Movado Group, Inc. (MOV) | Investment Case

1. Company Snapshot

1.a. Company Description

Movado Group, Inc.designs, sources, markets, and distributes watches worldwide.The company operates in two segments, Watch and Accessory Brands, and Company Stores.

It offers its watches under the Movado, Concord, Ebel, Olivia Burton, and MVMT brands, as well as licensed brands, such as Coach, Tommy Hilfiger, HUGO BOSS, Lacoste, Calvin Klein, and Scuderia Ferrari.The company also provides after-sales and shipping services.Its customers include jewelry store chains, department stores, independent regional jewelers, network of independent distributors, online marketplaces, licensors' retail stores, and third-party e-commerce retailers.

The company also sells directly to consumers through its e-commerce platforms.As of January 31, 2022, it operated 51 retail outlet locations.The company was formerly known as North American Watch Corporation and changed its name to Movado Group, Inc.

in 1996.Movado Group, Inc.was founded in 1961 and is based in Paramus, New Jersey.

Show Full description

1.b. Last Insights on MOV

Movado Group, Inc.'s recent performance was driven by a 3.1% increase in net sales to $186.1 million, outpacing the previous year's $180.5 million. Gross margin expanded by 80 basis points to 54.3%, and operating income nearly doubled to $11.7 million. The company's earnings per share (EPS) reached $0.45, surpassing the prior year's $0.37, although it missed the Zacks Consensus Estimate of $0.57. A conference call and webcast were held to discuss the Q3 Fiscal 2026 results, showcasing management's confidence in the company's progress.

1.c. Company Highlights

Last Price	21.37
Change Percentage	2.05%
Open	21.11
Previous Close	20.94
Market Cap ( Millions)	335
Volume	228145
Year High	22.2
Year Low	12.85
M A 50	18.85
M A 200	17.19

FCF Yield	10.52%
Dividend Yield	6.55%
ROE	4.22%
Debt / Equity	16.62%
Net Debt / EBIDTA	-306.99%
Price To Book	0.96
Price Earnings Ratio	23.15
Price To FCF	9.51
Price To sales	0.51
EV / EBITDA	7.14

2. Movado Group's Q3 FY2026: Steady Performance Amidst Challenges

Movado Group reported a 3.1% revenue growth to $186.1 million in the third quarter of fiscal 2026, or 5.9% excluding the Middle East where the company is rebuilding its presence. The gross margin improved by 80 basis points to 54.3% despite the impact of incremental U.S. tariffs. Adjusted operating income saw a significant increase of more than 40% to $12.6 million. Earnings per share (EPS) came in at $0.45, below analyst estimates of $0.57. For the first nine months, the company generated positive operating cash flow of $1.3 million, a significant improvement from the $40.6 million cash outflow in the same period last year.

Publication Date: Dec -02

                                    📋 Highlights
                                    Revenue Growth::
                                                3.1% to $186.1 million; 5.9% excluding Middle East
Gross Margin Improvement::
                                                Increased 80 bps to 54.3% despite $4.5M tariff impact
Adjusted Operating Income::
                                                Rose >40% to $12.6 million
Operating Cash Flow Turnaround::
                                                $1.3M positive vs. -$40.6M in prior year
Strong Balance Sheet::
                                                $183.9M cash, no debt, and 35¢/share dividend approved

                                

Operational Highlights

The company's Movado brand sales grew by double digits in company stores, with a 17.7% increase, driven by strong performance across various categories. Licensed brands, including Coach, Hugo Boss, and Tommy Hilfiger, also saw robust sales. The company remains optimistic about the improving dynamics in the fashion and accessible luxury watch categories, driven by innovation and growing interest from women and younger consumers.

Outlook and Tariff Impact

The recent trade agreement between the US and Switzerland is expected to lower the overall US tariff rate on Swiss watches to 15%, allowing the company to plan more effectively and reduce price-based mitigation. Movado Group plans to continue investing in brand building efforts while driving improved profitability. The company's strong balance sheet, with $183.9 million in cash and no debt, provides a solid foundation for future growth.

Valuation and Dividend

With a P/E Ratio of 23.07 and a Dividend Yield of 6.57%, the company's valuation reflects a balance between growth expectations and return on investment. The board has approved a quarterly dividend of 35¢ per share, indicating a commitment to returning value to shareholders. Analysts estimate next year's revenue growth at 0.0%, suggesting a cautious outlook. The company's ability to generate positive operating cash flow and maintain a strong balance sheet will be crucial in navigating the challenges ahead.

