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Movado Group Inc. (MOV)
NYSE:MOV
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Movado Group
(NYSE:MOV)
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Rating:71Outperform
Price Target:
$19.50
▲(3.94% Upside)
Movado Group's overall stock score reflects a balance of strong technical momentum and a solid dividend yield, offset by mixed financial performance and valuation concerns. The company's strategic initiatives and international growth are positive, but operational inefficiencies and market challenges remain significant.
Positive Factors
Strong Balance Sheet
A strong balance sheet with significant cash reserves and no debt provides financial stability and flexibility to invest in growth initiatives.
Growth in Licensed Brands
Growth in licensed brands indicates successful brand partnerships and diversification, enhancing revenue streams and market presence.
Positive Consumer Response
Positive consumer response to new collections supports brand strength and can drive future sales, reinforcing market position.
Negative Factors
Decline in Sales
A decline in sales reflects challenges in maintaining market share and revenue growth, potentially impacting long-term profitability.
Decrease in Operating Income
Reduced operating income indicates decreased operational efficiency, which can strain profitability and cash flow over time.
Economic and Tariff Uncertainty
Uncertainty from economic and tariff issues can hinder strategic planning and investment, affecting long-term growth prospects.
Movado Group (MOV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$302.35M
Dividend Yield7.46%
Average Volume (3M)167.91K
Price to Earnings (P/E)24.6
Beta (1Y)1.05
Revenue Growth-0.65%
EPS Growth-51.59%
CountryUS
Employees1,009
SectorConsumer Cyclical
Sector Strength84
IndustryLuxury Goods
Share Statistics
EPS (TTM)0.23
Shares Outstanding15,682,096
10 Day Avg. Volume166,015
30 Day Avg. Volume167,915
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.86
Enterprise Value/Revenue0.40
Enterprise Value/Gross Profit0.74
Enterprise Value/Ebitda8.69
Forecast
1Y Price Target
$31.50Price Target Upside67.91% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
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 its watches, which are distributed globally across multiple channels. The company makes money by selling both its branded and licensed watch collections. Key revenue streams include direct sales to retailers, wholesale distribution agreements, and e-commerce sales through its own online store and third-party platforms. Significant partnerships with established retail chains and brands, alongside effective marketing strategies, contribute to its earnings. Additionally, Movado Group benefits from licensing agreements that allow it to produce watches under well-known brand names, which further diversifies its income sources.
Movado Group Earnings Call Summary
Earnings Call Date:Aug 28, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 26, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted a return to growth in both sales and profitability, strong international performance, and successful e-commerce initiatives. However, challenges such as declining Movado brand sales, U.S. sales decline, and the impact of tariffs and increased inventory levels were noted. Overall, the positive aspects were slightly more prominent, but significant challenges remain.Q2-2026 Updates
Positive Updates
Return to Growth in Sales and Profitability
Sales grew by 3% to $161.8 million, and adjusted operating profit more than doubled to $7 million from $2.6 million last year, despite a $2.2 million impact from unmitigated U.S. tariff expenses.
Strong Balance Sheet
The company operates with over $180 million in cash and no debt, highlighting financial stability and liquidity.
International Business Growth
International business grew by 6.9% or 3.9% on a constant currency basis, with strong performance in Europe, Latin America, and India.
Licensed Brands Performance
Licensed brands grew by 9.5% on a reported basis or 6.5% on a constant currency basis, with notable performances from brands like HUGO BOSS and Tommy Hilfiger.
Successful E-commerce Initiatives
Movado's own e-commerce site saw 6% growth, with strong trends in digital partners, indicating successful digital strategies.
Negative Updates
Movado Brand Sales Decline
Movado brand experienced a 5.6% sales decline, indicating challenges in this segment despite ongoing strategic efforts.
U.S. Sales Decline
U.S. business declined by 1.6% as the company focused on rebalancing chain jewelry store distribution.
Impact of Tariffs and Foreign Exchange
Gross margins slightly decreased due to a 130 basis point impact from additional tariffs in the U.S. and unfavorable foreign exchange.
Increased Inventory Levels
Inventory increased by 15.5% year-over-year, largely due to strategic positioning against tariffs, but raises concerns about potential overstock.
