MOVADO GROUP INC
For the period ended Apr 30, 2025. Filed May 29, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Apr 30, 2025 · Filed May 29, 2025
MOV$31.03-0.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-10-31; filed 2024-12-05.
0000950170-24-133544
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-04-30; filed 2025-05-29.
0000950170-25-078622
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 108 previous paragraphs and 76 current paragraphs.
40 unchanged; 28 reworded; 6 added; 23 removed; 17 previous and 2 current paragraphs rearranged.
Tables are not compared: 4 previous and 2 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (6)
Current report
Tariffs
Current report
Most of the bands used in the production of the Company’s traditional watches, as well as most of the Company’s jewelry, are made in China and have been subject to a U.S. special 7.5% tariff since February 2020. In April 2025, the United States government imposed a baseline special tariff of 10% on products from all countries and an additional individualized reciprocal tariff on the countries with which the United States has the largest trade deficits, including special incremental tariffs of 31% on Swiss goods and 24% on Japanese goods. Later in April, the United States government implemented a 90-day pause on the country-specific tariffs for all countries except China, while maintaining the 10% baseline tariff. The special 10% tariff applies to substantially all other products imported by the Company, including all Swiss watches as well as all watch heads (i.e., the entirety of a watch other than the watch band) produced in the Far East (which generally have Japanese movements and are therefore considered products of Japan for U.S. customs purposes). These actions are expected to increase the Company’s cost of sales. However, the Company is developing plans to lessen the impact of these tariffs, including select price increases at the wholesale and retail levels, as well as possible operational changes that could result in a change in the country of origin for certain of the Company’s products.
Current report
In May 2025, the United States government announced a 90-day pause on most recent tariffs on Chinese imports, reducing the combined tariff on such imports from 145% to 30% during this period. Together with the special tariffs applicable to Chinese products implemented in 2018, the special tariffs on Chinese products implemented in 2025 have increased the total U.S. special tariff on Chinese packaging materials to 55% and on Chinese watch bands and jewelry to 37.5%.
Current report
If the paused reciprocal tariffs on Chinese, Swiss, Japanese and other countries’ goods were to go into effect, the Company would incur substantial additional increases in its cost of sales, and sales volumes into the United States would likely decline.
Current report
For the three months ended April 30, 2025 the Company recorded operating loss of less than $0.1 million in the Watch and Accessory Brands segment which includes $8.0 million of unallocated corporate expenses as well as $14.0 million of certain intercompany profits related to the Company’s supply chain operations. For the three months ended April 30, 2024, the Company recorded operating income of $1.7 million in the Watch and Accessory Brands segment which included $9.5 million of unallocated corporate expenses as well as $14.2 million of certain intercompany profits related to the Company’s supply chain operations. The $1.7 million change in operating income/loss was the result of a decrease in gross profit of $1.2 million combined with higher SG&A expenses of $0.5 million when compared to the prior year period. The decrease in gross profit was the result of lower net sales while the gross margin percentage remained flat with a negative impact of fluctuations in foreign exchange rates, increased shipping costs and the decreased leveraging of certain fixed costs as a result of lower sales, offset by the favorable impact of sales mix. The increase in SG&A expenses was primarily due to the following factors: a $2.7 million increase in foreign exchange losses mainly due to a highly volatile foreign currency environment and an increase in performance-based compensation of $1.0 million. These increases were partially offset by a decrease in payroll related expense of $2.3 million (which included severance costs of $0.6 million related to the cost-savings initiative) and lower marketing expense of $1.0 million.
Current report
In the International locations of the Watch and Accessory Brands segment, for the three months ended April 30, 2025, the Company recorded operating income of $7.0 million which includes $14.0 million of certain intercompany profits related to the Company’s International supply chain operations. For the three months ended April 30, 2024 the Company recorded operating income of $9.8 million in the International locations of the Watch and Accessory Brands segment which included $14.2 million of certain intercompany profits related to the Company’s supply chain operations. The decrease in operating income was the result of higher gross profit of $2.1 million offset by higher SG&A expenses of $4.9 million. The increase in gross profit of $2.1 million was primarily the result of a higher gross margin percentage primarily due to a favorable impact of sales mix and the positive impact of fluctuations in foreign exchange rates, partially offset by increased shipping costs and the decreased leveraging of certain fixed costs as a result of lower sales. The increase in SG&A expenses was primarily due to the following factors: a $2.7 million increase in foreign exchange losses mainly due to a highly volatile foreign currency environment, an increase in information technology related charges of $0.9 million and an increase in performance-based compensation of $0.2 million. These increases were partially offset by a decrease in payroll related expense (which included severance costs of $0.6 million related to the cost-savings initiative) of $0.6 million and lower marketing expense of $0.2 million.
Removed paragraphs (23)
Previous report
SG&A expenses for the three months ended October 31, 2024 were $91.8 million, representing an increase from the prior year period of $10.2 million, or 12.5%. The increase in SG&A expenses was primarily due to the following factors: higher marketing expenses of $5.8 million and an increase in payroll related expenses of $3.0 million (which included severance and payroll related costs of $2.7 million related to the cost-savings initiative discussed above under the "Recent Developments and Initiatives"). For the three months ended October 31, 2024, fluctuations in foreign currency rates related to the foreign subsidiaries unfavorably impacted SG&A expenses by $0.9 million when compared to the prior year period.
Previous report
For the three months ended October 31, 2024 the Company recorded operating income of $5.3 million in the Watch and Accessory Brands segment which includes $11.9 million of unallocated corporate expenses as well as $20.5 million of certain intercompany profits related to the Company’s supply chain operations. For the three months ended October 31, 2023, the Company recorded operating income of $18.5 million in the Watch and Accessory Brands segment which included $14.3 million of unallocated corporate expenses as well as $22.9 million of certain intercompany profits related to the Company’s supply chain operations. The decrease in operating income of $13.2 million was the result of a decrease in gross profit of $2.8 million combined with higher SG&A expenses of $10.4 million when compared to the prior year period. The decrease in gross profit was the result of lower net sales combined with a lower gross margin percentage primarily due to an unfavorable impact of sales mix, the decreased leveraging of certain fixed costs as a result of lower sales and a negative impact of fluctuations in foreign exchange rates. The increase in SG&A expenses of $10.4 million was primarily due to the following factors: higher marketing expenses of $5.7 million and an increase in payroll related expenses of $2.9 million (which included severance and payroll related costs of $2.7 million related to the cost-savings initiative).
