Financials

Movado’s Q1 Sales Slip Amid ‘Challenging’ Retail Environment

FinancialsMay 30, 2025

Movado’s Q1 Sales Slip Amid ‘Challenging’ Retail Environment

The company plans to raise the prices of select watches to offset the impact of tariffs.

Movado Connect 2.0 watches
A set of Movado Connect 2.0 watches. Movado Group reported that net sales declined 2 percent year-over-year in the first quarter.
Paramus, N.J.—Movado Group’s sales declined in its first quarter as it faced a tough retail landscape and the impact of tariffs.

“In the first quarter, we navigated a challenging retail environment with discipline and focus, continuing to invest in our iconic brands while driving operational efficiency,” CEO Efraim Grinbergs said in a statement.

On the company’s earnings call Thursday morning, Grinberg provided insight into how the company’s brands are performing, the effect of tariffs on its business, and what younger shoppers are buying.

In the first quarter ending April 30, net sales slipped 2 percent year-over-year (1 percent on a constant dollar basis) to $131.8 million.

Movado attributed the decrease to sales declines at Movado-owned stores and its in-house watch brands, partially offset by an uptick in sales of its licensed brands.

The company’s brand portfolio includes Movado, Ebel, and Concord, as well as licensed brands like Coach and Tommy Hilfiger.

Its licensed brands performed well, especially its fashion watch category, said Grinberg, while new products from the Movado brand were well received for Mother’s Day.

Quarterly sales in the United States were down 2 percent year-over-year while international sales also fell 2 percent (1 percent on a constant dollar basis).

In addressing the ongoing tariffs situation, Grinberg said there is cause for optimism amid the uncertainty.

“As we progress through the current quarter and position ourselves for the second half, we are seeing some positive signs. While continuing to navigate a retail and economic environment affected by tariff- related uncertainties, at the current temporary U.S. tariff rates, we believe we can partially mitigate the associated cost increases through available levers and including selective price increases.”

Grinberg noted that the current tariff rates are subject to change, and given the level of global uncertainty, the company is focusing on what it can control and operating “with a high level of flexibility and agility.”

“Still, we see resilience in the category with young consumers embracing trend-forward watches and jewelry. Across our portfolio, we have seen strong momentum in women’s watch collections and men’s jewelry offerings, both of which are helping to drive engagement and growth,” Grinberg said.

He also noted renewed interest in smaller watches among younger consumers.

As for its brand portfolio, the Movado brand has been undergoing a refresh, which Grinberg said is going well.

Its newly introduced styles, including the “Mini Bangle” collection and the “Bold Mini Quest” watch, received a positive response from customers with price points at $750 and $595, respectively.

“I think the challenges are that discretionary purchases are challenged and value still continues to be really important,” he said.

Movado brand ambassador and NBA star Tyrese Haliburton, a point guard for the Indiana Pacers, is having “a standout playoff run,” added Grinberg, which has enhanced the brand’s visibility.

 Related stories will be right here … 

Its licensed brands, meanwhile, recorded a high single digit increase in sales, he said.

Gen Z and millennial shoppers are gravitating towards the Coach brand, particularly the “Sammy” and “Cast” collections.

Hugo Boss found success with the “Sky Traveler” collection for men and the “Lucy” women’s collection. It is also growing its jewelry offerings.

Lacoste posted growth in the quarter, highlighting its “LS33” and “Boston” lines in particular. Its “Metropole” bracelet remains a top seller in the brand’s jewelry segment.

The Calvin Klein brand is focusing on driving growth in its women’s business, with the “Pulse” collection and the new “Meridian” watch. As for its jewelry, the “Elongated Drop” CK Jewelry collection was a top seller.

Tommy Hilfiger’s skeleton watches remained popular, as did its “Bank” chronograph in the brand’s classic colors. The “Tia” square watch for women also performed well.

The Olivia Burton brand did well in both the U.S. and the U.K., particularly its “Grosvenor” watch.

Sales at Movado’s outlet division slipped 2 percent in the first quarter, an improvement that has continued in Q2, said Grinberg.

Looking at other financial metrics, gross profit was $71.4 million, or 54.1 percent of net sales, compared with $72.9 million, or 54.3 percent of net sales, in the previous first quarter.

The decrease in gross margin percentage was attributed in part to the negative impact of foreign exchange rate fluctuations, increased shipping costs, and the decreased leverage of certain fixed costs as a result of lower sales.

However, it was somewhat offset by favorable changes in channel and product mix, said Movado.

Notably, Movado announced last month 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.

Looking to the year ahead, Movado declined to provide a fiscal 2026 outlook, citing “the current economic uncertainty and the unpredictable impact of tariff developments.”

“As we begin the second quarter, we anticipate continued market volatility, yet we are optimistic about the opportunities that lie ahead, as we introduce compelling innovation across our powerful brand portfolio,” Grinberg said.

The Latest

Stock image of a polished diamonds being held by tweezers
SourcingJul 31, 2025
De Beers Records $189M First-Half Loss

The diamond miner and marketer warned last week that it expected to be in the red after significantly cutting prices in Q2.

Lindsey Scoggins Studio convertible flower earrings
Events & AwardsJul 31, 2025
These Are the 2025 CASE Award Winners

Jewelers of America’s 35th annual design contest recognized creativity, artistry, style, and excellence.

Matthew Tratner, new president of Continental Buying Group
IndependentsJul 31, 2025
Matthew Tratner Takes Over as CBG President

Tratner succeeds Andie Weinman, who will begin stepping back from the buying group’s day-to-day operations.

rio-article photo-diamond.jpg
Brought to you by
Taking the Moment Head On: How Rio Grande Champions the Present & Future of Fine Jewelry

As a leading global jewelry supplier, Rio Grande is rapidly expanding and developing new solutions to meet the needs of jewelers worldwide.

Stock image of rough diamonds from the Kimberley mine
Policies & IssuesJul 30, 2025
Tariff on India Will Be 25%, Trump Says

The president made the announcement via Truth Social Wednesday, adding that India also will face a penalty for its dealings with Russia.

Weekly QuizJul 31, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Zadok Rolex Austin
WatchesJul 30, 2025
Peek Inside Zadok Jewelers’ New Rolex Showroom in Austin

Its opening marks the completion of the retailer’s new 11,000-square-foot store in the Texas capital.

Crowd of people in a shopping mall
SurveysJul 30, 2025
Consumer Confidence Ticks Up in July

Respondents shared concerns about tariffs and commentary on the “Big Beautiful Bill.”

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.

Making a Killing in Diamonds by Rob Bates
SourcingJul 30, 2025
Rob Bates to Release Latest Book in His ‘Diamond District Mystery’ Series

“Making a Killing in Diamonds” tells the story of Mimi Rosen, the disappearance of a scientist, and the murder of lab-grown diamond CEO.

Tacori bezel-set diamond bands
EditorsJul 29, 2025
Out & About: Visiting Tacori’s Design Studio in LA

Senior Editor Lenore Fedow learned a lot when she took a behind-the-scenes factory tour with the jewelry brand earlier this year.

Mighty Fierce Audacious Necklace, Sandy Rubin Aziza Necklace, Koulianos Designs Illuminations Shield Pendant
Events & AwardsJul 29, 2025
Melee The Show Welcomes 15 New Designers

The first-time exhibitors, set to debut at the New York City show, share a devotion to craftsmanship, storytelling, and material integrity.

Auctim emerald auction
SourcingJul 29, 2025
Auctim to Offer 7.3M+ Carats of Rough Emeralds

The online auction house’s September sale will feature rough Brazilian emeralds of various qualities.

AGS Board President for 2025-2026 Alexis Padis
MajorsJul 29, 2025
Alexis Padis Re-Elected AGS Board President

She’ll lead an executive committee consisting of President-Elect Bryan Moeller, Mitchell Clark, Bill Farmer, and Larry Rickert.

