FinancialsDec 09, 2024
Movado’s Q3 Sales Down 3% Amid ‘Challenging’ EnvironmentFinancialsApr 14, 2025
Movado to Restate Years of Financials Due to ‘Misconduct’ in Dubai
An investigation found that the former managing director of Movado’s Dubai branch overstated and prematurely recorded sales.
A set of Movado Connect 2.0 watches. In an SEC filing last week, Movado Group announced that it will be restating its financial results going back five years following an issue at its subsidiary in Dubai.
Paramus, N.J.—Movado Group will restate its financial results going back to 2021 following an issue at the Dubai branch of the company.
In an 8-K filing with the Securities and Exchange Commission Friday, the company said in late January, it became aware of allegations of “misconduct” at the Dubai branch of its Swiss subsidiary, MGI Luxury Group Sárl, related to sales to select customers in the Middle East, India, and Asia Pacific region.
Upon learning this, Movado retained outside counsel and requested an investigation into the allegations.
According to the filing, the investigation found that the former managing director of the company’s Dubai branch, who was not named, and certain employees under his direction overstated sales, prematurely recognized sales, and underreported credit notes (e.g., sales discounts) owed to customers in the Middle East, India, and the Asia Pacific region.
These actions included the use of a third-party warehouse, unbeknownst to Movado’s management, and falsifying documents to evade internal controls, according to the filing.
The investigation did not find any impact to reported sales to customers in other regions, and did not identify misconduct by employees outside of the affected region.
The managing director of the Dubai branch has been terminated.
Related stories will be right here …
In an 8-K filing with the Securities and Exchange Commission Friday, the company said in late January, it became aware of allegations of “misconduct” at the Dubai branch of its Swiss subsidiary, MGI Luxury Group Sárl, related to sales to select customers in the Middle East, India, and Asia Pacific region.
Upon learning this, Movado retained outside counsel and requested an investigation into the allegations.
According to the filing, the investigation found that the former managing director of the company’s Dubai branch, who was not named, and certain employees under his direction overstated sales, prematurely recognized sales, and underreported credit notes (e.g., sales discounts) owed to customers in the Middle East, India, and the Asia Pacific region.
These actions included the use of a third-party warehouse, unbeknownst to Movado’s management, and falsifying documents to evade internal controls, according to the filing.
The investigation did not find any impact to reported sales to customers in other regions, and did not identify misconduct by employees outside of the affected region.
The managing director of the Dubai branch has been terminated.
These actions took place over a period of five years, Movado said in the filing, beginning with its fiscal year ending Jan. 31, 2021.
After consulting with its management team and PricewaterhouseCoopers, its accounting firm, the Audit Committee of its board of directors decided the company’s financial results during this period could not be relied upon.
As a result, Movado said its financials for the fiscal years ended in 2022, 2023, and 2024 and the interim periods within fiscal years 2024 and 2025 have to be restated to reflect the sales earned and credits issued during this time.
The restated interim periods of fiscal 2025 also will reflect a reduction in operating expenses resulting from the reversal of certain accruals due to the lower adjusted operating results, said Movado.
Movado said the misstatements did not impact its cash flows or compliance with the debt covenants in its credit agreement.
During the investigation, the company’s management team said it identified a “material weakness” in internal controls over financial reporting.
It stated that the company’s risk assessment process did not properly identify the potential pitfalls associated with the lack of “functional segregation of duties” in the Dubai branch.
In short, it decided its internal financial reporting controls, as well as its disclosure controls and procedures for this region, were not effective.
As a result, it has and will continue to address this weakness and mitigate the risk of “inappropriate influence.”
Movado has released interim results for its fourth quarter and will report the official results on April 16.
Editors' Picks
Sponsored by
More on Financials
The Latest
PodcastsOct 21, 2026
Episode 10: This Episode Is Haunted Diana Singer shared the stories of two “cursed” diamonds on this month’s podcast, which was inexplicably riddled with technical issues.
IndependentsOct 21, 2026
Gardner-Collier Jewelry to Close After 9 Decades in BusinessThe family-owned jeweler has three locations across Missouri and Iowa.
SourcingOct 21, 2026
Venetia Mines Final Carats Ahead of 2-Year ShutdownThe De Beers-owned diamond mine in South Africa is being put on ice as part of a round of previously announced cost-cutting measures.
Brought to you by
A Diamond Is Forever Launches 2026 Holiday Campaign Championing Natural DiamondsA Diamond Is Forever's holiday campaign reimagines natural diamond icons for a new generation celebrating individuality.
CollectionsOct 21, 2026
Helzberg, Nordstrom Carrying New Jewelry Collection From Off-WhiteThe collection centers designs with clean geometric lines, chunky sculptural pieces, and recognizable details from the luxury fashion brand.
