Movado’s Q4 Sales Rise As Demand Grows From Younger Shoppers, Women

Paramus, N.J.—Movado Group posted sales growth in Q4 and for the fiscal year, boosted by strong sales in the United States and growing demand from younger shoppers and women.

In the fourth quarter ending Jan. 31, Movado’s net sales rose 6 percent year-over-year (2 percent on a constant dollar basis) to $191.6 million.

Movado attributed the rise in part to growth in the U.S. and international wholesale channels as well as its brick-and-mortar and online retail channels.

U.S. sales were up 11 percent in Q4 while international sales rose 1 percent (down 6 percent on a constant dollar basis).

There was continued strength in both the fashion watch and accessible luxury segments in the U.S., said Movado CEO and Chairman Efraim Grinberg on an earnings call last week.

“Importantly, we are seeing increased participation from younger consumers, along with a strong return of women into the category, driven by smaller case sizes and jewelry-inspired designs, and fresh styling.”

Its company stores had a strong holiday season, he said, with sales up 9 percent in Q4, driven by higher average selling prices, improved merchandising, and better in-store execution.

Its celebrity ambassador campaign performed well over the holidays, he added.

For the fiscal year, net sales were up 3 percent (1 percent on a constant dollar basis) to $671.3 million.

Net sales in the U.S. were up 4 percent, while international sales rose 2 percent for the year (down 2 percent on a constant dollar basis).

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

Its namesake Movado brand had an excellent quarter, he said, with wholesale sales up 25 percent and its e-commerce business up 18 percent.

He credited the Movado brand’s successful quarter to its ongoing brand refresh.

It’s seen strong demand for its “Mini Bangle” collection, while its “Movado 1917 Heritage” collection is also performing well.

Grinberg noted continued growth in its higher price point automatic watches, led by its “Museum Classic Automatic,” as well as “encouraging traction” in jewelry, especially its “Ono” collection.

The brand will be introducing “Velura,” a new women’s “Museum” watch, as well as expanding its “Movado Bold” collection with a “Verso S” model, and debuting a new heritage model inspired by the original Movado “Kingmatic.”

It's also expanding its Movado jewelry collection, with a new “Curve” line for women.

The retailer’s licensed brands saw growth as well.

Coach did well, said Grinberg, boosted by Gen Z shoppers and its “Sammy,” Cadie,” and “Reese” lines.

“We're clearly capturing the momentum of the parent brand with Gen Z consumers,” he said.

Hugo Boss’ “Gran Prix” line did well, with growth in its “May” collection for women.

Lacoste’s “LC33” collection was a standout, and the brand saw strength in men’s jewelry, with its continuously popular “Metropole” bracelet.

Tommy Hilfiger customers have been drawn to its new shapes, smaller case sizes, and trendy designs, said Grinberg, with the “Oxford” collection performing especially well.

Calvin Klein’s newly introduced “Pulse Mini” watches, with its “circle in the square” watch design did well, as did its “CK Motion” watch.

Olivia Burton continued to see growth in the U.S. and the U.K., boosted by its “Mini Grove” and “Grosvenor” lines and its “Mini to the Max” campaign.

“Overall, we're very encouraged by the return of consumers to the fashion watch category, particularly women, and we believe we are well positioned to capitalize on that trend,” said Grinberg.

Movado will also be celebrating its 145th anniversary this year, with a focus on storytelling.

“We're developing a series of campaigns that highlight our Swiss heritage, craftsmanship, and the growing interest in our vintage timepieces, which we believe will further strengthen our emotional connection with consumers,” said Grinberg.

Looking at other financial metrics, gross profit in Q4 was $103.6 million, or 54 percent of net sales, compared with $98.3 million, or 54 percent of net sales, in the previous fourth quarter.

For the year, gross profit was $363.6 million, or 54 percent of net sales, compared with $353.1 million, or 54 percent of net sales, in the same period last year.

The increase in gross margin percentage for Q4 and the fiscal year were due in part to favorable changes in channel and product mix, and the increased leverage of lower fixed costs over higher sales, though it was offset by increased U.S. tariffs.

As for the year ahead, Movado did not provide guidance for fiscal 2027, due to the current economic and geopolitical uncertainty, including the current Middle East conflict and ongoing tariff developments.

“The conflict in the Middle East has introduced additional uncertainty in global markets. We are closely monitoring the situation while supporting our teams and partners in that region,” said Grinberg.