Financials

Movado’s Full-Year Sales Sink 11%

FinancialsMar 27, 2024

Movado’s Full-Year Sales Sink 11%

The company plans to invest $25 million in marketing initiatives to boost awareness around its namesake and licensed brands.

Georgia May Jagger Tommy Hilfiger ad campaign
Model Georgia May Jagger, daughter of model Jerry Hall and Rolling Stones frontman Mick Jagger, stars in the new campaign for Tommy Hilfiger, a licensed brand in Movado’s portfolio. Movado’s fourth-quarter and full-year sales declined.
Paramus, N.J.—Movado Group ended its fiscal year 2024 on a low note, with full-year sales down double digits.

“For the past year, we’ve been operating in a challenging retail environment in our largest markets, the United States and Europe,” CEO Efraim Grinberg said on an earnings call Tuesday morning.

“A continuation of post-COVID dynamics, a rebound in travel spending, multiyear inflationary pressures, and increasing geopolitical uncertainty are all affecting consumer demand for discretionary products.”

Grinberg noted that Movado’s holiday marketing initiatives and new product introductions in both watches and jewelry were “favorably received.” 

In the fourth quarter ending Jan. 31, net sales fell 8 percent year-over-year (9 percent on a constant dollar basis) to $179.6 million.

Quarterly sales in the U.S. were down 12 percent year-over-year while international sales fell 3 percent.

Gross profit was $96.8 million, or 54 percent of net sales, compared with $109.3 million, or 56 percent of net sales in the previous fourth quarter.

For the full-year, net sales were down 11 percent year-over-year (12 percent on a constant dollar basis) to $672.6 million.

The company said sales declined across all channels—online, in its company-owned and -operated stores, and at its wholesale customers’ brick-and-mortar stores.

Full-year sales in the U.S. fell 13 percent year-over-year while international sales declined 9 percent.

Gross profit was $370.4 million, or 55 percent of net sales, compared with $433.9 million, or 58 percent of net sales, in the previous fiscal year.

The decrease in gross margin percentage in the full year and Q4 was attributed to higher fixed costs and lower sales, the “unfavorable” impact of foreign currency exchange rates, and changes in channel and product mix. 

For the full year, this was partially offset by reduced shipping costs.

 Related stories will be right here … 

Grinberg shared updates about Movado’s various brands during the call.

The company’s brand portfolio includes its eponymous brand as well as in-house and licensed brands, like Coach and Tommy Hilfiger.

Its namesake brand has been undergoing a “refresh” since last fall, which Movado said has paid off, noting increased brand awareness across the market in key demographic targets.

It’s planning to debut a new advertising campaign for the brand in the third quarter of fiscal 2025 and into fiscal 2026.

The Movado brand recently launched a new “Bold Quest” timepiece, with a starting price point of $595. Inspired by a 1970s design, it features an integrated case-bracelet combination and a boldly colored dial.

It will also introduce a new chronograph to its “Movado Bold Horizon 2.0” collection this spring.

For Tommy Hilfiger, Movado will continue to expand the “TH 85” collection and bolster it via marketing support. 

The brand also has announced that model Georgia May Jagger, daughter of rock legend Mick Jagger and model Jerry Hall, will front its advertising campaign for watches and jewelry.

The Hugo Boss brand introduced the “Candor” family over the holiday season, while its “Sky Travel” collection received a “strong” response from retailers, said Movado.

As for Hugo Boss’ jewelry offerings, the brand is capitalizing on the growing men’s jewelry category by introducing “bolder, iconic looks,” said Grinberg. 

The Coach brand will focus on driving growth in the U.S. market this spring, giving support to its “Cary” and “Elliot” lines, while also growing its Amazon business, which launched late last year.

The company also aims to grow its Calvin Klein businesses, focusing on its “Elemental” jewelry collection and its “Glean” watch line.

“As part of our emphasis on expanding automatic watches for all of our brands, we will focus on driving the success of our CK iconic family with translucent skeleton dials that reveal intricate mechanical movements,” said Grinberg.

