Movado’s Q2 Sales Up As Younger Consumers Take Interest in Watches

Paramus, N.J.—Movado Group posted strong sales growth in Q2, which it credits in part to younger consumers and more women gaining an interest in traditional watches.

“Across our portfolio, innovation and compelling storytelling allows our brands to connect with customers, particularly younger consumers, as they increase their engagement with traditional watches and learn more about the category,” said Movado CEO and Chairman Efraim Grinberg on an earnings call Wednesday morning.

Younger shoppers in the United States, Mexico, and Brazil are beginning to collect multiple, traditional watches, he said.

“And that means that the Gen Z consumers, as they become more mature and older and have a higher availability of income, will move into better watches as well,” said Grinberg.

The introduction of the Apple Watch in 2015 led to many questions about the viability of the fashion watch category, he said, but many younger consumers are moving away from watches as wearables and instead wearing them as accessories and fashion statements.

Smart ring maker Oura, for example, has sold 5.5 million rings as of 2025, and is eyeing an initial public offering in September that could value the company at more than $16 billion.

Movado once offered a smartwatch of its own, the Movado Connect, though it no longer appears on its website.

Trendy watches in new shapes and sizes are especially resonating with younger shoppers, he said, with Gen Z consumers particularly fond of its licensed brand Coach.

Grinberg also noted a growing demand for women’s watches worldwide as its brands’ offerings evolve.

As for its financials, in the second quarter ending July 31, Movado’s net sales rose 5 percent year-over-year (4 percent on a constant dollar basis) to $169.8 million.

Movado attributed the rise to increased sales at its owned and licensed brands as well as its Movado-owned stores.

U.S. sales were up 5 percent in Q2 while international sales also rose 5 percent (4 percent on a constant dollar basis).

The retailer saw strong growth in Latin America and India and low single-digit growth in Europe, but that was partially offset by a decline in the Middle East, particularly in areas that rely on international tourism, said Grinberg.

“We continue to see momentum across our business and strength in consumer demand despite the ongoing challenges related to the conflict in the Middle East, which reflects meaningful progress advancing our strategy and favorable trends in our categories,” said Grinberg.

In the first half of the year, net sales were up 6 percent (5 percent on a constant dollar basis) to $312.2 million.

Net sales in the U.S. were up 7 percent, while international sales rose 6 percent for the year (up 3 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.

For its namesake Movado brand, online sales were up 8 percent in Q2 while its outlet stores posted 3 percent growth, with average selling prices rising.

Its new women’s collections, including the “Museum Bangle” and “Velura,” also performed well.

As for men’s watches, the new “Bold Verso S” was well-received, and the collection will expand, including the introduction of the “Verso S Chronograph” in Q3.

The watch company is also celebrating its 145th anniversary this year, launching digital content that showcases its heritage, design, and craftsmanship.

Its brand ambassadors, including Ludacris, Christian McCaffrey, Julianne Moore, and Tyrese Haliburton, will also help to celebrate the milestone.

Consumers seemed drawn to mini watch offerings, with the mini Movado “Baby Face” watch, which debuted this spring, doing especially well and selling out in less than a month.

New colors will launch in the fall, available on the Movado website and through select retail partners.

Several of its mini offerings were popular, including Olivia Burton’s “Mini Grove” and “Mini Grosvenor” lines.

At Coach, the mini “Iris” line was a standout, with plans to debut a mini “Sammy” line in the second half.

The retailer is seeing growth in its fashion brands, which it attributes to customer-focused innovation.

For its Olivia Burton brand, the company has been zeroing in on the U.S. and the United Kingdom, leading to a 23 percent sales increase for the quarter.

“We have seen very strong momentum in Coach watches, particularly with Gen Z consumers driven by the continued success of ‘Sammy’ and the recent introduction of ‘Iris,’ a mini round jewelry-inspired collection,” said Grinberg.

Its fall marketing campaign will feature actress Lola Tung of Amazon Prime series "The Summer I Turned Pretty," looking to draw a younger generation to the Coach brand.

In the second half, Coach will debut “Greta,” a trendy tonneau-shaped (barrel-like) collection.

Olivia Burton’s tonneau-shaped “Cambridge” watch collection, a first for the brand, will be the focus of its fall campaign.

At Tommy Hilfiger, the “T.H. Oxford” line has done well, alongside its new “Bryant” line of men's 38mm chronographs.

“As we continue to innovate within our women's assortment, we have seen women's watch penetration increase around the world,” said Grinberg, with Tommy Hilfiger’s “Mia” and “Nora” collections doing well.

Grinberg noted improvement in sales of Calvin Klein watches, particularly women’s watches, with its square-face watch collection selling out. It recently debuted a cushion-shaped men’s watch collection, dubbed “Shape.”

At Hugo Boss, the “Grand Prix” and “Sky Traveler” collections were standouts, alongside its “Violet” collection for women. Lacoste’s “LC33” collection was also a highlight.

Last month, Movado Group announced it had inked a global licensing deal with Kate Spade New York to design, manufacture, and distribute Kate Spade New York watches worldwide.

The new watch collection is set to debut in spring 2027.

A few of Movado’s licensed brands also have jewelry collections. 

Lacoste’s “Metropole” jewelry collection was a top seller and will expand with new designs, while heart charms were driving growth at Tommy Hilfiger.

In men’s jewelry, Hugo Boss’ “Archer” collection was a highlight, while Calvin Klein’s new “Command” jewelry line received a strong response from its retailers, said Grinberg.

Looking at other financial metrics, Movado's gross profit in Q2 was $100.8 million, or 60 percent of net sales, compared with $87.6 million, or 54 percent of net sales, in the previous second quarter.

The rise was attributed in part to IEEPA duty refunds.

The retailer has recovered $3.2 million and expects to recover the remaining $6.8 million in IEEPA duties it has paid.

For the first half, gross profit was $182.4 million, or 58 percent of net sales, compared with $158.9 million, or 54 percent of net sales, in the same period last year.

As for the year ahead, Movado said it will no longer be providing full-year fiscal guidance.

“We believe our focus is better served by executing our long-term strategy and making the right decisions to drive sustainable, profitable growth, and create increased value,” said Grinberg.

For the second half of the year, it expects topline growth in the mid-single-digit range and gross margin in a range of 55 to 56 percent, excluding any additional IEEPA duty refunds.