Movado Group (MOV) Q2 2025 earnings summary

Executive summary

• Q2 net sales were $159.3 million, down 0.7% year-over-year, with operating income of $3.0 million and net income of $3.7 million, reflecting higher marketing investments and a challenging consumer environment.

• Gross margin declined to 54.2% from 55.7% last year, mainly due to unfavorable business and channel mix.

• Six-month net sales were $296.0 million, down 3.1% year-over-year, with net income of $6.6 million.

• Cash and cash equivalents at quarter end were $198.3 million, with no debt.

• Board declared a quarterly dividend of $0.35 per share.

Financial highlights

• Q2 net sales: $159.3 million (down 0.7% year-over-year); six months: $296.0 million (down 3.1%).

• Q2 gross profit margin: 54.2%; six months: 54.7%.

• Q2 operating expenses: $83.3 million, up from $79.6 million, driven by higher marketing spend.

• Q2 operating income: $3.0 million, down from $9.6 million; Q2 net income: $3.7 million (down from $8.0 million); diluted EPS: $0.16 (down from $0.36).

• Six-month net income: $6.6 million ($0.29 per share), down from $17.2 million ($0.76 per share).

Outlook and guidance

• FY25 net sales expected at $665–$675 million, down from prior $700–$710 million guidance.

• Gross profit margin forecast at ~54% for the year; operating income guidance: $23–$26 million.

• EPS guidance: $0.90–$1.00 per diluted share; effective tax rate of 25%.

• Second half sales projected to be flat to up low single digits year-over-year.

• Outlook assumes no further economic deterioration or major FX fluctuations.