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

Mikimoto The Bows high jewelry necklace
SurveysJul 09, 2025
Jewelry Stays Strong as Luxury Market Slows, Bain & Co. Says

Turbulence will be the new baseline for luxury as it faces its biggest potential setbacks in 15 years, a recent report said.

James Avery Texas charm
Policies & IssuesJul 09, 2025
James Avery to Donate $1M to Texas Hill Country Relief Efforts

The jewelry company is one of several contributing to relief efforts in the region after the recent floods.

1 NJ-Supplier-Bulletin-Snake-One.jpg
Supplier BulletinJul 09, 2025
JCK Unwrapped: Trends, Insights & Post-Show Tips

Sponsored by Rio Grande Jewelry Supply

an instructor and a student in a bench jewelry classroom
Brought to you by
Investing in the Next Generation of Bench Jewelers

The Seymour & Evelyn Holtzman Bench Scholarship from Jewelers of America returns for a second year.

Cece Jewellery For the Love of Fruits Pendants
CollectionsJul 09, 2025
Cece Jewellery’s New Fruit Jewels Celebrate Life’s Sweetness

The “For the Love of Fruits” collection features five fruit pendants, each holding a different meaning.

Weekly QuizJul 02, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Graphic showing images from National Jeweler’s top 5 stories 2025
EditorsJul 09, 2025
The Most-Read Stories of 2025, So Far

Diamonds and crimes (some involving diamonds) top the list of National Jeweler’s most popular stories halfway through the year.

 The Dash Diamond Crater of Diamonds State Park
SourcingJul 09, 2025
Florida Couple Finds 3-Carat Diamond in Arkansas

They discovered “The Dash Diamond,” named for their dog, at the Crater of Diamonds State Park earlier this month.

Jewelers of America logo with meetup, State of the Majors, giveaway and massages
Brought to you by
Jewelers of America is Headed to Las Vegas for JCK 2025

The countdown is on for the JCK Las Vegas Show and JA is pulling out all the stops.

Mikimoto Les Pétales Campaign Imagery and Les Pétales Necklace
CollectionsJul 08, 2025
Mikimoto’s High Jewelry Collection Turns Pearls into Petals

The “Les Pétales” collection imagines roses caught mid-bloom as a tribute to nature’s beauty.

National Jeweler columnist and jewelry sales expert Peter Smith
ColumnistsJul 08, 2025
Peter Smith: Why Jewelers Struggle With Premium Pricing

Luxury brands charge thousands for their shoes and handbags. Jewelers pricing diamond products should take note, Peter Smith writes.

David Rotenberg of David Craig Jewelers
IndependentsJul 08, 2025
David Rotenberg of David Craig Jewelers Dies at 79

Rotenberg was an active member of the American Gem Society and an accomplished appraiser who also worked with therapy dogs at a hospital.

Diamond Divas Cast
TechnologyJul 08, 2025
‘Diamond Divas’ Brings the Showroom to Social Media Reality Series

It follows New York-based brand Shahla Karimi Jewelry’s all-women team in “Say Yes to the Dress” meets “The Office”-style episodes.

SMO Golden Gala
Policies & IssuesJul 08, 2025
SMO Gold Launches New Foundation

In its inaugural year, the SMO Foundation will focus on supporting two organizations in West Africa and one in South America.

Stock image of container ship in port
Policies & IssuesJul 07, 2025
Higher Tariffs Set to Take Effect Aug. 1, Officials Say

The announcement comes just as the 90-day freeze on the “reciprocal” tariffs nears its end, giving countries more time to negotiate.

David Kellie
MajorsJul 07, 2025
Natural Diamond Council CEO David Kellie To Step Down

Kellie, who joined the organization in 2019, will remain in his role through the end of 2025.

Suspects in Glendale burglary
CrimeJul 07, 2025
7 Suspects Charged in California Jewelry Store Burglary

Police officers apprehended the suspects as they were allegedly attempting to gain entry into another jewelry store.

Ella Klein Internship
Events & AwardsJul 07, 2025
Applications Open for Ella Klein Internship

The program, a collaboration between Julius Klein Diamonds and the Women’s Jewelry Association, is in its second year.

GIA iD100® Technology
Supplier BulletinJul 03, 2025
Protect Your Customers and Your Business

Sponsored by the Gemological Institute of America

Madison Keys in Brilliant Earth campaign
MajorsJul 03, 2025
Brilliant Earth Names Tennis Star Madison Keys as Its New Ambassador

The 2025 Australian Open champion is the jewelry brand’s first athlete ambassador.

Muse Nordstrom shop-in-shop
MajorsJul 03, 2025
Muse Sets Up Shop in Nordstrom’s New Jewelry Hall

The West Village jewelry boutique’s new shop-in-shop is the cornerstone of Nordstrom’s revamped jewelry hall.

Shree Ramkrishna Exports
SourcingJul 03, 2025
SRK Announces Its Natural Diamonds Are Now Carbon-Negative

This past year, the manufacturer said it recorded below-zero emissions per carat of natural diamond.

Yeprem Golden Strada Statement Necklace
CollectionsJul 03, 2025
Piece of the Week: A Firework of Diamonds From Yeprem

The brand’s “Golden Strada” statement necklace features round, marquise, and pear diamonds that sparkle like Fourth of July fireworks.

Stock image of police cars with their lights on
CrimeJul 03, 2025
JSA Shares Holiday Weekend Security Tips Amid Spike in Burglaries

JSA’s Scott Guginsky provided a list of nine security measures jewelers should observe while locking up for the long weekend.

Exterior and entryway of Boucheron’s Los Angeles Flagship
MajorsJul 02, 2025
Boucheron Looks to LA for First West Coast Flagship

Located on Rodeo Drive, the store’s design was inspired by Hollywood and Los Angeles culture.

Exterior of Marco Bicego Milan Flagship
MajorsJul 02, 2025
Marco Bicego Opens Milan Flagship

The new location continues the brand’s celebration of its 25th anniversary.

Chrono24 Time Is Our Thing campaign image
WatchesJul 02, 2025
Chrono24 Revamps Brand, Launches New Campaign

The online watch marketplace’s “Time Is Our Thing” campaign highlights the importance of time.

Bernadette Mack
SourcingJul 02, 2025
Bernadette Mack Joins Gem Legacy as Executive Director

She will oversee strategic planning, fundraising, industry partnerships, and the launch of the Gem Legacy Campus in Tanzania.

×

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