FinancialsAug 13, 2024
Pandora Raises Guidance Again as Q2 Sales Climb Double DigitsFinancialsSep 06, 2024
Movado Lowers Guidance as Q2 Sales Slip
CEO Efraim Grinberg pointed to a challenging consumer spending environment, particularly in the watch category.
A set of Movado Connect 2.0 watches. The company reported declining sales in its recent second quarter results.
Paramus, N.J.—Movado Group posted declining sales in its second-quarter results, lowering its fiscal guidance for the year ahead as consumer spending on watches remains “difficult.”
“While increased marketing investment coupled with our initiatives to enhance retail performance drove improvement in our sales trend from the first quarter, second quarter sales and earnings were below our expectations due to the challenging consumer spending environment compounded by increased expenses to support future growth,” CEO Efraim Grinberg said.
The company previously announced its plan to increase marketing spend to $25 million, which ramped up in the second quarter.
It recently launched a new Movado campaign called “When I Move You Move,” a nod to the lyrics in Ludacris’ song “Stand Up,” which is featured in the campaign.
The retailer is hoping the new campaign, featuring famous faces like Ludacris, Julianne Moore, Jessica Alba, Tyrese Haliburton, and Christian McCaffrey, will bolster sales.
In the second quarter ending July 31, net sales fell about 1 percent year-over-year (less than 1 percent on a constant dollar basis) to $159.3 million.
Net sales for the first half were down 3 percent to $296 million.
Movado attributed the decrease to mixed sales at brick-and-mortar stores owned by wholesale customers, as well as those operated by Movado, partially offset by an increase in U.S. online retail.
“While we are excited by the initiatives that we have put in place, the consumer spending environment in the watch category continues to be difficult in many markets around the world and we believe this will have an impact on our second half results,” said Grinberg.
On an earnings call Thursday morning, Grinberg noted that its retail partners, especially in the U.S. and Europe, placed orders “cautiously.”
There were some bright spots in the quarter, said Grinberg, which the retailer plans to capitalize on in the second half of the year.
Movado brand sales were up 1 percent, noting significant growth in the direct-to-consumer channel as Movado.com sales rose 21 percent. The rise was partially offset by a 6 percent decline in its wholesale channel.
Grinberg noted the success of its “Movado Bold Quest” collection, which features a design inspired by a vintage Movado watch from the 1970’s.
“Opening at $595, Bold Quest fills more accessible price points that we had previously vacated,” he said.
As for its jewelry offerings, Grinberg noted on the call that “jewelry is actually outperforming watches in our fashion brands and seems to be doing very well.”
“That continues to represent a big opportunity for the company as we grow that business, [which is] particularly strong in markets like Europe and Mexico.”
The Movado brand will refresh its jewelry assortment, beginning early next year, he said.
Related stories will be right here …
“While increased marketing investment coupled with our initiatives to enhance retail performance drove improvement in our sales trend from the first quarter, second quarter sales and earnings were below our expectations due to the challenging consumer spending environment compounded by increased expenses to support future growth,” CEO Efraim Grinberg said.
The company previously announced its plan to increase marketing spend to $25 million, which ramped up in the second quarter.
It recently launched a new Movado campaign called “When I Move You Move,” a nod to the lyrics in Ludacris’ song “Stand Up,” which is featured in the campaign.
The retailer is hoping the new campaign, featuring famous faces like Ludacris, Julianne Moore, Jessica Alba, Tyrese Haliburton, and Christian McCaffrey, will bolster sales.
In the second quarter ending July 31, net sales fell about 1 percent year-over-year (less than 1 percent on a constant dollar basis) to $159.3 million.
Net sales for the first half were down 3 percent to $296 million.
Movado attributed the decrease to mixed sales at brick-and-mortar stores owned by wholesale customers, as well as those operated by Movado, partially offset by an increase in U.S. online retail.
“While we are excited by the initiatives that we have put in place, the consumer spending environment in the watch category continues to be difficult in many markets around the world and we believe this will have an impact on our second half results,” said Grinberg.
