FinancialsMay 18, 2023
Watches of Switzerland’s Full-Year U.S. Sales Climb 52%FinancialsMay 26, 2023
Movado Sales Slip in Q1 Amid Inflation Woes, Tough Comps
The company has plans to revamp the Movado brand and offer less expensive watches this year.
A campaign image from last year’s spring/summer Calvin Klein watch and jewelry collection, a licensed brand in Movado’s portfolio. The company posted an 11 percent net sales decline year-over-year in the first quarter.
Paramus, N.J.—Movado Group had a rough start to its fiscal year 2024 with first-quarter sales down double digits.
The New Jersey-based company said it faced a “challenging macro environment” and tough comparables after a record first quarter last year.
“Despite this backdrop, our teams continued to execute against our strategic priorities to maximize the power of our brands with exceptional innovation,” said CEO Efraim Grinberg in a statement.
Here are five takeaways from Movado’s recent earnings report.
First-quarter sales were down but still better than expected.
In the first quarter ending April 30, net sales fell 11 percent year-over-year to $144.9 million, which the company attributed to declines in wholesale to its customers’ physical stores, online retail, and its own stores.
The sales came in just ahead of Movado’s prior guidance of a 12 to 15 percent sales decline.
Gross profit was $82 million, or 57 percent of net sales, compared with $96.7 million, or 59 percent of net sales in the previous first quarter.
The decline in gross margin was due to “unfavorable changes in channel and product mix” and the impact of foreign currency exchange rates, said Movado, which was partially offset by reduced shipping costs.
Grinberg noted its outlet business saw a 4 percent decline in Q1 amid a “highly promotional U.S. environment.”
Inflation and rising interest rates have impacted sales.
“As we had expected, the macroeconomic environment remained challenging during the beginning of the year with inflation and rising interest rates continuing to affect purchases made by consumers of discretionary products in our key markets, the U.S. and Europe,” Grinberg said on an earnings call Thursday.
In the U.S., Movado’s quarterly sales were down 16 percent year-over-year.
Internationally, net sales were down 8 percent in the first quarter.
The company noted strong growth in Brazil, the Middle East, and China, as well as in travel retail, which somewhat offset its decline in Europe.
“As retailers in key markets deal with slowing economic growth, they are very focused on making sure they control their inventories. From a brand perspective, we are laying the foundation for an improving second half,” said Grinberg.
Grinberg noted consumers have pulled back on discretionary purchases as the basics become more expensive.
Related stories will be right here …
The New Jersey-based company said it faced a “challenging macro environment” and tough comparables after a record first quarter last year.
“Despite this backdrop, our teams continued to execute against our strategic priorities to maximize the power of our brands with exceptional innovation,” said CEO Efraim Grinberg in a statement.
Here are five takeaways from Movado’s recent earnings report.
First-quarter sales were down but still better than expected.
In the first quarter ending April 30, net sales fell 11 percent year-over-year to $144.9 million, which the company attributed to declines in wholesale to its customers’ physical stores, online retail, and its own stores.
The sales came in just ahead of Movado’s prior guidance of a 12 to 15 percent sales decline.
Gross profit was $82 million, or 57 percent of net sales, compared with $96.7 million, or 59 percent of net sales in the previous first quarter.
The decline in gross margin was due to “unfavorable changes in channel and product mix” and the impact of foreign currency exchange rates, said Movado, which was partially offset by reduced shipping costs.
Grinberg noted its outlet business saw a 4 percent decline in Q1 amid a “highly promotional U.S. environment.”
Inflation and rising interest rates have impacted sales.
“As we had expected, the macroeconomic environment remained challenging during the beginning of the year with inflation and rising interest rates continuing to affect purchases made by consumers of discretionary products in our key markets, the U.S. and Europe,” Grinberg said on an earnings call Thursday.
In the U.S., Movado’s quarterly sales were down 16 percent year-over-year.
Internationally, net sales were down 8 percent in the first quarter.
The company noted strong growth in Brazil, the Middle East, and China, as well as in travel retail, which somewhat offset its decline in Europe.
“As retailers in key markets deal with slowing economic growth, they are very focused on making sure they control their inventories. From a brand perspective, we are laying the foundation for an improving second half,” said Grinberg.