Its Lacoste brand has seen success in its “Boston” and “L12.12” collections while its recently introduced jewelry offerings have seen “a very strong response.” 

The company has new introductions planned for the brand in the second half of the year.

MVMT has seen increased profitability while Olivia Burton has also seen an improved performance, particularly its “Grosvenor” line and its “Hexa” jewelry offerings.

Looking to the year ahead, Movado plans to invest an incremental $25 million in marketing initiatives, focusing on the Movado brand in the U.S. and its licensed brands in Europe via its retail partners.

“While this is expected to cause a moderation in profit in the short term, we believe this is the right move to support our brands and customers and, importantly, deliver accelerated and consistent growth within the future,” said Grinberg.

Movado expects fiscal 2025 net sales to be between $700 million and $710 million, with gross profit of approximately 55 percent of net sales, and operating income in the range of $32 million to $35 million. 

For the first half of fiscal 2025, the company anticipates net sales will be relatively flat on a year-over-year basis, as it uses marketing spend to drive top-line growth.

The Latest

Stock image of a gavel
CrimeDec 11, 2024
Former Tiffany & Co. Factory Supervisor Sentenced for Stealing Precious Metals

A federal judge gave Benjamin Preacher 59 days in jail, plus 10 months of home confinement and two years of supervised release.

Grader looking into microscope at IGI lab
GradingDec 11, 2024
IGI Set to Go Public Next Week

In a CNBC interview, CEO Tehmasp Printer discussed the IPO in India and what declining lab-grown diamond prices mean for the company.

Heuer Monaco Ref. 1133B
AuctionsDec 11, 2024
Sotheby’s Important Watches Sale Fetches $16.6M

The offering included vintage Rolexes, timepieces worn in “Titanic,” Steve McQueen's watch, and a special Citizen pocket watch.

ja nj btyb.jpg
Brought to you by
Advocacy and Excellence: How Jewelers of America Is Committed to Elevating Our Industry

For over a century, Jewelers of America has been the voice of the industry and valuable resource to jewelers across the country.

Stephanie Gottlieb, Anna Harman, Stephanie Gottlieb x Studs Collection
CollectionsDec 11, 2024
Stephanie Gottlieb Brings Natural Diamonds to Studs

The 13-piece “Stephanie Gottlieb x Studs” collection is the piercing studio’s first fine jewelry offering to feature the gemstone.

Weekly QuizDec 05, 2024
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Exterior of Sauer’s Madison Avenue Store
IndependentsDec 10, 2024
Sauer Opens First U.S. Store

The Brazilian jewelry brand made a home on New York City’s Madison Avenue with exclusive pieces only available at the location.

Person at keyboard holding credit card
SurveysDec 10, 2024
Jewelry Among Top Sellers on Cyber Monday, Says Adobe

An Adobe Analytics report explored the rise in mobile shopping, the popularity of Buy Now Pay Later options, and peak shopping hours.

undefined.png
Brought to you by
Protecting Your Sparkle: Why Screening Has Become Essential

While no reputable jeweler would knowingly sell lab-grown stones as natural, it's a growing possibility.

American Gem Trade Association and University of Arizona
Events & AwardsDec 10, 2024
AGTA Launches Scholarship for University of Arizona Geosciences Students

The inaugural Dick Greenwood Memorial Scholarship in Gems Science will cover the fall 2025 and spring 2026 semesters.

JA New York Show Entrance
Events & AwardsDec 10, 2024
JA New York To Debut 2 New Pavilions at Spring 2025 Show

A Piazza Italia pavilion will feature Italian designers and manufacturers while “MJSA Showcase” brings over a piece of the MJSA Expo.

Ray Griffiths and Ray Griffiths: The Works
CollectionsDec 09, 2024
Ray Griffiths’ First Coffee Table Book Spans 5 Decades of Design

“Ray Griffiths: The Works” tells the story of the master jeweler’s career, which started with an apprenticeship in Australia at age 15.

Grant Mobley and Thomas Davis
MajorsDec 09, 2024
Thomas Davis, Grant Mobley Join WJA Foundation Board

Davis is the director of business development at Select Jewelry Inc., and Mobley is the jewelry and watch editor at the Natural Diamond Council.

Treiber & Straub store Brookfield, Wisconsin
IndependentsDec 06, 2024
After 44 Years in Business, This Wisconsin Independent Is Closing

Mike Straub and John Treiber opened Treiber & Straub in 1980 with the goal of bringing Milwaukeeans the best jewelry brands.

Pantone Color of the Year Mocha Mousse
TrendsDec 06, 2024
Pantone’s Color of the Year Is a Delicious Mousse

The color for 2025, “Mocha Mousse,” embodies thoughtful indulgences and everyday pleasures.

Cocoerow Fine Jewelry’s Kokoro Ant Pendant
CollectionsDec 06, 2024
Piece of the Week: Cocoerow Fine Jewelry’s ‘Kokoro’ Pendant

The Yoruba word for ant, “Kokoro” embodies the strength of womanhood in ant society while highlighting responsible sourcing.

Gold rings
FinancialsDec 05, 2024
Signet Jewelers’ Q3 Sales Slide Amid Slow Engagement Ring Sales, Tech Issues

The jewelry retailer addressed the lab-grown diamond “disruption,” the price of gold, and its holiday weekend performance.

Hand holding shopping bags
SurveysDec 05, 2024
Consumer Confidence Rises Again in November

A more positive view of the current labor market boosted the Conference Board’s index last month.

Michael S. Krzemnicki
Events & AwardsDec 05, 2024
Michael S. Krzemnicki to Receive 2024 Bonanno Award

The director of the Swiss Gemmological Institute (SSEF) will be honored for his impact on gemology and dedication to advancing the science.

1.png
Supplier BulletinDec 05, 2024
Join Us For Color's Premier Show: 2025 AGTA GemFair Tucson

Sponsored by 2025 AGTA GemFair Tucson

Gwen Beloti, Lisa Bridge, Eddie Plein, Anna Samsonova
Events & AwardsDec 05, 2024
BIJC Announces 2024 ‘Rock the Jewels’ Awards Winners

At the annual event, in its second year, the organization honored those making remarkable contributions to the jewelry industry.

For Future Reference Vintage turquoise necklace
TrendsDec 05, 2024
Amanda’s Style File: A Blue, Blue, Blue Month

Celebrate December babies with 20 pieces of jewelry featuring this month’s birthstones—turquoise, tanzanite, and zircon.

People outside holding shopping bags
SurveysDec 04, 2024
In-Store Shopping Outpaced Online Over the Holiday Weekend, Says NRF

A total of 126 million consumers shopped in stores over the five-day period, about 5 million more than last year.

Stock photo of diamonds
Lab-GrownDec 04, 2024
GJEPC Says Indian Trade Will Use FTC-Approved Terminology for Lab-Grown Diamonds

The FTC’s Jewelry Guides require “clear and conspicuous” disclosure when advertising lab-grown diamonds.

Grandview Klein Diamond Group Staff
SourcingDec 04, 2024
Designer Saul Fraiman Retires After 55 Years

The fine jewelry designer, who came out of retirement in 2017, is putting down his sketchpad for good.

30.101-carat very light pink diamond
AuctionsDec 04, 2024
30-Carat Pink Diamond Fetches $2.6M at Bonhams

The Type IIa, very light pink colored diamond was the highlight of the recent Hong Kong jewelry auction.

John Willard Craiger mugshot
CrimeDec 03, 2024
Man Sentenced to Life in Prison for Murder of Florida Jeweler

John Willard Craiger, 83, fatally shot jeweler Ghazi “Gus” Michel Osta following an argument in the store.

National Jeweler columnist Peter Smith
ColumnistsDec 03, 2024
Peter Smith: How a Leadership Hire Can Make or Break a Company

In his latest column, Smith provides a list of questions every business needs to be asking their next potential leader.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy