Movado Group (MOV) AI Stock Analysis

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Movado Group

(NYSE:MOV)

65Neutral

Movado's overall score is influenced by its strong financial stability and attractive valuation, offset by revenue declines and technical indicators showing bearish momentum. The earnings call highlighted both digital sales growth and challenges in key markets, contributing to a mixed outlook.

Movado Group (MOV) vs. S&P 500 (SPY)

Market Cap

$227.27M

Dividend Yield9.66%

Average Volume (3M)240.41K

Price to Earnings (P/E)13.8

Beta (1Y)1.09

Revenue Growth-4.18%

EPS Growth-58.51%

CountryUS

Employees1,089

SectorConsumer Cyclical

Sector Strength55

IndustryLuxury Goods

Share Statistics

EPS (TTM)1.05

Shares Outstanding15,684,480

10 Day Avg. Volume303,617

30 Day Avg. Volume240,405

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.59

Price to Cash Flow (P/CF)-20.70

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$31.50

Price Target Upside128.10% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

Movado Group Business Overview & Revenue Model

Company DescriptionMovado Group, Inc. designs, sources, markets, and distributes watches worldwide. The company operates in two segments, Watch and Accessory Brands, and Company Stores. It offers its watches under the Movado, Concord, Ebel, Olivia Burton, and MVMT brands, as well as licensed brands, such as Coach, Tommy Hilfiger, HUGO BOSS, Lacoste, Calvin Klein, and Scuderia Ferrari. The company also provides after-sales and shipping services. Its customers include jewelry store chains, department stores, independent regional jewelers, network of independent distributors, online marketplaces, licensors' retail stores, and third-party e-commerce retailers. The company also sells directly to consumers through its e-commerce platforms. As of January 31, 2022, it operated 51 retail outlet locations. The company was formerly known as North American Watch Corporation and changed its name to Movado Group, Inc. in 1996. Movado Group, Inc. was founded in 1961 and is based in Paramus, New Jersey.

How the Company Makes MoneyMovado Group generates revenue primarily through the sale of watches. It operates a diversified revenue model, leveraging both wholesale and direct-to-consumer channels. The wholesale segment includes partnerships with various retail partners, department stores, and specialty jewelers worldwide. The direct-to-consumer segment involves sales through Movado's branded retail stores and e-commerce platforms. Key revenue streams include sales from its own brands as well as licensed brands such as Coach, Hugo Boss, and Tommy Hilfiger. The company also benefits from its strategic focus on expanding its digital presence and enhancing customer engagement through online sales, which has become increasingly significant in recent years.

Movado Group Financial Statement Overview

Summary

Movado Group shows strong financial stability with a healthy balance sheet and low leverage. However, recent revenue declines and modest profitability margins suggest areas for improvement. Cash flow remains positive, supporting operational stability.

Income Statement

Positive

The TTM revenue has decreased compared to the previous year, indicating a negative growth trend. Gross Profit Margin is approximately 54.2%, showing a solid capacity to cover costs. Net Profit Margin is around 3.6%, which is modest but positive. EBIT and EBITDA Margins stand at 4.0% and 6.5% respectively, reflecting stable operational profitability despite revenue challenges.

Balance Sheet

Positive

Movado Group maintains a healthy equity position with an Equity Ratio of 66.1%, indicating strong financial stability. The Debt-to-Equity Ratio is 0.19, suggesting low leverage and prudent financial management. ROE stands at 4.7%, showing moderate returns on equity investments.

Cash Flow

Positive

The Free Cash Flow Growth Rate shows a decline compared to the prior period, but the company generates positive Free Cash Flow. The Operating Cash Flow to Net Income Ratio is 1.21, indicating effective conversion of income to cash. The Free Cash Flow to Net Income Ratio is 0.87, reflecting a solid cash flow relative to net income.

TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
Income Statement		Total Revenue
658.33M	672.60M	751.90M	732.39M	506.40M	700.97M
	Gross Profit
357.05M	370.39M	433.89M	419.06M	270.50M	374.89M
	EBIT
26.36M	54.70M	120.35M	117.49M	14.18M	42.99M
	EBITDA
42.94M	70.34M	133.23M	130.48M	-126.31M	74.81M
	Net Income Common Stockholders
23.81M	46.71M	94.53M	91.60M	-111.19M	42.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
63.24M	262.46M	251.58M	277.13M	223.81M	185.87M
	Total Assets
466.42M	769.08M	787.71M	761.16M	719.26M	847.31M
	Total Debt
0.00	92.09M	88.59M	76.42M	105.50M	148.87M
	Net Debt
-63.24M	-169.97M	-162.99M	-200.71M	-118.31M	-37.00M
	Total Liabilities
90.60M	250.13M	277.16M	284.07M	289.32M	316.90M
	Stockholders Equity
373.45M	516.80M	507.61M	472.81M	425.26M	526.54M
Cash Flow		Free Cash Flow
20.70M	68.41M	47.05M	124.87M	65.23M	19.10M
	Operating Cash Flow
28.78M	76.78M	54.34M	130.81M	68.41M	32.07M
	Investing Cash Flow
-14.62M	-11.47M	-10.55M	-7.91M	-1.86M	-13.37M
	Financing Cash Flow
-36.04M	-57.60M	-65.31M	-66.61M	-34.38M	-23.86M

