Movado Group reports Q4 earnings: revenue tops, earnings miss
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PARAMUS, N.J. – Movado Group, Inc. (NYSE: NYSE:MOV) has reported its financial results for the fourth quarter, revealing a mixed performance with a revenue beat but an earnings shortfall.
The luxury watchmaker announced a fourth-quarter adjusted EPS of $0.55, which fell short of the analyst consensus of $0.62. However, the company’s revenue outperformed expectations, coming in at $179.6 million against the estimated $174.8 million.
Despite the earnings miss, Movado’s revenue for the quarter represented a 7.5% decline from the previous year’s $194.3 million. The company attributed the decrease to lower sales in wholesale customers’ brick-and-mortar stores, online retail, and Movado Company Stores. U.S. net sales saw a 12.4% drop compared to the fourth quarter of the last fiscal year, while international sales decreased by 2.9%.
Chairman and CEO Efraim Grinberg commented on the results, stating, “We ended the year with revenue and diluted earnings per share at the high end and above our revised outlook, respectively.” He highlighted the positive reception of their holiday marketing initiatives and new product introductions, despite a challenging retail environment in the U.S. and Europe.
Looking ahead, Movado provided guidance for fiscal 2025 with expected net sales ranging from $700 million to $710 million and an EPS forecast of $1.20 to $1.30. This guidance is mixed when compared to the analyst consensus, which projected a significantly higher EPS of $2.23 but lower revenue of $667.8 million.
The company plans to make strategic investments in marketing to drive long-term growth, with the majority of revenue growth anticipated in the second half of the fiscal year.
Movado’s stock responded positively to the news, with a modest increase of 1.24% following the earnings release, indicating a favorable market reaction to the revenue beat and future growth prospects.
In the wake of the earnings announcement, Movado’s Board of Directors also declared a quarterly dividend and confirmed the continuation of the company’s share repurchase program. As Movado enters fiscal 2025, it remains focused on leveraging its strong brand portfolio and making necessary investments to enhance business growth and brand building for the long term.
