Movado posts decline in sales and earnings

Movado, operating stores in the US and Canada, reported a first quarter net sales decrease of 5.7 percent or 6.1 percent on a constant dollar basis to 136.7 million dollars.

The company attributed the decrease in net sales to declines in wholesale customers’ brick and mortar stores and Movado company stores. Net sales in the US decreased 6.2 percent, while international net sales decreased 5.4 percent or 6.1 percent on a constant dollar basis.

Gross profit dropped to 75.5 million dollars or 55.3 percent of net sales, and net income declined to 2.9 million dollars or 13 cents per diluted share.

Commenting on the first quarter results, Efraim Grinberg, the company’s chairman and CEO said in a release: “We are pleased with our first quarter results, which are in line with our expectations and reflect the successful execution by our team in a retail environment that continues to be challenging.”

The Company continues to expect fiscal 2025 net sales to be in a range of approximately 700 million dollars to 710 million dollars, gross profit of approximately 55 percent of net sales, and operating income in a range of approximately 32 million dollars to 35 million dollars and earnings in a range of approximately 1.20 dollars to 1.30 dollars per diluted share.

On May 30, 2024, Movado board of directors approved the payment on June 26, 2024 of a cash dividend in the amount of 35 cents for each share.