Q1 gross margin expansion is partly one-time; management expects full-year gross margin higher than last year but not at Q1 level.
Structural improvements come from SKU count reduction and supplier rationalization.
Direct channels (movado.com, oliviaburton.com, retail) and digital partners (excluding Middle East) drove margin; improved Movado wholesale also contributed.
Mgmt stance: Bullish on long-term margin improvement from structural actions, but cautious on Q1 level being unsustainable.
Q2 — Hamed Khorsand
Topic: Retailer replenishment and industry trends
Key points:
Q1 retailer replenishment was a one-time event due to Q4 outperformance; it depleted Movado brand inventory, which is expected to be resolved by summer.
Management is neutral on Swatch’s new release, but views any interest in traditional watches (craftsmanship, mechanical movements) as positive for the category.
Coach brand has “extremely high” Gen Z consumer penetration; innovation is driving demand among young consumers.
Mgmt stance: Neutral on competitor activity, but bullish on category interest and own brand innovation driving long-term demand.