Movado Group (MOV) Q1 2027 earnings summary

Executive summary

• Net sales rose 8.1% year-over-year to $142.4 million, driven by strong U.S. and European performance, favorable sales mix, and robust direct-to-consumer growth, offsetting declines in the Middle East.

• Gross margin expanded to 57.3% from 54.1% year-over-year, reflecting favorable mix, reduced tariffs, and cost leverage.

• Adjusted operating profit increased to $7.5 million from $0.9 million, and adjusted EPS rose to $0.32 from $0.08; reported operating income was $7.0 million and diluted EPS was $0.30.

• Net income attributable to shareholders was $7.3 million (adjusted) and $6.9 million (reported), up from $1.9 million and $1.4 million, respectively, year-over-year.

• Ended the quarter with $225.3 million in cash and no debt.

Financial highlights

• Gross profit was $81.6 million, up from $71.4 million year-over-year.

• Operating expenses increased to $74.6 million, mainly due to higher marketing and performance-based compensation.

• Net cash provided by operating activities was $7.0 million, compared to net cash used of $7.2 million in the prior year.

• Working capital at quarter-end was $401.5 million, up from $385.5 million a year ago.

• Inventory decreased $7.3 million year-over-year; accounts receivable down to $80 million.

Outlook and guidance

• No formal fiscal 2027 guidance provided due to economic and geopolitical uncertainty, especially in the Middle East.

• Sales growth expected to moderate in Q2 after strong Q1 replenishment activity; focus remains on operational efficiency and brand investment.