Company Guidance
During the Movado Group's second quarter fiscal 2026 earnings call, the company reported a 3% increase in sales to $161.8 million and a dramatic rise in adjusted operating profit to $7 million from $2.6 million the previous year. Despite facing a $2.2 million impact from U.S. tariffs and a 39% tariff rate on Swiss imports implemented after the quarter ended, the company managed a gross margin of 54.1% compared to 54.3% last year. Movado maintained a strong balance sheet with over $180 million in cash and no debt. The company's strategic initiatives have led to $10 million in annualized savings, while international business grew by 6.9% or 3.9% on a constant currency basis. The U.S. business saw a slight decline of 1.6%. Movado's e-commerce site experienced 6% growth, and the brand saw success in women's watches and a resurgence in fashion watches, driven by digital platforms like TikTok. Despite the challenges, Movado remains focused on driving profitability, with new products and strategic initiatives aimed at sustainable success.Movado Group Financial Statement Overview
Summary
Movado Group's financial performance is mixed. The company has a strong balance sheet with low leverage and a solid equity base. However, profitability and cash flow generation face challenges, with inconsistent revenue growth and compressed margins indicating operational inefficiencies.Income Statement
Movado Group's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data indicates a modest gross profit margin of 53.79% and a net profit margin of 2.48%, reflecting some profitability but below industry-leading levels. Revenue growth has been volatile, with a recent TTM growth of 38.8%, but previous periods showed declines. EBIT and EBITDA margins have decreased significantly over time, indicating pressure on operational efficiency.65
Positive
Balance Sheet
The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.18 in the TTM period, indicating conservative leverage. Return on equity is modest at 3.28%, suggesting limited profitability from equity investments. The equity ratio stands at 65.42%, highlighting a strong equity base relative to total assets, which is a positive sign of financial stability.72
Positive
Cash Flow
Cash flow analysis reveals challenges, with a significant improvement in free cash flow growth in the TTM period at 1071.57%, but previous periods showed negative growth. The operating cash flow to net income ratio is low at 0.18, indicating potential issues in converting income into cash. The free cash flow to net income ratio is relatively healthy at 70.47%, suggesting some efficiency in cash generation relative to net income.60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 650.99M | 653.38M | 672.60M | 751.90M | 732.39M | 506.40M |
| Gross Profit | 350.18M | 353.14M | 370.39M | 433.89M | 419.06M | 270.50M |
| EBITDA | 29.82M | 36.45M | 70.34M | 133.23M | 130.48M | -126.31M |
| Net Income | 16.16M | 18.36M | 46.71M | 94.53M | 91.60M | -111.19M |
Balance Sheet | ||||||
| Total Assets | 748.72M | 729.23M | 769.08M | 787.71M | 761.16M | 719.26M |
| Cash, Cash Equivalents and Short-Term Investments | 180.49M | 208.50M | 262.46M | 251.58M | 277.13M | 223.81M |
| Total Debt | 87.78M | 94.77M | 92.09M | 88.59M | 76.42M | 105.50M |
| Total Liabilities | 256.48M | 245.65M | 250.13M | 277.16M | 284.07M | 289.32M |
| Stockholders Equity | 489.91M | 481.33M | 516.80M | 507.61M | 472.81M | 425.26M |
Cash Flow | ||||||
| Free Cash Flow | 16.48M | -9.47M | 68.41M | 47.05M | 124.87M | 65.23M |
| Operating Cash Flow | 23.39M | -1.50M | 76.78M | 54.34M | 130.81M | 68.41M |
| Investing Cash Flow | -10.19M | -13.74M | -11.47M | -10.55M | -7.91M | -1.86M |
| Financing Cash Flow | -35.31M | -35.40M | -57.60M | -65.31M | -66.61M | -34.38M |
Movado Group Technical Analysis
Positive
18.76
Price Trends
17.18
Positive
16.35
Positive
16.66
Positive
Market Momentum
0.70
Positive
61.18
Neutral
12.08
Positive
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 18.76 is below the 20-day moving average (MA) of 19.08, above the 50-day MA of 17.18, and above the 200-day MA of 16.66, indicating a bullish trend. The MACD of 0.70 indicates Positive momentum. The RSI at 61.18 is Neutral, neither overbought nor oversold. The STOCH value of 12.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | 203.57M | 23.90 | 14.77% | ― | 25.43% | 33.93% | |
71 Outperform | $302.35M | 24.65 | 3.52% | 7.46% | -0.65% | -51.59% | |
66 Neutral | 218.46M | -7.77 | 8941.84% | 22.83% | -4.32% | -144.96% | |
58 Neutral | 1.16B | -9.52 | 10.45% | ― | 12.68% | 62.96% | |
56 Neutral | 159.20M | -2.65 | -14.73% | ― | -15.35% | 61.40% | |
41 Neutral | 22.34M | -2.42 | 71.17% | ― | -7.08% | -162.35% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
MOV
Movado Group
18.76
1.31
7.51%
BGI
Birks & Mayors
1.14
-1.05
-47.95%
FOSL
Fossil Group
2.88
1.64
132.26%
ELA
Envela
7.48
2.04
37.50%
REAL
RealReal
10.09
6.84
210.46%
BRLT
Brilliant Earth Group
2.14
0.34
18.89%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.