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.
Editors' Picks
Sponsored by
More on Financials
The Latest
AuctionsJun 12, 2026
16th-Century ‘Hogback’ Diamond Ring Going Up for Auction in LondonFound by a metal detectorist, the ring likely belonged to a wealthy, possibly royal, owner, said Noonans.
CollectionsJun 12, 2026
Chouette Designs To Launch Collection Celebrating All Types of LoveOur Pride Month Piece of the Week, the “Margaux” ring, is part of the wife-and-wife team’s new “Lovestoned” collection.
Events & AwardsJun 12, 2026
CBG Announces Plans for Phoenix ShowThe group has named the keynote speaker and announced a new pavilion for its next event, which is slated for September.
Brought to you by
All Eyes on Gold Prices. Alternatives to Look For. And What to BEWARE of in VegasAs gold prices rise, today’s retailers are looking for alternatives at prices that will appeal to wider audiences.
EditorsJun 11, 2026
This Was the Best Animal Jewelry in Las Vegas From lions and hippos to snails and fish, Senior Editor Lenore Fedow wrangles her picks for cutest jewelry critters in Las Vegas.
Weekly QuizJun 11, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
SourcingJun 11, 2026
Grandview Klein, London Jewelers Partner To Cut 63-Carat RoughThe big stone will be fashioned into a 20.26-carat diamond in celebration of the retailer’s 100th anniversary this year.
MajorsJun 11, 2026
Former Cartier Creative Director To Head Chanel’s Jewelry Creation StudioMarie-Laure Cérède will join Chanel as the new director of its jewelry creation studio, starting in October.
Brought to you by
How Modern Training Is Becoming a Competitive Advantage for Jewelry RetailersWith the trade and customer trust in mind, GIA® developed NextGem™ – on-demand training designed specifically for retail.
Lab-GrownJun 11, 2026
Smiling Rocks’ ‘Wish Jar’ Generates 100+ Wishes in Las Vegas At the JCK show, the lab-grown diamond brand teamed up with Jewelers for Children to support Make-A-Wish India.
SourcingJun 11, 2026
Signet Jewelers Exec Joins Diamonds Do Good BoardIlana McCabe is Signet’s vice president of public relations and brand communications.
AuctionsJun 10, 2026
31.62-Carat ‘Azure Blue’ Diamond Sells For $8M+ at Christie’sIt was a banner day for blue gemstones, with another blue diamond topping $8 million and a 41-carat sapphire going for $2.3 million.
MajorsJun 10, 2026
Saks Global Receives Bankruptcy Court Approval for ReorganizationThe approval means the retailer is on track to exit bankruptcy proceedings this summer.
CrimeJun 10, 2026
2 Suspects Arrested in Texas Jewelry Store RobberyThe men are believed to be part of the group of several masked suspects that robbed Marc Robinson Jewelers in April.
CollectionsJun 10, 2026
Sylvie Debuts ‘Elevated’ Bridal Collection Inspired By Designer’s RingThe bridal-focused brand is also launching its Custom Atelier this summer, a digital custom design tool for its authorized retailers.
EditorsJun 09, 2026
Q&A: Al Cook on the Lab-Grown ‘Bubble,’ Dwindling Diamond Supply The De Beers Group CEO also discussed tariffs, Desert Diamonds, and the pending sale of De Beers in an interview with Michelle Graff.
MajorsJun 09, 2026
Wilkerson's Russ Whitehouse RetiresThe industry veteran is bringing his 56-year run in the fine jewelry sector to an end.
Events & AwardsJun 09, 2026
Pride Month Panel to Highlight LGBTQ+ Jewelry VoicesThe panel discussion will feature LGBTQ+ leaders across the jewelry, luxury, and creative industries.
CollectionsJun 09, 2026
Marie Lichtenberg’s New Capsule Collection Is a Smash, LiterallyInspired by a locket that got run over, the “Smash” capsule collection reimagines the shape of Lichtenberg’s signature style.
MajorsJun 09, 2026
Frederick Goldman Names Director of Sales for SoutheastThe company has promoted Katherine Whitacre to the role.
MajorsJun 08, 2026
Stuller Expands Selection of Lab-Grown Diamonds, Demi-Fine JewelryThe jewelry manufacturer has added Taylor Swift-esque diamond shapes, and more silver, gold vermeil, and gold-plated jewelry.
SourcingJun 08, 2026
Sally Morrison to Depart De Beers This Summer Morrison has been marketing diamonds on and off since the early 2000s and said she is leaving to “pursue new projects.”
TrendsJun 08, 2026
Amanda’s Style File: June’s Birthstone TrioThose born in June can celebrate with pearl, alexandrite, and moonstone jewelry.
TechnologyJun 08, 2026
Overnight Mountings Launches Ring Builder PlatformThe platform allows retailers to guide clients through a customizable engagement ring buying experience in a branded interface.
IndependentsJun 05, 2026
Pennsylvania Jewelry Store To Close After 79 YearsJim Springer, owner of Dunkelberger’s Fine Jewelry, is heading into retirement.
SurveysJun 05, 2026
Consumers to Cut Back on Spending Amid Rising Prices, Survey Shows When conducting its May consumer confidence survey, The Conference Board asked extra questions about consumers’ budgeting strategies.
CollectionsJun 05, 2026
Rebel Jewelry’s Charm Symbolizes Perseverance for Pride MonthThe “Tunnel” charm, our Piece of the Week, celebrates Pride Month with its design inspired by hope and the light at the end of the tunnel.
SourcingJun 05, 2026
State of Diamonds: The Way Forward for Natural DiamondsThe jewelry industry is reassessing its positioning as Gen Z reshapes the retail landscape and lab grown continues to gain market share.
