MOVADO GROUP INC

Previous wording

Since February 2020, the Company’s U.S. imports of Chinese-origin watch bands and jewelry have been subject to a special incremental tariff of 7.5%, and imports of Chinese-origin packaging have been subject to a 25% special tariff. Since March 2025, the United States government has imposed additional tariffs on its global trading partners, with individual rates set for each country following trade negotiations. As of the date of this quarterly report, additional special tariffs apply as follows: 30% on U.S. imports of China-origin goods, 15% on Japan-origin goods, and 39% on Switzerland-origin goods.

Current wording

Since February 2020, the Company’s U.S. imports of Chinese-origin watch bands and jewelry have been subject to a special incremental tariff of 7.5%, and imports of Chinese-origin packaging have been subject to a 25% special tariff. Since March 2025, the United States government has imposed additional tariffs on its global trading partners, with individual rates set for each country following trade negotiations. As of the date of this quarterly report, additional special tariffs apply as follows: 20% on U.S. imports of China-origin goods, 15% minus the standard (most-favored-nation) duty rate on Japan-origin goods, and 39% on Switzerland-origin goods. However, on November 14, 2025, the Trump Administration announced a framework agreement with Switzerland pursuant to which the special tariff on Switzerland-origin goods is being reduced to 15% minus the standard (most-favored-nation) duty rate. Once the new tariff rate on Switzerland-origin goods goes into effect, the Company's average duty rate should decline relative to fiscal 2026 third quarter levels, but will still be materially higher than in past years.

Previous wording

If these special tariffs remain in effect, they are expected to materially increase the Company’s U.S. cost of sales and negatively impact sales volumes in the United States. In response, the Company has implemented selective wholesale and retail price increases and is developing additional mitigation strategies. These include potential changes to sourcing and operational processes that could result in a change in country of origin for certain products or otherwise reduce the Company’s exposure to U.S. tariffs. However, the Company expects the tariffs to have a material impact on its U.S. operations even after giving effect to any mitigation efforts, unless these rates are significantly reduced.

Current wording

In response to the incremental tariffs, the Company has implemented selective wholesale and retail price increases and is developing additional mitigation strategies. These include potential changes to sourcing and operational processes that could result in a change in country of origin for certain products or otherwise reduce the Company’s exposure to U.S. tariffs. However, the Company expects the tariffs to have a material impact on its U.S. operations even after giving effect to any mitigation efforts, unless these rates are significantly reduced.

Previous 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 $1.5 million was recorded in accruals for severance and employee-related charges during the first six 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 $2.0 million paid related to severance and employee-related charges and $0.5 million of early lease termination related fees and costs were paid/utilized during the first six 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.

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 $1.5 million was recorded in accruals for severance and employee-related charges during the first nine 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 $2.7 million paid related to severance and employee-related charges and $0.5 million of early lease termination related fees and costs were paid/utilized during the first nine 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 following is a discussion of the results of operations for the three and six months ended July 31, 2025 compared to the three and six months ended July 31, 2024, along with a discussion of the changes in financial condition during the first six months of fiscal 2026. The Company’s results of operations for the first six 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.

Current wording

The following is a discussion of the results of operations for the three and nine months ended October 31, 2025 compared to the three and nine months ended October 31, 2024, along with a discussion of the changes in financial condition during the first nine months of fiscal 2026. The Company’s results of operations for the first nine 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 July 31, 2025 were $161.8 million, representing a $4.8 million or 3.1% increase from the prior year period. For the three months ended July 31, 2025, fluctuations in foreign currency exchange rates positively impacted net sales by $2.6 million when compared to the prior year period. Excluding this $2.6 million impact, net sales would have increased by 1.4% as compared to the prior year period.

Current wording

Net sales for the three months ended October 31, 2025 were $186.1 million, representing a $5.6 million or 3.1% increase from the prior year period. For the three months ended October 31, 2025, fluctuations in foreign currency exchange rates positively impacted net sales by $3.4 million when compared to the prior year period. Excluding this $3.4 million impact, net sales would have increased by 1.2% as compared to the prior year period.

Previous wording

Net sales for the three months ended July 31, 2025 in the Watch and Accessory Brands segment were $135.7 million, above the prior year period by $4.1 million, or 3.1%. The increase in net sales was primarily due to increased volumes resulting from higher demand in the Company's wholesale customers, with an increase in net sales recorded in the licensed brands category of $8.0 million, or 9.5%, partially offset by a decrease in net sales recorded in the owned brands category of $3.2 million, or 7.2%. Fluctuations in foreign exchange rates positively impacted net sales for the three months ended July 31, 2025, while an unfavorable sales mix limited net sales growth relative to unit volume growth.

