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
EditorsSep 15, 2026
2026 Emmys Jewelry: An Either/Or Proposition Stars wore either a necklace or earrings at 78th Primetime Emmy Awards but rarely both, Natalie Francisco notes.
ColumnistsSep 15, 2026
The Levels Your Website Must Clear Before AI Recommends YouJennifer Shaheen compares this new era of AI-powered SEO to a video game: your website must clear one level before advancing to the next.
IndependentsSep 15, 2026
Armadani Launches Retail Support Program for Holiday SeasonThe program highlights “Made in Italy” fine jewelry with digital merchandising, sales education, and local marketing support.
Brought to you by
Your Piece Could Be the One Editors Talk AboutSubmit your pieces for a chance to win in this year's competition.
EditorsSep 15, 2026
Q&A: Signet Jewelers’ Joan Hilson on Diamond Demand, the HolidaysHilson, Signet’s chief operating and financial officer, discussed Q2, resurgent natural diamond demand, and why Blue Nile is a standout.
Weekly QuizSep 10, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
ColumnistsSep 14, 2026
Sherry Smith: Stop Waiting for December to Save Your ChristmasThe stores that have a great December are the ones that made good decisions in August, September, and October, Sherry Smith writes.
AuctionsSep 14, 2026
22 Carats of ‘Sunshine’ Are Up for AuctionThe 22.09-carat fancy yellow “Pragnell Kimberley Sunshine Diamond” is part of the fall jewelry sale at Heritage Auctions.
Brought to you by
Why More Jewelry Retailers Are Hosting Turnkey Estate Buying EventsRetailers are seeking new ways to attract customers, increase traffic, and create revenue – Estate buying events are a popular solution.
IndependentsSep 14, 2026
Greenwich St. Jewelers to Unveil Photography Exhibition“Adornos: Jewelry, Memory & What We Pass Down” honors the jewelry’s importance to New York City’s Latine communities.
SourcingSep 14, 2026
Gemfields Sells All Lots at First Emerald Auction in 9 MonthsThe company’s managing director of sales said the results demonstrate “continued strong demand for commercial-quality emeralds.”
SourcingSep 14, 2026
Diamonds Do Good Pledges Support for Eye Care ProgramThe nonprofit awarded a grant to the Gift of Sight initiative spearheaded by South African musician Black Coffee.
CollectionsSep 11, 2026
A Sapphire ‘Stardust’ Ring From Greenwich St. Jewelers The Latine-owned New York jeweler is marking two milestones this year: its 50th anniversary and the 25th anniversary of the 9/11 attacks.
MajorsSep 11, 2026
The Wishing Place by JTV OpensThe jewelry retail broadcast network has sponsored a new space for Make-A-Wish East Tennessee on its campus in Knoxville.
Events & AwardsSep 11, 2026
The Edge Awards Scholarships to 2 Young Jewelry ProfessionalsThe recipients were recognized at the 24 Karat Club of the Southeastern United States’ annual banquet.
MajorsSep 10, 2026
Lagos Founder Steven Lagos Steps Down as CEO Keith Rolfe, CFO and COO of Lagos, is now at the jewelry brand’s helm while Steven takes on the role of executive chairman.
CrimeSep 10, 2026
FBI Offers $50K Reward for ‘Most Wanted’ Fugitive in $1M Jewelry HeistAlberto Perez-Elias is one of four men charged in the armed robbery of a Cape Coral, Florida, jewelry store and remains at large.
AuctionsSep 10, 2026
Massive Matched Pair of Paraíba Tourmalines Head to Sotheby’sThe “Kat Florence Luminas” will be offered together as one lot and could fetch up to $637,000.
SourcingSep 10, 2026
AGTA Announces 4 Newly Elected DirectorsFour directors were elected to the AGTA board and will serve three-year terms beginning in February.
AuctionsSep 10, 2026
Former Sotheby’s, Christie’s Exec Appointed CEO of Julien’s Auctions Ken Citron joins the celebrity memorabilia-focused auction house ahead of its first week-long series of events in Abu Dhabi.
IndependentsSep 09, 2026
Sarah Leonard Fine Jewelers Closes After Nearly 80 YearsThe Los Angeles-based, family-owned jeweler was founded by Lenny and Sunny Friedman in 1946.
SourcingSep 09, 2026
Fura Gems Notes ‘Remarkable’ Interest in Larger Rubies at Latest SaleThe auction, held in Bangkok, was 96 percent sold by lot, with nearly 411,000 carats of Mozambiquan rubies sold.
MajorsSep 09, 2026
Stuller’s Latest Catalog Includes Its New Demi-Fine CollectionFine Jewelry 2027-2028 has more than 900 new styles, including silver, gold-filled, gold-plated sterling silver, and vermeil jewelry.
Policies & IssuesSep 09, 2026
8 Key Changes the FTC Made to the Jewelry Guides: A Refresher Learn more about the new terms for lab-grown diamonds and composite gemstones, and the major changes in store for precious metals jewelry.
IndependentsSep 08, 2026
Ricky Bromberg, Longtime President of Bromberg & Co., Dies at 67 Bromberg is remembered as a Southern gentleman who always wore a suit and tie and treated others with kindness.
TrendsSep 08, 2026
Amanda’s Style File: A Hot Take on September’s Birthstone With high durability and a wide range of colors to choose from, sapphires may be the ultimate birthstone, Gizzi claims.
ColumnistsSep 08, 2026
Peter Smith: Humor Is No Laughing MatterLaughter is often considered a distraction in the workplace, but it has benefits for both staff and management, Peter Smith writes.
MajorsSep 08, 2026
Former Tiffany & Co. Exec Joins Exemplar Luxury GroupGretchen Koback Pursel is the new chief people officer at the company formerly known as Saks Global.