Grinberg noted consumers have pulled back on discretionary purchases as the basics become more expensive.
The Movado brand is getting a refresh.
Movado will be revamping the image of its eponymous watch brand.
“Throughout the year, we will invest in refreshing the Movado brand image in a bolder and more impactful way and we are excited to make this investment behind our most important brand,” said Grinberg, adding it will begin in the second half of the fiscal year.
Its Mother’s Day marketing produced positive results, he said, particularly its TV ads. For Father’s Day, it has both TV and digital ads in the works.
Movado said its “Bold” collection is performing well, as is the newly added “Bold Horizon” watches, which Grinberg said are filling previously vacated price points.
It starts at $695 and has elicited a “good response” from consumers.
Its elevated and more expensive automatic models have also been doing well, especially through wholesale and on Movado’s website.
There’s newness for its licensed brands, including some less expensive watches.
Movado’s brand portfolio includes its eponymous brand as well as in-house and licensed brands, like Coach and Tommy Hilfiger.
“We’re reintroducing some opening price points, particularly in our licensed brand portfolio as consumers become stressed in other areas,” said Grinberg. “And we've seen some very good initial responses to some of the things that we've brought to the market quickly.”
Tommy Hilfiger is offering lower opening price points via its “Pippa” and “Norris” models.
Hugo Boss is following suit via the sporty “Trophy” collection and the “Gregor” collection, with both opening at $279.
The brand is partnering with English actress Suki Waterhouse in the fall for its jewelry and watch campaign.
For Coach, the “signature C” style watches are performing well, with Movado noting renewed demand for the brand in China amid the country’s reopening after COVID-19 restrictions.
Lacoste has a new interpretation of its “L.12.12” polo shirt as a watch, offering an aluminum version in new colors.
The brand will also introduce watches inspired by three Netflix series, “Stranger Things,” “Sex Education,” and “Lupin.”
The Calvin Klein brand, launched under Movado last year, also has been doing well, particularly the newly introduced “CK Sensation” watch and the all-black “Ambitious” watch.
Movado sees the “difficult consumer environment” continuing.
“As we look ahead, we continue to believe we will face a difficult consumer environment in the U.S. and Europe, our two largest regions,” said Grinberg.
“However, we believe we are well positioned to capture the opportunities in the marketplace and will continue to execute with discipline,” he said.
Grinberg highlighted his excitement about the company’s product innovation and “refreshed” marketing.
“We will do all this while controlling costs and leveraging the strength of our balance sheet with $198 million in cash and no debt as of quarter end.”
Movado maintained its prior guidance, expecting full-year net sales to be in the range of $725 million to $750 million.
Gross profit is forecast to be 56 percent of net sales while operating income may be in the range of $80 million to $85 million.
In the first half of the fiscal year, Movado expects sales to decline 9 to 12 percent year-over-year, noting its record first-half results in the previous year.
Editors' Picks
Sponsored by
More on Financials
The Latest
AuctionsSep 01, 2026
UK Woman Uncovers Rare Patek Philippe Watch in Mom’s Jewelry BoxThe stainless steel Patek Philippe “Calatrava” watch from the 1930s sold for nearly $80,000 at a recent Hansons Cornwall auction.
ColumnistsSep 01, 2026
Your Jewelry Marketing Has a Bridal ProblemEngagement rings are important but don’t ignore the customers who are buying jewelry “just because,” Emmanuel Raheb writes.
MajorsSep 01, 2026
Kering Names New Pomellato, DoDo CEOsFormer Pomellato CEO Sabina Belli has been named president of Kering Italia amid a shakeup of Kering's new Jewelry division.
Brought to you by
Your Piece Could Be the One Editors Talk AboutSubmit your pieces for a chance to win in this year's competition.
MajorsSep 01, 2026
Anne Marie Shulman Joins GPA GlobalThe veteran luxury packaging executive was appointed to help the company grow its North American business.
Weekly QuizAug 27, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
CrimeAug 31, 2026
$4M Van Cleef & Arpels Diamond Necklace Snatched From Vienna Museum Once the property of an Egyptian queen, the necklace was part of a larger exhibition of VCA jewelry at the Museum of Applied Arts (MAK).
