Financials

Movado’s 2021 US Sales Shot Up 61 Percent

FinancialsMar 24, 2022

Movado’s 2021 US Sales Shot Up 61 Percent

Also, the company has donated $100,000 to charities aiding those affected by the war in Ukraine.

20220324_Movado.jpg
These 36 mm square-dial watches are a part of Movado’s capsule collection in collaboration with the late artist Carmen Herrera.
Paramus, N.J.—Movado Group reported strong sales in the fourth quarter and the full year but remained cautious about the fiscal year ahead in light of the war in Ukraine and inflationary pressures.

Like Signet CEO Gina Drosos last week, Movado CEO Efraim Grinberg opened the company’s earnings call Thursday morning by addressing the Russian invasion of Ukraine.

“We are now operating in a world that is being greatly affected by the devastation in Ukraine. Our hearts and prayers go out to all those affected by this untenable situation.”

The Movado Group Foundation donated $100,000, split evenly between the International Rescue Committee and UNHCR, the UN Refugee Agency.

Looking at its results, net sales in the fourth quarter were up 16 percent to $206 million, compared with $178.3 million in the previous year’s fourth quarter.

Movado attributed the sales increase to growth in its wholesale customers’ brick-and-mortar stores as well as in online retail, in its owned stores and wholesale customers’ website, and growth in Movado stores.

For the full year, net sales surged 45 percent to $732.4 million, compared with $506.4 million in 2021.

Quarterly gross profit totaled $120.8 million, or 59 percent of net sales, compared with $100.8 million, or 57 percent of net sales, in the same period last year.

Gross profit for the full year was $419.1 million, or 57 percent of net sales, compared to gross profit of $270.5 million, or 53 percent of net sales, in fiscal 2021.

In the U.S. market, quarterly net sales were up 19 percent year-over-year, and up 12 percent compared with pre-pandemic Q4 2020.

For the full year, U.S. sales soared, climbing 61 percent year-over-year, and up 14 percent compared with Q4 2020.

“We attribute our ongoing strength to the successful execution of our strategy with powerful brands, excellent craftsmanship and desirable designs,” said CEO Efraim Grinberg in a press release about the results.

“This drove sales growth in our owned and licensed brands; in the U.S. and internationally, and across our channels of wholesale and direct-to-consumer.”

The Movado website has seen “significant growth,” said Grinberg on the call, as the company continues to develop its digital platform and omnichannel capabilities.

Sales on the Movado website grew by 34 percent in the fourth quarter, with average unit retail increasing by 17 percent. Website sales grew 61 percent in the full year.

Movado jewelry made up 12 percent of the brand’s e-commerce sales in the quarter, Grinberg said, with sales more than doubling year-over-year.

For the quarter, watches that retail for more than $1,000 accounted for more than 20 percent of Movado sales.

In fall 2021, Movado launched a new capsule collection in collaboration with Cuban-born artist Carmen Herrera, who died last month at 106.

 Related stories will be right here … 

Movado Group’s licensed brands, including Coach and Tommy Hilfiger, also put on a solid performance, with sales up 12 percent year-over-year in the quarter and up 40 percent for the full year.

The Tommy Hilfiger brand saw strong growth, particularly in key European markets, in both jewelry and watches.

The Coach brand performed well in the U.S. and China, especially its “Arden” collection.

The Hugo Boss brand’s sales exceeded pre-pandemic levels. A new “Admiral'' model, made of ocean plastic and featuring a solar movement, will be introduced this spring to appeal to eco-conscious consumers.

Movado will produce Hugo Boss jewelry in addition to watches after its wholly owned Swiss subsidiary, MGI Luxury Group, recently amended its licensing deal with Hugo Boss Trade Mark Management, according to an SEC filing.

The licensing period was also extended to Dec. 31, 2026, with an additional five years for certain rights after that.

