Q3 2026 Movado Group Inc Earnings Call Transcript
Key Points
- Movado Group Inc (MOV) reported a revenue growth of 3.1% to $186.1 million, with a 5.9% growth excluding the Middle East.
- Gross margin improved by 80 basis points to 54.3%, despite the impact of US tariffs.
- Adjusted operating income grew more than 40% to $12.6 million, reflecting strong financial performance.
- The company ended the quarter with a strong balance sheet, holding $183.9 million in cash and no debt.
- Movado Group Inc (MOV) experienced double-digit growth in both sales and contribution margin in company stores, with Movado brand sales up 17.7%.
- International net sales increased only 0.6%, with a decrease of 2.5% on a constant currency basis, indicating challenges in some regions.
- The Middle East market showed weaker performance, impacting overall international sales.
- Operating expenses increased by $600,000 due to higher performance-based compensation.
- Inventory levels increased by 11.8%, which could indicate potential overstocking issues.
- The company is not providing a fiscal 2026 outlook due to economic uncertainty and unpredictable tariff developments.
Good day, everybody, and welcome to the Movado Group third-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 of which are described in
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