On an earnings call Thursday morning, Grinberg noted that its retail partners, especially in the U.S. and Europe, placed orders “cautiously.”
There were some bright spots in the quarter, said Grinberg, which the retailer plans to capitalize on in the second half of the year.
Movado brand sales were up 1 percent, noting significant growth in the direct-to-consumer channel as Movado.com sales rose 21 percent. The rise was partially offset by a 6 percent decline in its wholesale channel.
Grinberg noted the success of its “Movado Bold Quest” collection, which features a design inspired by a vintage Movado watch from the 1970’s.
“Opening at $595, Bold Quest fills more accessible price points that we had previously vacated,” he said.
As for its jewelry offerings, Grinberg noted on the call that “jewelry is actually outperforming watches in our fashion brands and seems to be doing very well.”
“That continues to represent a big opportunity for the company as we grow that business, [which is] particularly strong in markets like Europe and Mexico.”
The Movado brand will refresh its jewelry assortment, beginning early next year, he said.
Looking to the U.S., quarterly sales were down less than 1 percent year-over-year while international sales fell 1 percent (less than 1 percent on a constant dollar basis).
First-half net sales in the U.S. and internationally were down 3 percent year-over-year.
Second-quarter gross profit was $86.4 million, or 54 percent of net sales, compared with $89.3 million, or 56 percent of net sales, in the previous second quarter.
The decrease in gross margin percentage in Q2 was attributed to an “unfavorable” change in channel and product mix.
First-half gross profit was $161.9 million, or 55 percent of net sales, compared with $171.3 million, or 56 percent of net sales, in the previous first half.
The first-half decrease in gross margin percentage was attributed to an “unfavorable” change in channel and product mix as well as decreased leverage of higher fixed costs on lower sales, partially offset by reduced shipping costs.
Net income in Q2 was $3.7 million, down 54 percent compared to net income of $8 million in the second quarter of fiscal 2024.
First-half net income was $6.6 million, down 62 percent compared to net income of $17.2 million in the first six months of last year.
Movado lowered its guidance for the year ahead, citing a challenging environment.
It now expects fiscal 2025 net sales to be between $665 million and $675 million, down from its prior guidance of $700 million and $710 million.
Second-half sales are expected to be flat to slightly positive year-over-year.
Gross profit is expected to be 54 percent of net sales, down from its previous expectation of 55 percent.
Operating income is forecast to be in a range of $23 million to $26 million, as compared to its previous expectation of $32 million to $35 million.
“As we begin to plan for next fiscal year, we are committed to reducing our operating expenses to improve profitability. At the same time, we expect the combination of our upcoming marketing initiatives, along with compelling innovation, to drive excitement for our brands and business,” said Grinberg.
More on Financials
The Latest
Events & AwardsMar 17, 2026
The Best Moments From the 2026 Gem Awards Held just before the Oscars, the jewelry industry’s big awards show had its share of standout jewelry, gowns, and acceptance speeches.
SourcingMar 17, 2026
Cruzeiro Mine Debuts ‘Winter Tourmaline’The Brazilian mine’s new collection features cabochons in soft, muted shades like silver and lilac.
TrendsMar 17, 2026
Natalie Portman Is Tiffany & Co.’s New AmbassadorThe Academy Award-winning actress stars in Tiffany & Co.’s latest commercial, which debuted Sunday night during the Oscars.
Brought to you by
Is This You? Every Jeweler Has This Problem; We Have the Solution.Every jeweler faces the same challenge: helping customers protect what they love. Here’s the solution designed for today’s jewelry business.
MajorsMar 17, 2026
Kering Establishes Jewelry Division, Appoints CEOThe organizational change follows Kering’s promise of a transformation after declining sales in 2025.
Weekly QuizMar 12, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
EditorsMar 16, 2026
2026 Oscars Jewelry: One Necklace After AnotherNatalie Francisco rounds up the top Oscars jewels, including Rose Byrne’s Taffin necklace with a more than 20-carat yellow-brown diamond.
