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Movado Group Inc. (MOV)
NYSE:MOV
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Movado Group
(NYSE:MOV)
Rating:71Outperform
Price Target:
$19.00
▲( 12.03% Upside)
Positive Factors
EPS Projection
With a lower marketing spend, MOV is on pace to generate approximately $2.57 in EPS this year while trading at approximately $4 over its cash balance.
Marketing Investment
MOV's use of brand ambassadors and higher marketing spend should result in MOV experiencing higher sales.
Negative Factors
Stock Index Removal
The decline in earnings and the assumption that the cash dividend could end up being cut has resulted in MOV's stock trading at a considerable discount that it was kicked out of the S&P 600 index.
Movado Group (MOV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$267.61M
Dividend Yield8.25%
Average Volume (3M)235.13K
Price to Earnings (P/E)20.9
Beta (1Y)1.00
Revenue Growth-8.69%
EPS Growth-57.84%
CountryUS
Employees1,009
SectorConsumer Cyclical
Sector Strength72
IndustryLuxury Goods
Share Statistics
EPS (TTM)0.51
Shares Outstanding15,778,552
10 Day Avg. Volume227,623
30 Day Avg. Volume235,127
Financial Highlights & Ratios
PEG Ratio-1.04
Price to Book (P/B)0.70
Price to Sales (P/S)0.00
P/FCF Ratio-25.07
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$31.50Price Target Upside85.73% 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 watches across its various brands. The company operates both wholesale and direct-to-consumer channels, including their own retail stores and e-commerce platforms. Movado Group's income is largely driven by the popularity and market demand for its luxury and licensed watch brands. Key revenue streams include sales through department stores, specialty retailers, independent jewelers, and corporate accounts worldwide. Additionally, partnerships with fashion brands for licensed watch lines contribute significantly to their earnings, allowing Movado to leverage brand recognition and expand its market presence.
Movado Group Financial Statement Overview
Summary
Movado Group presents a mixed financial picture. While the company maintains a strong balance sheet with low leverage, declining revenues and profitability raise concerns. Cash flow issues further exacerbate these challenges, suggesting the need for strategic adjustments to improve both profitability and liquidity.Income Statement
Movado Group showed strong gross profit margins consistently above 50%, demonstrating effective cost control. However, the company experienced a decline in revenue from 2024 to 2025, and net profit margins also decreased significantly, impacting overall profitability. The EBIT and EBITDA margins have declined over the years, suggesting challenges in maintaining operating efficiency.65
Positive
Balance Sheet
The company maintains a solid balance sheet with a low debt-to-equity ratio, indicating strong financial health and low leverage risk. The equity ratio remained robust, showing that Movado Group is well-capitalized. However, the decline in total assets and stockholders' equity in 2025 could pose potential risks if the trend continues.78
Positive
Cash Flow
Movado Group's cash flow situation is concerning, with negative free cash flow in 2025 largely due to negative operating cash flow. The company's free cash flow to net income ratio turned negative, and operating cash flow also deteriorated, indicating potential liquidity issues. The decline in operating cash flow to net income ratio further highlights operational challenges.55
Neutral
| Breakdown | ||||
| Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 653.38M | 672.60M | 751.90M | 732.39M | 506.40M | Gross Profit |
| 353.14M | 370.39M | 433.89M | 419.06M | 270.50M | EBIT |
| 20.02M | 54.70M | 120.35M | 117.49M | 14.18M | EBITDA |
| 36.45M | 70.34M | 133.23M | 130.48M | -126.31M | Net Income Common Stockholders |
| 18.36M | 46.71M | 94.53M | 91.60M | -111.19M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 208.50M | 262.46M | 251.58M | 277.13M | 223.81M | Total Assets |
| 729.23M | 769.08M | 787.71M | 761.16M | 719.26M | Total Debt |
| 94.77M | 92.09M | 88.59M | 76.42M | 105.50M | Net Debt |
| -113.73M | -169.97M | -162.99M | -200.71M | -118.31M | Total Liabilities |
| 245.65M | 250.13M | 277.16M | 284.07M | 289.32M | Stockholders Equity |
| 481.33M | 516.80M | 507.61M | 472.81M | 425.26M |
| Cash Flow | Free Cash Flow | |||
| -9.47M | 68.41M | 47.05M | 124.87M | 65.23M | Operating Cash Flow |
| -1.50M | 76.78M | 54.34M | 130.81M | 68.41M | Investing Cash Flow |
