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
SurveysApr 24, 2026
Mother’s Day 2026 Jewelry Spending to Top $7B, NRF SaysNRF’s annual survey found that 45 percent of consumers plan to purchase jewelry for a loved one this Mother’s Day.
TechnologyApr 24, 2026
TwentyFour’s Digital-Age Locket Is a Virtual VaultThe “Vault” charm, our Piece of the Week, expands on the memories that can be stored in a locket by connecting to your phone.
Events & AwardsApr 24, 2026
Hamptons Jewelry Show to Return in JulyThe open-to-the-public luxury jewelry and timepiece show, in its second year, is slated for July 23-26.
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.
IndependentsApr 23, 2026
Meet the Real Moms of Day’s JewelersThe jeweler’s Mother’s Day campaign highlights the women who work there—mothers, grandmothers, women who want to be mothers, and dog moms.
Weekly QuizApr 23, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
Supplier BulletinApr 23, 2026
JM® Shipping Solution: Smarter Shipping for High-Value GoodsSponsored by Jewelers Mutual
Lab-GrownApr 23, 2026
Charles & Colvard May Sell Assets for $1.5MThe proposed agreement follows the moissanite maker’s Chapter 11 bankruptcy protection filing last month.
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.
AuctionsApr 23, 2026
John Jacob Astor IV’s Titanic Pocket Watch Fetches $1MThe Patek Philippe for Tiffany & Co. timepiece Astor brought aboard the ill-fated ship sold for double its estimate at a Freeman’s auction.
CollectionsApr 23, 2026
Adam Neeley’s High Jewelry Collection Steps Into Salvador Dalí’s GardenThe “Dalí’s Garden” collection was inspired by a surreal dream Neeley had after cooking a recipe from Salvador Dalí’s 1973 cookbook.
IndependentsApr 23, 2026
Windsor Jewelers Names New Buying DirectorNatalie Feanny has been appointed to the role.
CrimeApr 22, 2026
New Mexico Couple Pleads Guilty to Selling Fake Native American JewelryThe pair falsely claimed their jewelry was made by Navajo artists, but it was imported from Vietnam.
AuctionsApr 22, 2026
Roberta Flack’s Jewelry Is Going Up for AuctionJulien’s Auctions is selling the musician’s fine and fashion jewelry alongside her clothing, gold records, and other memorabilia.
CollectionsApr 22, 2026
British Museum Curator Pens Book on ‘The Tudor Heart’Rachel King’s book dives into the history of the pendant believed to have belonged to Henry VIII and his first wife, Katherine of Aragon.
Events & AwardsApr 22, 2026
Here’s What Sy Kessler Has on Tap for Las Vegas The company will have deals on precious metals testers as well as the latest in lab-grown diamond detection technology and security.
WatchesApr 21, 2026
Coco Chanel Enters the Game with New Watch CollectionGabrielle “Coco” Chanel is a character in the “Coco Game” collection of watches and the queen in its first haute horlogerie chessboard.
IndependentsApr 21, 2026
Meet Jewelers of America’s 2026 ‘20 Under 40’ ClassThe annual list honors rising professionals on the retail and supply sides of the jewelry industry.
CrimeApr 21, 2026
Customs Nabs 1,500 Pieces of Counterfeit Jewelry Bound for NYCSeized in Kentucky, the packages include fake Cartier, Tiffany & Co., Chanel, and Fendi jewelry.
CrimeApr 20, 2026
Queens Man Convicted in Bludgeoning Death of Pawn Shop OwnerRodolfo Lopez-Portillo faces 25 years to life in prison after being found guilty in the March 2022 beating death of Arasb Shoughi.
TrendsApr 20, 2026
Beth Bernstein, Sonia Esther Soltani Pen New Jewelry Book“Jewelry Creators: Dynamic Duos and Generational Gems” highlights the relationships among 22 influential designers, brands, and gem dealers.
Events & AwardsApr 20, 2026
Atlanta Jewelry Show’s Spring Event Is Hitting the RoadThe AJS Spring 2027 show will be held in Savannah, Georgia, with future shows taking place in other Southeast cities.
MajorsApr 20, 2026
Kendra Scott Names New CFO, Chief Business OfficerThe jewelry retailer plans to open 20 new stores this year and expand into new product categories.
TrendsApr 17, 2026
New (Groundbreaking) Floral Jewelry for Spring 2026Flower motifs are the jewelry trend blooming amongst the new collections that debuted this spring.
MajorsApr 17, 2026
QVC Group Files for Chapter 11 BankruptcyThe retailer reported an 8 percent decline in annual sales as it struggles under the weight of billions of dollars of debt.
CollectionsApr 17, 2026
Edina Kiss’ Earrings Are the Devil on Your ShoulderThe “Devil” drop earrings, our Piece of the Week, are part of designer Edina Kiss’ new namesake jewelry line that she will show at Couture.
CrimeApr 17, 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.
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.