Weekly QuizOct 15, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
SourcingOct 21, 2026
Gemfields’ Mixed-Quality Ruby Auction Earns $52MThe miner said it saw particularly strong prices for larger, fine-quality rubies at the sale.
CrimeOct 20, 2026
Security Guard Charged With Murder in Shooting at Texas MallThe guard opened fire on a man who was smashing a jewelry display case at La Gran Plaza in Fort Worth last week, police said.
Brought to you by
Open an Account, Get $50 Off Your First Order. No Code Needed.Built on Relationships. Refined by Craft.
IndependentsOct 20, 2026
David Gardner’s Jewelers Unveils Newly Expanded, Revamped ShowroomThe Texas jeweler added 2,000 square feet to its reimagined showroom, complete with a new design studio and an event space.
SourcingOct 20, 2026
The $50M Victoria’s Secret ‘Fantasy Bra’ By The NumbersJacob & Co.'s diamond masterpiece is the most expensive Fantasy Bra ever worn on the Victoria’s Secret Fashion Show runway.
CollectionsOct 20, 2026
Mignon Faget’s Collection Chooses Handmade Over AIThe “Atelier” collection was inspired by the tools, rituals, and objects in an artist’s studio as a quiet rebuttal to an automated world.
MajorsOct 19, 2026
The Knot to Acquire Rival Wedding Planning Platform ZolaThe pending acquisition is an “exciting opportunity” for wedding vendors to grow their business, said The Knot Worldwide’s CEO.
SourcingOct 19, 2026
Jewelry Design Competition Show Airs in Thailand"The Secret Gems" features eight Thai jewelry brands paired with a team of young craftspeople who create jewelry together to win challenges.
CollectionsOct 19, 2026
John Hardy Enters the Medallion Chat With Talisman Collection The brand’s “Modern Talisman” capsule collection introduces pendants inspired by the mythology, natural world, and spiritual ethos of Bali.
IndependentsOct 19, 2026
The Stories of 5 Jewelers Celebrating Their Centennials in 2026Independent jewelers from New Mexico to New Jersey answer the question: What has kept your store in business for 100 years?
SurveysOct 16, 2026
How Inflation, Gas Prices Will Affect Holiday Sales The NRF is expecting holiday sales to increase this year, but consumers and retailers alike are facing Grinch-like headwinds.
CollectionsOct 16, 2026
Christina Puchi’s Earrings Hold the UniverseOur Piece of the Week gathers the planets, represented by a variety of colored gemstones, in a pair of 14-karat yellow gold earrings.
IndependentsOct 16, 2026
Reeds Jewelers Expands, Relocates FlagshipThe New York-based jeweler is moving its Amherst flagship store to a larger location in nearby Snyder.
MajorsOct 16, 2026
Katy Chen Appointed Executive Vice President of Graff USA Chen, who worked at Cartier and Tiffany & Co., will lead retail sales and operations for the luxury jeweler’s 11 U.S. stores.
IndependentsOct 15, 2026
Retailer Hall of Fame 2026: Amy and Elise Greenberg For 40 years, sisters Amy and Elise Greenberg have helmed their 126-year-old family business, leading with appreciation and integrity.
ColumnistsOct 15, 2026
Peter Smith: What Is the Culture REP?It’s a term Smith coined and felt compelled to share following a bad experience with an aborted flight and an unfeeling flight attendant.
WatchesOct 15, 2026
Stephanie Gottlieb’s New Movado Watches Are Made for Your Wrist StackMovado teamed up with the New York-based fine jewelry designer on a new collection of Movado Museum Velura watches.
SourcingOct 15, 2026
Signet Jewelers, Richemont May Join Bidder for De Beers, Report SaysThe two companies are reportedly in talks to join the Global Diamond Consortium, led by former De Beers CEO Gareth Penny, as per Bloomberg.
CollectionsOct 15, 2026
Wolf x Marla Aaron's New Jewelry Box Is for Some (Not All) of Your ThingsThe “Some of the Things” box follows the two larger “Everything” box designs with the look and function of antique sewing and toolboxes.
IndependentsOct 14, 2026
Retailer Hall of Fame 2026: Coleman and Mitchell ClarkFourth-generation jewelers Coleman and Mitchell Clark exemplify the best qualities of their predecessors: humility, modesty, and confidence.
SourcingOct 14, 2026
Manuel Marcial de Gomar, ‘The Emerald Whisperer,’ Dies at 90The gem hunter, whose 70-year career was defined by adventure and exploration, is remembered for his steadfast faith and sense of wonder.
Events & AwardsOct 14, 2026
Chicago Responsible Jewelry Conference Releases 2026 ProgramThis year’s sessions feature leading voices from human rights, legal, and conservation organizations.
