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Movado Group Inc. (MOV)
NYSE:MOV
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Movado Group
(NYSE:MOV)
Rating:63Neutral
Price Target:
$17.00
▲(3.09%Upside)
Positive Factors
Earnings Projection
MOV is on pace to generate approximately $2.57 in EPS this year while trading at about $4 over its cash balance.
Product Launch
MOV has started the fiscal year with new women's watches and men's jewelry releases that could boost sales.
Negative Factors
Operational Challenges
MOV encountered sales irregularities in its Dubai business, leading to restated sales for the last three fiscal years.
Sales Performance
MOV reported softer fiscal first quarter sales than expected, with sales of $131.8 million compared to an estimate of $142.1 million.
Movado Group (MOV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$260.19M
Dividend Yield8.65%
Average Volume (3M)198.64K
Price to Earnings (P/E)20.4
Beta (1Y)1.03
Revenue Growth-1.36%
EPS Growth-54.97%
CountryUS
Employees1,009
SectorConsumer Cyclical
Sector Strength60
IndustryLuxury Goods
Share Statistics
EPS (TTM)0.08
Shares Outstanding15,778,552
10 Day Avg. Volume204,068
30 Day Avg. Volume198,642
Financial Highlights & Ratios
PEG Ratio-2.59
Price to Book (P/B)0.70
Price to Sales (P/S)0.00
P/FCF Ratio173.49
Enterprise Value/Market Cap0.51
Enterprise Value/Revenue0.05
Enterprise Value/Gross Profit0.38
Enterprise Value/Ebitda0.79
Forecast
1Y Price Target
$31.50Price Target Upside91.02% 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 Earnings Call Summary
Earnings Call Date:May 29, 2025
(Q1-2026)
| % Change Since: -3.23%|
Next Earnings Date:Aug 21, 2025
Earnings Call Sentiment Neutral
Movado's earnings call presented a mixed picture. While there were some positive developments, such as a strong cash position and growth in licensed brands, the company faced challenges with decreased sales, operating income, and net income, compounded by currency fluctuations and economic uncertainties.Q1-2026 Updates
Positive Updates
Strong Cash Position
Ended the quarter with $203 million in cash and no debt.
Dividend Approval
Board approved a dividend of $0.35 per share for the first quarter.
Growth in Licensed Brands
Licensed brands saw strong growth with sales improving by high single digits.
Positive Consumer Response to New Collections
New Mini Bangle collections and Bold Mini Quest received strong consumer response, helping to elevate brand positioning.
Improved Trend in Outlet Division
Sales in the Outlet division were only down 1.7% and showed improvement in May.
Negative Updates
Decrease in Sales
Sales were $131.8 million, a decrease of 1.9% from last year, and international sales decreased 2.2%.
Operating Income Decline
Adjusted operating income decreased to $870,000 from $2.1 million last year.
Decreased Net Income
Net income for the quarter was $1.9 million or $0.08 per diluted share, down from $2 million or $0.09 per diluted share last year.
Currency Fluctuations Impact
Unrealized losses due to significant currency fluctuations affected financial results.
Inventory Increase
Inventory was up $24.1 million from the same period last year due to the timing of receipts.
Uncertain Economic Environment
Results continue to be negatively impacted by an uncertain economic environment and tariff-related uncertainties.
