Financials

Movado Group to Increase Prices to Offset Tariffs Impact

FinancialsApr 17, 2025

Movado Group to Increase Prices to Offset Tariffs Impact

During a call about its full-year results, CEO Efraim Grinberg discussed how the company is approaching the uncertainty surrounding tariffs.

Movado Connect 2.0 watches
A set of Movado Connect 2.0 watches. During a recent earnings call, Movado Group announced plans to raise prices on select items as a result of the tariffs.
Paramus, N.J.—Movado Group reported a decline in sales for its fiscal year as sales slipped at its own stores and those of its wholesale U.S. retail partners.

On an earnings call Wednesday morning, CEO Efraim Grinberg discussed the company’s financial results as well as the recent “misconduct” at its Dubai branch and the potential effects tariffs will have on the business, including Movado’s decision to raise prices on select items.

The company announced last week that it would have to restate its financial results going back to 2021 after “unethical conduct” at a subsidiary branch in Dubai, which included overstating and prematurely recording sales to select customers.

“Honesty, integrity, and transparency are at the core of Movado Group as a company. That is why the unethical conduct that occurred at the Dubai sales office is so disappointing,” said CEO Efraim Grinberg on the call.

“Nevertheless, we will emerge from this episode as a stronger company with an even more robust control environment in place.”

The results announced Wednesday reflect the restated financials.

As for the impact of tariffs, Grinberg acknowledged “the increased level of uncertainty in the economic environment and friction in global trade.”

Even with the 90-day pause on higher reciprocal tariffs, he noted the company still faces a 10 percent tariff on products from other countries (excluding China) and rates of more than 100 percent on Chinese products.

Grinberg said that Movado will face tariffs on the bracelets and leather straps made in China that it uses in its fashion watches.

He said the company will do its best to protect its gross margin in the U.S. despite the impact of tariffs.

As a result of the tariffs, the company will be implementing price increases on certain items.
 
On the call, Chief Financial Officer Sallie DeMarsilis said, “Although we remain focused on maintaining the quality and value consumers expect, we will be implementing selective price increases while actively engaging with our supply chain partners and customers to respond effectively.”

Grinberg added that the company is working to mitigate some of the cost increases.

“What we're trying to do right now is really understand the tariff structure and see where we will be implementing some price increases but doing it in a way that is sustainable for the long term and manageable with both our retail partners and consumers,” he said.

Due to this uncertainty, the company will not be providing an outlook for fiscal year 2026.

Grinberg said, if the tariffs are sustained, it’s not known yet the effects that will have on consumers worldwide, and so it’s hard to predict what the retail environment will look like. 

“I think there's just too much uncertainty to know if this will be a year of growth,” said Grinberg, adding that he hopes the company will have more clarity by the first quarter call in May.

 Related stories will be right here … 

Looking to its fourth-quarter results, ending Jan. 31, the company reported that net sales rose 3 percent year-over-year (5 percent on a constant dollar basis) to $181.5 million.

The increase in net sales was attributed to growth in international wholesale channels and online retail.

However, the increase was partially offset by declines in U.S. wholesale customers’ brick and mortar stores and Movado-owned stores, as well as the negative impact of fluctuations in foreign exchange rates.

“I think there's just too much uncertainty to know if this will be a year of growth.”-Movado Group CEO Efraim Grinberg

Gross profit was $98.3 million, or 54 percent of net sales, compared with $94.1 million, or 54 percent of net sales in the previous fourth quarter.

Quarterly sales in the U.S. were down 3 percent year-over-year while international sales rose 9 percent (12 percent on a constant dollar basis).

For the full-year, net sales were down 2 percent year-over-year (2 percent on a constant dollar basis) to $653.4 million.

The decline in full-year net sales was attributed to declines in U.S. wholesale customers’ brick and mortar stores and Movado-owned stores, as well as the negative impact of fluctuations in foreign exchange rates.

It was partially offset by growth in online retail in the U.S. and in international wholesale channels.

Gross profit was $353.1 million, or 54 percent of net sales, compared with $364.2 million, or 55 percent of net sales, in the previous fiscal year.

Full-year sales in the U.S. fell 4 percent year-over-year while international sales were up under 1 percent (1 percent on a constant dollar basis).

“While this past year represented challenges for the company, history has shown that these are the moments when our teams rise to the occasion and deliver. It's in these times that we identify what needs to be corrected, tighten our focus on variable expenses, and raise the bar on execution,” said Grinberg.


Grinberg also shared updates about Movado’s various brands during the call.

The company’s brand portfolio includes its eponymous brand as well as in-house and licensed brands, like Coach and Tommy Hilfiger.

Its namesake brand has been undergoing a “refresh” since last fall, which Movado previously said has paid off, noting increased brand awareness across the market in key demographic targets.

Notably, DeMarsilis said the company plans to reduce its marketing spend by $15 million to $20 million this fiscal year.

The Movado brand introduced a new “Bold Mini Quest” watch and a collection of women’s bangles, which will be available in time for Mother’s Day, as well as new automatic watches for men.

This spring, the brand will introduce its first set of Movado watches set with lab-grown diamonds, priced below $2,000.

Grinberg noted a rise in popularity of women’s watches with feminine, smaller designs, across both its Movado brand and its licensed brands.

The Coach brand is performing well with Gen Z shoppers, he said, while Tommy Hilfiger is seeing success with its skeleton watches and smaller women’s watches.

For Lacoste, the new “LC33” collection was a strong seller as was its “Metropole” bracelet. The brand will introduce a new hexagonal-shaped women’s watch as part of its new “Parisian” collection.

In Hugo Boss, the “Grand Prix” chronograph has been selling out, said Grinberg, while its bold jewelry offerings are also performing well.

For Calvin Klein, the “Pulse” collection has been a bestseller. It will introduce new watches and jewelry this year, including the “Spiral” collection.
Lenore Fedowis the senior editor, news at National Jeweler, covering the retail beat and the business side of jewelry.

The Latest

Bicolor pink and colorless diamond
GradingOct 21, 2025
GIA Examines Rare Bicolor Pink Diamond

The stone’s two zones, one pink and one colorless, may have formed at two different times, the lab said.

Pomellato Rodeo Drive Flagship Exterior
MajorsOct 21, 2025
Pomellato Brings ‘Global Attitude’ to Rodeo Drive Flagship

Hollywood glamour meets Milanese sophistication in the design of Pomellato’s new store in Beverly Hills, California.

Grown Brilliance NYC Flagship Exterior
Lab-GrownOct 21, 2025
Grown Brilliance Opens First Flagship

The New York City store showcases a chandelier with 1,500 carats of lab-grown diamonds designed by an FIT student.

LIM-401 2024 National Jeweler Supplier Bulletin- iD100 Web and Eblast FINAL (2) (1).jpg
Brought to you by
Protect Your Customers and Your Business

You deserve to know what you are selling–to protect your customers as well as your business and your reputation.

Douriean Fletcher Messenger Collection
Events & AwardsOct 21, 2025
‘Douriean Fletcher: Jewelry of the Afrofuture’ Opens at MAD

The Museum of Arts and Design's new exhibition features 75 pieces by the designer, best known for her work in the “Black Panther” films.

Weekly QuizOct 16, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Sothebys the glowing rose pink diamond
AuctionsOct 20, 2025
Sotheby's To Auction 10-Carat Vivid Pink Diamond

Making its auction debut, "The Glowing Rose" is expected to fetch $20 million at the November jewelry sale in Geneva.

2025_Gemfields logo.jpg
SourcingOct 20, 2025
2 Mozambique Police Officers Killed at Gemfields’ Ruby Mine

They were attacked on Oct. 15, as approximately 40 miners without licenses marched on the mine’s gate.

ja_fall_2024_by_headshot_stories_6824.jpg
Brought to you by
JA New York Fall Is Right Around the Corner

The upcoming show provides savvy retailers with the opportunity to stock their cases with best sellers in advance of the holiday season.

Empress Eugénie’s pearl and diamond tiara
CrimeOct 20, 2025
See the ‘Priceless’ Jewels Stolen During Daytime Heist at the Louvre

It took the masked thieves less than 10 minutes to steal eight irreplaceable jewels from two display cases in the museum’s Apollo Gallery.

Lauren Gayda
SourcingOct 20, 2025
Pristine Gems Names New Director of European Sales

Gemologist Lauren Gayda has previously worked at The Clear Cut, Taylor & Hart, and Effy Jewelry.

Charles London, Mayer and Fran Udell, Mark and Candy Udell
IndependentsOct 17, 2025
From the Jazz Age to the Information Age: London Jewelers Turns 100

In 2026, the jewelry retailer will celebrate a milestone only a small percentage of family-owned businesses survive to see.