Previous report
In the United States locations of the Watch and Accessory Brands segment, for the three months ended October 31, 2024, the Company recorded operating loss of $16.0 million which includes unallocated corporate expenses of $11.9 million. For the three months ended
Previous report
In the International locations of the Watch and Accessory Brands segment, for the three months ended October 31, 2024, the Company recorded operating income of $21.3 million which includes $20.5 million of certain intercompany profits related to the Company’s International supply chain operations. For the three months ended October 31, 2023 the Company recorded operating income of $25.8 million in the International locations of the Watch and Accessory Brands segment which included $22.9 million of certain intercompany profits related to the Company’s supply chain operations. The decrease in operating income was the result of lower gross profit of $0.2 million combined with higher SG&A expenses of $4.3 million. The decrease in gross profit of $0.2 million was primarily the result of a lower gross margin percentage primarily due to an unfavorable impact of sales mix and a negative impact of fluctuations in foreign exchange rates. The increase in SG&A expenses of $4.3 million was primarily due to the following factors: an increase in payroll related expenses of $2.2 million (which included severance and payroll related costs of $1.2 million related to the cost-savings initiative) and higher marketing expenses of $0.6 million.
Previous report
Results of operations for the nine months ended October 31, 2024 as compared to the nine months ended October 31, 2023
Previous report
Net Sales
Previous report
Net sales for the nine months ended October 31, 2024 were $478.7 million, representing a $14.3 million or 2.9% decrease from the prior year period. Both of the Company's operating segments experienced net sales declines. For the nine months ended October 31, 2024, fluctuations in foreign currency exchange rates had positively impacted net sales by $1.7 million when compared to the prior year period. Excluding this $1.7 million impact, net sales would have decreased by 3.2% as compared to the prior year period.
Previous report
Net sales for the nine months ended October 31, 2024 in the Watch and Accessory Brands segment were $415.2 million, below the prior year period by $9.6 million, or 2.3%. The decrease in net sales was primarily due to unfavorable sales mix and decreased volumes resulting from lower demand in the Company's wholesale customers, mainly in the United States locations, partially offset by an increase in online retail in the United States locations and the positive impact of fluctuations in foreign exchange rates.
Previous report
Net sales for the nine months ended October 31, 2024 in the United States locations of the Watch and Accessory Brands segment were $137.2 million, below the prior year period by $4.7 million, or 3.3%, resulting primarily from unfavorable sales mix and decreased volumes due to lower demand in the Company's wholesale customers, partially offset by an increase in online retail. The net sales recorded in the owned brands category decreased $9.2 million, or 8.4%, partially offset by an increase in net sales recorded in the licensed brand category of $4.2 million, or 13.3%.
Previous report
Company Stores Net Sales
Previous report
Gross Profit
Previous report
For the nine months ended October 31, 2024 the Company recorded operating income of $7.5 million in the Watch and Accessory Brands segment which includes $30.0 million of unallocated corporate expenses as well as $48.8 million of certain intercompany profits related to the Company’s supply chain operations. For the nine months ended October 31, 2023, the Company recorded operating income of $31.9 million in the Watch and Accessory Brands segment which included $36.0 million of unallocated corporate expenses as well as $55.4 million of certain intercompany profits related to the Company’s supply chain operations. The decrease in operating income was the result of a decrease in gross profit of $10.2 million combined with higher SG&A expenses of $14.2 million when compared to the prior year period. The decrease in gross profit was the result of lower net sales combined with a lower gross margin percentage primarily due to an unfavorable impact of sales mix, the decreased leveraging of certain fixed costs as a result of lower sales and a negative impact of fluctuations in foreign exchange rates. The increase in SG&A expenses of $14.2 million was primarily due to the following factors: higher marketing expenses of $10.8 million and an increase in payroll related expenses of $4.1 million (which included severance and payroll related costs of $2.7 million related to the cost-savings initiative). These increases in SG&A expenses were partially offset by a decrease in performance-based compensation of $0.5 million and a decrease of $0.5 million in amortization expense related to certain intangible assets being fully amortized.
Previous report
In the United States locations of the Watch and Accessory Brands segment, for the nine months ended October 31, 2024, the Company recorded an operating loss of $34.1 million which includes unallocated corporate expenses of $30.0 million. For the nine months ended October 31, 2023 the Company recorded an operating loss of $26.7 million in the United States locations of the Watch and Accessory Brands segment which included unallocated corporate expenses of $36.0 million. The increase in operating loss was the result of a decrease in gross profit of $1.2 million combined with an increase in SG&A expenses of $6.2 million when compared to the prior year period. The decrease in gross profit of $1.2 million was the result of lower net sales, partially offset by a higher gross margin percentage primarily due to the favorable impact of sales mix, partially offset by the decreased leveraging of certain fixed costs as a result of lower sales. The increase in SG&A expenses of $6.2 million was primarily due to the following factors: higher marketing expenses of $5.9 million and an increase in payroll related expenses of $1.3 million (which included severance and payroll related costs of $1.5 million related to the cost-savings initiative). These increases in SG&A expenses were partially offset by a decrease in performance-based compensation of $0.5 million.
Previous report
In the International locations of the Watch and Accessory Brands segment, for the nine months ended October 31, 2024, the Company recorded operating income of $41.6 million which includes $48.8 million of certain intercompany profits related to the Company’s International supply chain operations. For the nine months ended October 31, 2023 the Company recorded operating income of $58.6 million in the International locations of the Watch and Accessory Brands segment which included $55.4 million of certain intercompany profits related to the Company’s supply chain operations. The decrease in operating income was the result of lower gross profit of $9.0 million combined with higher SG&A expenses of $8.0 million. The decrease in gross profit of $9.0 million was the result of lower net sales, combined with a lower gross margin percentage primarily due to an unfavorable impact of sales mix, the decreased leveraging of certain fixed costs as a result of lower sales and a negative impact of fluctuations in foreign exchange rates. The increase in SG&A expenses of $8.0 million was primarily due was primarily due to the following factors: higher marketing expenses of $4.9 million and an increase in payroll related expenses of $2.8 million (which included severance and payroll related costs of $1.2 million related to the cost-savings initiative). These increases in SG&A expenses were partially offset by a decrease of $0.5 million in amortization expense related to certain intangible assets being fully amortized.
