Movado Group has reported its financial results for the fourth quarter and full fiscal year, outlining the effects of trade-related costs, internal governance issues, and consumer trends on its operations.
The U.S.-based watch and accessories group—whose brand portfolio includes Movado, Coach, Tommy Hilfiger, Lacoste, Hugo Boss, and Calvin Klein—will introduce price increases on select products to offset higher import tariffs and has restated past financials following identified irregularities at a regional subsidiary.
Financial Performance for Fiscal Year
For the fiscal year ending January 31, 2025, Movado Group reported net sales of $653.4 million, representing a 2 percent decline year-over-year (2 percent on a constant dollar basis). Gross profit for the year was $353.1 million, or 54 percent of net sales, compared with $364.2 million, or 55 percent, in the prior year.
In the U.S. market, full-year sales declined 4 percent, attributed to reduced performance at wholesale customers’ physical stores and Movado-owned locations. International sales increased slightly, by under 1 percent (1 percent on a constant dollar basis), with gains supported by wholesale and online retail channels.
For the fourth quarter, net sales rose 3 percent year-over-year to $181.5 million (5 percent on a constant dollar basis). Gross profit was $98.3 million, or 54 percent of net sales. U.S. sales declined 3 percent in the quarter, while international sales rose 9 percent (12 percent on a constant dollar basis).
Financial Restatement Following Dubai Misconduct
The company has restated its financial statements back to fiscal year 2021 due to misconduct at its Dubai office. The issues involved premature and overstated sales recorded for certain customers.
“Honesty, integrity, and transparency are at the core of Movado Group as a company,” CEO Efraim Grinberg said during the earnings call. “That is why the unethical conduct that occurred at the Dubai sales office is so disappointing. Nevertheless, we will emerge from this episode as a stronger company with an even more robust control environment in place.”
The revised financials released this week reflect the necessary corrections.
Tariff Pressures Prompt Price Adjustments
Movado is adjusting its pricing in response to increased tariff costs on imported components, including watch bracelets and leather straps manufactured in China. Although a 90-day suspension on tariff hikes is in place, the company is still subject to a 10 percent tariff on products from several countries and tariffs exceeding 100 percent on Chinese imports.
Grinberg noted the company’s efforts to manage margins under these conditions.
“We’re trying to understand the tariff structure and see where we will be implementing some price increases,” said Grinberg. “But doing it in a way that is sustainable for the long term and manageable with both our retail partners and consumers.”
CFO Sallie DeMarsilis added, “Although we remain focused on maintaining the quality and value consumers expect, we will be implementing selective price increases while actively engaging with our supply chain partners and customers to respond effectively.”
Due to the ongoing volatility, Movado will not provide a financial outlook for fiscal year 2026.
“I think there’s just too much uncertainty to know if this will be a year of growth,” Grinberg said. “I hope the company will have more clarity by the first quarter call in May.”
Product Developments Across Brands
Movado reported new product developments across its brand portfolio:
- Movado has introduced models including the Bold Mini Quest and a line of women’s bangles. The company also plans to launch watches featuring lab-grown diamonds, priced under $2,000.
- Coach has reported interest from younger consumers.
- Tommy Hilfiger has expanded its offering of skeleton watches and smaller women’s models.
- Lacoste reported positive sales of the LC33 and Metropole lines and plans to release a hexagonal-shaped women’s watch as part of its Parisian collection.
- Hugo Boss reported sales growth for the Grand Prix chronograph and its jewelry line.
- Calvin Klein will add to its Pulse line and introduce new products under the Spiral collection.
The company plans to reduce its marketing expenditure by $15 million to $20 million over the current fiscal year.
Implications for the Jewelry Industry
Movado’s pricing strategy in response to tariff exposure reflects ongoing cost challenges in the watch and jewelry category, particularly among companies with supply chains involving Chinese manufacturing. These developments may influence pricing structures in both wholesale and retail segments.
Demand trends for smaller-sized watches and lab-grown diamond pieces are reflected in recent product launches. However, ongoing economic and trade policy uncertainty continue to impact the ability to forecast future performance accurately.
