FinancialsMay 21, 2021
Richemont Posts Strong Q4 as Jewelry Sales ReboundFinancialsMay 28, 2021
Movado Group’s Q1 Sales Tick Higher as US Market Recovers
Its namesake Movado brand performed especially well in the first quarter.
Movado Group’s net sales rose 94 percent year-over-year in the first quarter, with demand for jewelry and watches exceeding expectations. Pictured here is a set of Movado Connect 2.0 watches.
Paramus, N.J.—Movado Group saw first quarter net sales nearly double year-over-year as the U.S. market slowly bounced back.
Net sales in the first quarter were up 94 percent to $134.8 million, compared with $69.7 million in the previous year’s first quarter.
U.S. net sales more than doubled, up 131 percent.
International sales, which have been hampered by continued store closures in Europe and Latin America, rose 68 percent in the quarter.
When compared to pre-pandemic fiscal 2020 Q1, overall net sales were down 8 percent while U.S. sales were up 11 percent and international sales were down 21 percent.
Gross profit totaled $74.2 million, or 55 percent of net sales, compared with $31.9 million, or 46 percent of net sales, in the same period last year.
“This strong performance reflects the ongoing success of our strategy to maximize the power of our brands with sought-after innovation, improved digital capabilities, and high-impact social media and marketing,” said CEO Efraim Grinberg in a press release about the results.
Demand for watches and jewelry exceeded quarterly expectations across its wholesale and brick-and-mortar retail channels, he said.
Its digital channels, both owned and third-party sites, also performed well.
“Strong consumer response to our brands and offerings, coupled with the beginning of the easings of restrictions that brick-and-mortar retail in certain geographies led to net sales increases across our segments of owned brands, licensed brands and company stores, as well as across certain geographies, most notably the United States,” said CFO Sallie DeMarsilis on an earnings call Thursday morning.
Related stories will be right here …
Net sales in the first quarter were up 94 percent to $134.8 million, compared with $69.7 million in the previous year’s first quarter.
U.S. net sales more than doubled, up 131 percent.
International sales, which have been hampered by continued store closures in Europe and Latin America, rose 68 percent in the quarter.
When compared to pre-pandemic fiscal 2020 Q1, overall net sales were down 8 percent while U.S. sales were up 11 percent and international sales were down 21 percent.
Gross profit totaled $74.2 million, or 55 percent of net sales, compared with $31.9 million, or 46 percent of net sales, in the same period last year.
“This strong performance reflects the ongoing success of our strategy to maximize the power of our brands with sought-after innovation, improved digital capabilities, and high-impact social media and marketing,” said CEO Efraim Grinberg in a press release about the results.
Demand for watches and jewelry exceeded quarterly expectations across its wholesale and brick-and-mortar retail channels, he said.
Its digital channels, both owned and third-party sites, also performed well.
“Strong consumer response to our brands and offerings, coupled with the beginning of the easings of restrictions that brick-and-mortar retail in certain geographies led to net sales increases across our segments of owned brands, licensed brands and company stores, as well as across certain geographies, most notably the United States,” said CFO Sallie DeMarsilis on an earnings call Thursday morning.
The Movado brand was the star of the show this quarter, with its e-commerce site growing 250 percent compared with the previous first quarter.
The brand recently collaborated with photographer Alexi Lubomirski on a limited-edition watch collection featuring its first vegan straps.
The Movado jewelry brand, available exclusively on its website, also saw “a strong and growing demand,” said Grinberg on the earnings call.
There will be cable television ads as well as social and digital marketing campaigns for the Movado brand during the first half of the fiscal year.
Movado Group’s licensed brands, including Coach and Tommy Hilfiger, put on a solid performance, said Grinberg, with sales up 90 percent year-over-year. He attributed the growth to its e-commerce performance and the reopening of U.S. markets.
For the Tommy Hilfiger brand, jewelry and watches performed well, including its Parker and Baker watches and its ID bracelets.
Coach’s new products, like Preston and Harrison, drove strong sales in the U.S. and China.
Hugo Boss performed well in the U.S. department store channel and via e-commerce partners in Europe, said the company.