Lacoste also performed well, with its “1212” and “Tiebreaker” collections standing out. The brand will soon introduce a new Minecraft collection and an active lifestyle collection.

The Olivia Burton brand was down single digits for the year due to challenges in its U.K. market.

The MVMT brand also saw single-digit declines for the year, which Grinberg attributed to moderating customer acquisition costs due to decreased marketing efficiency. The brand’s newly appointed CEO, Eran Cohen, is developing a growth strategy, said Grinberg.

Movado also launched its Calvin Klein watches and jewelry line earlier this month.

It inked a five-year licensing agreement with the brand in August 2020 after Calvin Klein ended its 22-year licensing deal with Swatch Group.

Grinberg is taking a cautious approach to the fiscal year ahead.

He highlighted rising inflationary pressures, including wage and labor pressures, as reasons and said Movado will offset some of these costs through price increases.

“As we look ahead, we recognize that we continue to operate in an uncertain environment, with rising interest rates heightened by increasing inflation, combined with the war in Ukraine, ongoing COVID outbreaks and closures in China, and lapping U.S. stimulus measures in the first half of last year, yet we remain confident in our positioning and our ability to deliver long term growth in sales and profit,” he said.

Fiscal 2023 net sales are expected to be in the range of approximately $780 million to $800 million.

Gross profit is expected to be 58 percent of net sales, while operating income is expected to be in the range of to $125 million to $130 million.

The updated outlook does not take into consideration inflation, geopolitical unrest, additional COVID-related retail closures or significant changes in foreign currency exchange rates, Movado noted.

The Latest

2025 National Jeweler Retailer Hall of Fame inductees
Events & AwardsJun 06, 2025
Here Are the 2025 Retailer Hall of Fame Inductees

This year’s honorees include a Midwest retailer and two multi-store independents, one in New York and the other in New England.

Harwell Godfrey Granny Square Eleanor Necklace
CollectionsJun 06, 2025
Piece of the Week: Harwell Godfrey’s ‘Granny Squares Eleanor’ Necklace

As an homage to iconic crochet blankets, the necklace features the nostalgic motif through a kaleidoscope of cabochon-cut stones.

 Laura Gallon Joaillerie “Dynasty” ring, Bijules “Compass” bolo tie, Löf “The Orbitalis” ring
Events & AwardsJun 05, 2025
The 12 Fresh Faces in Couture’s Design Atelier

Discover the dozen up-and-coming brands exhibiting in the Design Atelier for the first time.

DCA-student-cert-NJ1872x1052-2.png
Brought to you by
The True Power Behind the Counter: Why Sales Associates Are the Heart of the Jewelry Business

When investing in your jewelry business, it's important not to overlook the most crucial element of success: the sales associates.

Jack Abraham The Royal Ruby Collection
SourcingJun 05, 2025
A Rare Suite of Rubies Has Arrived in Las Vegas

The “Royal Ruby” Collection is a quintet of untreated rubies curated by collector Jack Abraham.

Weekly QuizJun 05, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Daymond John
Events & AwardsJun 05, 2025
Daymond John to Give Keynote at JCK Las Vegas

The entrepreneur and “Shark Tank” star will share his top tips for success.

Vaishali Banerjee and Pallavi Sharma
MajorsJun 05, 2025
Platinum Guild International Updates Leadership Team

Two existing executives have been given new roles.

Article Image 1.png
Brought to you by
Clienteling Isn’t a Buzzword. It’s an Essential Business Model.

More shoppers are walking out without buying. Here’s how smart jewelers can bring them back—and the tool they need to do it right.

Meredith Tiderington
Events & AwardsJun 05, 2025
Zillion Announces 'Women in STEM' Scholarship Recipient

Meredith Tiderington, an electrical engineering student, was selected for the award.

The Gemological Institute of America’s logo
Lab-GrownJun 04, 2025
GIA Reverting to More General Terminology for Lab-Grown Diamonds

It will quit assigning the stones specific color and clarity grades in favor of applying “new descriptive terminology.”

