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.
More on Financials
The Latest
PodcastsApr 15, 2026
Episode 4: The Natural Diamond DilemmaSally Morrison and Mark Klein discuss De Beers’ first beacon in 16 years and the mistake the industry made with lab-grown diamonds.
MajorsApr 15, 2026
Spark Creations’ Randy McKenzie Dies at 72 McKenzie spent 45 years with Spark Creations and is remembered for being kind, dedicated, and hardworking.
WatchesApr 15, 2026
These Are the New Rolex Watches for 2026Rolex focused exclusively on the Oyster Perpetual this year, as the model is celebrating its 100th anniversary.
Brought to you by
Discover Timeless Treasures: A Showcase of Antique Jewelry & Timepieces in Las VegasGain access to the most exclusive and coveted antique pieces from trusted dealers during Las Vegas Jewelry Week.
SourcingApr 15, 2026
Diamond Club West Coast Names 2026 BoardKalpesh Jhaveri was re-elected as president for a third year.
Weekly QuizApr 09, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
TechnologyApr 15, 2026
This Jewelry Brand’s Video Series Is Up for a Webby Award“Diamond Divas,” a social media reality series by Shahla Karimi Jewelry, is nominated in the “Best Social: Fashion & Beauty” category.
SourcingApr 14, 2026
De Beers Expands ‘Desert Diamonds’ Beacon Into BridalThe campaign seeks to reignite desire for natural diamond engagement rings by highlighting the “distinct character” of warm-toned diamonds.
Brought to you by
Las Vegas Antique Jewelry & Watch Show: Showcasing the Most Collectible Merchandise from Across the GlobeGain access to the most exclusive and coveted antique pieces from trusted dealers during Las Vegas Jewelry Week.
SourcingApr 14, 2026
International Jade Summit to Return to MontereyPresented by Mason-Kay Jade, the summit, in its second year, will again be held during the Monterey Bay Jade Festival.
Events & AwardsApr 14, 2026
CBG Releases Details for Las Vegas ShowThe group has announced its lineup of speakers and a new “Rising Stars” pavilion.
CollectionsApr 13, 2026
Uniform Object’s New Jewelry Collection Centers on the ‘Carbon Form’The “Carbon Form” collection explores the contrast between high and low materials, using rubber cord alongside 18-karat gold and gemstones.
Events & AwardsApr 13, 2026
JA Accepting 2026 Impact Initiative ApplicationsThe program provides essential funding to organizations for projects that enhance the jewelry industry.
Events & AwardsApr 13, 2026
Couture Announces New Show in MiamiThe jewelry trade show is launching its first open-to-the-public event in Coconut Grove this November.
CrimeApr 13, 2026
JSA Offers Reward in Oregon Jewelry Store Armed RobberyJSA is seeking information about the gunpoint robbery of a Kay Jewelers location in Oregon’s Washington Square Mall.
WatchesApr 10, 2026
These Watches Have Increased in Value the Most Since 2018, Says Chrono24The top-performing watch models may be surprising, with Rolex and several popular pandemic-era picks notably absent from the top 20.
CollectionsApr 10, 2026
Ophelia Eve’s Toggle Pendant Holds Your SecretsThe “Scroll” toggle pendant, our Piece of the Week, opens to reveal a hidden message, mantra, or love letter written on washi paper.
ColumnistsApr 09, 2026
Jewelry Demand Isn’t Stronger, Prices Are Just Higher Jewelers who misinterpret the state of the jewelry market risk employing the wrong retail strategy, cautions columnist Sherry Smith.
MajorsApr 09, 2026
Tiffany & Co. Promotes Nathalie Verdeille to SVP, Chief Artistic OfficerIn her newly expanded role, she will continue to oversee the jewelry category, as well as watches, home, and accessories.
WatchesApr 09, 2026
Jacob & Co. Rolls Out Its Sequel to ‘The Godfather’ Musical Watch“The Godfather II” watch plays two melodies from the mob film’s score, “The Godfather’s Waltz” and “The Godfather Love Theme.”
Events & AwardsApr 09, 2026
JCK Announces Jesse Itzler as 2026 Keynote SpeakerOrganizers have also introduced the new JCK Talks Signature Series, as well as an offering of watch-focused workshops and lectures.
SourcingApr 09, 2026
AGA To Honor ‘Quiet Leadership’ With New AwardThe Alan Hodgkinson Medal recognizes gemologists who are consistently generous with their time and expertise.
WatchesApr 09, 2026
Oris Names New CEO, CFOThe Swiss watchmaker is changing up its executive leadership team as part of a restructuring.
CollectionsApr 08, 2026
Hearts On Fire Celebrates 30 Years By Asking a QuestionThe “What’s Your Signature?” campaign invites women to think about how they see themselves.
SourcingApr 08, 2026
Sale of 42-Carat Blue Diamond Gives Petra a Boost in Q3The big diamond’s sale added to the company’s revenue though the market remains “challenging” overall, particularly for smaller goods.
Events & AwardsApr 08, 2026
AGS Confluence Returns with AI, Sustainability SessionsRob Bates of The Jewelry Wire will also moderate a panel on the state of the jewelry industry during the virtual event.
Events & AwardsApr 08, 2026
TJS to Honor 2 Longtime Former Stuller EmployeesThe Jewelry Symposium will honor two industry veterans with lifetime achievement awards at its upcoming May event.
TrendsApr 08, 2026
Amanda’s Style File: April’s Brilliant Birthstone With their durability, brilliance, and beauty, diamonds are the perfect stone for everyday birthstone jewelry.
