Movado Group Q3: Improved sales and profitability amid tariff concerns

Movado Group, Inc. delivered higher sales, stronger margins and improved profitability despite continued tariff pressures for the third quarter ended October 31, 2025. Net sales rose 3.1 percent to 186.1 million dollars, driven by growth in licensed brands and company stores, even as owned brands moderated. U.S. net sales increased 6.9 percent, while international sales were up 0.6 percent (down 2.5 percent on a constant-currency basis).

Gross margin expanded 80 basis points to 54.3 percent, reflecting better mix and operational efficiencies. Operating income nearly doubled to 11.7 million dollars, while adjusted operating income reached 12.6 million dollars. Diluted earnings per share doubled to 42 cents, with adjusted diluted EPS at 45 cents.

Chairman and chief executive officer Efraim Grinberg highlighted the company’s strong execution and brand momentum. “We are pleased with our third quarter results, delivering a 3% increase in net sales, 80 basis points of expansion in gross margin and a doubling in diluted earnings per share versus the third quarter last year, even as we absorbed material tariff cost increases,” he said. Grinberg added that the fashion watch category is seeing renewed interest from younger consumers, noting robust performance across key markets. “We achieved double-digit growth for the Movado brand in our direct-to-consumer channels, while continuing to optimize the brand’s wholesale business, which we expect to return to growth in the fourth quarter.”

Movado also strengthened its financial flexibility, ending the period debt-free. “We ended the quarter with $184 million in cash and no debt, providing a strong foundation to invest in growth initiatives and deliver value to our shareholders,” Grinberg said, confirming the board’s approval of a 35 cents quarterly dividend.

Looking ahead to the holiday season, Grinberg expressed optimism about product innovation and enhanced marketing. He also pointed to the recently announced U.S.–Switzerland framework trade agreement as a future tailwind. “This change is expected to reduce our overall U.S. tariff rate on Swiss watches to 15%, roughly one-third the rate we have been paying since August. This, together with the continued dedication of our global team, should continue to drive improving results and create new opportunities for growth in both sales and profitability.”

However, given economic volatility and tariff uncertainty, the company is not issuing fiscal 2026 guidance.