"This will be the most comprehensive brand campaign that we have ever launched and we will have a 360 degree media campaign throughout the holiday season, including the most important digital and social platforms, print magazines, billboards and both digital and linear TV."
— Efraim Grinberg
03Detailed Report
MOV
Company MOV
Period
Q2 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 22, 2026
Swipe to view all report sections
Executive Summary
Movado Group reported a modest quarter for QQ2 2025, with net sales of $159.3 million, essentially flat year-over-year on a constant-dollar basis, and an operating profit of $3.0 million. Gross margin remained healthy at 54.2% but declined slightly versus the prior-year period due to unfavorable channel and product mix, while SG&A investments rose by roughly $3.7 million to support brand-building and product initiatives. The Movado brand delivered a modest 1.4% top-line gain (with Movado.com up 21%), while wholesale declined ~6%, and licensed brands rose about 10%. Licensing strength, jewelry outperformance, and a broad new marketing push underpin the company’s strategy to stabilize trends and drive market share gains in a slowing consumer environment. Management reaffirmed full-year guidance: net sales of $665–$675 million, gross margin near 54%, and operating income of $23–$26 million, with earnings per diluted share of $0.90–$1.00, aided by a previously announced Movado brand marketing initiative and product introductions. The balance sheet remains robust with about $199 million in cash and no debt, though working capital dynamics and investments are weighing near-term free cash flow. Management underscored a long-range plan to align expenses with sales while investing in brand-building and product innovation to accelerate a return to profitable, sustainable growth.
Key Performance Indicators
Revenue
Decreasing
159.31M
QoQ: 16.57% | YoY: -0.67%
Gross Profit
Decreasing
86.37M
54.21% margin
QoQ: 14.37% | YoY: -3.27%
Operating Income
Decreasing
3.03M
QoQ: -8.49% | YoY: -68.59%
Net Income
Decreasing
3.72M
QoQ: 28.71% | YoY: -53.77%
EPS
Decreasing
0.17
QoQ: 30.77% | YoY: -52.78%
Revenue Trend
Margin Analysis
Financial Highlights
Quarterly highlights and profitability metrics:
- Revenue (Q2 2025): $159.313 million; YoY change: -0.7% in constant dollars; QoQ change: +16.57% in reported terms from Q1 2025, per earnings data.
- Gross profit: $86.365 million; gross margin 54.21% (vs. 55.7% in Q2 2024); margin pressure driven by unfavorable channel/mix.
- Operating expenses: $83.335 million; SG&A and other operating costs align with the marketing investments intended to accelerate future growth.
- Operating income: $3.03 million; operating margin 1.90% (vs. prior-year quarter margin roughly 3.0%+ in some periods).
- EBITDA: $7.091 million; EBITDA margin approx. 4.45%.
- Net income: $3.721 million; net income margin 2.34%; EPS (diluted) $0.16; basic $0.17.
- Six-month period ended July 31, 2024: Net sales $296.0 million; down 3.1% year-over-year; gross margin 54.7%; operating income $6.3 million; net income $6.6 million; diluted EPS $0.29.
- Balance sheet: cash and cash equivalents $198.3 million; long-term debt $76.3 million; total debt $94.7 million; net debt position negative by $103.6 million (strong liquidity).
- Cash flow: Net cash provided by operating activities negative $17.8 million, driven by working-capital outflows (change in working capital -$27.4 million; inventory -$15.4 million; receivables -$8.3 million). Free cash flow negative $20.2 million for the quarter; capex around $2.3 million; dividends paid $7.77 million; forex and other items contributed to net cash movement.
- Leverage and liquidity ratios (as of QQ2 2025): current ratio 4.41, cash ratio 1.67, inventory turnover 0.41x, days sales outstanding ~69 days, days inventory on hand ~218 days, days payables outstanding ~45 days, indicating working-capital-heavy operating model and a need to manage inventory levels as marketing-driven growth investments take hold.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
159.31M
-0.67%
16.57%
Gross Profit
86.37M
-3.27%
14.37%
Operating Income
3.03M
-68.59%
-8.49%
Net Income
3.72M
-53.77%
28.71%
EPS
0.17
-52.78%
30.77%
Key Financial Ratios
Gross Profit Margin
Good
54.20%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Weak
1.90%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
2.34%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
0.49%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
0.74%
Return on equity suggests inefficient capital allocation
Current Ratio
Strong
4.41
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
Conservative
0.19
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Growth
38.81x
Elevated P/E suggests growth expectations or premium valuation
Price to Book
Fair Value
1.15x
Price-to-book ratio reasonable for profitable companies
Management Insights Available for Members
Get exclusive access to management commentary, earnings call quotes, and forward guidance from company leadership.