |
759,188 |
$ |
769,082 |
$ |
749,697 |
|||
LIABILITIES AND EQUITY | |||||||||
Accounts payable | $ |
36,769 |
$ |
32,775 |
$ |
28,435 |
|||
Accrued liabilities |
|
45,074 |
|
38,695 |
|
47,135 |
|||
Accrued payroll and benefits |
|
9,778 |
|
7,591 |
|
10,976 |
|||
Current operating lease liabilities |
|
18,352 |
|
15,696 |
|
17,069 |
|||
Income taxes payable |
|
8,962 |
|
18,318 |
|
18,078 |
|||
Total current liabilities |
|
118,935 |
|
113,075 |
|
121,693 |
|||
Deferred and non-current income taxes payable |
|
1,028 |
|
8,234 |
|
8,321 |
|||
Non-current operating lease liabilities |
|
76,314 |
|
76,396 |
|
63,565 |
|||
Other non-current liabilities |
|
56,336 |
|
52,420 |
|
52,220 |
|||
Shareholders' equity |
|
504,116 |
|
516,798 |
|
500,784 |
|||
Noncontrolling interest |
|
2,459 |
|
2,159 |
|
3,114 |
|||
Total equity |
|
506,575 |
|
518,957 |
|
503,898 |
|||
Total liabilities and equity | $ |
759,188 |
$ |
769,082 |
$ |
749,697 |
|||
MOVADO GROUP, INC. |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(In thousands) |
||||||||
(Unaudited) |
||||||||
Six Months Ended |
||||||||
July 31, |
||||||||
2024 |
2023 |
|||||||
Cash flows from operating activities: | ||||||||
Net income | $ |
6,924 |
|
$ |
17,464 |
|
||
Depreciation and amortization |
|
4,582 |
|
|
5,039 |
|
||
Other non-cash adjustments |
|
4,690 |
|
|
5,427 |
|
||
Changes in working capital |
|
(52,388 |
) |
|
(19,999 |
) |
||
Changes in non-current assets and liabilities |
|
282 |
|
|
1,295 |
|
||
Net cash (used in)/provided by operating activities |
|
(35,910 |
) |
|
9,226 |
|
||
Cash flows from investing activities: | ||||||||
Capital expenditures |
|
(3,913 |
) |
|
(4,620 |
) |
||
Long-term investments |
|
(4,310 |
) |
|
(1,407 |
) |
||
Trademarks and other intangibles |
|
(82 |
) |
|
(54 |
) |
||
Net cash used in investing activities |
|
(8,305 |
) |
|
(6,081 |
) |
||
Cash flows from financing activities: | ||||||||
Dividends paid |
|
(15,547 |
) |
|
(37,650 |
) |
||
Stock repurchase |
|
(1,086 |
) |
|
(433 |
) |
||
Stock awards and options exercised and other changes |
|
(1,075 |
) |
|
(92 |
) |
||
Net cash used in financing activities |
|
(17,708 |
) |
|
(38,175 |
) |
||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
(1,900 |
) |
|
3,131 |
|
||
Net change in cash, cash equivalents, and restricted cash |
|
(63,823 |
) |
|
(31,899 |
) |
||
Cash, cash equivalents, and restricted cash at beginning of period |
|
262,814 |
|
|
252,179 |
|
||
Cash, cash equivalents, and restricted cash at end of period | $ |
198,991 |
|
$ |
220,280 |
|
||
Reconciliation of cash, cash equivalents, and restricted cash: | ||||||||
Cash and cash equivalents | $ |
198,251 |
|
$ |
218,909 |
|
||
Restricted cash included in other non-current assets |
|
740 |
|
|
1,371 |
|
||
Cash, cash equivalents, and restricted cash | $ |
198,991 |
|
$ |
220,280 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240905992036/en/
ICR, Inc.
Allison Malkin
203-682-8225
Source: Movado Group, Inc.
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