Company Guidance
During Movado's first quarter fiscal year 2026 earnings call, the company reported sales of $131.8 million, a slight decrease of 1.9% from the previous year, with U.S. sales down 1.6% and international sales down 2.2%, or 0.7% on a constant currency basis. Adjusted operating income for the quarter was $870,000, compared to $2.1 million last year, while adjusted earnings per share dropped slightly to $0.08 from $0.09. Gross profit margin was 54.1%, a minor decline from 54.3% the previous year, impacted by currency fluctuations and increased shipping costs. The company ended the quarter with $203 million in cash and no debt, and announced a dividend of $0.35 per share. Movado highlighted strong growth in licensed brands, particularly in women's watch collections and men's jewelry offerings, and noted challenges due to macroeconomic and tariff-related uncertainties, opting not to provide a fiscal 2026 outlook.Movado Group Financial Statement Overview
Summary
Movado Group shows a mixed financial performance. While it maintains a solid balance sheet with low leverage and high equity, its income statement reflects declining revenues and profitability. Cash flows are volatile, with some improvement in free cash flow. The company needs to focus on enhancing revenue growth and stabilizing cash flows.Income Statement
The company shows a decline in revenue growth with TTM (Trailing-Twelve-Months) revenue lower compared to previous years. Gross profit margin remains strong at 53.8% TTM, but net profit margin has declined to 2.6% TTM from 2.8% last year, indicating pressure on profitability. EBIT and EBITDA margins have also decreased, reflecting reduced operating efficiency.62
Positive
Balance Sheet
The balance sheet is strong with a low debt-to-equity ratio of 0.19 and high equity ratio of 66% TTM, showing financial stability. Return on equity has decreased to 3.4% TTM from 3.8% the previous year, indicating reduced profitability for shareholders.75
Positive
Cash Flow
Cash flow performance is weak with significant volatility. Operating cash flow to net income ratio is 0.55 TTM, indicating less cash generation relative to net income. Free cash flow has improved slightly, but growth remains inconsistent.55
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 648.48M | 653.38M | 672.60M | 751.90M | 732.39M | 506.40M |
| Gross Profit | 348.98M | 353.14M | 370.39M | 433.89M | 419.06M | 270.50M |
| EBITDA | 32.90M | 36.45M | 70.34M | 133.23M | 130.48M | -126.31M |
| Net Income | 16.89M | 18.36M | 46.71M | 94.53M | 91.60M | -111.19M |
Balance Sheet | ||||||
| Total Assets | 747.18M | 729.23M | 769.08M | 787.71M | 761.16M | 719.26M |
| Cash, Cash Equivalents and Short-Term Investments | 203.09M | 208.50M | 262.46M | 251.58M | 277.13M | 223.81M |
| Total Debt | 92.28M | 94.77M | 92.09M | 88.59M | 76.42M | 105.50M |
| Total Liabilities | 251.78M | 245.65M | 250.13M | 277.16M | 284.07M | 289.32M |
| Stockholders Equity | 493.23M | 481.33M | 516.80M | 507.61M | 472.81M | 425.26M |
Cash Flow | ||||||
| Free Cash Flow | 1.41M | -9.47M | 68.41M | 47.05M | 124.87M | 65.23M |
| Operating Cash Flow | 9.36M | -1.50M | 76.78M | 54.34M | 130.81M | 68.41M |
| Investing Cash Flow | -11.78M | -13.74M | -11.47M | -10.55M | -7.91M | -1.86M |
| Financing Cash Flow | -25.95M | -35.40M | -57.60M | -65.31M | -66.61M | -34.38M |
Movado Group Technical Analysis
Positive
16.49
Price Trends
15.40
Positive
15.96
Positive
17.17
Negative
Market Momentum
0.10
Negative
62.77
Neutral
82.98
Negative
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 16.49 is above the 20-day moving average (MA) of 15.46, above the 50-day MA of 15.40, and below the 200-day MA of 17.17, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 62.77 is Neutral, neither overbought nor oversold. The STOCH value of 82.98 is Negative, 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 (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $160.39M | 21.91 | 14.06% | ― | 15.71% | 15.03% | |
63 Neutral | $260.19M | 20.39 | 3.67% | 8.65% | -1.36% | -54.97% | |
56 Neutral | $3.37B | 4.05 | -1.30% | 6.64% | 0.16% | -63.79% | |
53 Neutral | $87.42M | ― | -51.93% | ― | -16.31% | 32.30% | |
48 Neutral | $600.54M | ― | 32.94% | ― | 11.89% | 66.22% | |
47 Neutral | $142.02M | ― | -0.45% | ― | -6.12% | -105.56% | |
40 Underperform | $18.35M | ― | 89.94% | ― | 3.11% | 11.94% |
* Consumer Cyclical Sector Average
Performance Comparison
MOV
Movado Group
16.49
-6.21
-27.36%
BGI
Birks & Mayors
0.98
-1.62
-62.31%
FOSL
Fossil Group
1.63
0.28
20.74%
ELA
Envela
6.08
0.89
17.15%
REAL
RealReal
5.31
1.86
53.91%
BRLT
Brilliant Earth Group
1.43
-0.91
-38.89%
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.