GradingAug 31, 2026
GIA, Gübelin Gem Lab Confirm New Paraíba Tourmaline Deposit in EthiopiaThe labs’ separate investigations each determined that the East African country is producing copper-bearing tourmaline.
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.
Events & AwardsAug 31, 2026
Wisconsin Museum to Host Jewelry Exhibition“Chicago Collects: Jewelry in Perspective” at the Oshkosh Public Museum will feature works by Fabergé, Lalique, and Louis Comfort Tiffany.
CollectionsAug 31, 2026
Catbird Launches First Men’s Jewelry CollectionThe “Worn Well” collection is Catbird's take on classic men's jewelry.
CollectionsAug 28, 2026
Dolly Parton Would Have Loved This Butterfly Necklace This Buddha Mama butterfly is our Piece of the Week honoring the legend, who embraced the beautiful insect as her symbol.
SourcingAug 28, 2026
Gareth Penny to Give Opening Speech at CIBJO Centenary CongressThe former De Beers CEO, and perhaps its next owner, will be a featured speaker at the event, slated for Sept. 4-7 in Italy.
IndependentsAug 28, 2026
Day’s Jewelers Honored With 3 Workplace AwardsThe employee-owned jeweler was named a “Best Place to Work” in Maine, New Hampshire, and for women.
CollectionsAug 27, 2026
Pandora Expands ‘Talisman’ Collection as Lawsuit Continues The second iteration of the jewelry collection was inspired by the zodiac and the four elements: earth, water, air and fire.
SourcingAug 27, 2026
OFAC Renews License Allowing Import of ‘Grandfathered’ Russian Diamonds General License 104B supersedes General License 104A, which was set to expire on Sept. 1.
CrimeAug 27, 2026
Customs Seizes Nearly 900 Pieces of Counterfeit JewelryThe package, intercepted in Indianapolis, contained fake Cartier, Tiffany & Co., and Van Cleef and Arpels jewelry.
IndependentsAug 27, 2026
Jessica McCormack to Open First West Coast StoreThe new location in Costa Mesa, California, marks the brand’s second store in the United States and fourth standalone location worldwide.
SurveysAug 26, 2026
5 Jewelry Insights From The RealReal’s Resale ReportThe report delves into trending styles, the most popular jewelry brands by city, and why Belle Époque jewelry could be the next big thing.
Lab-GrownAug 26, 2026
AGTA Now Requiring Members to Call Lab-Grown Gems ‘Synthetic’The association added the requirement to its revised "Code of Ethics" and released the 17th edition of its “Gemstone Information Manual.”
SurveysAug 26, 2026
Consumer Confidence Dips in August Amid Anticipatory Anxieties Respondents were concerned about the future of the labor market and their income as well as the rising prices of gas and groceries.
TrendsAug 26, 2026
Boucheron’s New Campaign Celebrates Its ‘Question Mark’ NecklacesThe campaign highlights the asymmetrical high jewelry necklace style that the jeweler first created in 1879.
Events & AwardsAug 26, 2026
Harry Winston Exhibition to Open in ShanghaiIt will explore the life of “The King of Diamonds” and showcase more than 165 creations from the brand.
CrimeAug 25, 2026
Florida Woman Scammed Out of $1.5M in Jewelry, Precious MetalsTwo suspects have been arrested in connection with the complex phone scam.
ColumnistsAug 25, 2026
Proof Before Purchase: The Gen Z Way to BuyIn her first column for National Jeweler, Jennifer Shaheen asks jewelers if they know how to connect with the next generation of consumers.
Events & AwardsAug 25, 2026
SSEF Opens 2026 Applications for Gemology Education ScholarshipsThe annual awards cover tuition for an on-site educational course at the Swiss lab, as well as flights and lodging.
TrendsAug 25, 2026
Brent Neale Celebrates Blackberry Farm’s Anniversary With JewelryThe jeweler partnered with the Tennessee resort to honor its 50th anniversary with limited-edition blackberry pendants and earrings.
EditorsAug 24, 2026
Q&A: Reeds Jewelers VP Genna Zimmer on 80 Years in BusinessThe third-generation jeweler shared how the North Carolina retailer is celebrating this milestone and the love story that started it all.
