Movado Group navigates tough Q1 with focus on cost savings and innovation

Movado Group, Inc. financial results for the first quarter of fiscal 2026, ended April 30, 2025, revealed a slight dip in net sales amidst a challenging retail landscape. The company recorded net sales of 131.8 million dollars, a 1.9 percent versus the prior-year period.

Looking forward, the company has opted not to provide a fiscal 2026 outlook at this time, citing current economic uncertainty and the unpredictable impact of tariff developments.

Chairman and CEO Efraim Grinberg expressed satisfaction with their cost-savings initiatives and strong product innovation. “We were pleased to execute against our cost savings initiatives while delivering strong product innovation. Overall, our licensed brand portfolio performed very well, reflecting a renewed vibrancy in the fashion watch category. Our Movado brand received a strong response to our new product introductions during the Mother’s Day holiday,” Grinberg said.

Looking ahead, he said, “As we begin the second quarter, we anticipate continued market volatility, yet we are optimistic about the opportunities that lie ahead, as we introduce compelling innovation across our powerful brand portfolio.”

The company’s gross margin for the quarter remained relatively stable at 54.1 percent, a minor decrease from 54.3 percent in the first quarter of fiscal 2025. Operating income for the quarter was 0.3 million dollars, while adjusted operating income was 0.9 million dollars. Net income for the quarter stood at 1.4 million dollars or 6 cents per diluted share, with adjusted net income at 1.9 million dollars or 8 cents per diluted share.

Breaking down sales, the decline in net sales reflected decreases in owned brands and Movado Company Stores, which were partially offset by an increase in licensed brands. U.S. net sales decreased by 1.6 percent, while international net sales saw a 2.2 percent decline.

The company’s board of directors has approved a quarterly cash dividend of 35 cents per share, payable on June 26, 2025.