Movado Group (MOV) Q2 2026 earnings summary

Executive summary

• Q2 net sales increased 3.1% year-over-year to $161.8 million, driven by licensed brands and international markets, while U.S. and owned brands declined.

• Adjusted operating profit more than doubled to $7 million, with cost controls and lower marketing expenses contributing.

• Ended the quarter with $180.5 million in cash and no debt, supporting continued investment and shareholder returns.

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

• Strategic initiatives and $10 million in annualized cost savings from prior reductions continued.

Financial highlights

• Q2 sales rose 3.1% to $161.8 million; six-month sales up 0.8% to $293.6 million.

• Q2 gross margin was 54.1%, slightly down from 54.3% last year due to tariffs and FX impacts.

• Q2 adjusted net income was $5.3 million ($0.23/share); GAAP net income was $3.0 million ($0.13/share).

• Operating income increased to $7 million from $2.6 million year-over-year.

• Cash and cash equivalents at quarter-end: $180.5 million; no debt.

Outlook and guidance

• No fiscal 2026 outlook provided due to macroeconomic and tariff uncertainties.

• Management expects U.S. tariffs to continue to materially impact cost of sales and sales volumes.

• Expect inventory levels to normalize by year-end; most U.S. Swiss watch needs already in stock.