3. NewsRoom

Brandes Investment Partners LP Makes New $5.54 Million Investment in Movado Group Inc. $MOV

Dec -03

Source: defenseworld.net

Movado Group, Inc. (MOV) Q3 2026 Earnings Call Transcript

Nov -25

Source: seekingalpha.com

Movado (MOV) Q3 Earnings Lag Estimates

Nov -25

Source: zacks.com

Movado Group, Inc. Announces Third Quarter Fiscal 2026 Results

Nov -25

Source: businesswire.com

Movado Group, Inc. Announces Date of Conference Call and Webcast for Third Quarter Fiscal Year 2026 Results

Nov -18

Source: businesswire.com

Movado Group Publishes 2025 Corporate Responsibility Report

Sep -25

Source: businesswire.com

Movado Unveils “Always in Motion. Since 1881.

Sep -08

Source: businesswire.com

Movado Group: Time To Be Cautious (Downgrade)

Aug -29

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.14%)

6. Segments

Watch and Accessory Brands

Expected Growth: 1.2%

Movado Group's 1.2% growth in Watch and Accessory Brands is driven by increasing demand for affordable luxury watches, strategic brand acquisitions, and expansion into e-commerce channels. Additionally, the company's focus on innovative designs, quality products, and effective marketing campaigns have contributed to its growth.

Company Stores

Expected Growth: 0.8%

Movado Group's Company Stores segment growth of 0.8% is driven by strategic store openings, enhanced in-store experiences, and targeted marketing initiatives. Additionally, the company's focus on omnichannel integration and e-commerce growth has contributed to increased brand visibility and sales.

7. Detailed Products

Movado Watches

Luxury watches with a focus on design, quality, and style

ESQ Watches

Affordable and stylish timepieces with a focus on quality and durability

Hugo Boss Watches

Fashion-forward timepieces with a focus on style and sophistication

Lacoste Watches

Casual and sporty timepieces with a focus on comfort and practicality

Scuderia Ferrari Watches

High-performance timepieces inspired by the world of Formula 1 racing

Olivia Burton Watches

Fashionable and feminine timepieces with a focus on style and elegance

Licensed Brands

Watches and accessories licensed from popular brands such as Ferrari, Hugo Boss, and Lacoste

8. Movado Group, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Movado Group, Inc. faces moderate threat from substitutes due to the presence of alternative luxury watch brands and smartwatches.

Bargaining Power Of Customers

Movado Group, Inc. has a diverse customer base, which reduces the bargaining power of individual customers.

Bargaining Power Of Suppliers

Movado Group, Inc. relies on a few key suppliers for components and materials, which gives them some bargaining power.

Threat Of New Entrants

The luxury watch industry has high barriers to entry, making it difficult for new entrants to compete with established brands like Movado Group, Inc.

Intensity Of Rivalry

The luxury watch industry is highly competitive, with many established brands competing for market share, which increases the intensity of rivalry for Movado Group, Inc.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	15.12%
Debt Cost	3.95%
Equity Weight	84.88%
Equity Cost	9.75%
WACC	8.88%
Leverage	17.82%

11. Quality Control: Movado Group, Inc. passed 5 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Buckle

A-Score: 6.8/10

Value: 4.5

Growth: 3.9

Quality: 7.5

Yield: 10.0

Momentum: 8.0

Volatility: 7.0

1-Year Total Return ->

Weyco

A-Score: 6.5/10

Value: 7.4

Growth: 5.9

Quality: 7.1

Yield: 9.0

Momentum: 3.5

Volatility: 6.0

1-Year Total Return ->

Ethan Allen

A-Score: 6.2/10

Value: 6.1

Growth: 3.8

Quality: 6.4

Yield: 10.0

Momentum: 4.0

Volatility: 6.7

1-Year Total Return ->

Brilliant Earth

A-Score: 6.0/10

Value: 6.7

Growth: 5.4

Quality: 6.6

Yield: 10.0

Momentum: 6.0

Volatility: 1.3

1-Year Total Return ->

Movado

A-Score: 5.9/10

Value: 6.6

Growth: 1.8

Quality: 5.5

Yield: 10.0

Momentum: 5.5

Volatility: 6.0

1-Year Total Return ->

The RealReal

A-Score: 4.6/10

Value: 6.4

Growth: 5.9

Quality: 3.9

Yield: 0.0

Momentum: 10.0

Volatility: 1.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

7.26%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.88%

Movado Group, Inc. - US6245801062

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on MOV

1.c. Company Highlights

Higher Yield

Better Quality

Fairly Valued

Earnings Beats

Revenues Beats

Revenues Miss

Medium Volatility

Earnings Miss

Average Quality

Stable Momentum

Weak Momentum

Lower Growth

2. Movado Group's Q3 FY2026: Steady Performance Amidst Challenges

Operational Highlights

Outlook and Tariff Impact

Valuation and Dividend

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.14%)

6. Segments

Watch and Accessory Brands

Expected Growth: 1.2%

Company Stores

Expected Growth: 0.8%

7. Detailed Products

Movado Watches

ESQ Watches

Hugo Boss Watches

Lacoste Watches

Scuderia Ferrari Watches

Olivia Burton Watches

Licensed Brands

8. Movado Group, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Movado Group, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

21.37$

Current Price

21.37$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA