Movado Group (MOV) AI Stock Analysis

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Movado Group

(NYSE:MOV)

Rating:68Neutral

Price Target:

$17.50

▲(13.64%Upside)

Movado Group's overall stock score of 68 reflects its strong balance sheet and attractive valuation, tempered by declining financial performance and mixed technical indicators. The earnings call underscored growth in certain areas but highlighted broader challenges impacting profitability.

Positive Factors

Marketing Strategy

MOV reaffirmed its intention to reduce marketing expenses, which should have a positive contribution to earnings this year.

New Product Launches

MOV has started fiscal 2026 with the release of new women watches and men jewelry that could help contribute to sales later in the year.

Negative Factors

Earnings Decline

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.

Sales Performance

MOV reported 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

$253.25M

Dividend Yield8.76%

Average Volume (3M)205.35K

Price to Earnings (P/E)19.8

Beta (1Y)0.97

Revenue Growth-1.36%

EPS Growth-54.97%

CountryUS

Employees1,009

SectorConsumer Cyclical

Sector Strength57

IndustryLuxury Goods

Share Statistics

EPS (TTM)0.08

Shares Outstanding15,778,552

10 Day Avg. Volume230,626

30 Day Avg. Volume205,352

Financial Highlights & Ratios

PEG Ratio1.33

Price to Book (P/B)1.57

Price to Sales (P/S)0.00

P/FCF Ratio16.91

Enterprise Value/Market Cap2.50

Enterprise Value/Revenue0.24

Enterprise Value/Gross Profit1.79

Enterprise Value/Ebitda3.16

Forecast

1Y Price Target

$31.50

Price Target Upside104.55% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Movado Group Business Overview & Revenue Model

Company DescriptionMovado Group, Inc. (MOV) is a renowned designer, manufacturer, and distributor of watches. The company is known for its high-quality timepieces and operates in the luxury goods sector. With a portfolio of well-respected brands such as Movado, Concord, and Ebel, as well as licensed brands like Coach, Tommy Hilfiger, and Hugo Boss, Movado Group caters to a wide range of consumer preferences, from luxury to fashion-forward styles.

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: -9.62%|

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 has a strong balance sheet with low leverage, but declining revenues and profitability and concerning cash flow issues suggest significant financial challenges.

Income Statement

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Neutral

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.

Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Breakdown
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

Technical Analysis Sentiment

Negative

Last Price15.40

Price Trends

50DMA

14.84

Positive

100DMA

16.39

Negative

200DMA

17.46

Negative

Market Momentum

MACD

0.04

Positive

RSI

46.36

Neutral

STOCH

12.15

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 15.4 is below the 20-day moving average (MA) of 16.13, above the 50-day MA of 14.84, and below the 200-day MA of 17.46, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 46.36 is Neutral, neither overbought nor oversold. The STOCH value of 12.15 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 (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MOV	68 Neutral	$253.25M	19.85	3.67%	8.76%	-1.36%	-54.97%
Sector *	63 Neutral	$6.94B	11.34	2.80%	4.26%	2.68%	-24.70%
ELA	60 Neutral	$156.49M	21.20	14.06%	―	15.71%	15.03%
BRLT	49 Neutral	$141.02M	―	-0.45%	―	-6.12%	-105.56%
REAL	47 Neutral	$610.71M	―	32.94%	―	11.89%	66.22%
FOSL	42 Neutral	$72.94M	―	-51.93%	―	-16.31%	32.30%
BGI	40 Underperform	$16.82M	―	89.94%	―	3.11%	11.94%

* Consumer Cyclical Sector Average

Performance Comparison

MOV

Movado Group

14.85

-8.19

-35.55%

BGI

Birks & Mayors

0.88

-1.68

-65.63%

FOSL

Fossil Group

1.38

-0.07

-4.83%

ELA

Envela

5.97

1.39

30.35%

REAL

RealReal

5.33

2.11

65.53%

BRLT

Brilliant Earth Group

1.43

-0.84

-37.00%

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.