Movado Group (MOV) Q3 2025 earnings summary

Executive summary

• Q3 FY2025 net sales were $182.7 million, down 2.6% year-over-year; nine-month sales were $478.7 million, down 2.9% from the prior year.

• Q3 net income was $5.1 million (adjusted $8.3 million), down from $17.4 million last year; nine-month net income was $11.7 million (adjusted $14.9 million), down from $34.6 million.

• Gross margin for Q3 was 53.8% (down from 54.5%); nine-month gross margin was 54.4% (down from 55.5%).

• Cost-savings initiative launched, including $2.7 million in severance and payroll charges, expected to generate $6.5 million in annualized savings.

• Board approved a new $50 million share repurchase plan, emphasizing shareholder value.

Financial highlights

• Q3 net sales were $182.7 million, down 2.6% year-over-year; constant currency sales down 3.5%.

• Q3 net income was $5.1 million (adjusted $8.3 million); Q3 EPS was $0.22 (adjusted $0.37), down from $0.77 last year.

• Q3 operating income was $6.6 million (adjusted $9.3 million), down from $20.7 million; nine-month operating income was $12.9 million (adjusted $15.6 million), down from $41.2 million.

• Q3 operating expenses rose to $91.8 million (adjusted $89.1 million) due to higher marketing and payroll costs.

• Cash and cash equivalents at quarter-end were $181.5 million, with no debt.

Outlook and guidance

• FY2025 net sales expected at $665 million, gross margin near 54%, operating income near $23 million, and EPS at $0.90, all at the low end of prior guidance.

• $6.5 million in annualized cost savings expected from recent initiatives.

• FY2026 focus is on meaningful profitability improvement.

• Outlook excludes $2.7 million in cost-savings charges and assumes no further economic or currency deterioration.

• 25% effective tax rate anticipated for FY2025.