Previous report
Company Stores Operating Income
Previous report
The Company recorded operating income of $5.4 million and $9.3 million in the Company Stores segment for the nine months ended October 31, 2024 and 2023, respectively. The decrease in operating income of $3.9 million was primarily related to a decrease in gross profit of $3.2 million, mainly due to lower sales combined with a lower gross margin percentage, and higher SG&A expenses of $0.7 million primarily due to an increase in payroll related expenses of $0.4 million and higher marketing expenses of $0.3 million. As of October 31, 2024, and 2023, the Company Stores segment operated 56 and 55 retail outlet locations, respectively.
Previous report
Other Non-Operating Income, net
Previous report
The Company recorded other income, net of $5.6 million primarily due to interest income for the nine months ended October 31, 2024.
Previous report
For the nine months ended October 31, 2023, the Company recorded other income, net of $4.2 million primarily due to interest income, partially offset by a $0.5 million impairment related to an equity investment in a consumer products company that sold its business and assets in a transaction that yielded little return for equity holders.
Previous report
Interest Expense
Previous report
Income Taxes
Previous report
The Company recorded an income tax provision of $5.7 million and $9.9 million for the nine months ended October 31, 2024 and 2023, respectively.
Previous report
The Company recorded net income attributable to Movado Group, Inc. of $11.7 million and $34.6 million for the nine months ended October 31, 2024 and 2023, respectively.
Reworded paragraphs (28)
Previous wording
Statements in this Quarterly Report on Form 10-Q, including, without limitation, statements under Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in this report, as well as statements in future filings by the Company with the Securities and Exchange Commission (the “SEC”), in the Company’s press releases and oral statements made by or with the approval of an authorized executive officer of the Company, which are not historical in nature, are intended to be, and are hereby identified as, “forward-looking statements” for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, estimates, forecasts and projections about the Company, its future performance, the industry in which the Company operates and management’s assumptions. Words such as “expects”, “anticipates”, “targets”, “goals”, “projects”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “may”, “will”, “should” and variations of such words and similar expressions are also intended to identify such forward-looking statements. The Company cautions readers that forward-looking statements include, without limitation, those relating to the Company’s future business prospects, projected operating or financial results, revenues, working capital, liquidity, capital needs, inventory levels, plans for future operations, expectations regarding capital expenditures, operating efficiency initiatives and other items, cost-savings initiatives, and operating expenses, effective tax rates, margins, interest costs, and income as well as assumptions relating to the foregoing. Forward-looking statements are subject to certain risks and uncertainties, some of which cannot be predicted or quantified. Actual results and future events could differ materially from those indicated in the forward-looking statements, due to several important factors herein identified, among others, and other risks and factors identified from time to time in the Company’s reports filed with the SEC, including, without limitation, the following: general economic and business conditions which may impact disposable income of consumers in the United States and the other significant markets (including Europe) where the Company’s products are sold; uncertainty regarding such economic and business conditions, including inflation, elevated interest rates; increased commodity prices and tightness in the labor market; trends in consumer debt levels and bad debt write-offs; general uncertainty related to geopolitical concerns; the impact of international hostilities, including the Russian invasion of Ukraine and war in the Middle East, on global markets, economies and consumer spending, on energy and shipping costs, and on the Company's supply chain and suppliers; supply disruptions, delivery delays and increased shipping costs; defaults on or downgrades of sovereign debt and the impact of any …
Excerpt shortened here; the source contains the full paragraph.
Current wording
Statements in this Quarterly Report on Form 10-Q, including, without limitation, statements under Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in this report, as well as statements in future filings by the Company with the Securities and Exchange Commission (the “SEC”), in the Company’s press releases and oral statements made by or with the approval of an authorized executive officer of the Company, which are not historical in nature, are intended to be, and are hereby identified as, “forward-looking statements” for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, estimates, forecasts and projections about the Company, its future performance, the industry in which the Company operates and management’s assumptions. Words such as “expects”, “anticipates”, “targets”, “goals”, “projects”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “may”, “will”, “should” and variations of such words and similar expressions are also intended to identify such forward-looking statements. The Company cautions readers that forward-looking statements include, without limitation, those relating to the Company’s future business prospects, projected operating or financial results, revenues, working capital, liquidity, capital needs, inventory levels, plans for future operations, expectations regarding capital expenditures, operating efficiency initiatives and other items, cost-savings initiatives, and operating expenses, effective tax rates, margins, interest costs, and income as well as assumptions relating to the foregoing. Forward-looking statements are subject to certain risks and uncertainties, some of which cannot be predicted or quantified. Actual results and future events could differ materially from those indicated in the forward-looking statements, due to several important factors herein identified, among others, and other risks and factors identified from time to time in the Company’s reports filed with the SEC, including, without limitation, the following: the Company's ability to implement and maintain effective internal control over financial reporting in the future; plans to remediate the material weakness with respect to the Company's internal control over financial reporting and disclosure controls and procedures; general economic and business conditions which may impact disposable income of consumers in the United States and the other significant markets (including Europe) where the Company’s products are sold; uncertainty regarding such economic and business conditions, including inflation and elevated interest rates; increased commodity prices and tightness in the labor market; trends in consumer debt levels and bad debt write-offs; general uncertainty related to geopolitical concerns; the increase in tariffs and other trade barriers; the impact of international hostilities, including th…
Excerpt shortened here; the source contains the full paragraph.
Previous wording
During the third quarter of fiscal year 2025, in light of the ongoing challenging consumer-spending environment, the Company committed to a cost-savings initiative to reduce operating expenses through headcount reductions, bringing them more in line with sales and recorded $2.7 million in severance and payroll related charges. The Company expects the severance and payroll related expenses to be paid out within the next twelve months; $0.3 million of which was paid during the third quarter of fiscal year 2025. The Company expects go-forward annual savings from the cost-savings initiatives of approximately $6.5 million.