Current wording

Net sales for the three months ended October 31, 2025 in the Watch and Accessory Brands segment were $162.7 million, above the prior year period by $3.1 million, or 1.9%. The increase in net sales was primarily due to increased volumes resulting from higher demand in the Company's wholesale customers, with an increase in net sales recorded in the licensed brands category of $7.0 million, or 6.4%, partially offset by a decrease in net sales recorded in the owned brands category of $4.3 million, or 8.5%. Fluctuations in foreign exchange rates positively impacted net sales for the three months ended October 31, 2025, while an unfavorable sales mix limited net sales growth relative to unit volume growth.

Previous wording

Net sales for the three months ended July 31, 2025 in the International locations of the Watch and Accessory Brands segment were $90.9 million, above the prior year by $5.8 million, or 6.8%, which included fluctuations in foreign currency exchange rates that positively impacted net sales by $2.6 million when compared to the prior year period. The increase in net sales was primarily due to increased volumes resulting from higher demand in the Company's wholesale customers and the positive impact of fluctuations in foreign exchange rates. The net sales increase recorded in the licensed brands category was $6.9 million, or 9.3%, primarily due to net sales increases in Europe and the Americas (excluding the United States), partially offset by net sales decreases in the Middle East and Asia. The net sales decrease recorded in the owned brands category was $0.8 million, or 7.6%, due to net sales decreases in the Middle East, Asia and the Americas (excluding the United States), partially offset by a net sales increase in Europe.

Current wording

Net sales for the three months ended October 31, 2025 in the International locations of the Watch and Accessory Brands segment were $108.5 million, above the prior year by $0.5 million, or 0.4%, which included fluctuations in foreign currency exchange rates that positively impacted net sales by $3.4 million when compared to the prior year period. The increase in net sales was primarily due to increased volumes resulting from higher demand in the licensed brands category in the Company's wholesale customers and the positive impact of fluctuations in foreign exchange rates, partially offset by lower demand in the owned brands category in the Company's wholesale customers. The net sales increase recorded in the licensed brands category was $3.6 million, or 3.9%, primarily due to net sales increases in Europe and the Americas (excluding the United States), partially offset by net sales decreases in the Middle East and Asia. The net sales decrease recorded in the owned brands category was $2.6 million, or 17.3%, primarily due to net sales decreases in Asia, the Middle East and Europe, partially offset by a net sales increase in the Americas (excluding the United States).

Previous wording

Net sales for the three months ended July 31, 2025 in the Company Stores segment were $26.2 million, $0.8 million or 3.0% above the prior year period. The net sales increase was primarily due to an increase in sales from the Company's online outlet store at www.movadocompanystore.com and a new store opening, partially offset by unfavorable sales mix in the Company stores. As of July 31, 2025 and 2024, the Company operated 57 and 56 retail outlet locations, respectively.

Current wording

Net sales for the three months ended October 31, 2025 in the Company Stores segment were $23.4 million, $2.6 million or 12.2% above the prior year period. The net sales increase was primarily due to increased volumes mainly due to higher foot traffic in the Company's stores, an increase in sales from the Company's online outlet store at www.movadocompanystore.com and a new store opening, partially offset by unfavorable sales mix in the Company stores. As of October 31, 2025 and 2024, the Company operated 57 and 56 retail outlet locations, respectively.

Previous wording

Gross profit for the three months ended July 31, 2025 was $87.6 million or 54.1% of net sales as compared to $85.3 million or 54.3% of net sales in the prior year period. The increase in gross profit of $2.3 million was due to higher net sales partially offset by a lower gross margin percentage. The decrease in the gross margin percentage of approximately 20 basis points for the three months ended July 31, 2025 reflected a negative impact due to increased U.S. tariffs (approximately 130 basis points) and a negative impact of fluctuations in foreign exchange rates (approximately 100 basis points), partially offset by a favorable sales mix (approximately 150 basis points), lower shipping costs (approximately 30 basis points) and the increased leveraging of certain fixed costs from higher sales (approximately 30 basis points).

Current wording

Gross profit for the three months ended October 31, 2025 was $101.1 million or 54.3% of net sales as compared to $96.6 million or 53.5% of net sales in the prior year period. The increase in gross profit of $4.5 million was due to higher net sales combined with a higher gross margin percentage. The increase in the gross margin percentage of approximately 80 basis points for the three months ended October 31, 2025 reflected a favorable sales mix (approximately 240 basis points) and the increased leveraging of certain reduced costs over higher sales (approximately 110 basis points), partially offset by the negative impact due to increased U.S. tariffs (approximately 230 basis points), a negative impact of fluctuations in foreign exchange rates (approximately 30 basis points) and higher shipping costs (approximately 10 basis points).

