Movado Group, Inc. (MOV)

In the past six months, Movado Group's stock has increased by 40.20%. In Q3 Fiscal 2026, revenue met expectations with a 3.1% year-on-year growth, but GAAP EPS missed estimates. A third-quarter dividend of $0.35 per share was announced. The company has been impacted by U.S. tariffs on Swiss watches, but a new agreement is expected to lower the tariff rate to 15%. U.S. sales grew by 6.9% in Q3, driven by fashion brands and direct-to-consumer channels, while international sales increased by 6.9% (3.9% in constant dollars) in Q2. Due to economic uncertainty and tariff developments, the company did not provide a fiscal 2026 outlook.

Demand for Movado Group's products and services can be seasonal, with the company often anticipating a strong holiday season. The impact of investment needs can also be seasonal, causing temporary swings in free cash flow.

Movado Group, Inc. is a global designer, sourcer, marketer, and distributor of watches, operating in the Consumer Durables sector. It has two segments: Watch and Accessory Brands, and Company Stores. The company's portfolio includes owned brands like MOVADO, CONCORD, EBEL, OLIVIA BURTON, and MVMT, and licensed brands like COACH, TOMMY HILFIGER, HUGO BOSS, LACOSTE, and CALVIN KLEIN, as well as Scuderia Ferrari watches. Movado is known for its innovative designs and craftsmanship, especially the Museum dial, and also designs, sources, markets, and distributes jewelry and other accessories.

Movado Group, Inc. has a significant global presence, divided into United States and International operations. It operates sales and distribution offices in Australia, Canada, Mainland China, France, Germany, Hong Kong, India, Mexico, Spain, Switzerland, the United Arab Emirates, and the United Kingdom. The majority of its revenue comes from international locations.

Movado Group has a strong reputation for innovative designs and high-quality craftsmanship in the luxury watch market, emphasizing its association with the arts. In the past year, Movado Group has engaged in various corporate responsibility initiatives, including participating in Earth Day activities, partnering with Paani to address water contamination in India, and celebrating Black History Month with Thelma Golden and the Studio Museum in Harlem. The company also honored International Holocaust Remembrance Day with Ann Kirschner. Movado Group publishes corporate responsibility reports, with the most recent one being for 2024. While the company generally maintains a positive brand image, it is worth noting a past event (prior to the last year) where allegations of misconduct within a subsidiary branch in Dubai led to a restatement of previously issued financial statements.

Movado Group, Inc. has a diverse ownership structure, including institutional and individual investors. The Grinberg family, with Efraim Grinberg as Chairman & CEO, holds a meaningful stake. Major institutional investors include Royce & Associates Lp, BlackRock, Inc., and Vanguard Group Inc. Institutional shareholders collectively own approximately 60.99% of the stock, and Efraim Grinberg is the largest individual shareholder, owning 1.47% of the shares.