Bullish indicating open at $55-$60, IPO prices at $37
NEW YORK -On Wednesday, Movado Group (NYSE:MOV) reported fourth quarter earnings and revenue that beat analyst expectations.
The stock was up 30.07% in premarket trading following the release.
The company posted adjusted earnings per share of $0.51, significantly above the $0.30 consensus estimate. Revenue came in at $181.5 million, topping expectations of $179.6 million.
Movado’s Q4 net sales increased 3.3% YoY to $181.5 million, or 5% on a constant currency basis. The company said the growth reflected strength in international wholesale channels and online retail, partially offset by declines in U.S. brick-and-mortar stores.
Gross margin expanded to 54.2% from 53.5% in the year-ago quarter, which the company attributed to favorable changes in channel and product mix.
"Despite a challenging macroeconomic backdrop, we delivered net sales growth in the fourth quarter and also expanded gross profit margin while increasing marketing spend in support of future growth," said Efraim Grinberg, Chairman and CEO.
For the full fiscal year 2025, Movado reported net sales of $653.4 million, down 1.7% from $664.4 million in fiscal 2024. Adjusted EPS for the year was $1.12.
The company ended the year with $208.5 million in cash and no debt. Movado’s board declared a quarterly dividend of $0.35 per share.
While not providing specific guidance, management said it plans to reduce marketing spend by $15-20 million in fiscal 2026 compared to fiscal 2025 levels.
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