Previous wording

SG&A expenses for the three months ended July 31, 2025 were $83.6 million, representing an increase from the prior year period of $0.9 million, or 1.1%. The increase in SG&A expenses was primarily due to (i) an increase in professional fees of $2.1 million mainly related to the internal investigation of allegations of misconduct within the Dubai branch of the Company's Swiss subsidiary that resulted in a restatement of previously issued financial statements and (ii) an increase in performance-based compensation of $1.6 million. These increases were partially offset by lower marketing expense of $2.0 million, a $0.8 million decrease in foreign exchange losses and a decrease in payroll related expenses of $0.5 million (which included severance costs of $0.9 million related to the cost-savings initiative discussed under "Recent Developments and Initiatives"). For the three months ended July 31, 2025, fluctuations in foreign currency rates related to the foreign subsidiaries unfavorably impacted SG&A expenses by $1.4 million when compared to the prior year period.

Current wording

SG&A expenses for the three months ended October 31, 2025 were $89.3 million, representing a decrease from the prior year period of $1.3 million, or 1.4%. The decrease in SG&A expenses was primarily due to (i) lower marketing expenses of $4.9 million and (ii) a decrease in payroll related expenses of $3.9 million (which included severance costs in the prior year period of $2.7 million related to the cost-savings initiative discussed under "Recent Developments and Initiatives"). These decreases were partially offset by an increase in performance-based compensation of $5.2 million, costs of $0.9 million related to the internal investigation of allegations of misconduct within the Dubai branch of the Company's Swiss subsidiary that resulted in a restatement of previously issued financial statements and $0.3 million in rent related expenses due to a new store opening. For the three months ended October 31, 2025, fluctuations in foreign currency rates related to the foreign subsidiaries unfavorably impacted SG&A expenses by $2.3 million when compared to the prior year period.

Previous wording

For the three months ended July 31, 2025 the Company recorded operating loss of $0.2 million in the Watch and Accessory Brands segment which includes $10.7 million of unallocated corporate expenses as well as $14.6 million of certain intercompany profits related to the Company’s supply chain operations. For the three months ended July 31, 2024, the Company recorded operating loss of $1.0 million in the Watch and Accessory Brands segment which included $5.5 million of unallocated corporate expenses as well as $14.1 million of certain intercompany profits related to the Company’s supply chain operations. The $0.8 million decrease in operating loss was the result of an increase in gross profit of $1.7 million, partially offset by higher SG&A expenses of $0.9 million when compared to the prior year period. The increase in gross profit was the result of higher net sales, partially offset by a lower gross margin percentage primarily due to increased U.S. tariffs and a negative impact of fluctuations in foreign exchange rates, partially offset by the favorable impact of sales mix, lower shipping costs and the increased leveraging of certain fixed costs as a result of higher sales. The increase in SG&A expenses was primarily due to (i) an increase in professional fees of $2.1 million mainly related to the internal investigation of allegations of misconduct within the Company's Dubai branch and (ii) an increase in performance-based compensation of $1.5 million. These increases were partially offset by lower marketing expense of $2.0 million, a $0.8 million decrease in foreign exchange losses and a decrease in payroll related expenses of $0.4 million (which included severance costs of $0.9 million related to the cost-savings initiative).

Current wording

For the three months ended October 31, 2025 the Company recorded operating income of $9.2 million in the Watch and Accessory Brands segment which includes $16.6 million of unallocated corporate expenses as well as $20.0 million of certain intercompany profits related to the Company’s supply chain operations. For the three months ended October 31, 2024, the Company recorded operating income of $4.8 million in the Watch and Accessory Brands segment which included $11.6 million of unallocated corporate expenses as well as $20.5 million of certain intercompany profits related to the Company’s supply chain operations. The $4.4 million increase in operating income was the result of an increase in gross profit of $2.8 million combined with lower SG&A expenses of $1.6 million when compared to the prior year period. The increase in gross profit was the result of higher net sales combined with a higher gross margin percentage primarily due to a favorable impact of sales mix and the increased leveraging of certain reduced costs over higher sales, partially offset by increased U.S. tariffs, a negative impact of fluctuations in foreign exchange rates and higher shipping costs. The decrease in SG&A expenses was primarily due to (i) lower marketing expenses of $4.7 million and (ii) a decrease in payroll related expenses of $3.9 million (which included severance costs in the prior year period of $2.7 million related to the cost-savings initiative). These decreases were partially offset by an increase in performance-based compensation of $5.1 million and costs of $0.9 million related to the internal investigation of allegations of misconduct within the Dubai branch.

