FinancialsAug 17, 2022
Watches of Switzerland’s US Sales Double in Q1FinancialsAug 26, 2022
Movado Sees ‘Continued Weakness’ in U.S. After Q2 Sales Slow
The company lowered its full-year guidance, citing increased economic uncertainty.
A set of Movado Connect 2.0 watches. The company’s net sales in the U.S. were down 5 percent in its most recent quarter, and CEO Efraim Grinberg predicted “continued weakness” ahead.
Paramus, N.J.—Movado Group reported a mixed second quarter, with overall sales on the rise but U.S. sales falling.
The New Jersey-based company lowered its full-year guidance, citing “increased uncertainty in the economic environment.”
Its portfolio includes Movado and Oliva Burton as well as licensed brands like Coach and Tommy Hilfiger.
Here are five takeaways from its recent earnings report.
Movado’s U.S. sales struggled in Q2.
The company’s U.S. sales dipped 5 percent year-over-year in the second quarter.
For the first half of the year, U.S. sales dipped 0.2 percent compared with last year’s first half.
“In the U.S., we saw an increasingly difficult retail market impacted by rising inflation and the anniversary of robust stimulus programs that benefited consumers in multiple income categories,” said CEO Efraim Grinberg on an earnings call Thursday.
He also noted a slowing of the U.S. economy as the Federal Reserve hiked rates in an effort to combat inflation.
“Our [lowered] outlook does factor that there's going to be continued weakness in the U.S,” said Grinberg.
Overall net sales in the second quarter were up 5 percent year-over-year to $182.8 million compared to $173.9 million in the second quarter of fiscal 2022.
The increase in net sales was attributed to growth in wholesale customers’ brick and mortar stores and in Movado company stores.
Gross profit was $106.9 million, or 59 percent of sales, compared to $98.5 million, or 57 percent of sales, in the prior year period.
For the first half of the year, net sales were up 12 percent to $346.2 million compared with $308.7 million in the first six months of fiscal 2022.
First-half gross profit was $203.6 million, or 59 percent of sales, compared to $172.7 million, or 56 percent of sales in the prior year period.
Its international business, however, is doing well.
Movado’s international net sales increased 15 percent compared with the second quarter of last year.
For the first half of the year, international sales climbed 24 percent year-over-year.
International net sales increased 24.1% as compared to the same period last year.
Stimulus programs in the U.S. lifted sales last year, making for a more difficult comparison this quarter. Movado’s international markets were not impacted in the same way last year, noted Grinberg.
The company did particularly well in Latin America, India and Europe, said CFO Sallie DeMarsilis during the earnings call.
Movado lowered its full-year guidance in the face of economic uncertainty.
Movado is approaching the second half of its fiscal year with caution.
The company lowered its full-year guidance, expecting net sales to be $780 million to $790 million versus its previous outlook range of $780 million to $800 million.
The new outlook is still growth of 7 to 8 percent compared with its previous fiscal year.
However, due to a strong first half of fiscal 2023, the company now expects operating income to be at the high-end of its previous outlook of $125 million to $130 million.
“As we look at the second half of the year, we believe that we will need to continue to execute in an uncertain environment, including facing the impact of unfavorable currency due to the strengthening of the U.S. dollar,” said Grinberg.
“We’re returning to more normalized trends,” he added, noting the company saw strong growth in the U.S., due in part to the stimulus packages and low interest rates.
“If you look at most of our numbers against 2019, which is the last pre-pandemic year, I would expect that they'll be better than that, and they have been better than that,” he said.
Movado’s outlook does not take into consideration an increase in inflation, geopolitical unrest, or supply chain issues.
The launch of its new Calvin Klein collection is going well.
Movado launched its Calvin Klein watches and jewelry line this year.
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.
“We are excited by our launch of Calvin Klein in both jewelry and watches, which began early this year and has exceeded our initial expectations,” said Grinberg.
“To date, we have opened over 1,500 retail doors as well as several key online retailers on a global basis.”
