Movado Group (MOV) investor relations material

Executive summary

• Net sales increased 4.9% year-over-year to $169.8 million in Q2, driven by higher demand in wholesale channels, favorable sales mix, and positive foreign currency impact across U.S. and international markets.

• Gross margin rose to 59.4% from 54.1%, aided by $3.2 million in IEEPA duty refunds and improved channel/product mix.

• Adjusted operating profit increased to $15.1 million from $7 million, and net income reached $12.3 million, up from $3.0 million year-over-year.

• Adjusted EPS grew to $0.54 from $0.23, including $0.11 per share from duty refunds; diluted EPS was $0.53.

• Ended the quarter with $211.6 million in cash and no debt; over $16 million returned to shareholders via dividends year-to-date.

Financial highlights

• Year-to-date net sales rose 6.3% to $312.2 million, with gross profit up 15% to $182.4 million (58.4% margin).

• Q2 operating expenses were $85.9 million, mainly due to higher compensation and marketing.

• Net income for Q2 was $12.3 million ($0.53 per share); adjusted net income $12.5 million ($0.54 per share).

• Cash and cash equivalents at quarter-end were $211.6 million, up from $180.5 million a year earlier.

• Working capital increased to $403.5 million from $384.8 million year-over-year.

Outlook and guidance

• No annual outlook provided; expects mid-single-digit topline growth and gross margin of 55–56% for the second half, excluding further IEEPA duty refunds.

• Margin step-down in H2 due to normalization of inventory and absence of temporary duty benefits.

• Management continues to monitor the impact of tariffs, litigation, and macroeconomic uncertainty.