FinancialsAug 16, 2023
Pandora’s US Sales Improve in Q2 FinancialsAug 25, 2023
Movado Lowers Guidance Amid Q2 Sales Struggles
The company noted a “challenging environment for consumer discretionary products.”
These 36 mm square-dial watches are part of a Movado capsule collection in collaboration with the late artist Carmen Herrera. The company reported declining sales in its recent second quarter results.
Paramus, N.J.—Movado Group had a rocky second quarter, with sales falling double digits in the quarter and in the first half of its fiscal year.
The New Jersey-based company said it faced a “challenging environment for consumer discretionary products,” which it expects to continue, leading the company to significantly lower its full-year guidance.
“We managed our business well, delivering second quarter net sales and earnings within our range of expectations despite operating in a challenging retail environment for our category, particularly in the United States and Europe, our largest markets,” said CEO Efraim Grinberg in a statement.
Here are five takeaways from Movado’s recent earnings report.
Second-quarter sales fell as consumer demand weakened.
In the second quarter ending July 31, net sales fell 12 percent year-over-year to $160.4 million.
For the first half of the year, sales were down 12 percent to $305.3 million.
The first-half sales came at the high-end of Movado’s prior guidance of a 9 to 12 percent sales decline.
The company attributed the drop in sales to a decline in both its wholesale and retail businesses amid “a challenging environment for consumer discretionary products.”
“While economic numbers have remained stable, discretionary purchases have been challenged by inflation and a greater allocation of consumers’ resources to travel and dining,” said Grinberg during an earnings call Thursday morning.
Gross profit in the second quarter was $89.3 million, or 56 percent of net sales, compared with $106.9 million, or 59 percent of net sales in the previous second quarter.
For the first half of the year, gross profit was $171.3 million, or 56 percent of net sales, compared with $203.6 million, or 59 percent of net sales in the previous second quarter.
The decline in gross margin was due to “decreased leverage of higher fixed costs on lower sales,” said Movado, as well as “unfavorable” changes in channel and product mix and the impact of foreign currency exchange rates, though it was partially offset by reduced shipping costs.
Grinberg highlighted the company’s nearly $219 million in cash with no debt, allowing for continued investment.
U.S. sales continued to struggle amid inflation woes.
In the U.S., Movado’s sales were down 12 percent year-over-year in the second quarter and fell 14 percent in the first half.
Grinberg noted a difficult retail environment in North America, with single digit declines in the quarter in its outlet stores.
“We have also intentionally slowed down the growth of our digital outlet channel, where we believe we were opening with products that were too sharply priced,” he said.
Internationally, net sales were down 12 percent in the second quarter and fell 10 percent in the first half.
Sales in Europe “remained challenging,” he said, though the company saw strong results in India and the Middle East, as well as “a return to growth” in China.
From Tommy Hilfiger to Calvin Klein, its brands will introduce newness this fall.
Movado’s brand portfolio includes its eponymous brand as well as in-house and licensed brands, like Coach and Tommy Hilfiger.
Tommy Hilfiger’s spring offerings performed well, particularly at the opening price points. For fall, the brand will introduce the “Clark” and “Lexi” models that will begin at $189.
For Hugo Boss, the “Troper” and “Gregor” lines are performing well. In the fall, the brand will introduce a new chronograph collection and the “Candor Automatic Sport Lux” collection opening under $400.
Ahead of the holiday season, Hugo Boss is partnering with new brand ambassador, Suki Waterhouse.
For Coach, the “Cadie” collection has seen success. The brand will introduce the “Elliot” collection this fall, which opens at $125.
Lacoste has been “performing very well at retail,” said Grinberg, noting strong sell-through of its third generation of the Lacoste “12.12” collection, inspired by the brand’s polos. It will introduce a 12.12 automatic collection, retailing at $255, this fall, and “Spin,” a new sporty diver collection.
The Calvin Klein brand, launched under Movado last year, has also been doing well.
Grinberg noted strong retail sales in the “Sensation” range, while the “Black” collection has been a top seller for men. The brand recently debuted its new fall campaign featuring model Lila Moss.
Olivia Burton is undergoing a brand refresh in the U.K. and the U.S. with new products, point of sale and packaging, and a marketing campaign.
Movado’s brand refresh is launching this fall.
Grinberg said Movado remained “excited” about its brand refresh launching this fall.
“We’re introducing a total brand update for the Movado brand, which includes new marketing initiatives that we’ll roll out over the next few quarters, beginning with the launch of our new brand-building campaign in September,” he said.
The Movado brand will soon debut the “most important” collection of new products in its “Bold” collection since its launch more than 10 years ago.
It will revamp its “Evolution” collection, introducing “Evolution 2.0,” with a higher starting price point of $595.
Its “Bold TR90” collections will also get a refresh, introducing new designs and colors.
Movado will add a new titanium diver timepiece to the Bold range, a higher-end model that will retail for $1,495.
Movado lowered its full-year guidance.
Movado revised its full-year outlook, lowering its guidance and taking a pessimistic view of the fiscal year ahead.
“We expect the difficult environment for consumer discretionary products to persist into the back half of the year, which is reflected in our updated outlook that incorporates lower shipments across our wholesale partners in North America and Europe,” said Grinberg.
Movado lowered its expectations for full-year net sales, forecasting them to be in the range of $690 million to $700 million, down from its prior guidance of $725 million to $750 million.
Gross profit is forecast to be 55 percent of net sales, down from 56 percent, while operating income may be in the range of $62.5 million to $65 million, down from 80 million to $85 million.
Editors' Picks
Sponsored by
More on Financials
The Latest
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.
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.
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.
Weekly QuizAug 27, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
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.
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.
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.
Events & AwardsAug 24, 2026
Rio Grande, MetalWerx Host Argentium Silver WorkshopThe class, led by renowned metalsmith Cynthia Eid, highlighted Argentium silver as an alternative to gold amid high prices.
Events & AwardsAug 24, 2026
JIS Miami Opens Fall 2026 RegistrationThe show is slated for Oct. 16-19 at the Miami Beach Convention Center.
CollectionsAug 24, 2026
Francesca Villa Honors Napoleon, His Empresses In New CapsuleThe “Empresses” capsule uses 19th-century medals depicting Napoleon, Joséphine, and Marie-Louise across five one-of-a-kind pieces.
SurveysAug 21, 2026
These Are 2026’s Hottest Retailers, Says NRFThe retailers at the top of the list offer affordable products and fun, discovery-fueled experiences.
WatchesAug 21, 2026
Bremont Names Former Vacheron Constantin Exec CMODaniel Bing was formerly the marketing director for the Americas at Vacheron Constantin.
CollectionsAug 21, 2026
Bijules, Kamyen Serve Up ‘Topspin’ Tennis Bracelet Ahead of US OpenIn our Piece of the Week, the designers reimagine the tennis bracelet with green enamel wrapped around a strand of “Desert Diamonds.”
PodcastsAug 20, 2026
Episode 8: Diamond Industry Update With David Bonaparte & Ronnie VanderLindenThe industry veterans join the podcast to discuss diamond marketing, the FTC Jewelry Guides, and lobbying for lower tariffs.
TechnologyAug 20, 2026
A New AI-Powered Gemstone Identification App Is HereFounder Vik Westermann said the app is a “starting point” to inspire people to work with appraisers and gem labs, not replace them.
