GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Movado Group Inc (NYSE:MOV) » Definitions » Degree of Operating Leverage

MOV (Movado Group) Degree of Operating Leverage : 59.95 (As of Apr. 2025)


View and export this data going back to 1993. Start your Free Trial

What is Movado Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Movado Group's Degree of Operating Leverage for the quarter that ended in Apr. 2025 was 59.95. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Movado Group's Degree of Operating Leverage or its related term are showing as below:

MOV's Degree of Operating Leverage is ranked worse than
95.98% of 1094 companies
in the Retail - Cyclical industry
Industry Median: 1.305 vs MOV: 59.95

Movado Group Degree of Operating Leverage Historical Data

The historical data trend for Movado Group's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Movado Group Degree of Operating Leverage Chart

Movado Group Annual Data
Trend Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.26 -4.12 -0.19 5.01 26.15

Movado Group Quarterly Data
Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.56 7.25 13.15 26.15 59.95

Competitive Comparison of Movado Group's Degree of Operating Leverage

For the Luxury Goods subindustry, Movado Group's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Movado Group's Degree of Operating Leverage Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Movado Group's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Movado Group's Degree of Operating Leverage falls into.


;
;

Movado Group Degree of Operating Leverage Calculation

Movado Group's Degree of Operating Leverage for the quarter that ended in Apr. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 23.708 (Apr. 2025) / 46.83 (Apr. 2024) - 1 )/( 648.478 (Apr. 2025) / 653.863 (Apr. 2024) - 1 )
=-0.4937/-0.0082
=59.95***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Movado Group  (NYSE:MOV) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Movado Group Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Movado Group's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Movado Group Business Description

Traded in Other Exchanges
Address
650 From Road, Suite 375, Paramus, NJ, USA, 07652-3556
Movado Group Inc designs, develops, sources, markets, and distributes fine watches in the United States and internationally. It operates through the Watch and Accessory Brands and Company Stores segment. The Watch and Accessory Brands segment includes the designing, manufacturing, and distribution of watches and, to a lesser extent, jewelry and other accessories of quality owned brands and licensed brands. Its Company Stores segment includes the company's retail outlet locations in the United States and Canada. It generates maximum revenue from the Watch and Accessory Brands segment. Geographically, it derives the majority of its revenue from its international locations.
Executives
Michelle Kennedy officer: SVP, Human Resources 650 FROM ROAD, STE. 375, PARAMUS NJ 07652
Sallie A Demarsilis officer: Chief Financial Officer 142 WEST 57TH ST, NEW YORK NY 10019
Linda Feeney officer: SVP, Principal Acct. Officer 650 FROM ROAD, SUITE 375, PARAMUS NJ 07652
Vivian Delia officer: SENIOR VP HUMAN RESOURCES C/O MOVADO GROUP INC., 650 FROM ROAD, SUITE 375, PARAMUS NJ 07652
Ann Kirschner director 650 FROM ROAD, SUITE 375, PARAMUS NJ 07652
Richard D Isserman director C/O MOVADO GROUP, INC., 650 FROM ROAD, PARAMUS NJ 07652
Maya Peterson director C/O MOVADO GROUP INC., 650 FROM ROAD, SUITE 375, PARAMUS NJ 07652
Efraim Grinberg director, 10 percent owner, officer: President - CEO C/O MOVADO GROUP INC, 650 FROM RD, PARAMUS NJ 07652
Alexander Grinberg 10 percent owner 125 CHUBB AVE, LYNDHURST NJ 07071
Behzad Soltani officer: EVP,Commercial President & CTO 650 FROM ROAD, STE 375, PARAMUS NJ 07652-3556
Alan H Howard director
Sussis Mitchell Cole officer: Senior VP and General Counsel 6 YORKSHIRE DRIVE, MENDHAM NJ 07945
Stephen I Sadove director
Maurice S Reznik director C/O MAIDENFORM BRANDS, INC., 154 AVENUE E, BAYONNE NJ 07002
Richard Cote director, officer: Executive V.P. - COO