WatchesMar 16, 2026
TAG Heuer Has a New CEOBéatrice Goasglas has been with TAG Heuer since 2018. She is the first woman to head the 166-year-old, LVMH-owned watch brand.
Brought to you by
DCA Enters a New Chapter in Jewelry EducationWith refreshed branding, a new website, updated courses, and a pathway for growth, DCA is dedicated to supporting retail staff development.
IndependentsMar 16, 2026
Ben Bridge Debuts New Honolulu BoutiqueThe store features the first in-store build for the jeweler’s in-house “Bella Ponte” bridal brand.
AuctionsMar 16, 2026
Bonhams Paris To Offer Antique, Signed Jewels The live fine jewelry auction will take place later this week, showcasing antique pieces, rare gemstones, and signed jewels.
CollectionsMar 13, 2026
A Trio of Jewels from the 3 Gem Award Nominees for Jewelry DesignOur Pieces of the Week honor the 2026 nominees for the Gem Award for Jewelry Design, Silvia Furmanovich, Cece Fein-Hughes, and Catherine Sarr.
WatchesMar 13, 2026
Citizen, Vera Wang to Launch Watch CollectionThe 24-piece watch collection is set to debut in spring 2027.
SourcingMar 13, 2026
Andrea Pooler Joins Third-Generation Diamond Company as COO Pooler, who has more than 25 years’ experience in jewelry, is now chief operating officer of Modani Jewels, Soham Diamonds, and SNJ Creations.
MajorsMar 13, 2026
24 Karat Club of New York’s Banquet to Return to Waldorf AstoriaThe reopening of the Waldorf Astoria means a homecoming for the industry group’s annual event, which will take place Saturday.
CollectionsMar 12, 2026
Jessica McCormack Sends Gold, Gemstones Into ‘Orbit’McCormack looked to the 19th century’s “golden age” of astronomy when designing her new celestial-themed collection.
Events & AwardsMar 12, 2026
Johnny Nelson Wins David Yurman Gem Awards GrantNelson will be honored as the inaugural grant winner at the Gem Awards gala on Friday.
TechnologyMar 12, 2026
Caratwise Launches, Names Former Signet Exec CEO The new smart design software allows jewelers to configure, price, and confirm a custom engagement ring in real time for in-store customers.
SourcingMar 12, 2026
Grandview Klein Opens New Factory in South Africa The 10,000-square-foot diamond manufacturing facility officially opened in late February and employs 50 people.
Events & AwardsMar 12, 2026
MJSA ‘Future of Jewelry Making’ Scholarship Applications OpenThe MJSA Education Foundation’s scholarships support students pursuing jewelry careers.
AuctionsMar 11, 2026
‘Spectacular’ 26-Carat Diamond Going Up for Auction in London The largest white diamond to come to market in the U.K. in more than a decade, the VVS1, I-color stone is expected to top $1 million.
TechnologyMar 11, 2026
Cast Jewelry’s Rachel Skelly on Coming Back Online Only Skelly shares her plans for reimagining the fine jewelry retailer she re-acquired after it faltered last year.
CollectionsMar 11, 2026
Pyrrha Highlights ‘The Space Between’ In New CollectionThe collection takes inspiration from the emotional space between people, moments, and experiences.
IndependentsMar 11, 2026
From the Jazz Age to the Information Age: London Jewelers Turns 100In 2026, the jewelry retailer is celebrating a milestone only a small percentage of family-owned businesses survive to see.
IndependentsMar 11, 2026
Virginia Jewelers Raise Nearly $30K for Children’s HospitalThe group of jewelers held a jewelry raffle in support of the Children’s Hospital of Richmond at VCU.
MajorsMar 10, 2026
Saks Global to Close 15 More StoresThe retailer also gave an update on its vendor partnerships.
TrendsMar 10, 2026
Messika Names Julianne Moore as AmbassadorThe award-winning actress is the “epitome of modern allure,” the brand said.
CollectionsMar 10, 2026
Gemstones ‘Bloom’ in Sorellina’s New CollectionThe “Bloom” collection draws from the flower power movement of the 1960s and ‘70s with inlay pendants offered in eight colorways.