Stock image of shipping containers
Policies & IssuesJul 28, 2025
U.S.-EU Come to Agreement on Tariffs

Announced Sunday, the deal will set the tax on goods imported into the United States from the European Union at 15 percent.

Nanis Ipanema Collection Campaign
CollectionsJul 28, 2025
Nanis Brings a New Palette to ‘Ipanema’

A new edition of the Italian brand’s “Ipanema” collection has debuted with gemstones that evoke Brazil’s breathtaking views.

Kevin O’ Leary and George Mayer of The 1916 Company
MajorsJul 28, 2025
The 1916 Company Partners with ‘Shark Tank’ Star’s Watch Insurance Platform

The retailer will refer its customers to WonderCare, founded by venture capitalist and watch collector Kevin O’Leary.

Sissy’s new Little Rock store
IndependentsJul 28, 2025
Sissy’s Log Cabin to Open Flagship in Arkansas

The jeweler’s largest store yet is set to open in Little Rock next fall.

Jemma Wynne Forme Toggle Necklace
CollectionsJul 25, 2025
Piece of the Week: Jemma Wynne’s ‘Forme’ Necklace

Anne Hathaway was seen wearing the toggle necklace three times while filming scenes for “The Devil Wears Prada 2.”

September Hong Kong jewelry show
Events & AwardsJul 25, 2025
Pre-Registration Open for September Hong Kong Show

Jewellery & Gem World Hong Kong is scheduled for Sept. 15 to 21, and buyer pre-registration will be available until Sept. 7.

Mark and Candy Udell
Events & AwardsJul 24, 2025
2 Retailers to Receive 2026 Gem Award for Lifetime Achievement

Mark and Candy Udell of London Jewelers will receive the honor at the 24th annual Gem Awards next March.

De Beers marine mining vessel the SS Nujoma
SourcingJul 24, 2025
De Beers Sees Diamond Production Sink 36% in Q2

While struggles continue at the mining and trading end of the pipeline, consumer demand for diamond jewelry is holding steady.

Francesca Villa Fantasia Collection The Crab Pendant, The Mermaid Pendant, Keep Dancing Seahorse Pendant, Keep Dancing Ladybug Pendant, Secret Dreams Pendant, The Puffer Fish Takes Flight Pendant
CollectionsJul 24, 2025
Francesca Villa Adds Dimension to Her Intaglio Characters

The “Fantasia” jewelry collection turns the intaglio animals from her “Close Encounters” collection into 3D characters.

Breitling’s special Eagles Super Bowl watch on gold bracelet
WatchesJul 24, 2025
Breitling Drops Super Bowl Watch Honoring the Philadelphia Eagles

The special Classic Avi Chronograph 42 with an Eagles-green dial is limited to 59 pieces, a nod to the Super Bowl Philadelphia just won.

Stock image of crime scene tape
CrimeJul 23, 2025
JSA Warns of Violent String of Smash-and-Grabs in California

JSA has received reports of mobs swarming jewelry stores, driving cars into the storefront or smashing through the windows.

Silvia Furmanovich Kasmir Collection Carnelian Bracelet and Sketch
CollectionsJul 23, 2025
Silvia Furmanovich’s ‘Kashmir’ Collection Is a Tribute to Northern India

The “Kashmir” collection features centuries-old craft techniques made in collaboration with the region’s master papier-mâché artisans.

Bench jeweler holding a bracelet and a tool
IndependentsJul 23, 2025
Montreal’s Ecksand Eyes Move to SoHo

Creative Director Erica Bianchini shared why the jeweler is looking to expand into the U.S. and how it’s putting Canadian craftsmanship on the map.

LAFD Fire Station 44 and Fire Station 16
IndependentsJul 23, 2025
IJO Raises Nearly $37K for LA Fire Relief

Two Los Angeles Fire Department stations plan to use the donations to upgrade their equipment and tools.

×

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