Movado Group Technical Analysis

Technical Analysis Sentiment

Negative

Last Price13.81

Price Trends

50DMA

18.15

Negative

100DMA

18.93

Negative

200DMA

20.07

Negative

Market Momentum

MACD

-0.49

Positive

RSI

35.32

Neutral

STOCH

10.29

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MOV, the sentiment is Negative. The current price of 13.81 is below the 20-day moving average (MA) of 16.60, below the 50-day MA of 18.15, and below the 200-day MA of 20.07, indicating a bearish trend. The MACD of -0.49 indicates Positive momentum. The RSI at 35.32 is Neutral, neither overbought nor oversold. The STOCH value of 10.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MOV.

Movado Group Risk Analysis

Movado Group disclosed 40 risk factors in its most recent earnings report. Movado Group reported the most risks in the “Ability to Sell” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Movado Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (59)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MOV	65 Neutral	$227.27M	13.79	4.74%	9.66%	-4.18%	-58.51%
RCKY	64 Neutral	$109.55M	9.64	5.00%	4.22%	-1.75%	8.28%
COLM	63 Neutral	$3.78B	17.91	12.01%	1.75%	-3.35%	-6.09%
Sector *	59 Neutral	$11.76B	10.11	-0.70%	3.92%	1.27%	-16.30%
SIG	57 Neutral	$2.53B	5.56	2.62%	2.28%	-6.52%	-104.24%
FOSL	46 Neutral	$56.45M	―	-50.98%	―	-18.93%	35.38%
VFC	44 Neutral	$4.84B	―	-16.13%	2.90%	-8.42%	57.91%

* Consumer Cyclical Sector Average

Performance Comparison

MOV

Movado Group

13.81

-10.17

-42.41%

COLM

Columbia Sportswear

65.65

-8.07

-10.95%

FOSL

Fossil Group

0.98

0.08

8.89%

RCKY

Rocky Brands

13.39

-12.51

-48.30%

SIG

Signet Jewelers

57.78

-36.62

-38.79%

VFC

11.44

-0.42

-3.54%

Movado Group Earnings Call Summary

Earnings Call Date: Dec 5, 2024 | % Change Since: -32.67% | Next Earnings Date: Apr 16, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed picture. While there were significant achievements in digital sales growth, licensed brands, and international market performance, these were counterbalanced by challenges in net sales decline, reduced profitability, and a challenging retail environment in key markets.

Highlights

Strong Online Sales Growth

Movado.com's quarterly sales increased by 16.9%, with both September and October sales growing by over 25%.

Licensed Brands Performance

Sales in licensed brands grew by 3.8%, driven by Coach, Lacoste, Calvin Klein, and HUGO BOSS.

International Market Growth

The Movado brand continues to perform well in India, with a 20% increase, and growth was noted in Latin America, the Middle East, India, and Australia.

Strong Balance Sheet

The company maintains $182 million in cash and no debt, with a new $50 million share repurchase plan approved.

Lowlights

Decline in Net Sales

Net sales decreased by 2.6% in Q3 and 2.9% for the year-to-date period, with U.S. sales down 7.1%.

Decreased Profitability

Operating income decreased to $9.3 million from $20.7 million in Q3 FY2024, and net income fell to $8.3 million from $17.4 million.

Challenging Retail Environment

Retailers in the U.S. and Europe continued tight inventory management, affecting shipments.

Negative Impact on Gross Profit Margin

Gross profit as a percent of sales decreased to 53.8% from 54.5% in the same quarter last year.

Company Guidance

During the Movado Group's third quarter fiscal 2025 earnings call, the executives provided comprehensive guidance on various financial metrics and strategic initiatives. The company reported a 2.6% decrease in net sales to $182.7 million compared to the previous year, with a significant decline of 7.1% in the U.S. market partially offset by a 0.4% increase internationally. Gross profit margin slightly decreased to 53.8%, primarily due to unfavorable channel and product mix. Operating income fell to $9.3 million from $20.7 million the previous year, while net income dipped to $8.3 million. The company emphasized its strong balance sheet, with $182 million in cash and no debt, highlighting a new $50 million share repurchase plan. Looking forward, Movado expects net sales of approximately $665 million and operating income of about $23 million for the fiscal year, with a focus on cost-reduction initiatives targeting $6.5 million in annual savings.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.