Movado Group (NYSE:MOV) reported a return to growth in fiscal 2026, with management pointing to improving demand trends, brand and product innovation, and disciplined execution on profitability initiatives.
Fiscal 2026 results show revenue growth and higher operating income
Chairman and CEO Efraim Grinberg said the company was “pleased to return to growth” following what he described as a challenging fiscal 2025. For fiscal 2026, revenue increased 2.7% to $671.3 million, while adjusted operating income rose 28.7% to $34.8 million. Grinberg said results exceeded the company’s expectations and improved as the year progressed.
CFO Sallie DeMarsilis said that in constant dollars, fourth-quarter net sales increased 1.8%. U.S. net sales increased 11.2% during the quarter, while international net sales rose 1% as reported but declined 5.9% on a constant currency basis. DeMarsilis cited strong performances in markets such as Europe and Mexico, offset by a weaker performance in the Middle East, which she said had been an important market that Movado was rebuilding.
Margins held steady as tariffs pressured costs
Movado’s fourth-quarter gross margin was 54.1% versus 54.2% a year earlier. DeMarsilis said the company absorbed increased U.S. tariffs through favorable channel and product mix, leveraging lower fixed costs over higher sales, and benefiting from foreign currency exchange rates. Operating expenses increased to $89.3 million from $84.8 million, driven by higher performance-based compensation, partially offset by a planned reduction in marketing expenses. Net income in the fourth quarter was $13 million, or $0.57 per diluted share, compared with $11.5 million, or $0.51 per diluted share, a year earlier.
For the full year, gross margin was 54.2% of sales, up from 54.0% in fiscal 2025. DeMarsilis attributed the increase in gross margin rate to favorable channel and product mix and leverage on lower fixed costs, partially offset by increased U.S. tariffs and unfavorable foreign currency impacts. Operating income was $34.8 million, or 5.2% of sales, compared with $27.1 million, or 4.1% of sales, in fiscal 2025. Net income was $30.4 million, or $1.34 per diluted share, compared with $25.4 million, or $1.12 per diluted share, in the prior year.
On tariffs, DeMarsilis quantified the impact of IEEPA reciprocal tariffs in fiscal 2026, saying they increased cost of goods sold by about $10 million, representing a 150-basis-point impact for the year. She said the fourth quarter was impacted by about 180 basis points in gross margin. Looking ahead, she said the company is using “current tariff information” in its plans, describing it as roughly a 10% tariff on top of normal duty rates.
In response to a separate question about Swiss tariffs, Grinberg discussed a prior period when Swiss tariffs briefly rose to 39%. He said Movado brought in very little inventory during that period because it did not believe those rates would be long-lasting. He added that any benefit in the current year would likely be limited because of the small amount of inventory affected, while noting the Movado brand is the most impacted by those Swiss tariff rates. Grinberg also described uncertainty around what permanent tariff rate will apply going forward, comparing a negotiated 15% all-inclusive rate with the current structure he described as 10% plus an additional 6% to 8% tariff duty rate.
Brand and product initiatives target younger consumers and women
Grinberg outlined four strategic priorities, beginning with “putting the customer at the center of everything we do.” He said Movado strengthened digital engagement and is seeing benefits from a more connected omni-channel approach. He also highlighted continued strength in both the Fashion Watch and Accessible Luxury segments in the U.S., with increased participation from younger consumers and what he described as a strong return of women to the category. He attributed that to smaller case sizes, jewelry-inspired designs, and fresh styling.
In company-owned stores, Grinberg said the company delivered a strong holiday season, with sales up 9% in the fourth quarter, driven by higher average selling prices, improved merchandising, and better in-store execution.
On innovation, Grinberg said traditional watches are “resonating strongly,” particularly with younger consumers. He noted Movado brand performance in the fourth quarter, saying wholesale sales grew over 25% and e-commerce increased 18%, which he attributed to brand refresh initiatives implemented over the prior 18 months. He highlighted several product areas, including Mini Bangle, the Movado 1917 Heritage collection, higher-price automatic watches led by the Museum Classic Automatic, and what he called encouraging traction in jewelry, particularly the Ono collection.
Grinberg also cited new product plans, including introducing a new women’s Museum watch called Velura, expanding Movado BOLD with Verso S, launching a Heritage model inspired by the Movado Kingmatic, and expanding jewelry collections with a new Curve line for women.
He said licensed brands delivered strong innovation and growth, including Coach driven by Gen Z engagement and product families such as Sammy, along with Cady and Reese. He cited HUGO BOSS momentum with Grand Prix and growth in women’s with the May collection; Lacoste performance led by LC33 and strength in men’s jewelry including the Metropole bracelet; Tommy Hilfiger demand for new shapes and smaller case sizes, with success in men’s tied to Oxford; and Calvin Klein’s response to new designs including Pulse Mini and CK Motion for Him, with Grinberg calling men’s a significant opportunity. He also said Olivia Burton continued to grow in the U.K. and the U.S., supported by the “Mini to the Max” campaign.
Digital storytelling, anniversary marketing, and profitability focus
Grinberg said the company has made “meaningful progress” in connecting with consumers through storytelling across digital and communication platforms. He pointed to a holiday campaign featuring brand ambassadors including Ludacris, Christian McCaffrey, Julianne Moore, Jessica Alba, and Tyrese Haliburton, describing the effort as authentic and amplified across digital channels, social platforms, influencers, and content creators.
Looking ahead, he said storytelling will be important as Movado marks its 145th anniversary, with planned campaigns focused on Swiss heritage, craftsmanship, and growing interest in vintage timepieces. He also said the company will expand consumer insights capabilities.
On profitability, Grinberg said Movado maintained stable gross margins “despite external pressures, including tariffs,” while increasing operating income through pricing, sourcing, product mix, and cost management. He said the company intends to shift mix toward higher-margin products, drive more full-price sell-through by reducing promotional activity, and improve efficiency across the supply chain and operations.
Cash position, share repurchases, and no fiscal 2027 outlook
Movado reported operating cash flow of $57.9 million and ended the year with $230.5 million in cash and no outstanding debt. Accounts receivable rose to $102 million from $93.4 million, which DeMarsilis attributed to timing and mix. Inventory ended the year at $158.3 million compared with $156.7 million, and included $3.1 million of IEEPA reciprocal tariffs. Capital expenditures were $4.5 million, and depreciation and amortization was $9.4 million.
The company repurchased about 208,000 shares during fiscal 2026 and had $46.1 million remaining under its December 2004 authorization as of January 31, 2026. DeMarsilis said the company plans to use the repurchase plan to offset dilution in fiscal 2027, subject to market conditions and the business environment. In Q&A, Grinberg emphasized capital allocation prudence, including maintaining what he called a solid dividend and using repurchases to offset dilution.
Due to what DeMarsilis described as economic and geopolitical uncertainty—including the unpredictable impact of the Middle East conflict and ongoing tariff developments—Movado elected not to provide a fiscal 2027 outlook at this time. Grinberg said the company is monitoring the Middle East situation while supporting teams and partners in the region.
About Movado Group (NYSE:MOV)
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.
