PARAMUS, N.J. - Movado Group, Inc. (NYSE: NYSE:MOV) today reported financial results for the first quarter of fiscal 2025, revealing that earnings and revenue fell short of Wall Street expectations.
The luxury watchmaker announced a first-quarter earnings per share (EPS) of $0.13, which was below the analyst estimate of $0.26. Revenue also declined, coming in at $136.7 million compared to the consensus estimate of $147.8 million.
Compared to the same quarter last year, Movado's net sales decreased by 5.7%, with a notable decline in wholesale customers' brick-and-mortar stores and Movado Company Stores. Gross margin also saw a slight decrease from 56.6% to 55.3%, attributed to unfavorable changes in channel and product mix, along with decreased leverage of certain fixed costs due to lower sales.
Despite the decline in sales and operating income, Efraim Grinberg, Chairman and Chief Executive Officer, expressed satisfaction with the company's performance, which met internal expectations. Grinberg highlighted the success of new product launches and the growth of Movado.com, driven by a strong spring television campaign. He also emphasized the company's plans to increase marketing investments in the upcoming quarters to support strategic growth opportunities.
For the full fiscal year 2025, Movado Group maintains its guidance, expecting net sales to be in the range of approximately $700 million to $710 million and an EPS of $1.20 to $1.30. This guidance remains in line with the analyst consensus for EPS but slightly above the consensus for revenue, which stands at $700.8 million.
Movado Group's financial position remains robust, ending the quarter with $225.4 million in cash and cash equivalents and no debt. Additionally, the Board of Directors approved a quarterly dividend of $0.35 per share, demonstrating confidence in the company's stability and commitment to shareholder returns.
The company's outlook for the year does not anticipate further economic deterioration and assumes stability in foreign currency exchange rates. Movado Group's strategy focuses on investing in targeted areas to drive brand awareness and sales growth, particularly in the second half of the fiscal year.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.