Exterior of the Venetian and the Las Vegas Sphere
Events & AwardsJun 04, 2025
As JCK Talks Returns, Don’t Miss These 12 Sessions

From design trends to sustainability, here’s a roundup of can’t-miss education sessions at JCK Las Vegas.

JCK show
CrimeJun 04, 2025
10 Safety Tips for the Las Vegas Shows

The Jewelers’ Security Alliance offers advice for those attending the annual trade shows.

Amy Curran
MajorsJun 04, 2025
Amy Curran Promoted at Hill & Co.

Her new role is director of strategic initiatives.

The eight rings in Viviana Langhoff’s AU79 jewelry collection
CollectionsJun 03, 2025
In Her Latest Collection, Viviana Langhoff Is Leaning Into Gold

The designer is embracing bold pieces with weight to them in “AU79,” a collection she celebrated with a creative launch party.

Woman’s hand holding shopping bags
SurveysJun 03, 2025
Consumer Confidence Improves in May

The index partially rebounded after months of decline, due in part to the U.S.-China deal to temporarily reduce import tariffs.

Dakota Johnson as Roberto Coin Brand Ambassador
CollectionsJun 03, 2025
Dakota Johnson Is Roberto Coin’s New Brand Ambassador

The actress stars in the latest campaign set in Venice, Italy, and is set to participate in other creative initiatives for the jeweler.

Mason Kay Jade necklace
GradingJun 03, 2025
Mason-Kay Jade Adds ‘Fei Cui’ to Jade Reports

The company has joined other labs, including GIA and Lotus Gemology, in adopting the Chinese term for "jadeite jade."

Gemfields ruby
SourcingJun 02, 2025
Gemfields’ June Auction to Include 36-Carat Ruby

The large stone will be offered at its June sale along with a selection of secondary-type rubies from a new area of the Montepuez mine.

Adobe Stock image of skyline of Bangkok, Thailand
GradingJun 02, 2025
GSI Opens New Lab in Thailand

Located in Bangkok, the laboratory is Gemological Science International’s 14th location worldwide.

Seaman Schepps pearl earrings
TrendsJun 02, 2025
Amanda’s Style File: Three Gems for June

Those born in June have a myriad of options for their birthstone jewelry.

David Allouche
SourcingJun 02, 2025
David Allouche Joins Grandview Klein Diamonds

The diamond industry veteran has been named its senior sales executive.

Zoë Chicco Bracelets
Policies & IssuesMay 30, 2025
Tariffs & Designers: Navigating Pricing in an Unstable Environment

Between tariffs and the sky-high cost of gold, designers enter this year’s Las Vegas shows with a lot of questions and few answers.

Renato Cipullo Hematite Blaze Necklace
CollectionsMay 30, 2025
Piece of the Week: Renato Cipullo’s ‘Hematite Blaze’ Necklace

Designed by founder Renato and his daughter Serena Cipullo, it showcases a flame motif representing unity and the power of gathering.

Stock image of shipping containers
Policies & IssuesMay 30, 2025
Trade Court Declares Trump’s Tariffs Invalid

However, the tariffs remain in effect in the short term, as an appeals court has stayed the U.S. Court of International Trade’s decision.

Britney Spears
CollectionsMay 29, 2025
Britney Spears Files Trademark for New Jewelry Line

The pop icon is one step closer to launching her “B Tiny” jewelry collection, a collection she first began posting about last fall.

Inoveo Platinum Grain image.jpg
Supplier BulletinMay 29, 2025
Inoveo Platinum Grain, Exclusively Distributed by Stuller

Sponsored by Stuller

Grizzly Mining Pilala emerald
SourcingMay 29, 2025
Grizzly Auctions 6,620-Carat Emerald

It was featured in the miner’s latest sale, which brought in $24.8 million.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy