Movado Group (MOV) AI Stock Analysis

• Market Cap: $395.67M
• Dividend Yield: 6.79%
• Average Volume (3M): 119.00K
• Price to Earnings (P/E): 19.4
• Beta (1Y): 1.23
• Revenue Growth: 0.63%
• EPS Growth: -7.37%
• Country: US
• Employees: 1,009
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 0.57
• Shares Outstanding: 15,682,352
• 10 Day Avg. Volume: 116,395
• 30 Day Avg. Volume: 118,997
• PEG Ratio: 0.47
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 0.77
• P/FCF Ratio: 9.65
• Enterprise Value/Market Cap: 0.56
• Enterprise Value/Revenue: 0.33
• Enterprise Value/Gross Profit: 0.61
• Enterprise Value/Ebitda: 5.43
• 1Y Price Target: $30.75
• Price Target Upside: 21.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 1.48
• Revenue Forecast (FY): $669.51M

• Rating: 70 Outperform
• Price Target: $28.00 ▲(10.98% Upside)
• Action: Upgraded Date: 03/20/26
• Date: Action: Upgraded 03/20/26

The score is driven primarily by solid financial stability and cash generation (low leverage, strong liquidity) alongside constructive price trend support. This is tempered by compressed current profitability versus prior peak years and mixed momentum signals, while valuation is supported by a high dividend and the latest call’s improving operating performance but with tariff and visibility risks.

Positive Factors

Strong balance sheet

Movado’s large cash balance ($230.5M) and no debt provide durable financial flexibility to fund inventory, marketing, share repurchases, and strategic investments. This conservative capital structure reduces refinancing risk and cushions the business against cyclical demand or tariff shocks over the next 2–6 months.

Solid cash generation

Consistent positive operating and free cash flow (TTM ~$57.9M OCF, ~$53M FCF) supports recurring capital allocation to buybacks, dividends, and reinvestment. Reliable cash conversion underpins operational resilience and funds strategic initiatives without adding leverage, a durable advantage for near-term stability.

Brand & channel momentum

Strong wholesale and DTC growth demonstrates brand relevance and omnichannel execution. Growth across owned brands and licensed programs expands reach and lowers single-channel risk, supporting durable revenue streams and pricing power as product innovation and digital content sustain customer acquisition and repeat purchases.

Negative Factors

Compressed profitability

Margins have materially compressed from prior peak years (net margins ~3.2% TTM versus ~12–13% in 2022–2023), reducing returns on capital and earnings resilience. Lower margin headroom increases sensitivity to cost inflation and sales volatility, constraining the company’s ability to sustainably scale profitability.

Tariff exposure

A structural tariff hit (~$10M, ~150bps of gross margin) and management modeling of an extra ~10% tariff on top of duty meaningfully erode gross margins. Persistent trade-policy risk makes cost base unpredictable and can permanently compress profitability if tariffs or sourcing costs remain elevated.

International weakness & reduced visibility

International constant-currency weakness (FY -1.5%, Q4 -5.9% CC) highlights geographic vulnerability; combined with management withholding FY2027 guidance due to geopolitical and tariff uncertainty, this reduces forward visibility and increases execution risk as the company may need to rely more on U.S. demand to sustain growth.

Movado Group Business Overview & Revenue Model

Company Description

Movado 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 Money

Movado Group primarily makes money by selling watches and related accessories through two main go-to-market channels: (1) Wholesale and (2) Direct-to-Consumer (DTC). In wholesale, Movado sells finished products in bulk to third-party retailers (such as jewelry stores, department stores, and specialty watch/fashion retailers) and to international distributors; revenue is recognized from product sales, and profitability depends on brand demand, retailer orders, product mix, and discounting/returns allowances. In DTC, the company sells directly to end consumers via its owned e-commerce sites and company-operated stores/outlets, capturing retail margin but also bearing the costs of retail operations, digital marketing, fulfillment, and customer service. A significant contributor to revenue is licensed-brand watch programs: Movado enters into trademark licensing arrangements with certain fashion/luxury brand owners that allow Movado to design, manufacture/source, market, and sell watches under those brand names; Movado earns revenue from product sales while paying royalties and complying with brand standards, making the strength and renewal of these licenses important to earnings. Key factors affecting how Movado earns include consumer demand for discretionary accessories, the success of new product launches and brand marketing, retailer inventory cycles, pricing and promotional activity, foreign currency movements (given international sales), supply chain sourcing costs, and the performance of its owned brands versus licensed brands. Specific named partnerships beyond its brand licensing relationships: null.