Current wording
During fiscal year 2025, in light of the ongoing challenging consumer-spending environment, the Company committed to a cost-savings initiative to reduce operating expenses through headcount reductions, bringing them more in line with sales. As a result of this initiative, during fiscal year 2025, the Company recorded $4.6 million in accruals for severance and employee-related charges and early lease termination charges and an additional $0.6 million was recorded in accruals for severance and employee-related charges during the first three months of fiscal year 2026. Of the total amount recorded, $1.3 million was paid related to severance and employee related charges during fiscal year 2025, and $1.0 million paid related to severance and employee-related charges during the first three months of fiscal year 2026, with the balance expected to be paid during the remainder of fiscal year 2026. The Company expects go-forward annual savings from the cost-savings initiatives of approximately $10.0 million.
Previous wording
The OECD has issued Pillar Two model rules implementing a new global minimum tax of 15%, which was intended to be effective on January 1, 2024. While the U.S. has not yet adopted the Pillar Two rules, several other countries have adopted and enacted changes to their legislation in response to Pillar Two. The Company's turnover currently does not meet the minimum requirements that were set by OECD inclusive framework and rules. Although the Company will continue to evaluate and monitor the enactments of Pillar Two, to the extent that Pillar Two becomes applicable, the Company does not expect a material impact on its Consolidated Financial Statements.
Current wording
The Organization for Economic Cooperation and Development ("OECD") has issued Pillar Two model rules implementing a new global minimum tax of 15%, which was intended to be effective on January 1, 2024. While several countries have adopted and enacted changes to their legislation in response to Pillar Two, in January 2025, the President of the United States issued an executive order announcing the United States’ opposition to aspects of these rules. The Company's revenue currently does not meet the minimum requirements that were set by OECD inclusive framework and rules. Although the Company will continue to evaluate and monitor the enactments of Pillar Two, to the extent that Pillar Two becomes applicable, the Company does not expect a material impact on its Consolidated Financial Statements.
Previous wording
The following is a discussion of the results of operations for the three and nine months ended October 31, 2024 compared to the three and nine months ended October 31, 2023, along with a discussion of the changes in financial condition during the first nine months of fiscal 2025. The Company’s results of operations for the first nine months of fiscal 2025 should not be deemed indicative of the results that the Company will experience for the full year of fiscal 2025. See “Recent Developments and Initiatives” above. See also “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended January 31, 2024 filed with the Securities and Exchange Commission on March 26, 2024.
Current wording
The following is a discussion of the results of operations for the three months ended April 30, 2025 compared to the three months ended April 30, 2024, along with a discussion of the changes in financial condition during the first three months of fiscal 2026. The Company’s results of operations for the first three months of fiscal 2026 should not be deemed indicative of the results that the Company will experience for the full year of fiscal 2026. See “Recent Developments and Initiatives” above. See also “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended January 31, 2025 filed with the Securities and Exchange Commission on April 16, 2025.
Previous wording
Net sales for the three months ended October 31, 2024 were $182.7 million, representing a $5.0 million or 2.6% decrease from the prior year period. Both of the Company's operating segments experienced net sales declines. For the three months ended October 31, 2024, fluctuations in foreign currency exchange rates positively impacted net sales by $1.7 million when compared to the prior year period. Excluding this $1.7 million impact, net sales would have decreased by 3.5% as compared to the prior year period.
Current wording
Net sales for the three months ended April 30, 2025 were $131.8 million, representing a $2.6 million or 1.9% decrease from the prior year period. For the three months ended April 30, 2025, fluctuations in foreign currency exchange rates negatively impacted net sales by $1.2 million when compared to the prior year period. Excluding this $1.2 million impact, net sales would have decreased by 1.0% as compared to the prior year period.
Previous wording
Net sales for the three months ended October 31, 2024 in the Watch and Accessory Brands segment were $161.9 million, below the prior year period by $3.3 million, or 2.0%. The decrease in net sales was primarily due to unfavorable sales mix and decreased volumes resulting from lower demand in the Company's wholesale customers, mainly in the United States locations, partially offset by an increase in online retail in the United States locations and the positive impact of fluctuations in foreign exchange rates.
Current wording
Net sales for the three months ended April 30, 2025 in the Watch and Accessory Brands segment were $114.8 million, below the prior year period by $2.3 million, or 2.0%. The decrease in net sales was primarily due to unfavorable sales mix, with a decrease in net sales recorded in the owned brands category of $6.8 million, or 17.0%, partially offset by an increase in net sales recorded in the licensed brands category of $6.2 million, or 8.3%, and the negative impact of fluctuations in foreign exchange rates.
Previous wording
Net sales for the three months ended October 31, 2024 in the United States locations of the Watch and Accessory Brands segment were $51.6 million, below the prior year period by $3.7 million, or 6.7%, resulting primarily from unfavorable sales mix and decreased volumes resulting from lower demand in the Company's wholesale customers, partially offset by an increase in online retail. The net sales recorded in the owned brands category decreased $5.4 million, or 13.1%, partially offset by an increase in net sales recorded in the licensed brands category of $2.8 million, or 20.6%.
Current wording
Net sales for the three months ended April 30, 2025 in the United States locations of the Watch and Accessory Brands segment were $38.6 million, below the prior year period by $0.5 million, or 1.4%, resulting primarily from unfavorable sales mix. The net sales recorded in the owned brands category decreased $3.7 million, or 12.5%, partially offset by an increase in net sales recorded in the licensed brands category of $3.2 million, or 37.0%.
Previous wording
Net sales for the three months ended October 31, 2024 in the International locations of the Watch and Accessory Brands segment were $110.3 million, above the prior year by $0.4 million, or 0.4%, which included fluctuations in foreign currency exchange rates that positively impacted net sales by $1.7 million when compared to the prior year period. The increase in net sales was primarily due to the positive impact of fluctuations in foreign exchange rates, partially offset by unfavorable sales mix. The net sales increase recorded in the owned brands category was $0.3 million, or 2.3%, due to net sales increases in Asia and Europe, partially offset by net sales decreases in the Middle East and the Americas (excluding the United States). The net sales increase recorded in the licensed brands category was $1.3 million, or 1.3%, primarily due to net sales increases in the Americas (excluding the United States), Asia and the Middle East, partially offset by a net sales decrease in Europe.
Current wording
Net sales for the three months ended April 30, 2025 in the International locations of the Watch and Accessory Brands segment were $76.2 million, below the prior year by $1.8 million, or 2.3%, which included fluctuations in foreign currency exchange rates that negatively impacted net sales by $1.2 million when compared to the prior year period. The decrease in net sales was primarily due to unfavorable sales mix and the negative impact of fluctuations in foreign exchange rates. The net sales decrease recorded in the owned brands category was $3.1 million, or 29.5%, due to net sales decreases across all regions. The net sales increase recorded in the licensed brands category was $3.0 million, or 4.5%, primarily due to net sales increases in Europe, the Middle East and the Americas (excluding the United States), partially offset by a net sales decrease in Asia.
Previous wording
Net sales for the three months ended October 31, 2024 in the Company Stores segment were $20.9 million, $1.7 million or 7.5% below the prior year period. The net sales decrease was primarily due to unfavorable sales mix in the Company stores, partially offset by an increase in sales from the Company's online outlet store at www.movadocompanystore.com. As of October 31, 2024 and 2023, the Company operated 56 and 55 retail outlet locations, respectively.
Current wording
Net sales for the three months ended April 30, 2025 in the Company Stores segment were $17.0 million, $0.3 million or 1.7% below the prior year period. The net sales decrease was primarily due to unfavorable sales mix in the Company stores, partially offset by a new store opening. The net sales related to the Company's online outlet store at www.movadocompanystore.com were relatively flat as compared to the prior year period. As of April 30, 2025 and 2024, the Company operated 56 and 55 retail outlet locations, respectively.
Previous wording
Gross profit for the three months ended October 31, 2024 was $98.4 million or 53.8% of net sales as compared to $102.3 million or 54.5% of net sales in the prior year period. The decrease in gross profit of $3.9 million was due to lower net sales combined with a lower gross margin percentage. The decrease in the gross margin percentage of approximately 70 basis points for the three months ended October 31, 2024 reflected an unfavorable impact of sales mix of approximately 40 basis points, the decreased leveraging of certain fixed costs as a result of lower sales of approximately 20 basis points and a negative impact of fluctuations in foreign exchange rates of approximately 10 basis points.
Current wording
Gross profit for the three months ended April 30, 2025 was $71.4 million or 54.1% of net sales as compared to $72.9 million or 54.3% of net sales in the prior year period. The decrease in gross profit of $1.5 million was due to lower net sales combined with a lower gross margin percentage. The decrease in the gross margin percentage of approximately 20 basis points for the three months ended April 30, 2025 reflected a negative impact of fluctuations in foreign exchange rates of approximately 100 basis points, approximately 30 basis points due to increased shipping costs and the decreased leveraging of certain fixed costs as a result of lower sales of approximately 20 basis points, partially offset by the favorable impact of sales mix of approximately 130 basis points.
Previous wording
SG&A expenses for the nine months ended October 31, 2024 were $247.4 million, representing an increase from the prior year period of $15.0 million, or 6.5%. The increase in SG&A expenses was primarily due to the following factors: higher marketing expenses of $11.1 million and an increase in payroll related expenses of $4.5 million (which included severance and payroll related costs of $2.7 million related to the cost-savings initiative). These increases in SG&A expenses were partially offset by a decrease of $0.5 million in amortization expense related to certain intangible assets being fully amortized and a decrease in performance-based compensation of $0.4 million. For the nine months ended October 31, 2024, fluctuations in foreign currency rates related to the foreign subsidiaries unfavorably impacted SG&A expenses by $0.8 million when compared to the prior year period.
Current wording
SG&A expenses for the three months ended April 30, 2025 were $71.1 million, representing an increase from the prior year period of $0.3 million, or 0.4%. The increase in SG&A expenses was primarily due to the following factors: a $2.7 million increase in foreign exchange losses mainly due to a highly volatile foreign currency environment and an increase in performance-based compensation of $1.0 million. These increases were partially offset by a decrease in payroll related expense of $2.4 million (which included severance costs of $0.6 million related to the cost-savings initiative discussed above under "Recent Developments and Initiatives") and lower marketing expense of $1.2 million. For the three months ended April 30, 2025, fluctuations in foreign currency rates related to the foreign subsidiaries unfavorably impacted SG&A expenses by $1.5 million when compared to the prior year period.
Previous wording
October 31, 2023 the Company recorded an operating loss of $7.3 million in the United States locations of the Watch and Accessory Brands segment which included unallocated corporate expenses of $14.3 million. The increase in operating loss was the result of a decrease in gross profit of $2.7 million combined with an increase in SG&A expenses of $6.0 million when compared to the prior year period. The decrease in gross profit of $2.7 million was the result of lower net sales combined with a lower gross margin percentage primarily due to the unfavorable impact of sales mix and the decreased leveraging of certain fixed costs as a result of lower sales. The increase in SG&A expenses of $6.0 million was primarily due to the following factors: higher marketing expenses of $5.1 million and an increase in payroll related expenses of $0.7 million (which included severance and payroll related costs of $1.5 million related to the cost-savings initiative).
Current wording
In the United States locations of the Watch and Accessory Brands segment, for the three months ended April 30, 2025, the Company recorded operating loss of $7.0 million which includes unallocated corporate expenses of $8.0 million. For the three months ended April 30, 2024 the Company recorded an operating loss of $8.1 million in the United States locations of the Watch and Accessory Brands segment which included unallocated corporate expenses of $9.5 million. The decrease in operating loss was the result of a decrease in gross profit of $3.3 million offset by a decrease in SG&A expenses of $4.4 million when compared to the prior year period. The decrease in gross profit of $3.3 million was the result of lower net sales combined with a lower gross margin percentage primarily due to the negative impact of fluctuations in foreign exchange rates. The decrease in SG&A expenses was primarily due to the following factors: a decrease in payroll related expenses of $1.7 million, a decrease in information technology related charges of $1.0 million and lower marketing expenses of $0.8 million. These increases were partially offset by an increase in performance-based compensation of $0.8 million.
Previous wording
The Company recorded operating income of $1.3 million and $2.2 million in the Company Stores segment for the three months ended October 31, 2024 and 2023, respectively. The decrease in operating income of $0.9 million was primarily related to a decrease in gross profit of $1.1 million, due to lower sales combined with a lower gross margin percentage, partially offset by lower SG&A expenses of $0.2 million. As of October 31, 2024, and 2023, the Company Stores segment operated 56 and 55 retail outlet locations, respectively.