The Edit – A Gallery of Italian Jewelry Masterpieces Graphic
Events & AwardsOct 17, 2025
An Edit of Italian Jewels Is Coming to NYC

The new showcase dedicated to Italian jewelry design is set for Oct. 29-30.

Judi Powers Jewelry Stella Earrings
TrendsOct 17, 2025
Piece of the Week: Judi Powers Jewelry’s ‘Stella’ Earrings

Take a gaze at the sky with this pair of platinum diamond-set star earrings with blue lace agate drops.

Jeffrey Zimmer Reeds Jewelers
IndependentsOct 16, 2025
Retailer Hall of Fame 2025: Jeffrey Zimmer

Jeffrey Zimmer's decades of leadership at Reeds Jewelers are defined by integrity, a love of sourcing gemstones, and a heart for community.

Sothebys salon new bond street
AuctionsOct 16, 2025
Sotheby’s Introduces Custom Jewelry Service

The new high jewelry design and production process takes 30 days or less from concept to completion, the auction house said.

Oscar Heyman 2025 Holiday Catalog Cover
MajorsOct 16, 2025
Oscar Heyman’s Holiday Catalog Is Out, and It’s Spectacular

The holiday catalog for 2025 features never-before-seen images of more than 100 one-of-a-kind masterpieces.

Foundrae United in Love Campaign Imagery
CollectionsOct 16, 2025
Foundrae Adds To ‘United in Love’ Collection

The brand has released a second installment of its collection of traditional and non-traditional commitment heirlooms.

Kathy Corey
IndependentsOct 15, 2025
Retailer Hall of Fame 2025: Kathy Corey

Corey rescued New England chain Day’s Jewelers, preserving its legacy with strong people skills, pragmatism, and a “get-it-done” attitude.

Colorado jeweler Peter Damian Arguello
CrimeOct 15, 2025
Men Receive Lengthy Prison Sentences for 2023 Murder of Colorado Jeweler

Charles Robinson Shay was sentenced to life in prison plus 120 years while his accomplice, Michael James McCormack, got 75 years.

Logo for Timepieces at Luxury
Events & AwardsOct 15, 2025
JCK, Luxury to Debut New Watch Section in Vegas Next Year

Timepieces at Luxury will take place at The Venetian and, like Luxury, will be invitation-only for the first two days.

Max Fawcett Claibourne Poindexter
AuctionsOct 15, 2025
Christie's Announces New Jewelry Department Leadership

The auction house named a new global head of jewelry, as well as a new head of the jewelry department for the Americas.

Schwanke-Kasten Jewelers, Tom Dixon
IndependentsOct 14, 2025
Retailer Hall of Fame 2025: Tom Dixon

As chairman of Schwanke-Kasten Jewelers, Tom Dixon has been tasked with honoring the past and shaping the future of the family-run store.

Katty Villapando Lyte and Mica Rencher of Shimmer LLC
Events & AwardsOct 14, 2025
Here Are the Winners of the BIJC, JA ‘Emerging Jewelers’ Grant

Katty Villapando Lyte and Mica Rencher received a $10,000 grant for their business, Shimmer Culture LLC.

Cooper Flagg family at Day’s Jewelers
IndependentsOct 14, 2025
Day’s Jewelers Crafts Custom Jewelry for No.1 NBA Draft Pick Cooper Flagg

The parents of the Dallas Mavericks rookie bought their engagement ring at a Day’s store in Bangor, Maine, in 1997.

Pragnell Kitulo Garnet collection
SourcingOct 14, 2025
Pragnell Debuts Kitulo Garnet Jewelry

The UK-based brand sourced the gemstones, which are fully traceable, from an artisanal mining community in Tanzania.

Astrid & Miyu 2025 12-Day, 24-Day, Solid Gold Advent Calendars
CollectionsOct 10, 2025
Count Down to the Holidays With Astrid & Miyu’s Advent Calendars

The trio of Advent calendars include a version with 18-karat gold and lab-grown diamond jewelry in a red lacquer jewelry box.

Front of Marla Aaron porcelain Nymphenburg Lock
CollectionsOct 10, 2025
Piece of the Week: Marla Aaron’s ‘Nymphenburg Lock’

Created in collaboration with Nymphenburg Porcelain, the lock is part of a four-piece collection that took two years to bring to fruition.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy