Movado Group reports strong sales and profit growth in second quarter

Watchmaker Movado Group has announced its financial results for the second quarter and first six months of fiscal 2027 ended July 31, 2026, delivering top- and bottom-line growth alongside expanded margins. Net sales for the second quarter grew 4.9 percent to 169.8 million dollars compared to 161.8 million dollars in the second quarter of fiscal 2026. On a constant-dollar basis, sales increased 4.4 percent. The growth reflected broad-based gains across owned and licensed brands, direct and wholesale channels, and key geographies.

Net sales in the US rose 4.9 percent, while international net sales also increased 4.9 percent, or 4.1 percent in constant currency.

Movado Group chairman and chief executive officer, Efraim Grinberg, stated: “I am pleased to report strong top- and bottom-line results for the second quarter, capping an excellent first half for Movado Group."

"This performance reflected broad-based increases across our owned and licensed brands, our direct and wholesale channels, and key geographies led by the U.S. and Europe, underscoring the strength of our business model and the successful execution of our strategy.”

Operating results improve

Gross profit for the quarter reached 100.8 million dollars, representing a gross margin of 59.4 percent compared to 54.1 percent in the prior-year period. The 530 basis-point improvement included 3.2 million dollars, or 190 basis points, from International Emergency Economic Powers Act (IEEPA) duty refunds. Excluding these duty refunds, gross margin expanded 340 basis points.

Operating income rose significantly to 14.9 million dollars from four million dollars in the second quarter of fiscal 2026. Adjusted operating income reached 15.1 million dollars, or 8.9 percent of net sales, compared to seven million dollars, or 4.3 percent of net sales, in the year-ago quarter.

Net income for the second quarter stood at 12.3 million dollars, or 0.53 dollars per diluted share, up from three million dollars, or 0.13 dollars per diluted share, in the prior-year period. Adjusted net income reached 12.5 million dollars, or 0.54 dollars per diluted share, compared to 5.3 million dollars, or 0.23 dollars per diluted share, in the second quarter of fiscal 2026. Both net income and adjusted net income included 2.5 million dollars in IEEPA duty refunds and interest, net of taxes.

First half performance and capital returns

For the first six months of fiscal 2027, net sales rose 6.3 percent to 312.2 million dollars, compared to 293.6 million dollars in the first six months of fiscal 2026. On a constant-dollar basis, sales grew 4.5 percent. US net sales increased 6.6 percent, while international net sales gained 6.1 percent, or 2.9 percent in constant currency.

Gross profit for the six-month period reached 182.4 million dollars, representing a gross margin of 58.4 percent compared to 54.1 percent in the prior year. Operating income climbed to 21.9 million dollars from 4.3 million dollars, while adjusted operating income reached 22.6 million dollars. Net income reached 19.2 million dollars, or 0.84 dollars per diluted share, compared to 4.4 million dollars, or 0.20 dollars per diluted share, in the same period of fiscal 2026.

Grinberg added that the business ended the first half with 211.6 million dollars in cash and zero debt after investing to support long-term growth and returning 16.6 million dollars to shareholders via dividend payments. On August 26, 2026, the board of directors declared a cash dividend of 0.40 dollars per share, payable on September 22, 2026, to shareholders of record on September 8, 2026. The group also repurchased 61,000 shares in the first six months, leaving 44.6 million dollars remaining under its share repurchase authorization.