Current wording
The Company recorded operating income of $0.3 million and $0.5 million in the Company Stores segment for the three months ended April 30, 2025 and 2024, respectively. The decrease in operating income of $0.2 million was primarily related to a decrease in gross profit of $0.4 million, mainly due to lower sales combined with a lower gross margin percentage, partially offset by lower SG&A expenses of $0.2 million primarily due to lower marketing expenses. As of April 30, 2025, and 2024, the Company Stores segment operated 56 and 55 retail outlet locations, respectively.
Previous wording
The Company recorded other income, net of $1.5 million and $1.6 million for the three months ended October 31, 2024 and October 31, 2023, respectively, primarily due to interest income.
Current wording
The Company recorded other income, net of $1.8 million and $2.2 million for the three months ended April 30, 2025 and April 30, 2024, respectively, primarily due to interest income.
Previous wording
The Company recorded an income tax provision of $2.5 million and $4.5 million for the three months ended October 31, 2024 and 2023, respectively.
Current wording
The Company recorded an income tax provision of $0.7 million and $2.0 million for the three months ended April 30, 2025 and 2024, respectively.
Previous wording
The effective tax rate was 31.5% and 20.4% for the three months ended October 31, 2024 and 2023, respectively. The significant components of the effective tax rate changed primarily due to the tax consequences of a foreign currency gain related to an extraordinary intercompany dividend, an increase in valuation allowances against certain foreign losses and a limitation on a portion of the foreign tax credits and deductions related to the tax on Global Intangible Low-Taxed Income ("GILTI").
Current wording
The effective tax rate was 34.0% and 48.7% for the three months ended April 30, 2025 and 2024, respectively. The significant components of the effective tax rate changed primarily due to changes in valuation allowances against certain foreign losses and a limitation on a portion of the foreign tax credits and deductions related to the tax on Global Intangible Low-Taxed Income ("GILTI"), partially offset by excess tax deficiencies related to stock-based compensation and changes in jurisdictional earnings.
Previous wording
The Company recorded net income attributable to Movado Group, Inc. of $5.1 million and $17.4 million for the three months ended October 31, 2024 and 2023, respectively.
Current wording
The Company recorded net income attributable to Movado Group, Inc. of $1.4 million and $2.0 million for the three months ended April 30, 2025 and 2024, respectively.
Previous wording
At October 31, 2024 and October 31, 2023, the Company had $181.5 million and $201.0 million, respectively, of cash and cash equivalents. Of this total, $68.3 million and $130.5 million, respectively, consisted of cash and cash equivalents at the Company's foreign subsidiaries.
Current wording
At April 30, 2025 and April 30, 2024, the Company had $203.1 million and $225.4 million, respectively, of cash and cash equivalents. Of this total, $86.4 million and $155.5 million, respectively, consisted of cash and cash equivalents at the Company's foreign subsidiaries.
Previous wording
At October 31, 2024 the Company had working capital of $398.4 million as compared to $412.1 million at October 31, 2023. The decrease in working capital was primarily the result of a decrease in cash and an increase in accounts payable, partially offset by an increase in trade receivables and a decrease in income taxes payable. The Company defines working capital as the difference between current assets and current liabilities.
Current wording
At April 30, 2025 the Company had working capital of $385.5 million as compared to $398.5 million at April 30, 2024. The decrease in working capital was primarily the result of a decrease in cash and an increase in accrued liabilities, partially offset by an increase in inventories. The Company defines working capital as the difference between current assets and current liabilities.
Previous wording
The Company had $40.6 million of cash used in operating activities for the nine months ended October 31, 2024 as compared to $7.4 million of cash provided by operating activities for the nine months ended October 31, 2023. Cash used in operating activities for the nine months ended October 31, 2024 included net income of $12.4 million, positively adjusted by $14.8 million related to non-cash items. Cash used in operating activities for the nine months ended October 31, 2024 included a $37.0 million increase in trade receivables due to timing of receipts and change in sales mix during the quarter, a $24.7 million increase in investment in inventories primarily due to timing of receipts to align with sales levels and increases in net payments related to taxes, other current assets, accrued liabilities, accrued payroll and benefits and accounts payable totaling $2.9 million primarily due to timing. Cash provided by operating activities for the nine months ended October 31, 2023 included net income of $35.1 million, positively adjusted by $15.5 million related to non-cash items. Cash provided by operating activities for the nine months ended October 31, 2023 included an increase in accrued liabilities of $12.3 million primarily as a result of timing of payments and a $10.8 million decrease in investment in inventories primarily due to timing of receipts to align with sales levels, partially offset by an increase of $42.0 million in trade receivables a a result of timing of receipts and change in sales mix, a change in income taxes of $14.5 million primarily due to timing of payments, a decrease in accounts payable of $7.5 million primarily due to timing of payments and a decrease in accrued payroll and benefits of $7.0 million primarily as a result of payments of performance-based compensation.
Current wording
The Company had $7.2 million of cash used in operating activities for the three months ended April 30, 2025 as compared to $18.1 million of cash used in operating activities for the three months ended April 30, 2024. Cash used in operating activities for the three months ended April 30, 2025 included net income of $1.3 million, positively adjusted by $2.9 million related to non-cash items. Cash used in operating activities for the three months ended April 30, 2025 included a $26.7 million increase in investment in inventories primarily due to timing of receipts. Cash provided by operating activities for the three months ended April 30 2025 included a $9.6 million decrease in trade receivables due to timing of receipts and change in sales mix during the quarter and decreases in net payments related to taxes, other current assets, accrued liabilities, accrued payroll and benefits and accounts payable totaling $5.5 million primarily due to timing. Cash used in operating activities for the three months ended April 30, 2024 included net income of $2.1 million, positively adjusted by $3.5 million related to non-cash items. Cash used in operating activities for the three months ended April 30, 2024 included a $15.7 million increase in investment in inventories primarily due to timing of receipts to align with sales levels and net tax related payments of $9.1 million primarily due to timing.
