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.