Movado Group shares rise 3% after second-quarter earnings and revenue beat forecasts

Movado Group, Inc. (NYSE:MOV) shares gained 3% on Wednesday after the watchmaker reported fiscal second-quarter 2027 results that comfortably exceeded analysts’ expectations for both earnings and revenue.

Adjusted earnings came in at $0.54 per share, well ahead of the consensus estimate of $0.35. Revenue increased 4.9% year-over-year to $169.8 million from $161.8 million, also beating the $164.17 million analyst forecast.

Earnings strengthen as margins improve

Movado’s adjusted earnings of $0.54 per share included an $0.11 contribution from IEEPA duty refunds. Excluding that benefit, adjusted EPS still increased by approximately 87% from the same period last year.

Gross margin, excluding the impact of the duty refund, expanded by 340 basis points to 57.5%. The improvement reflected a more favourable mix of sales channels and products.

“I am pleased to report strong top- and bottom-line results for the second quarter, capping an excellent first half for Movado Group,” said Efraim Grinberg, Chairman and Chief Executive Officer. “This performance reflected broad-based increases across our owned and licensed brands, our direct and wholesale channels, and key geographies led by the U.S. and Europe.”

U.S. and international markets deliver growth

Movado recorded higher sales across both its domestic and international businesses during the quarter.

U.S. net sales increased 4.9%, while international revenue also advanced 4.9%. On a constant-currency basis, international sales were 4.1% higher.

The stronger revenue performance translated into a substantial improvement in operating profitability. Operating income reached $14.9 million, compared with $4.0 million in the prior-year quarter.

Adjusted operating income was $15.1 million, equivalent to 8.9% of net sales.

Movado expects further revenue growth in second half

For the second half of fiscal 2027, Movado expects revenue to increase at a mid-single-digit percentage rate.

Gross margin is forecast at between 55% and 56%, excluding any additional benefits from IEEPA duty refunds.

The company has discontinued annual guidance as management concentrates on executing its longer-term strategic priorities.

Dividend maintained as balance sheet remains debt-free

Movado’s board declared a quarterly dividend of $0.40 per share, payable on September 22, 2026.

The company finished the quarter with $211.6 million of cash and no debt, providing a strong financial position as it enters the second half of the fiscal year.

The combination of stronger-than-expected earnings, improving margins and broad-based sales growth helped support the positive reaction in Movado shares following the results.

Movado Group stock price