Previous wording
Cash used in investing activities was $11.9 million for the nine months ended October 31, 2024 as compared to cash used in investing activities of $8.8 million for the nine months ended October 31, 2023. The cash used in the nine months ended October 31, 2024 was primarily related to capital expenditures of $6.4 million mainly due to expenditures related to Company stores and shop-in-shops and $5.5 million of long-term investments. Cash used in investing activities for the nine months ended October 31, 2023 included $6.6 million of capital expenditures and $2.0 million of long-term investments.
Current wording
Cash used in investing activities was $2.8 million for the three months ended April 30, 2025 as compared to cash used in investing activities of $4.8 million for the three months ended April 30, 2024. The cash used in the three months ended April 30, 2025 was primarily related to capital expenditures of $1.5 million mainly due to expenditures related to Company stores and shop-in-shops and $1.3 million of long-term investments. Cash used in investing activities for the three months ended April 30, 2024 included $3.1 million of long-term investments and $1.6 million of capital expenditures.
Previous wording
Cash used in financing activities was $27.0 million for the nine months ended October 31, 2024 as compared to cash used in financing activities of $48.6 million for the nine months ended October 31, 2023. The cash used in the nine months ended October 31, 2024 included $23.3 million in dividends paid, $2.6 million in stock repurchased in the open market and $1.2 million of shares repurchased as a result of the surrender of shares by employees in connection with the vesting of certain stock awards. Cash used in financing activities for the nine months ended October 31, 2023 included $45.4 million in dividends paid, which included a special cash dividend of $1.00 per share, and $2.3 million in stock repurchased in the open market.
Current wording
Cash used in financing activities was $0.5 million for the three months ended April 30, 2025 as compared to cash used in financing activities of $9.9 million for the three months ended April 30, 2024. The cash used in the three months ended April 30, 2025 was due to $0.5 million of shares repurchased as a result of the surrender of shares by employees in connection with the vesting of certain stock awards. In addition, during the three months ended April 30, 2025, the Company declared a cash dividend of $0.35 per share for $7.8 million, payable on May 6, 2025. Cash used in financing activities for the three months ended April 30, 2024 included $7.8 million in dividends paid, $1.1 million in stock repurchased in the open market and $1.0 million of shares repurchased as a result of the surrender of shares in connection with the vesting of certain stock awards.
Previous wording
The Company had weighted average borrowings under the Facility of zero during both the three and nine months ended October 31, 2024 and 2023, respectively.
Current wording
The Company had weighted average borrowings under the Facility of zero during both the three months ended April 30, 2025 and 2024, respectively.
Previous wording
The Company's Swiss subsidiary maintains unsecured lines of credit with a Swiss bank that are subject to repayment upon demand. As of October 31, 2024, and 2023, these lines of credit totaled 6.5 million Swiss Francs for both periods, with a dollar equivalent of $7.5 million and $7.1 million, respectively. As of October 31, 2024, and 2023, there were no borrowings against these lines. As of October 31, 2024 and 2023, two European banks had guaranteed obligations to third parties on behalf of two of the Company’s foreign subsidiaries in the dollar equivalent of $1.4 million and $1.5 million, respectively, in various foreign currencies, of which $0.8 million and $0.8 million ($0.1 million was refunded in November 2023), respectively, was a restricted deposit as it relates to lease agreements.
Current wording
The Company's Swiss subsidiary maintains unsecured lines of credit with a Swiss bank that are subject to repayment upon demand. As of April 30, 2025, and 2024, these lines of credit totaled 6.5 million Swiss Francs for both periods, with a dollar equivalent of $7.9 million and $7.1 million, respectively. As of April 30, 2025, and 2024, there were no borrowings against these lines. As of April 30, 2025 and 2024, two European banks had guaranteed obligations to third parties on behalf of two of the Company’s foreign subsidiaries in the dollar equivalent of $1.5 million and $1.3 million, respectively, in various foreign currencies, of which $0.8 million for both periods, was a restricted deposit as it relates to lease agreements.
Previous wording
Cash paid for interest, including unused commitments fees, was $0.2 million for both the nine month periods ended October 31, 2024 and October 31, 2023, respectively.
Current wording
Cash paid for interest, including unused commitments fees, was $0.1 million for both the three month periods ended April 30, 2025 and April 30, 2024, respectively.
Previous wording
From time to time the Company may make minority investments in growth companies in the consumer products sector and other sectors relevant to its business, including certain of the Company's suppliers and customers, as well as in venture capital funds that invest in companies in media, entertainment, information technology and technology-related fields and in digital assets. During fiscal 2022, the Company committed to invest up to $21.5 million in such investments. The Company funded approximately $8.4 million of these commitments through fiscal 2024 and an additional $5.5 million during the first nine months of fiscal 2025 and may be called upon to satisfy capital calls in respect of the remaining $7.7 million in such commitments at any time during a period generally ending ten years after the first capital call in respect of a given commitment. One consumer products company in which the Company made an equity investment in fiscal year 2022 sold its business and assets in the first quarter of fiscal 2024 in a transaction that yielded little return for equity holders. As a result, the Company fully impaired its $0.5 million investment in this entity in the first quarter of fiscal 2024.
Current wording
From time to time the Company may make minority investments in growth companies in the consumer products sector and other sectors relevant to its business, including certain of the Company's suppliers and customers, as well as in venture capital funds that invest in companies in media, entertainment, information technology and technology-related fields and in digital assets. During fiscal 2022, the Company committed to invest up to $21.5 million in such investments. The Company funded approximately $14.1 million of these commitments through fiscal 2025 and an additional $1.3 million during the first three months of fiscal 2026 and may be called upon to satisfy capital calls in respect of the remaining $6.2 million in such commitments at any time during a period generally ending ten years after the first capital call in respect of a given commitment.
Previous wording
During the nine months ended October 31, 2024, the Company has declared and paid a total of three separate cash dividends of $0.35 per share aggregating to $23.3 million. During the nine months ended October 31, 2023, the Company declared and paid three separate cash dividends of $0.35 per share and a special cash dividend of $1.00 per share aggregating to $45.4 million. Although the Company currently expects to continue to declare cash dividends in the future, the decision of whether to declare any future cash dividend, including the amount of any such dividend and the establishment of record and payment dates, will be determined, in each quarter, by the Board of Directors, in its sole discretion.