Previous wording

In the United States locations of the Watch and Accessory Brands segment, for the three months ended July 31, 2025, the Company recorded operating loss of $17.0 million which includes unallocated corporate expenses of $10.7 million. For the three months ended July 31, 2024 the Company recorded operating loss of $7.9 million in the United States locations of the Watch and Accessory Brands segment which included unallocated corporate expenses of $5.5 million. The increase in operating loss was the result of a decrease in gross profit of $3.8 million combined with an increase in SG&A expenses of $5.3 million when compared to the prior year period. The decrease in gross profit of $3.8 million was the result of lower net sales combined with a lower gross margin percentage primarily due to increased U.S. tariffs, a negative impact of fluctuations in foreign exchange rates and the decreased leveraging of certain fixed costs as a result of lower sales. The increase in SG&A expenses was primarily due to (i) an increase in professional fees of $1.9 million mainly related to the internal investigation of allegations of misconduct within the Company's Dubai branch, (ii) an increase in performance-based compensation of $1.7 million and (iii) higher marketing expenses of $1.6 million. These increases were partially offset by a decrease in payroll related expenses of $0.5 million (which included severance costs of $0.3 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 October 31, 2025, the Company recorded operating loss of $15.7 million which includes unallocated corporate expenses of $16.6 million. For the three months ended October 31, 2024 the Company recorded operating loss of $14.8 million in the United States locations of the Watch and Accessory Brands segment which included unallocated corporate expenses of $11.6 million. The increase in operating loss was the result of a decrease in gross profit of $0.3 million combined with an increase in SG&A expenses of $0.6 million when compared to the prior year period. The decrease in gross profit of $0.3 million was the result of higher net sales, offset by a lower gross margin percentage primarily due to increased U.S. tariffs and a negative impact of fluctuations in foreign exchange rates, partially offset by the increased leveraging of certain fixed costs as a result of higher sales. The increase in SG&A expenses was primarily due to (i) an increase in performance-based compensation of $4.7 million and (ii) costs of $0.6 million related to the internal investigation of allegations of misconduct within the Company's Dubai branch. These increases were partially offset by lower marketing expenses of $2.6 million and a decrease in payroll related expenses of $2.5 million (which included severance costs in the prior year period of $1.5 million related to the cost-savings initiative).

Previous wording

In the International locations of the Watch and Accessory Brands segment, for the three months ended July 31, 2025, the Company recorded operating income of $16.8 million which includes $14.6 million of certain intercompany profits related to the Company’s International supply chain operations. For the three months ended July 31, 2024 the Company recorded operating income of $6.9 million in the International locations of the Watch and Accessory Brands segment which included $14.1 million of certain intercompany profits related to the Company’s supply chain operations. The increase in operating income was the result of higher gross profit of $5.5 million combined with lower SG&A expenses of $4.4 million. The increase in gross profit of $5.5 million was primarily the result of higher net sales combined with a higher gross margin percentage primarily due to a favorable impact of sales mix, increased leveraging of certain fixed costs as a result of higher sales, the positive impact of fluctuations in foreign exchange rates and lower shipping costs. The decrease in SG&A expenses was primarily due to (i) lower marketing expense of $3.6 million and (ii) a $0.8 million decrease in foreign exchange losses. Payroll related expenses remained flat but included severance costs of $0.6 million related to the cost-savings initiative.

Current wording

In the International locations of the Watch and Accessory Brands segment, for the three months ended October 31, 2025, the Company recorded operating income of $24.9 million which includes $20.0 million of certain intercompany profits related to the Company’s International supply chain operations. For the three months ended October 31, 2024 the Company recorded operating income of $19.5 million in the International locations of the Watch and Accessory Brands segment which included $20.5 million of certain intercompany profits related to the Company’s supply chain operations. The increase in operating income was the result of higher gross profit of $3.2 million combined with lower SG&A expenses of $2.2 million. The increase in gross profit of $3.2 million was primarily the result of higher net sales combined with a higher gross margin percentage primarily due to a favorable impact of sales mix, increased leveraging of certain reduced costs over higher sales and the positive impact of fluctuations in foreign exchange rates. The decrease in SG&A expenses was primarily due to (i) lower marketing expense of $2.1 million and (ii) a decrease in payroll related expenses of $1.4 million (which included severance costs in the prior year period of $1.2 million related to the cost-savings initiative). These decreases were partially offset by an increase in performance-based compensation of $0.4 million and costs of $0.3 million related to the internal investigation of allegations of misconduct within the Company's Dubai branch.

Previous wording

The Company recorded operating income of $4.2 million and $3.7 million in the Company Stores segment for the three months ended July 31, 2025 and 2024, respectively. The increase in operating income of $0.5 million was primarily related to an increase in gross profit of $0.6 million, mainly due to higher sales combined with a higher gross margin percentage, partially offset by an increase in SG&A expenses of $0.1 million primarily due to rent related expenses due to a new store opening. As of July 31, 2025, and 2024, the Company Stores segment operated 57 and 56 retail outlet locations, respectively.

Current wording

The Company recorded operating income of $2.5 million and $1.3 million in the Company Stores segment for the three months ended October 31, 2025 and 2024, respectively. The increase in operating income of $1.2 million was primarily related to an increase in gross profit of $1.6 million, mainly due to higher sales combined with a higher gross margin percentage, partially offset by an increase in SG&A expenses of $0.4 million primarily due to rent related expenses due to a new store opening. As of October 31, 2025, and 2024, the Company Stores segment operated 57 and 56 retail outlet locations, respectively.

Previous wording

The Company recorded an income tax provision of $2.0 million and $0.8 million for the three months ended July 31, 2025 and 2024, respectively.

Current wording

The Company recorded an income tax provision of $3.3 million and $2.4 million for the three months ended October 31, 2025 and 2024, respectively.

Previous wording

The effective tax rate was 37.2% and 33.5% for the six months ended July 31, 2025 and 2024, respectively. The significant components of the effective tax rate changed primarily due to changes in jurisdictional earnings mix resulting in a change 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 GILTI.

Current wording

The effective tax rate was 25.3% and 31.9% for the three months ended October 31, 2025 and 2024, 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 in the prior year and changes in certain foreign valuation allowances, partially offset by changes in jurisdictional earnings.

Previous wording

The Company recorded net income attributable to Movado Group, Inc. of $3.0 million and $3.5 million for the three months ended July 31, 2025 and 2024, respectively.

Current wording

The Company recorded net income attributable to Movado Group, Inc. of $9.6 million and $4.8 million for the three months ended October 31, 2025 and 2024, respectively.

Previous wording

Net sales for the six months ended July 31, 2025 were $293.6 million, representing a $2.2 million or 0.8% increase from the prior year period. For the six months ended July 31, 2025, fluctuations in foreign currency exchange rates positively impacted net sales by $1.4 million when compared to the prior year period. Excluding this $1.4 million impact, net sales would have increased by 0.3% as compared to the prior year period.

Current wording

Net sales for the nine months ended October 31, 2025 were $479.7 million, representing a $7.8 million or 1.7% increase from the prior year period. For the nine months ended October 31, 2025, fluctuations in foreign currency exchange rates positively impacted net sales by $4.8 million when compared to the prior year period. Excluding this $4.8 million impact, net sales would have increased by 0.6% as compared to the prior year period.

Previous wording

Net sales for the six months ended July 31, 2025 in the Watch and Accessory Brands segment were $250.5 million, above the prior year period by $1.8 million, or 0.7%. The increase in net sales was primarily due to increased volumes resulting from higher demand in the Company's wholesale customers, with an increase in net sales recorded in the licensed brands category of $14.2 million, or 9.0%, partially offset by a decrease in net sales recorded in the owned brands category of $10.1 million, or 11.8%. Fluctuations in foreign exchange rates positively impacted net sales for the six months ended July 31, 2025, while an unfavorable sales mix limited net sales growth relative to unit volume growth.

Current wording

Net sales for the nine months ended October 31, 2025 in the Watch and Accessory Brands segment were $413.2 million, above the prior year period by $4.8 million, or 1.2%. The increase in net sales was primarily due to increased volumes resulting from higher demand in the Company's wholesale customers, with an increase in net sales recorded in the licensed brands category of $21.2 million, or 7.9%, partially offset by a decrease in net sales recorded in the owned brands category of $14.4 million, or 10.6%. Fluctuations in foreign exchange rates positively impacted net sales for the nine months ended October 31, 2025, while an unfavorable sales mix limited net sales growth relative to unit volume growth.

Previous wording

Net sales for the six months ended July 31, 2025 in the International locations of the Watch and Accessory Brands segment were $167.1 million, above the prior year by $4.0 million, or 2.5%, which included fluctuations in foreign currency exchange rates that positively impacted net sales by $1.4 million when compared to the prior year period. The increase in net sales was primarily due to increased volumes resulting from higher demand in the Company's wholesale customers and the positive impact of fluctuations in foreign exchange rates, partially offset due to an unfavorable sales mix. The net sales increase recorded in the licensed brands category was $9.8 million, or 7.1%, primarily due to net sales increases in Europe, the Americas (excluding the United States) and the Middle East, partially offset by a net sales decrease in Asia. The net sales decrease recorded in the owned brands category was $4.0 million, or 18.5%, due to net sales decreases in the Middle East, Asia and the Americas (excluding the United States), partially offset by a net sales increase in Europe.

Current wording

Net sales for the nine months ended October 31, 2025 in the International locations of the Watch and Accessory Brands segment were $275.6 million, above the prior year by $4.5 million, or 1.7%, which included fluctuations in foreign currency exchange rates that positively impacted net sales by $4.8 million when compared to the prior year period. The increase in net sales was primarily due to increased volumes resulting from higher demand in the licensed brands category in the Company's wholesale customers and the positive impact of fluctuations in foreign exchange rates, partially offset by lower demand in the owned brands category in the Company's wholesale customers. The net sales increase recorded in the licensed brands category was $13.5 million, or 5.8%, primarily due to net sales increases in Europe and the Americas (excluding the United States), partially offset by net sales decreases in Asia and the Middle East. The net sales decrease recorded in the owned brands category was $6.5 million, or 18.0%, primarily due to net sales decreases in the Middle East, Asia and Europe, partially offset by a net sales increase in the Americas (excluding the United States).

Previous wording

Net sales for the six months ended July 31, 2025 in the Company Stores segment were $43.1 million, $0.5 million or 1.1% above the prior year period. The net sales increase was primarily due to an increase in sales from the Company's online outlet store at www.movadocompanystore.com and a new store opening, partially offset by unfavorable sales mix in the Company stores. As of July 31, 2025 and 2024, the Company operated 57 and 56 retail outlet locations, respectively.

Current wording

Net sales for the nine months ended October 31, 2025 in the Company Stores segment were $66.5 million, $3.0 million or 4.7% above the prior year period. The net sales increase was primarily due to an increase in sales from the Company's online outlet store at www.movadocompanystore.com, increased volumes mainly due to higher foot traffic in the Company's stores and a new store opening, partially offset by unfavorable sales mix in the Company stores. As of October 31, 2025 and 2024, the Company operated 57 and 56 retail outlet locations, respectively.

Previous wording

Gross profit for the six months ended July 31, 2025 was $158.9 million or 54.1% of net sales as compared to $158.2 million or 54.3% of net sales in the prior year period. The increase in gross profit of $0.7 million was due to higher net sales partially offset by a lower gross margin percentage. The decrease in the gross margin percentage of approximately 20 basis points for the six months ended July 31, 2025 reflected a negative impact of fluctuations in foreign exchange rates (approximately 100 basis points) and a negative impact due to increased U.S. tariffs (approximately 70 basis points), partially offset by a favorable sales mix (approximately 140 basis points) and the increased leveraging of certain fixed costs from higher sales of (approximately 10 basis points).

Current wording

Gross profit for the nine months ended October 31, 2025 was $260.0 million or 54.2% of net sales as compared to $254.8 million or 54.0% of net sales in the prior year period. The increase in gross profit of $5.2 million was due to higher net sales combined with a higher gross margin percentage. The increase in the gross margin percentage of approximately 20 basis points for the nine months ended October 31, 2025 reflected a favorable sales mix (approximately 180 basis points) and the increased leveraging of certain reduced costs over higher sales (approximately 40 basis points), partially offset by the negative impact due to increased U.S. tariffs (approximately 130 basis points) and a negative impact of fluctuations in foreign exchange rates (approximately 70 basis points).

Previous wording

SG&A expenses for the six months ended July 31, 2025 were $154.6 million, representing an increase from the prior year period of $1.2 million, or 0.8%. The increase in SG&A expenses was primarily due to (i) an increase in performance-based compensation of $2.6 million, (ii) an increase in professional fees of $2.0 million mainly related to the internal investigation of allegations of misconduct within the Dubai branch of the Company's Swiss subsidiary that resulted in a restatement of previously issued financial statements and (iii) a $1.8 million increase in foreign exchange losses mainly due to a highly volatile foreign currency environment. These increases were partially offset by lower marketing expenses of $3.2 million and a decrease in payroll related expense of $2.9 million (which included severance costs of $1.5 million related to the cost-savings initiative). For the six months ended July 31, 2025, fluctuations in foreign currency rates related to the foreign subsidiaries unfavorably impacted SG&A expenses by $2.9 million when compared to the prior year period.

Current wording

SG&A expenses for the nine months ended October 31, 2025 were $243.9 million, representing a decrease from the prior year period of $0.1 million, or 0.0%. The decrease in SG&A expenses was primarily due to (i) lower marketing expenses of $8.2 million, (ii) a decrease in payroll related expense of $6.8 million (which included a decrease in severance costs of $1.3 million related to the cost-savings initiative) and (iii) a decrease in information technology related charges of $0.8 million. These decreases were partially offset by an increase in performance-based compensation of $7.8 million, costs of $3.0 million related to the internal investigation of allegations of misconduct within the Dubai branch of the Company's Swiss subsidiary that resulted in a restatement of previously issued financial statements, a $2.6 million increase in foreign exchange losses mainly due to a highly volatile foreign currency environment and an increase of $0.6 million in rent related expenses due to a new store opening. For the nine months ended October 31, 2025, fluctuations in foreign currency rates related to the foreign subsidiaries unfavorably impacted SG&A expenses by $5.2 million when compared to the prior year period.

