Movado Group (MOV) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 FY2026 were $131.8 million, down 1.9% year-over-year, with declines in both U.S. and international sales, primarily due to unfavorable sales mix and foreign exchange impacts.

• Adjusted operating income was $0.9 million, compared to $2.1 million last year, with operating income at $0.3 million, impacted by a $0.6 million cost-savings initiative.

• Net income attributable to Movado Group was $1.4 million ($0.06 EPS), down from $2.0 million ($0.09 EPS) year-over-year; adjusted EPS was $0.08.

• Board approved a $0.35 per share dividend for the quarter.

• Strong progress on cost savings initiatives, though partially offset by unrealized currency losses and a material weakness in internal controls identified in the Dubai branch, leading to restatements and ongoing remediation.

Financial highlights

• Gross profit margin was 54.1%, down from 54.3% year-over-year, mainly due to currency fluctuations, increased shipping costs, and lower sales leverage.

• Operating expenses were $71.1 million, mainly from FX losses and higher performance-based compensation; adjusted operating expenses were $70.5 million.

• Net income was $1.4 million, or $0.06 per diluted share, compared to $2 million, or $0.09 per share, last year.

• Cash at quarter-end was $203.1 million, down from $225.4 million a year ago.

• No shares repurchased under the $50 million program during the quarter.

Outlook and guidance

• No fiscal 2026 outlook provided due to macroeconomic and tariff-related uncertainty.

• Company expects increased cost of sales due to new U.S. tariffs and plans price increases and operational changes to mitigate the impact.

• Cost-savings initiatives are expected to deliver $10 million in annual savings.