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

My Next Question webinar
Recorded WebinarsApr 12, 2024
Watch: What Jewelers Need to Know About Insurance

From cybersecurity liability to trade show coverage, insurance experts share tips on how to build the right policy.

Evil Eye Charm with Turquoise Disc
CollectionsApr 12, 2024
Piece of the Week: Lionheart’s Evil Eye Gemstone Charm

The charm is a modern rendition of the evil eye amulet that has been worn for thousands of years.

The Jewelry Symposium scholarship winners 2024
Events & AwardsApr 12, 2024
The Jewelry Symposium Announces 4 Scholarship Winners

Ahead of its trade show next month, TJS awarded free registration and accommodations to one jewelry professional and three students.

1-(3.18).JPG
Brought to you by
The Blueprint for Success in Scalable, Personalized Jewelry Retail

With Ho Brothers, you can unlock your brand's true potential and offer customers the personalized jewelry experiences they desire.

SRK Empire and SRK House
Policies & IssuesApr 11, 2024
SRK Exports’ Journey Toward Net Zero Impact

By the end of this year, SRK’s diamond manufacturing complexes will achieve net zero emissions, one of an impressive array of achievements.

Weekly QuizApr 11, 2024
This Week’s Quiz
Test your jewelry news knowledge with this seven-question quiz.
Take the Quiz
AGTA logo
Lab-GrownApr 11, 2024
AGTA Bans Lab-Grown Diamonds, Gemstones at GemFair

Members can still sell lab-grown stones, it said, but only natural gems are allowed on the show floor.

Steven Rosdal
IndependentsApr 11, 2024
Steven Rosdal, Co-Founder of Hyde Park Jewelers, Dies at 77

He is remembered for his charisma, passion, integrity, kindness, and wit.

Jewelers of America Fly In Washington, D.C.
Brought to you by
How Jewelers of America Represents Your Business

For over 30 years, JA has advocated for the industry, fought against harmful legislation and backed measures that help jewelry businesses.

Macy’s Herald Square store
MajorsApr 11, 2024
Macy’s Opens Books for Possible Buyout

The retailer also appointed two new board members, avoiding a proxy fight from a potential buyer.

AGS Conclave 2024 logo Austin
Events & AwardsApr 11, 2024
10 Can’t-Miss Sessions at AGS Conclave 2024

From lab-grown diamonds and AI to the inevitable Taylor Swift mention, here are some of Conclave’s most intriguing educational offerings.

Sylvie Jewelry model
CollectionsApr 10, 2024
Sylvie Launches New Nature-Inspired Collection, ‘Tulira’

The bridal collection consists of 35 engagement rings and seven wedding bands.

Rolex Oyster Perpetual Deepsea in 18-karat yellow gold
WatchesApr 10, 2024
These Are Rolex’s New Watches for 2024

The crown introduced a dozen timepieces in Geneva, including a heavy metal version of its deep-sea divers’ watch.

Levy’s Fine Jewelry diamond education
IndependentsApr 10, 2024
Levy's Fine Jewelry Explores Diamond History

The family-owned jeweler has a new education section on its website dedicated to the history of diamond cutting.

With Clarity NFL wedding bands
CollectionsApr 10, 2024
With Clarity Partners With NFL on Wedding Bands

The limited-edition men’s rings can be customized with one of 12 team logos.

Asian Star’s diamond manufacturing facility in India
SourcingApr 10, 2024
Compliance, Caution, and Concern: The Current Outlook of Indian Diamantaires

There is a willingness to comply with new government-mandated regulations, with an insistence that they should be practical and realistic.

Chrono24 watch inspection lab
WatchesApr 09, 2024
Chrono24 Debuts Pre-Owned Watch Authentication Program

The program, now live in Europe, will roll out to the U.S. this summer.

6.21-carat fancy vivid pink diamond
AuctionsApr 09, 2024
Phillips to Offer 6.21-Carat Vivid Pink Diamond

Colored gemstones and signed jewels are the focus of its upcoming Geneva sale.

Lucapa rough colorless and pink diamonds
SourcingApr 09, 2024
Former De Beers Exec Appointed to Lucapa Board

Stuart Brown, who was De Beers’ CFO and interim CEO, is now Lucapa’s independent non-executive chairman.

Jewelers for Children POS System Donations
MajorsApr 09, 2024
Jewel360 Announces New POS Integration, JFC Partnership

The point-of-sale software can now prompt customers to round up their credit card purchases as a donation to Jewelers for Children.

Bharat Ratnam, a Mega Common Facilitation Centre (CFC)
SourcingApr 09, 2024
Reinvigorating SEEPZ, the Epicenter of India’s Studded Jewelry Exports

The zone’s modernization will enhance and increase India’s jewelry manufacturing capabilities while aiding small and mid-sized businesses.

Charles & Colvard moissanite bypass engagement ring
SourcingApr 08, 2024
Charles & Colvard Debuts B2B Portal for Moissanite

Select independent jewelers and retailers can now purchase moissanite through Charles & Colvard Direct.

Amber Rank
Events & AwardsApr 08, 2024
AGS Announces First Recipient of ‘Women in Leadership’ Scholarship

Amber Rank of Exclusively Diamonds will receive mentorship, registration to AGS’s 2024 Conclave, and $500.

Jaeger-LeCoultre citrine pinky-ring watch
AuctionsApr 08, 2024
Sotheby’s ‘Rough Diamonds’ Sale Is All About … Watches

The auction will take place Thursday and is underground, literally.

JOGS logo
Events & AwardsApr 08, 2024
JOGS Show Returns to Las Vegas for a Second Year

The trade show is moving downtown to the Expo at World Market Center.

Kira Diam solar plant
Lab-GrownApr 08, 2024
Indian Lab-Grown Diamond Manufacturers Keep Growing

A combination of factors is driving growth in the industry despite the precipitous drop in prices across the board.

Brilliant Earth and Jane Goodall collaboration logo
MajorsApr 05, 2024
Brilliant Earth Partners with Jane Goodall

The company is teaming up with the Jane Goodall Institute to promote ethical practices and environmental conservation.

Monica Rich Kosann Slim Heart Locket in gold and Jacquelyn Jablonski
CollectionsApr 05, 2024
Piece of the Week: A Locket for Autism Acceptance Month

Monica Rich Kosann created the “Slim Heart” locket in partnership with model and philanthropist Jacquelyn Jablonski.

×

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