Previous wording

In the United States locations of the Watch and Accessory Brands segment, for the six months ended July 31, 2025, the Company recorded operating loss of $24.0 million which includes unallocated corporate expenses of $18.7 million. For the six months ended July 31, 2024 the Company recorded an operating loss of $16.0 million in the United States locations of the Watch and Accessory Brands segment which included unallocated corporate expenses of $15.0 million. The increase in operating loss was the result of a decrease in gross profit of $7.0 million combined with an increase in SG&A expenses of $1.0 million when compared to the prior year period. The decrease in gross profit of $7.0 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, increased U.S. tariffs, unfavorable sales mix and the decreased leveraging of certain fixed costs as a result of lower sales. The increase in SG&A expenses was primarily due to (i) an increase in performance-based compensation of $2.5 million, (ii) an increase in professional fees of $1.8 million mainly related to the internal investigation of allegations of misconduct within the Company's Dubai branch and (iii) higher marketing expenses of $0.8 million. These increases were partially offset by a decrease in payroll related expense of $2.2 million (which included severance costs of $0.3 million related to the cost-savings initiative) and a decrease in information technology related charges of $1.3 million.

Current wording

In the United States locations of the Watch and Accessory Brands segment, for the nine months ended October 31, 2025, the Company recorded operating loss of $39.7 million which includes unallocated corporate expenses of $35.3 million. For the nine months ended October 31, 2024 the Company recorded an operating loss of $30.8 million in the United States locations of the Watch and Accessory Brands segment which included unallocated corporate expenses of $26.6 million. The increase in operating loss was the result of a decrease in gross profit of $7.4 million combined with an increase in SG&A expenses of $1.5 million when compared to the prior year period. The decrease in gross profit of $7.4 million was the result of higher net sales offset by a lower gross margin percentage primarily due to increased U.S. tariffs and the negative impact of fluctuations in foreign exchange rates. The increase in SG&A expenses was primarily due to (i) an increase in performance-based compensation of $7.1 million and (ii) costs of $2.7 million related to the internal investigation of allegations of misconduct within the Company's Dubai branch. These increases were partially offset by a decrease in payroll related expense of $4.6 million (which included a decrease in severance costs of $1.2 million related to the cost-savings initiative), lower marketing expenses of $1.9 million and a decrease in information technology related charges of $1.9 million.

Previous wording

In the International locations of the Watch and Accessory Brands segment, for the six months ended July 31, 2025, the Company recorded operating income of $23.8 million which includes $28.6 million of certain intercompany profits related to the Company’s International supply chain operations. For the six months ended July 31, 2024 the Company recorded operating income of $16.6 million in the International locations of the Watch and Accessory Brands segment which included $28.3 million of certain intercompany profits related to the Company’s supply chain operations. The increase in operating income was the result of higher a gross profit of $7.6 million partially offset by higher SG&A expenses of $0.4 million. The increase in gross profit of $7.6 million was primarily the result of higher sales and a higher gross margin percentage primarily due to a favorable impact of sales mix, the increased leveraging of certain fixed costs as a result of higher sales and the positive impact of fluctuations in foreign exchange rates. The increase in SG&A expenses was primarily due to (i) a $1.8 million increase in foreign exchange losses mainly due to a highly volatile foreign currency environment, (ii) an increase in information technology related charges of $1.0 million and (iii) an increase in professional fees of $0.2 million mainly related to the internal investigation of allegations of misconduct within the Company's Dubai branch. These increases were offset by lower marketing expenses of $3.9 million and a $0.6 million decrease in payroll related expense (which included severance costs of $1.2 million related to the cost-savings initiative).

Current wording

In the International locations of the Watch and Accessory Brands segment, for the nine months ended October 31, 2025, the Company recorded operating income of $48.7 million which includes $48.6 million of certain intercompany profits related to the Company’s International supply chain operations. For the nine months ended October 31, 2024 the Company recorded operating income of $36.2 million in the International locations of the Watch and Accessory Brands segment which included $48.8 million of certain intercompany profits related to the Company’s supply chain operations. The increase in operating income was the result of a higher gross profit of $10.7 million combined with lower SG&A expenses of $1.8 million. The increase in gross profit of $10.7 million was primarily the result of higher sales and a higher gross margin percentage primarily due to a favorable impact of sales mix, the increased leveraging of certain reduced costs over higher sales and the positive impact of fluctuations in foreign exchange rates. The decrease in SG&A expenses was primarily due to (i) lower marketing expenses of $5.9 million and (ii) a decrease in payroll related expense of $2.1 million (which included a decrease in severance costs of $0.1 million related to the cost-savings initiative). These decreases were partially offset by a $2.6 million increase in foreign exchange losses mainly due to a highly volatile foreign currency environment, an increase in information technology related charges of $1.1 million, an increase in performance-based compensation of $0.5 million and costs of $0.3 million related to the internal investigation of allegations of misconduct within the Dubai branch.

Previous wording

The Company recorded operating income of $4.4 million and $4.1 million in the Company Stores segment for the six months ended July 31, 2025 and 2024, respectively. The increase in operating income of $0.3 million was primarily related to an increase in gross profit of $0.2 million mainly due to higher sales, partially offset by a lower gross margin percentage, combined with lower SG&A expenses of $0.1 million primarily due to lower marketing expenses. As of July 31, 2025, and 2024, the Company Stores segment operated 57 and 56 retail outlet locations, respectively.

