Luxury watch company Movado (NYSE: MOV) reported revenue ahead of Wall Street’s expectations in Q4 CY2025, with sales up 9.7% year on year to $191.6 million. Its non-GAAP profit of $0.57 per share was 5.6% above analysts’ consensus estimates.

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StockStory’s Take

Movado’s fourth quarter delivered better-than-expected results, with Wall Street responding positively to the company’s ability to grow sales and improve profitability. Management pointed to robust demand in the U.S., especially from younger consumers and women, as a key driver. CEO Efraim Grinberg highlighted that “continued strength in both the fashion watch and accessible luxury segment in the U.S.”, combined with successful in-store execution and refreshed product lines, supported the quarter’s outperformance. The company’s omnichannel approach and focus on digital engagement also contributed to increased sales and higher average selling prices.

Looking ahead, Movado’s outlook centers on continued product innovation, ongoing investments in brand storytelling, and navigating external risks such as tariffs and geopolitical uncertainty. Management emphasized the importance of new launches, including upcoming women’s models and expanded jewelry collections, to maintain momentum. CFO Sallie DeMarsilis noted the firm remains focused on supply chain efficiency and margin improvement, but cautioned that unpredictability in tariffs and the Middle East conflict could impact near-term planning. The company plans to leverage its strong cash position and consumer insights to adapt as conditions evolve.

Key Insights from Management’s Remarks

Movado’s management attributed the quarter’s performance to rising consumer demand in the U.S., product refreshes across brands, and improved in-store execution, while also navigating tariff-related challenges and global market uncertainties.

• U.S. retail and wholesale strength: Management reported that U.S. net sales grew strongly, driven by returning demand for both fashion and accessible luxury watches. Grinberg noted that the company saw “continued strength in both the fashion watch and accessible luxury segment in the U.S.”, with younger consumers and women playing a significant role in this resurgence.
• Brand and product refreshes: Movado’s own-brand wholesale sales rose over 25%, and e-commerce increased 18%, attributed to new initiatives like refreshed collections and jewelry-inspired designs. The mini bangle collection and 1917 Heritage Collection resonated particularly well, while higher-priced automatic watches gained traction among men.
• Licensed brand momentum: Licensed brands such as Coach, Hugo Boss, Lacoste, Tommy Hilfiger, Calvin Klein, and Olivia Burton each contributed with new product launches and targeted marketing. For instance, Coach’s growth was fueled by Gen Z engagement and successful collections, while Hugo Boss and Lacoste expanded in both men’s and women’s segments.
• Omnichannel and digital engagement: The company’s focus on omnichannel strategies and enhanced digital storytelling—bolstered by campaigns featuring celebrities and influencers—helped strengthen consumer connections and drive higher average selling prices, especially during the holiday season.
• Tariff and margin management: Despite the negative impact of U.S. and Swiss tariffs on cost of goods sold, Movado maintained stable gross margins through favorable product mix, pricing discipline, and operational efficiencies. DeMarsilis explained that tariff costs were partly offset by strategic sourcing and supply chain leverage as volumes increased.

Drivers of Future Performance

Movado’s outlook is shaped by its pipeline of new product launches, ongoing digital engagement, and external risks from tariffs and global volatility.

• Product pipeline expansion: Management plans to introduce new models like the Valeura women’s Museum watch, expand the Movado Bold collection, and grow jewelry offerings. These launches aim to sustain consumer interest, particularly among women and Gen Z, and support premium price points that could benefit margins.
• Supply chain and margin focus: The company is prioritizing operational efficiency, including better inventory management and leveraging increased volumes to offset cost pressures. CFO Sallie DeMarsilis stated that increased unit production should drive supply chain efficiency and support margin improvement, though ongoing tariffs remain a risk.
• Geopolitical and tariff uncertainty: Management highlighted headwinds from evolving U.S. and Swiss tariff regimes, as well as instability in the Middle East, which could impact sales and costs. The company is closely monitoring these factors and indicated it will adjust strategy as needed to preserve flexibility and profitability.

Catalysts in Upcoming Quarters

In upcoming quarters, the StockStory team will be monitoring (1) the effectiveness of new product launches and their ability to attract younger and female consumers, (2) the company’s ability to manage tariff-related cost pressures and preserve gross margins, and (3) progress in rebuilding inventory levels in high-demand segments. We will also track the impact of external geopolitical and economic developments on both U.S. and international sales.

Movado currently trades at $25.48, up from $23.10 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).

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