Movado Group Financial Statement Overview

Summary

Financial profile is stable with low leverage and strong liquidity, supported by solid TTM operating cash flow and free cash flow. However, profitability has compressed materially versus 2022–2023, with thin current margins and more volatile earnings/cash flow consistency.

Income Statement

TTM (Trailing-Twelve-Months) shows modest top-line growth (+2.6%) and solid gross margin (~54%), but profitability remains thin (net margin ~3.2%, EBIT margin ~4.4%). Results have also been volatile: the company delivered strong profits in 2022–2023 (net margins ~12–13%) before a sharp step-down in 2024–TTM, indicating meaningful margin pressure and less consistent earnings power.

Balance Sheet

Balance sheet looks conservative with low leverage (TTM debt-to-equity ~0.17) and a large equity base relative to assets. Returns on equity are positive in TTM (~4.2%) but well below the strong 2022–2023 levels, which signals that while financial risk is contained, current profitability is not generating high returns on capital.

Cash Flow

Cash generation in TTM is strong with positive operating cash flow (~$58M) and free cash flow (~$53M), and free cash flow rebounded sharply versus the prior year. However, cash flow has been choppy (including negative operating/free cash flow in 2025 annual), and cash conversion is not consistently strong (TTM free cash flow is slightly below net income), suggesting working-capital or reinvestment swings can meaningfully impact year-to-year cash outcomes.

Breakdown	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	671.31M	653.38M	672.60M	751.90M	732.39M
Gross Profit	363.60M	353.14M	370.39M	433.89M	419.06M
EBITDA	29.83M	36.45M	70.34M	133.23M	130.48M
Net Income	26.55M	18.36M	46.71M	94.53M	91.60M
Balance Sheet
Total Assets	742.62M	729.23M	769.08M	787.71M	761.16M
Cash, Cash Equivalents and Short-Term Investments	230.54M	208.50M	262.46M	251.58M	277.13M
Total Debt	58.06M	94.77M	92.09M	88.59M	76.42M
Total Liabilities	232.36M	245.65M	250.13M	277.16M	284.07M
Stockholders Equity	510.26M	481.33M	516.80M	507.61M	472.81M
Cash Flow
Free Cash Flow	53.41M	-9.47M	68.41M	47.05M	124.87M
Operating Cash Flow	57.92M	-1.50M	76.78M	54.34M	130.81M
Investing Cash Flow	-8.09M	-13.74M	-11.47M	-10.55M	-7.91M
Financing Cash Flow	-36.28M	-35.40M	-57.60M	-65.31M	-66.61M

Movado Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MOV, the sentiment is Positive. The current price of 25.23 is above the 20-day moving average (MA) of 24.32, above the 50-day MA of 23.75, and above the 200-day MA of 19.22, indicating a bullish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 60.50 is Neutral, neither overbought nor oversold. The STOCH value of 56.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MOV.

Movado Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MOV	70 Outperform	$395.67M	19.42	5.33%	6.79%	0.63%	-7.37%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ELA	58 Neutral	$395.42M	23.81	18.01%	―	23.75%	59.66%
FOSL	54 Neutral	$250.93M	-2.64	-48.62%	―	-12.89%	45.32%
BRLT	44 Neutral	$129.41M	2.00	-15.32%	14.29%	1.32%	-175.81%
LANV	42 Neutral	$202.31M	-1.49	404.88%	―	-23.54%	-49.41%
BGI	41 Neutral	$13.15M	-2.90	63.94%	―	4.49%	-87.94%