Current wording
During the three months ended April 30, 2025, the Company has declared a cash dividend of $0.35 per share for $7.8 million, payable on May 6, 2025. During the three months ended April 30, 2024, the Company declared and paid a cash dividend of $0.35 per share for $7.8 million. Although the Company currently expects to continue to declare cash dividends in the future, the decision of whether to declare any future cash dividend, including the amount of any such dividend and the establishment of record and payment dates, will be determined, in each quarter, by the Board of Directors, in its sole discretion.
Previous wording
On November 23, 2021, the Board approved a share repurchase program under which the Company is authorized to purchase up to $50.0 million of its outstanding common stock through November 23, 2024, depending on market conditions, share price and other factors. On December 5, 2024, the Board approved an additional share repurchase program under which the Company is authorized to purchase up to $50.0 million of its outstanding common stock through December 5, 2027, depending on market conditions, share price and other factors. Under both share repurchase programs, the Company is permitted to purchase shares of its common stock from time to time through open market purchases, repurchase plans, block trades or otherwise. During the nine months ended October 31, 2024, the Company repurchased a total of 120,000 shares of its common stock at a total cost of $2.6 million, or an average of $21.90 per share. During the nine months ended October 31, 2023, the Company repurchased a total of 85,722 shares of its common stock at a total cost of $2.3 million, or an average of $27.40 per share. At October 31, 2024, $15.2 million remains available for purchase under the Company's November 23, 2021 repurchase program and all $50.0 million remains available for purchase under the Company's December 5, 2024 repurchase program.
Current wording
On November 23, 2021, the Board approved a share repurchase program under which the Company was authorized to purchase up to $50.0 million of its outstanding common stock through November 23, 2024, depending on market conditions, share price and other factors. On December 5, 2024, the Board approved a new share repurchase program under which the Company is authorized to purchase up to $50.0 million of its outstanding common stock through December 5, 2027, depending on market conditions, share price and other factors. These repurchases may be made through open market purchases, repurchase plans, block trades or otherwise. During the three months ended April 30, 2025, the Company did not repurchase any shares of its common stock. During the three months ended April 30, 2024, the Company repurchased a total of 39,000 shares of its common stock under the November 23, 2021 share repurchase program at a total cost of $1.1 million, or an average of $27.85 per share. At April 30, 2025, $50.0 million remains available for purchase under the Company's December 5, 2024 repurchase program.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Results of operations for the three months ended April 30, 2025 as compared to the three months ended April 30, 2024 (As Restated)
Current report — wording carried from elsewhere
Watch and Accessory Brands Operating Loss/Income
Rearranged previous paragraphs (17)
Previous report — wording carried elsewhere
Results of operations for the three months ended October 31, 2024 as compared to the three months ended October 31, 2023
Previous report — wording carried elsewhere
Watch and Accessory Brands Operating Income
Previous report — wording carried elsewhere
Net Sales: Comparative net sales by business segment were as follows (in thousands):
Previous report — wording carried elsewhere
Comparative net sales by categories were as follows (in thousands):
Previous report — wording carried elsewhere
Watch and Accessory Brands Net Sales
Previous report — wording carried elsewhere
United States Watch and Accessory Brands Net Sales
Previous report — wording carried elsewhere
International Watch and Accessory Brands Net Sales
Previous report — wording carried elsewhere
Net sales for the nine months ended October 31, 2024 in the International locations of the Watch and Accessory Brands segment were $278.0 million, below the prior year by $4.9 million, or 1.7%, which included fluctuations in foreign currency exchange rates that positively impacted net sales by $1.7 million when compared to the prior year period. The decrease in net sales was primarily due to unfavorable sales mix in the Company's wholesale customers, partially offset by the positive impact of fluctuations in foreign exchange rates. The net sales decrease recorded in the owned brands category was $4.5 million, or 10.9%, due to net sales decreases in the Middle East, Europe and the Americas (excluding the United States), partially offset by an increase in Asia. The net sales decrease in the licensed brands category was $1.9 million, or 0.8%, primarily due to net sales decreases in Europe, the Middle East and the Americas (excluding the United States), partially offset by a net sales increase in Asia.
Previous report — wording carried elsewhere
Net sales for the nine months ended October 31, 2024 in the Company Stores segment were $63.5 million, $4.6 million or 6.8% below the prior year period. The net sales decrease was primarily due to unfavorable sales mix in the Company stores, partially offset by an increase in sales from the Company's online outlet store at www.movadocompanystore.com. As of October 31, 2024 and 2023, the Company operated 56 and 55 retail outlet locations, respectively.
Previous report — wording carried elsewhere
Gross profit for the nine months ended October 31, 2024 was $260.3 million or 54.4% of net sales as compared to $273.6 million or 55.5% of net sales in the prior year period. The decrease in gross profit of $13.3 million was due to lower net sales combined with a lower gross margin percentage. The decrease in the gross margin percentage of approximately 110 basis points for the nine months ended October 31, 2024 reflected an unfavorable impact of sales mix of approximately 80 basis points, the decreased leveraging of certain fixed costs as a result of lower sales of approximately 20 basis points and a negative impact of fluctuations in foreign exchange rates of approximately 10 basis points.
Previous report — wording carried elsewhere
Selling, General and Administrative (“SG&A”)
Previous report — wording carried elsewhere
Watch and Accessory Brands Operating Income
Previous report — wording carried elsewhere
U.S. Watch and Accessory Brands Operating Loss
Previous report — wording carried elsewhere
International Watch and Accessory Brands Operating Income
Previous report — wording carried elsewhere
Interest expense was $0.4 million primarily due to the payment of unused commitment fees for both the nine months ended October 31, 2024 and 2023. There were no borrowings under the Company's revolving credit facility during the nine months ended October 31, 2024 and 2023.
Previous report — wording carried elsewhere
The effective tax rate was 31.7% and 22.0% for the nine months ended October 31, 2024 and 2023, respectively. The significant components of the effective tax rate changed primarily due to the tax consequences of a foreign currency gain related to an extraordinary intercompany dividend, a limitation on a portion of the foreign tax credits and deductions related to the tax on GILTI and an increase in valuation allowances against certain foreign losses.
Previous report — wording carried elsewhere
Net Income Attributable to Movado Group, Inc.