Movado Group (MOV) Q3 2026 earnings summary

Executive summary

• Q3 net sales rose 3.1% year-over-year to $186.1 million, with U.S. sales up 6.9% and international sales up 0.6%, driven by licensed brands and direct-to-consumer channels.

• Gross margin improved by 80 basis points to 54.3%, reflecting favorable mix and cost leverage despite tariff headwinds.

• Net income more than doubled to $9.6 million, with adjusted net income at $10.2 million and diluted EPS at $0.42 (adjusted $0.45).

• Operating income nearly doubled to $11.7 million, and adjusted operating income reached $12.6 million.

• The company completed a restatement of prior financials due to misconduct in its Dubai branch, impacting historical results in the Middle East, India, and Asia Pacific.

Financial highlights

• Q3 net sales: $186.1 million (+3.1% YoY); nine months: $479.7 million (+1.7% YoY).

• Q3 gross profit: $101.1 million (54.3% margin); nine months: $260.0 million (54.2% margin).

• Q3 net income: $9.6 million; adjusted net income: $10.2 million; nine months: $14.0 million; adjusted nine months: $17.4 million.

• Q3 operating income: $11.7 million; adjusted operating income: $12.6 million.

• Cash and cash equivalents at quarter-end: $183.9 million; no debt.

Outlook and guidance

• No fiscal 2026 outlook provided due to economic uncertainty and unpredictable tariff impacts.

• U.S.-Switzerland trade agreement expected to reduce U.S. tariff rate on Swiss watches to 15%, about one-third of the previous rate.

• Cost-savings initiatives projected to yield annual savings of $10 million.

• Management does not expect new U.S. tax legislation (OBBBA) to have a material impact.

• Expecting to return to growth in the Middle East next year.