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
SourcingAug 12, 2026
Eshed-Gemstar on the Painstaking Process of Cutting ‘The Legacy Emerald’The gemstone supplier and manufacturer acquired the remarkable 104-gram Zambian emerald at Gemfields’ auction in May.
CrimeAug 12, 2026
Elderly NYC Woman Targeted in Jewelry Swap SchemeTwo suspects offered to trade the woman a “winning” lottery ticket for her jewelry.
SourcingAug 12, 2026
Another Diamond Mine Poised to CloseFinsch has been in business rescue since May, and owner Petra Diamonds said it sees no viable path forward for the mine.
Brought to you by
Why More Jewelry Retailers Are Hosting Turnkey Estate Buying EventsRetailers are seeking new ways to attract customers, increase traffic, and create revenue – Estate buying events are a popular solution.
CrimeAug 12, 2026
Jewelry Store Employee Gets 20 Years to Life in Choking Death of BossMichel Patrick DeSalles was sentenced after pleading guilty to the 2017 murder of Omid Gholian, who owned a jewelry store in Manhattan.
Weekly QuizAug 07, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
MajorsAug 12, 2026
Frederick Goldman Names New SVP of SalesLongtime industry executive Beth Miller has taken on the role.
AuctionsAug 11, 2026
Verdura Unicorn Brooch With Royal Connection Up for Auction The brooch was owned by Virginia Fortune Ryan Ogilvy, who served as a lady of the bedchamber to Queen Elizabeth II for nearly 50 years.
Brought to you by
Wedding Band Trends 2026: Personalization Takes Center StageColored gemstones, artisan finishes, mixed metals, and meaningful details are shaping demand in bridal jewelry.
MajorsAug 11, 2026
Signet Jewelers Selects Mattel Exec to Lead Zales, BanterJamie Cygielman will take on the role on Aug. 24.
IndependentsAug 11, 2026
Polly’s Fine Jewelry Co-Owner Richard Moore Dies at 69Moore, Polly’s husband, is remembered as a family man with an easygoing spirit and a love for sports and the outdoors.
ColumnistsAug 11, 2026
Creative Connecting: How to Sell Colored Gemstones to Gen ZDuvall O’Steen and Jen Cullen Williams share the best ways to display, present, and explain colored gemstones to younger customers.
Events & AwardsAug 11, 2026
NAJA Announces Lineup For 2026 Fall Virtual ConferenceThe mid-year conference for jewelry and watch appraisers will take place Sept. 5-6 on Zoom.
TechnologyAug 10, 2026
Colorado Jeweler Launches Customization Tool He Built HimselfHonest Hands Ring Co. Founder Benjamin Bosworth shared his thoughts on jewelry technology and why AI can never replace the human element.
MajorsAug 10, 2026
QVC Exits Chapter 11 Bankruptcy, Names New Interim CEOQVC Group President and CEO David Rawlinson is temporarily being replaced by a familiar face, former QVC CEO Mike George.
CollectionsAug 10, 2026
State Property Puts a Ripple in the ‘The Voyager’ CollectionThe brand also added two one-of-a-kind brown diamond pieces to the “Sanssouci” series of its “Gardens” collection.
MajorsAug 10, 2026
And IJO’s 2026 Vendor of the Year Is … Ostbye took home top vendor honors at the Independent Jewelers Organization’s show, held last month in Kentucky.
Supplier BulletinAug 07, 2026
Why More Jewelry Retailers Are Hosting Turnkey Estate Buying EventsSponsored by Stratus Estate Buyers
MajorsAug 07, 2026
Retail Veteran Pam Cloud Appointed President of Blue NileCloud, who will officially join Blue Nile on Monday, spent 26 years at Tiffany & Co. and founded jewelry brand Roseate.
MajorsAug 07, 2026
Pandora Appoints Paulo Garcia as New CFO Garcia will take over from the company’s current CFO, Anders Boyer, who is retiring at the end of November.
MajorsAug 07, 2026
Etsy to Lay Off 12% of WorkforceEtsy CEO Kruti Patel Goyal explained why the company is letting go more than 200 employees as its performance improves.
TrendsAug 07, 2026
Look Ahead with Syna’s Binoculars PendantThe “Star Gazer” pendant, our Piece of the Week, is Syna’s tribute to curiosity and the discovery of something new.
CrimeAug 06, 2026
Lalique Museum to Remain Closed Following $5M HeistMuseum officials are looking to the public to help cover the “exceptional” costs involved in recovering from the July 5 smash-and-grab.
MajorsAug 06, 2026
Claire’s Revamps Piercing Services for Second Time in Three Years The overhaul includes enhanced employee safety training and trendy earring styles, including lab-grown diamond studs.
TrendsAug 06, 2026
New Book on Handcrafted American Objects Highlights Jewelry“Handwork: Handcrafted Objects that Made America” features historic and contemporary works, including a Diné squash blossom necklace.
MajorsAug 06, 2026
AJA East Coast Names Ani Khachian as First Female President-ElectThe Armenian Jewelers Association’s East Coast chapter has also elected its 2026–2027 board of directors.
MajorsAug 05, 2026
Private Equity Firm Wants to Buy 100+ JCPenney StoresOnyx Partners has submitted a second offer to buy the department stores after its first offer fell through last year.
IndependentsAug 05, 2026
Atlanta Jeweler Introduces $10K MartiniSolomon Brothers Jewelers has partnered with local cocktail bar Roaring Social on a new martini garnished with a tennis necklace.