| -13.74M | -11.47M | -10.55M | -7.91M | -1.86M | Financing Cash Flow |
| -35.40M | -57.60M | -65.31M | -66.61M | -34.38M |
Movado Group Technical Analysis
Positive
16.96
Price Trends
15.43
Positive
17.13
Negative
18.29
Negative
Market Momentum
0.64
Negative
64.12
Neutral
76.39
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 16.96 is above the 20-day moving average (MA) of 15.54, above the 50-day MA of 15.43, and below the 200-day MA of 18.29, indicating a neutral trend. The MACD of 0.64 indicates Negative momentum. The RSI at 64.12 is Neutral, neither overbought nor oversold. The STOCH value of 76.39 is Neutral, 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $267.61M | 20.87 | 3.95% | 8.25% | -8.69% | -57.84% | |
71 Outperform | $163.51M | 22.34 | 14.06% | ― | 15.71% | 15.03% | |
62 Neutral | $6.88B | 11.26 | 2.78% | 3.93% | 2.65% | -22.00% | |
50 Neutral | $592.62M | ― | 32.94% | ― | 11.89% | 66.22% | |
49 Neutral | $83.13M | ― | -51.93% | ― | -16.31% | 32.30% | |
46 Neutral | $138.04M | ― | -0.45% | ― | -6.12% | -105.56% | |
40 Underperform | $17.38M | ― | 89.94% | ― | 3.11% | 11.94% |
* Consumer Cyclical Sector Average
Performance Comparison
MOV
Movado Group
16.79
-8.13
-32.62%
BGI
Birks & Mayors
0.87
-2.13
-71.00%
FOSL
Fossil Group
1.49
0.19
14.62%
ELA
Envela
6.25
1.68
36.76%
REAL
RealReal
5.21
1.07
25.85%
BRLT
Brilliant Earth Group
1.39
-0.88
-38.77%
Movado Group Earnings Call Summary
Earnings Call Date:Apr 16, 2025
(Q4-2025)
| % Change Since: 33.23%|
Next Earnings Date:May 29, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mix of positive and negative aspects. While there were notable achievements such as cash reserves, international sales growth, and ongoing brand initiatives, the fiscal year ended with sales and operating income declines, irregularities in the Dubai office, and an uncertain economic environment. The company's commitment to dividends and shareholder value presents a positive outlook, but challenges remain.Q4-2025 Updates
Positive Updates
Fourth Quarter Sales Growth
Sales grew by 3.3% to $181.5 million in the fourth quarter, indicating an improvement compared to the previous quarters.
Increased Cash Reserves
The company ended the year with $208.5 million in cash and no outstanding debt.
Dividend and Share Repurchase Commitment
Announced a quarterly dividend of $0.35 and a commitment to shareholder value through dividends and a share repurchase program.
International Sales Growth
International net sales increased by 8.8% in the fourth quarter, and by 12.2% on a constant currency basis.
Brand Building Initiatives
Continued progress in strategic brand building efforts, including a refresh of the Movado brand and new products with positive retail performance.
Negative Updates
Dubai Sales Office Irregularities
Disclosed irregularities in the Dubai sales office, leading to termination of the leader and restatement of financials for previous periods.
Decline in Full-Year Sales and Operating Income
Sales declined by 1.7% year-over-year to $653.4 million, and adjusted operating income decreased from $48.5 million to $27.1 million.
US Sales Decline
US net sales declined by 4% for the fiscal year and 2.9% in the fourth quarter.
Increased Marketing Expenditure
Increased marketing expenses by $17.4 million, which impacted earnings.
Uncertain Economic Environment
Acknowledged uncertainty in the economic environment with potential impacts from tariffs and global trade issues.
Company Guidance
During the Movado Group's fourth-quarter fiscal year 2025 earnings call, the company provided guidance on various metrics. Sales for the year declined by 1.7% to $653.4 million, while adjusted operating income fell to $27.1 million from $48.5 million the previous year. Despite the yearly decline, the fourth quarter showed improvement with a 3.3% increase in sales to $181.5 million and a rise in adjusted operating profit to $13.5 million. The adjusted earnings per share for the quarter and the year were $0.51 and $1.12, respectively. The company ended the year with $208.5 million in cash and no debt. Movado Group plans to focus on executing strategic brand-building efforts and mitigating the impact of US tariffs on international imports. They also anticipate a $10 million cost savings from organizational restructuring and a reduction in marketing expenditures by $15 million to $20 million. However, due to global economic uncertainties, they did not provide a fiscal 2026 outlook.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.