--- title: "Movado | 10-Q: FY2027 Q1 Revenue Beats Estimate at USD 142.4 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/287784670.md" datetime: "2026-05-27T14:06:07.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/287784670.md) - [en](https://longbridge.com/en/news/287784670.md) - [zh-HK](https://longbridge.com/zh-HK/news/287784670.md) --- # Movado | 10-Q: FY2027 Q1 Revenue Beats Estimate at USD 142.4 M Revenue: As of FY2027 Q1, the actual value is USD 142.4 M, beating the estimate of USD 135.12 M. EPS: As of FY2027 Q1, the actual value is USD 0.3, beating the estimate of USD 0.0545. ### Overall Financial Performance (Three Months Ended April 30, 2026 vs. 2025) #### Consolidated Net Sales - Consolidated net sales increased to $142.4 million in 2026 from $131.769 million in 2025, an 8.1% increase. Foreign currency fluctuations positively impacted net sales by $4.7 million in 2026, contributing to a 4.5% increase excluding this impact. #### Consolidated Gross Profit - Consolidated gross profit rose to $81.6 million (57.3% of net sales) in 2026 from $71.4 million (54.1% of net sales) in 2025, an increase of $10.2 million. - The gross margin percentage increased by approximately 320 basis points, driven by a favorable sales mix (approximately 260 basis points) and increased leveraging of reduced costs (approximately 90 basis points), partially offset by a negative impact from foreign exchange rates (approximately 30 basis points). #### Consolidated Selling, General and Administrative (SG&A) Expenses - Consolidated SG&A increased to $74.6 million in 2026 from $71.059 million in 2025, a 5.0% increase. - This increase was primarily due to higher professional fees ($1.9 million, including $0.5 million for a Dubai misconduct investigation), increased marketing expenses ($1.4 million), and higher performance-based compensation ($1.0 million), partially offset by a $1.2 million decrease in foreign exchange losses and a $0.2 million decrease in payroll-related expenses. #### Consolidated Operating Income - Consolidated operating income increased significantly to $7.015 million in 2026 from $0.291 million in 2025. #### Consolidated Net Income Attributable to Movado Group, Inc. - Consolidated net income increased to $6.9 million in 2026 from $1.4 million in 2025. ### Segmented Financial Performance #### Watch and Accessory Brands Segment (Three Months Ended April 30, 2026 vs. 2025) - **Net Sales**: Increased to $123.7 million from $114.802 million, a 7.7% increase. - Sales from owned brands grew by $2.5 million (7.5%), and licensed brands by $5.3 million (6.5%). - After-sales service and all other revenues increased to $2.592 million from $1.427 million. - United States net sales rose to $41.7 million from $38.576 million (8.2% increase), with owned brands up $1.4 million (5.3%) and licensed brands up $1.9 million (15.6%). - International net sales increased to $82.0 million from $76.226 million (7.5% increase), positively impacted by $4.7 million from foreign currency fluctuations. - **Operating Income**: The segment reported an operating income of $6.6 million in 2026, compared to an operating loss of -$0.009 million in 2025. - The 2026 figure includes $11.5 million in unallocated corporate expenses and $12.9 million in intercompany profits, while 2025 included $8.0 million in unallocated corporate expenses and $14.0 million in intercompany profits. - The 2026 operating income also included a -$0.5 million pre-tax charge for a misconduct investigation in Dubai, and the 2025 operating loss included a -$0.6 million pre-tax charge for cost-savings initiatives. - United States operating loss decreased to -$4.2 million in 2026 from -$7.0 million in 2025. - International operating income increased to $10.8 million in 2026 from $7.0 million in 2025. - **Depreciation and Amortization**: $1.784 million in 2026 compared to $1.735 million in 2025. - **Capital Expenditures**: $1.081 million in 2026 compared to $1.103 million in 2025. - **Total Assets**: $679.008 million as of April 30, 2026, compared to $685.095 million as of April 30, 2025. #### Company Stores Segment (Three Months Ended April 30, 2026 vs. 2025) - **Net Sales**: Increased to $18.703 million from $16.967 million, a 10.2% increase, driven by a favorable sales mix, increased online outlet sales, and a new store opening in the prior year. - United States net sales were $17.730 million in 2026 compared to $16.124 million in 2025. - International net sales were $0.973 million in 2026 compared to $0.843 million in 2025. - **Operating Income**: Increased to $0.4 million in 2026 from $0.3 million in 2025. - **Depreciation and Amortization**: $0.528 million in 2026 compared to $0.545 million in 2025. - **Capital Expenditures**: $0.073 million in 2026 compared to $0.430 million in 2025. - **Total Assets**: $55.002 million as of April 30, 2026, compared to $62.083 million as of April 30, 2025. ### Cash Flow and Liquidity #### Consolidated Cash and Cash Equivalents - Consolidated cash and cash equivalents were $225.3 million as of April 30, 2026, compared to $203.1 million as of April 30, 2025. #### Consolidated Working Capital - Consolidated working capital increased to $401.5 million as of April 30, 2026, from $385.5 million as of April 30, 2025, primarily due to higher cash and lower accrued liabilities and accounts payable, partially offset by decreased inventories and trade receivables. #### Consolidated Net Cash from Operating Activities - Consolidated net cash from operating activities provided $7.0 million in 2026, a significant improvement from -$7.2 million used in 2025, driven by favorable changes in working capital and a $5.6 million increase in net income. #### Consolidated Net Cash Used in Investing Activities - Consolidated net cash used in investing activities was -$1.7 million in 2026, compared to -$2.8 million in 2025, including $1.2 million in capital expenditures and -$0.5 million in long-term investments in 2026. #### Consolidated Net Cash Used in Financing Activities - Consolidated net cash used in financing activities was -$9.5 million in 2026, compared to -$0.5 million in 2025, including -$7.7 million in dividend payments and -$1.5 million in stock repurchases in 2026. #### Share Repurchase Program - During the three months ended April 30, 2026, Movado Group, Inc. repurchased 61,000 shares for -$1.5 million, with $44.6 million remaining available under the $50.0 million share repurchase program as of April 30, 2026. ### Outlook and Strategy - Movado Group, Inc. is evaluating potential recoveries of approximately $10.0 million in IEEPA tariffs paid between February 2025 and February 2026, though no receivable has been recognized due to uncertainties. - The company continues to implement cost-savings initiatives, with a remaining -$0.5 million balance of severance and employee-related costs expected to be paid during the remainder of fiscal year 2027. ### Related Stocks - [MOV.US](https://longbridge.com/en/quote/MOV.US.md) ## Related News & Research - [2Invest AG schedules release of half-year 2026 report](https://longbridge.com/en/news/295943641.md) - [Xylem sets quarterly distribution at R$ 0.75 per unit for 3Q 2026](https://longbridge.com/en/news/296117630.md) - [GE HealthCare declares Q3 2026 distribution of R$ 0.02 per unit](https://longbridge.com/en/news/296242723.md) - [Diageo announces BRL 0.32 per unit distribution for Q3 2026](https://longbridge.com/en/news/295964479.md) - [Colgate-Palmolive announces Q3 2026 distribution of R$ 0.26 per unit](https://longbridge.com/en/news/296100448.md)