Q4 2026 Movado Group Inc Earnings Call Transcript
Key Points
- Movado Group Inc (MOV) reported a 2.7% increase in revenue to $671.3 million for fiscal 2026, with a notable 5.6% growth in the fourth quarter.
- The company achieved a 28.7% growth in adjusted operating income, reaching $34.8 million, indicating strong execution across strategic priorities.
- Movado Group Inc (MOV) ended the fiscal year with $230 million in cash and no debt, providing significant financial flexibility.
- The company's US wholesale and retail business led the growth, with US net sales increasing by 11.2% in the fourth quarter.
- Movado Group Inc (MOV) saw strong engagement from younger consumers and a return of women to the fashion watch category, driven by new designs and smaller case sizes.
- The company faced external pressures, including tariffs, which impacted gross margins, with a $10 million cost due to IEEPA tariffs.
- International net sales increased by only 1%, with a decrease of 5.9% on a constant currency basis, partly due to weaker performance in the Middle East.
- Operating expenses increased to $89.3 million, driven by higher performance-based compensation.
- The company did not provide a fiscal 2027 outlook due to economic and geopolitical uncertainties, including the Middle East conflict.
- Movado Group Inc (MOV) experienced volatility in tariffs, with ongoing uncertainty about future tariff rates impacting planning.
Good day everyone, and welcome to the Movado Group Inc. fourth quarter 2026 earnings conference 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
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