Its new pilot edition chronograph, featuring a black style and brown strap, was a top performer for the brand. Meanwhile, its jewelry collection is undergoing an expansion.
The Lacoste brand introduced a new iconic Lacoste 12.12, featuring multi-colored crocodiles, that was well-received.
The MVMT brand has a new white ceramic collection, which sold out quickly, but is ready to go again in time for Father’s Day and graduation season.
Olivia Burton’s brick-and-mortar sales struggled in its home market of the United Kingdom amid store closings, but its online sales were strong. Its new tea party watch collection was well received, while its jewelry assortment grew.
Looking to the year ahead, Grinberg remained cautious as the COVID-19 battle rages on.
“We are hopeful that as more people become vaccinated, we will see an acceleration in reopening of markets in Europe and Latin America,” he said.
“Given our momentum from the first quarter combined with the strength of our balance sheet, we are well positioned to deliver sustainable growth over the long-term.”
Fiscal 2022 net sales are expected to be in the range of approximately $650 million to $665 million, gross profit of approximately 54 percent to 55 percent of net sales, and operating profit in a range of 10 percent to 11 percent of net sales.
The brand recently collaborated with photographer Alexi Lubomirski on a limited-edition watch collection featuring its first vegan straps.
The Movado jewelry brand, available exclusively on its website, also saw “a strong and growing demand,” said Grinberg on the earnings call.
There will be cable television ads as well as social and digital marketing campaigns for the Movado brand during the first half of the fiscal year.
Movado Group’s licensed brands, including Coach and Tommy Hilfiger, put on a solid performance, said Grinberg, with sales up 90 percent year-over-year. He attributed the growth to its e-commerce performance and the reopening of U.S. markets.
For the Tommy Hilfiger brand, jewelry and watches performed well, including its Parker and Baker watches and its ID bracelets.
Coach’s new products, like Preston and Harrison, drove strong sales in the U.S. and China.
Hugo Boss performed well in the U.S. department store channel and via e-commerce partners in Europe, said the company.
Its new pilot edition chronograph, featuring a black style and brown strap, was a top performer for the brand. Meanwhile, its jewelry collection is undergoing an expansion.
The Lacoste brand introduced a new iconic Lacoste 12.12, featuring multi-colored crocodiles, that was well-received.
The MVMT brand has a new white ceramic collection, which sold out quickly, but is ready to go again in time for Father’s Day and graduation season.
Olivia Burton’s brick-and-mortar sales struggled in its home market of the United Kingdom amid store closings, but its online sales were strong. Its new tea party watch collection was well received, while its jewelry assortment grew.
Looking to the year ahead, Grinberg remained cautious as the COVID-19 battle rages on.
“We are hopeful that as more people become vaccinated, we will see an acceleration in reopening of markets in Europe and Latin America,” he said.
“Given our momentum from the first quarter combined with the strength of our balance sheet, we are well positioned to deliver sustainable growth over the long-term.”
Fiscal 2022 net sales are expected to be in the range of approximately $650 million to $665 million, gross profit of approximately 54 percent to 55 percent of net sales, and operating profit in a range of 10 percent to 11 percent of net sales.
Editors' Picks
Sponsored by
More on Financials
The Latest
Events & AwardsApr 25, 2024
Alexis Padis Takes Over as AGS Board President Padis succeeds Lisa Bridge, marking the first time the organization has had two women board presidents in a row.
EditorsApr 25, 2024
5 Tips for Creating Fans from the Top (Savannah) Banana Jesse Cole, founder of Fans First Entertainment, shared the “five Es” of building a fan base during his AGS Conclave keynote.
WatchesApr 25, 2024
Audemars Piguet and John Mayer Partner on Limited Edition WatchThe Royal Oak Perpetual Calendar "John Mayer" was celebrated at a star-studded party in LA last week.
Brought to you by
The Blueprint for Success in Scalable, Personalized Jewelry RetailWith Ho Brothers, you can unlock your brand's true potential and offer customers the personalized jewelry experiences they desire.
SourcingApr 25, 2024
De Beers Lowers Production Guidance for 2024The announcement came as the company reported a 23 percent drop in production in Q1.
Weekly QuizApr 26, 2024
This Week’s QuizTest your jewelry news knowledge by answering these seven questions.
MajorsApr 25, 2024
Detroit Lions’ QB Jared Goff Keeps Going to JaredThe three-time Pro Bowler continues to partner with the retailer, donating to a Detroit nonprofit and giving watches to fans.
CrimeApr 24, 2024
Jewelry Crime Declines Significantly, But Dollar Losses Remain High A double-digit drop in the number of in-store crimes was offset by a jump in off-premises attacks, JSA’s 2023 crime report shows.
Brought to you by
How Jewelers of America Represents Your BusinessFor over 30 years, JA has advocated for the industry, fought against harmful legislation and backed measures that help jewelry businesses.
CollectionsApr 24, 2024
Pippa Small Announces ‘Venus’ CollectionInspired by the Roman goddess of love, the designer looked to the sea for her new collection.
Events & AwardsApr 24, 2024
JCK Industry Fund Announces 2024 Grant RecipientsThe selected nine organizations have outlined their plans for the funds.
SourcingApr 24, 2024
Rio Tinto’s Q1 Production Drops Amid Pause to Honor Lost Colleagues The mining company’s Diavik Diamond Mine lost four employees in a plane crash in January.
WatchesApr 24, 2024
These Are Rolex’s New Watches for 2024 The crown introduced a dozen timepieces in Geneva, including a heavy metal version of its deep-sea divers’ watch.
ColumnistsApr 23, 2024
The Smart Lab: Advanced Email Marketing Strategies for Mother’s DayEmmanuel Raheb recommends digging into demographic data, customizing your store’s communications, and retargeting ahead of May 12.
IndependentsApr 23, 2024
Hannoush Jewelers Opens New Store in New York Located in the town of Queensbury, it features a dedicated bridal section and a Gabriel & Co. store-in-store.
SourcingApr 23, 2024
Lucapa Sells 3 Diamonds for $10.5M in First Lulo Tender of 2024A 203-carat diamond from the alluvial mine in Angola achieved the highest price.
GradingApr 23, 2024
GIA Has a New Book About William RuserRuser was known for his figural jewelry with freshwater pearls and for his celebrity clientele.
CollectionsApr 22, 2024
Jacquie Aiche’s New Campaign Stars Adam Levine, Behati PrinslooThe “Rebel Heart” campaign embodies rebellion, romance, and sensuality, the brand said.
EditorsApr 22, 2024
The 22 Best Quotes from AGS Conclave 2024 Editor-in-Chief Michelle Graff shares the standout moments from the education sessions she attended in Austin last week.
SourcingApr 22, 2024
Virtual Diamond Boutique Rebrands as ‘VDB’The overhaul includes a new logo and enhanced digital marketplace.
MajorsApr 22, 2024
Signet Raises Nearly $9M for St. Jude Children’s Research HospitalThe money will go toward supporting ongoing research and aftercare programs for childhood cancer survivors.
CollectionsApr 19, 2024
Piece of the Week: Retrouvaí’s Treasure NecklaceA new addition to the “Heirloom” collection, this one-of-a-kind piece features 32 custom-cut gemstones.
CrimeApr 19, 2024
Grand Jury to Hear Case Against Jeweler Charged in Fatal Shove Following IJO ShowLast month in Dallas, David Walton pushed another jeweler, David Ettinger, who later died.
MajorsApr 19, 2024
Unique Designs Acquires China PearlThe move will allow the manufacturing company to offer a more “diverse and comprehensive” range of products.
GradingApr 19, 2024
AGS Ideal Report Now Available in Printed FormFrom now through mid-May, GIA will be offering the reports at a 50 percent discount.
SourcingApr 18, 2024
Diamond Trade Remains Cautious Amid Economic UncertaintyDe Beers’ rough diamond sales were down 18 percent year-over-year in its latest round of sales.
Supplier BulletinApr 18, 2024
Discover History’s Hidden Gems at the Las Vegas Antique Jewelry & Watch ShowSponsored by the Las Vegas Antique Jewelry & Watch Show
WatchesApr 18, 2024
Watch E-tailer Collectability Hires Kelly YochThe Patek Philippe expert will serve as personal curator for the brand-focused company.
