MOV · Movado Group, Inc.

Movado Group's fiscal first quarter results for 2027 marked a strong rebound, with net sales growing 8.1% to $142.4 million, driven by robust performance in the United States (+8.7%) and Europe, which more than offset declines in the Middle East. The company expanded gross margin by 320 basis points to 57.3%, benefiting from favorable channel and product mix as well as cost leverage on higher sales, partially offset by foreign exchange headwinds. Operating expenses increased in absolute terms due to higher marketing and performance-based compensation, but declined as a percentage of sales to 52.4% from 53.9%. GAAP operating income surged to $7.0 million from $0.3 million, while adjusted operating income reached $7.5 million, reflecting operational efficiency and sales growth. Net income attributable to Movado was $6.9 million ($0.30 per diluted share) compared to $1.4 million ($0.06) a year ago. Adjusted net income was $7.3 million ($0.32 per diluted share). The company ended the quarter with $225.3 million in cash and no debt, highlighting a fortress balance sheet. Management commentary from CEO Efraim Grinberg emphasized accelerating momentum from year-end and noted that innovation across brands is resonating with younger consumers. The Board approved a 14% increase in the quarterly dividend to $0.40 per share, reflecting confidence in long-term prospects. In terms of guidance, the company elected not to provide a full-year outlook due to economic and geopolitical uncertainty, but cautioned that Q2 net sales growth is expected to moderate after benefiting from foreign exchange tailwinds in Q1. Overall, the quarter demonstrated strong execution and margin recovery, positioning Movado for continued investment in brand marketing and strategic initiatives.