Watches make up about 75 percent of the brand’s overall sales with women’s watches in the lead, he said, accounting for 70 percent of watch sales.
Products that feature Calvin Klein’s branding make up about 20 percent of the business.
In the second half of the year, Movado plans to bolster its marketing efforts in Europe, with digital ads and billboards, and have a digital launch in China.
Its other brands, in-house and licensed, also put on solid performances.
Its Movado brand posted a low-single digit decline in sales for the quarter, weighed down by slower retail in the U.S., but lifted by strong international sales, particularly in India.
“We remain excited about the prospects of Movado as we continue to elevate both the product and the brand image,” said Grinberg.
Its higher-priced watches did well, with the average retail price up 12 percent compared with last year.
Its Movado SE and Bold collections were among the best-sellers.
The Movado SE collection will expand in the fall with new colors and the introduction of a woman’s automatic version, while the Bold collection will debut new ceramic models and a new Bold Fusion Automatic.
In September, the Movado brand will launch its first influencer program, said Grinberg, recruiting a yet-to-be-named gold medal Olympic skier and a ceramicist.
The campaign will run through the holidays, as will a new Bold television commercial.
The Olivia Burton and MVMT brands are focused on revamping their marketing messages, said Grinberg.
Olivia Burton is shaking up its product assortment, with newness planned for the fall and throughout next year. MVMT also has a new leadership team.
Its licensed brands posted 15 percent year-over-year growth in the second quarter.
For Tommy Hilfiger, its “Matthew” watch for men was a top seller while women opted for the minimalist “Libby” watch with a sparkle dial. The brand will launch campaigns in Europe, Brazil, and India in the third quarter.
The Hugo Boss brand’s marketing efforts, which included influencer partners, paid off, with the “Steer” and “Novia” collections doing well.
For Coach, COVID-19 closures in China posed a problem, but that market is beginning to bounce back, said Grinberg. Sales were driven by its ceramic collection, “Greyson,” with help from the brand’s social media ad campaign starring Jennifer Lopez sporting a pink “Greyson” watch.
Lacoste’s “Replay” and “12.12” collections were best sellers for the brand. The third generation of 12.12 will launch this fall with a marketing boost in its home market of France.
Lacoste also has plans to launch a jewelry line in the fourth quarter, with more details to follow.
More on Financials
The Latest
WatchesApr 16, 2026
Cartier Brings Back the RoadsterThe “watchmaker of shapes” debuted the reworked version of the vintage sports car-inspired timepiece at Watches & Wonders.
IndependentsApr 16, 2026
Edge Retail Academy Updates Leadership TeamAs demand for jewelry retail coaching grows, the company has established a dedicated business coaching leadership team.
MajorsApr 16, 2026
Stuller’s Latest Mountings Catalog Is Out NowThe “Mountings 2026-2027” catalog showcases Stuller’s largest and most diverse assortment to date with more than 400 new mounting styles.
Brought to you by
Discover Timeless Treasures: A Showcase of Antique Jewelry & Timepieces in Las VegasGain access to the most exclusive and coveted antique pieces from trusted dealers during Las Vegas Jewelry Week.
CrimeApr 16, 2026
FBI Issues Warning to Refineries, Retailers Due to High Price of GoldThe alert states that burglary crews are targeting jewelry businesses and details how jewelers and refineries can protect themselves.
Weekly QuizApr 16, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
PodcastsApr 15, 2026
Episode 4: The Natural Diamond DilemmaSally Morrison and Mark Klein discuss De Beers’ first beacon in 16 years and the mistake the industry made with lab-grown diamonds.
MajorsApr 15, 2026
Spark Creations’ Randy McKenzie Dies at 72 McKenzie spent 45 years with Spark Creations and is remembered for being kind, dedicated, and hardworking.
Brought to you by
Las Vegas Antique Jewelry & Watch Show: Showcasing the Most Collectible Merchandise from Across the GlobeGain access to the most exclusive and coveted antique pieces from trusted dealers during Las Vegas Jewelry Week.
