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
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.
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 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.
Weekly QuizMar 12, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
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.
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.
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.
Events & AwardsMar 10, 2026
Diamond-Studded Painting Shines at RJO Foundation AuctionThe unique piece was one of the custom works offered at the foundation's recent silent art auction, which garnered nearly $15,000 in total.
TrendsMar 09, 2026
Jake Gyllenhaal Is Bulgari’s Latest AmbassadorBulgari named Gyllenhaal as its brand ambassador for his embodiment of artistic depth, intellectual curiosity, and warmth.
Events & AwardsMar 09, 2026
TJS Announces 2026 Scholarship WinnersAwards were given to four students, one apprentice, and an emerging jeweler.
AuctionsMar 09, 2026
Joanna Carson’s Jewels Lead White-Glove SaleThe top jewelry lot of the late model’s estate sale, hosted by John Moran Auctioneers, was an Oscar Heyman & Brothers for Cartier necklace.
GradingMar 06, 2026
Tom Moses Leaving GIA After Nearly 50 YearsMoses, who started at GIA’s Santa Monica lab in 1976, will leave the Gemological Institute of America in May.
Lab-GrownMar 06, 2026
Charles & Colvard Files for Bankruptcy, Citing Price PressuresIncreased competition, falling lab-grown diamond and moissanite prices, and the rising cost of gold took a toll on the moissanite maker.
CollectionsMar 06, 2026
Zome’s ‘Solara’ Earrings Embody Celestial BeautyThe earrings, our Piece of the Week, feature pink tourmalines as planets orbiting around an aquamarine center set in 18-karat rose gold.
MajorsMar 06, 2026
Pomellato’s 2026 IWD Campaign Spotlights Economic Abuse“The Price of Freedom” campaign video for International Women’s Day confronts the quiet violence of financial control.
