Movado Group (MOV) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 net sales declined 1.7% to $653.4 million; Q4 sales rose 3.3% to $181.5 million year-over-year.

• Adjusted operating income for the year was $27.1 million, with Q4 adjusted operating profit at $13.5 million.

• Adjusted EPS was $1.12 for the year and $0.51 for Q4; reported EPS was $0.81.

• Ended the year with $208.5 million in cash and no debt; quarterly dividend of $0.35 declared.

• Continued share repurchases, with $50 million remaining under authorization.

Significant events and developments

• Discovered and investigated financial irregularities in the Dubai sales office, resulting in leadership termination and restatement of financials for the past three years and interim periods.

• Implemented organizational restructuring and incurred a $1.8 million severance charge in Q4, expected to yield $10 million in annual savings.

• Non-recurring charges included $4.6 million for cost-savings initiatives, $2.5 million for professional fees, and $1.5 million for tax on foreign earnings repatriation.

Financial highlights

• Q4 sales increased 3.3% to $181.5 million; international net sales up 8.8% (12.2% in constant currency), US net sales down 2.9%.

• Gross margin for Q4 was 54.2%, up from 53.5% last year; full-year gross margin was 54.0%, down from 54.8%.

• Full-year net income was $18.4 million ($0.81 per share), with adjusted net income at $25.4 million ($1.12 per share).

• Operating expenses increased to $333.1 million, mainly due to higher marketing and non-recurring charges.

• Cash flow from operations was $76.8 million; capital expenditures totaled $8 million.