WatchesApr 15, 2026
These Are the New Rolex Watches for 2026Rolex focused exclusively on the Oyster Perpetual this year, as the model is celebrating its 100th anniversary.
SourcingApr 15, 2026
Diamond Club West Coast Names 2026 BoardKalpesh Jhaveri was re-elected as president for a third year.
TechnologyApr 15, 2026
This Jewelry Brand’s Video Series Is Up for a Webby Award“Diamond Divas,” a social media reality series by Shahla Karimi Jewelry, is nominated in the “Best Social: Fashion & Beauty” category.
SourcingApr 14, 2026
De Beers Expands ‘Desert Diamonds’ Beacon Into BridalThe campaign seeks to reignite desire for natural diamond engagement rings by highlighting the “distinct character” of warm-toned diamonds.
SourcingApr 14, 2026
International Jade Summit to Return to MontereyPresented by Mason-Kay Jade, the summit, in its second year, will again be held during the Monterey Bay Jade Festival.
Events & AwardsApr 14, 2026
CBG Releases Details for Las Vegas ShowThe group has announced its lineup of speakers and a new “Rising Stars” pavilion.
CollectionsApr 13, 2026
Uniform Object’s New Jewelry Collection Centers on the ‘Carbon Form’The “Carbon Form” collection explores the contrast between high and low materials, using rubber cord alongside 18-karat gold and gemstones.
Events & AwardsApr 13, 2026
JA Accepting 2026 Impact Initiative ApplicationsThe program provides essential funding to organizations for projects that enhance the jewelry industry.
Events & AwardsApr 13, 2026
Couture Announces New Show in MiamiThe jewelry trade show is launching its first open-to-the-public event in Coconut Grove this November.
CrimeApr 13, 2026
JSA Offers Reward in Oregon Jewelry Store Armed RobberyJSA is seeking information about the gunpoint robbery of a Kay Jewelers location in Oregon’s Washington Square Mall.
WatchesApr 10, 2026
These Watches Have Increased in Value the Most Since 2018, Says Chrono24The top-performing watch models may be surprising, with Rolex and several popular pandemic-era picks notably absent from the top 20.
CollectionsApr 10, 2026
Ophelia Eve’s Toggle Pendant Holds Your SecretsThe “Scroll” toggle pendant, our Piece of the Week, opens to reveal a hidden message, mantra, or love letter written on washi paper.
ColumnistsApr 09, 2026
Jewelry Demand Isn’t Stronger, Prices Are Just Higher Jewelers who misinterpret the state of the jewelry market risk employing the wrong retail strategy, cautions columnist Sherry Smith.
MajorsApr 09, 2026
Tiffany & Co. Promotes Nathalie Verdeille to SVP, Chief Artistic OfficerIn her newly expanded role, she will continue to oversee the jewelry category, as well as watches, home, and accessories.
WatchesApr 09, 2026
Jacob & Co. Rolls Out Its Sequel to ‘The Godfather’ Musical Watch“The Godfather II” watch plays two melodies from the mob film’s score, “The Godfather’s Waltz” and “The Godfather Love Theme.”
Events & AwardsApr 09, 2026
JCK Announces Jesse Itzler as 2026 Keynote SpeakerOrganizers have also introduced the new JCK Talks Signature Series, as well as an offering of watch-focused workshops and lectures.
SourcingApr 09, 2026
AGA To Honor ‘Quiet Leadership’ With New AwardThe Alan Hodgkinson Medal recognizes gemologists who are consistently generous with their time and expertise.
WatchesApr 09, 2026
Oris Names New CEO, CFOThe Swiss watchmaker is changing up its executive leadership team as part of a restructuring.
CollectionsApr 08, 2026
Hearts On Fire Celebrates 30 Years By Asking a QuestionThe “What’s Your Signature?” campaign invites women to think about how they see themselves.
