Movado Group Q2 sales rise 4.9% to $169.8 million

Movado Group (NYSE: MOV ) held its second-quarter earnings conference call on Wednesday.

Below is the complete transcript from the call.

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Access the full call at Summary Movado Group, Inc. reported a 4.9% increase in sales to $169.8 million for Q2 FY2027, with adjusted operating profit rising to $15.1 million, partly due to IEEPA duty refunds.

Key strategic priorities include consumer focus, innovation, digital storytelling, and profitability, with progress noted across U.S. and international markets, except for declines in the Middle East.

Gross margin improved to 59.4%, benefiting from strategic pricing and business mix, with a strong balance sheet showing $212 million in cash and no debt.

Operational highlights include the success of new product launches and digital marketing campaigns, particularly resonating with younger consumers.

Future guidance indicates mid-single-digit growth, with focus shifting from providing annual outlooks to executing long-term strategy for sustainable growth.

Full Transcript OPERATOR Good day, everyone, and welcome to Movado Group, Inc.'s second quarter fiscal 2027 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 Allyson Makin of ICR.

Please go ahead.

Allyson Makin, ICR (Investor Relations) Thank you.

Good morning, everyone.

With me on the call today are Efrem 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 the company's filings with the SEC, which includes today's press release.

If any non-GAAP financial measure is used on this call, a presentation of the most directly comparable GAAP financial measure to this non-GAAP financial measure will be provided as supplemental financial information in our press release.

Now I would like to turn the call over to Efrem Grinberg, Chairman and Chief Executive Officer of Movado Group.

Efrem Grinberg, Chairman and Chief Executive Officer Good morning.

Thank you for joining us, and welcome to Movado Group's second quarter conference call.

With me today is Sallie DeMarsilis, our Executive Vice President and Chief Financial Officer.

Following our prepared remarks, we'll be happy to take your questions.

We were very pleased with our results for the quarter and the first half of the year.

We continued to see momentum across our business and strength in consumer demand despite the ongoing challenges related to the conflict in the Middle East, which reflects meaningful progress advancing our strategy and favorable trends in our categories.

For the quarter, sales increased 4.9% to $169.8 million.

Adjusted operating profit increased to $15.1 million from $7 million last year and included $3.2 million of IEEPA duty refunds received in the quarter.

Adjusted EPS increased to $0.54 from $0.23 last year and included $0.11 per share attributed to the IEEPA duty refund.

As I've done on previous calls, I'd like to reiterate our four key strategic priorities.

First, putting the consumer at the center of our universe, learning more about who they are, how they relate to our brands, and how we build long-lasting emotional connections across our portfolio.

Second, driving innovation and delivering trend-right product while remaining true to each brand's DNA and their unique target customer.

Third, connecting with those consumers through compelling content and digital storytelling.

There has never been a greater opportunity to tell our brand stories directly to customers.

And fourth, driving profitability and strengthening gross margin through higher average selling prices, greater full-price selling penetration, and a more optimized product assortment and supply base.