Q2 2026 Movado Group Inc Earnings Call Transcript
Key Points
- Movado Group Inc (MOV) reported a 3% increase in sales to $161.8 million, with adjusted operating profit more than doubling to $7 million.
- The company has a strong balance sheet with over $180 million in cash and no debt.
- International business grew by 6.9%, with strong performances in Europe, Latin America, and India.
- Licensed brands saw a 9.5% sales growth, driven by increased interest from GenZ consumers across digital platforms.
- Movado's e-commerce site experienced a 6% growth, with strong trends in digital partners.
- Movado brand sales declined by 5.6%, despite overall company growth.
- The US business saw a 1.6% decline as the company focused on rebalancing its chain jewelry store distribution.
- Gross margins slightly decreased to 54.1% from 54.3% due to increased tariffs and unfavorable foreign exchange.
- The company faces ongoing uncertainty regarding tariffs, particularly with a new 39% tariff on Swiss imports.
- Operating expenses, although reduced, were still impacted by increased performance-based compensation.
Good day, everybody, and welcome to the Movado Group second quarter fiscal 2026 earnings call. As a reminder, today's call is being recorded and may not be reproduced in full or in part without permission from the company.
At this time, I would like to turn the conference over to Allison Malkin of ICR. Please go ahead.
Thank you. Good morning, everyone. With me on the call today are Efraim Grinberg, Chairman and Chief Executive Officer; and Sallie DeMarsilis, Executive Vice President and Chief Financial Officer.
Before we get started, I would like to remind you of the company's safe harbor language, which I'm sure you're all familiar with. The statements contained in this conference call, which are not historical facts, may be deemed to constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
Actual future results may differ materially from those suggested in such statements due to a number of risks and uncertainties. All
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