Current wording

The Company recorded operating income of $7.0 million and $5.4 million in the Company Stores segment for the nine months ended October 31, 2025 and 2024, respectively. The increase in operating income of $1.6 million was primarily related to an increase in gross profit of $1.8 million mainly due to higher sales, partially offset by higher SG&A expenses of $0.2 million primarily due to an increase in rent related expenses of $0.6 million due to a new store opening partially offset by lower marketing expenses of $0.4 million. As of October 31, 2025, and 2024, the Company Stores segment operated 57 and 56 retail outlet locations, respectively.

Previous wording

The Company recorded other income, net of $3.0 million for the six months ended July 31, 2025, primarily due to interest income, partially offset by a non-cash impairment charge of $0.4 million related to one of its investments in a venture capital fund in which the Company has a limited partnership interest. The write-down was a result of a decline in the fair value of the investment primarily attributable to a deterioration in the financial condition and operating performance of certain of the underlying portfolio companies within the fund that was determined to be other than temporary.

Current wording

The Company recorded other income, net of $4.3 million for the nine months ended October 31, 2025, primarily due to interest income, partially offset by a non-cash impairment charge of $0.4 million related to one of its investments in a venture capital fund in which the Company has a limited partnership interest. The write-down was a result of a decline in the fair value of the investment primarily attributable to a deterioration in the financial condition and operating performance of certain of the underlying portfolio companies within the fund that was determined to be other than temporary.

Previous wording

Interest expense was $0.2 million primarily due to the payment of unused commitment fees for both the six months ended July 31, 2025 and 2024. There were no borrowings under the Company's revolving credit facility during the six months ended July 31, 2025 and 2024.

Current wording

Interest expense was $0.4 million primarily due to the payment of unused commitment fees for both the nine months ended October 31, 2025 and 2024. There were no borrowings under the Company's revolving credit facility during the nine months ended October 31, 2025 and 2024.

Previous wording

The Company recorded an income tax provision of $2.6 million and $2.9 million for the six months ended July 31, 2025 and 2024, respectively.

Current wording

The Company recorded an income tax provision of $5.9 million and $5.2 million for the nine months ended October 31, 2025 and 2024, respectively.

Previous wording

The effective tax rate was 38.5% and 19.1% for the three months ended July 31, 2025 and 2024, respectively. The significant components of the effective tax rate changed primarily due to changes in jurisdictional earnings mix resulting in a change 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 29.5% and 32.8% for the nine months ended October 31, 2025 and 2024, 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 in the prior year and changes in certain foreign valuation allowances, partially offset by changes in jurisdictional earnings.

Previous wording

The Company recorded net income attributable to Movado Group, Inc. of $4.4 million and $5.5 million for the six months ended July 31, 2025 and 2024, respectively.

Current wording

The Company recorded net income attributable to Movado Group, Inc. of $14.0 million and $10.3 million for the nine months ended October 31, 2025 and 2024, respectively.

Previous wording

At July 31, 2025 and July 31, 2024, the Company had $180.5 million and $198.3 million, respectively, of cash and cash equivalents. Of this total, $71.9 million and $142.4 million, respectively, consisted of cash and cash equivalents at the Company's foreign subsidiaries.

Current wording

At October 31, 2025 and October 31, 2024, the Company had $183.9 million and $181.5 million, respectively, of cash and cash equivalents. Of this total, $94.7 million and $68.3 million, respectively, consisted of cash and cash equivalents at the Company's foreign subsidiaries.

Previous wording

At July 31, 2025 the Company had working capital of $384.8 million as compared to $392.8 million at July 31, 2024. The decrease in working capital was primarily the result of a decrease in cash and an increase in accrued liabilities and accrued payroll and benefits, partially offset by an increase in inventories and trade receivables, net. The Company defines working capital as the difference between current assets and current liabilities.

Current wording

At October 31, 2025 the Company had working capital of $393.3 million as compared to $385.8 million at October 31, 2024. The increase in working capital was primarily the result of an increase in inventories, trade receivables, net and cash, partially offset by an increase in accrued liabilities and accrued payroll and benefits. The Company defines working capital as the difference between current assets and current liabilities.

Previous wording

Cash used in investing activities was $4.8 million for the six months ended July 31, 2025 as compared to cash used in investing activities of $8.3 million for the six months ended July 31, 2024. The cash used in the six months ended July 31, 2025 was primarily related to capital expenditures of $2.8 million mainly due to expenditures related to Company stores and shop-in-shops and $1.9 million of long-term investments. Cash used in investing activities for the six months ended July 31, 2024 included $4.3 million of long-term investments and $3.9 million of capital expenditures.

Current wording

Cash used in investing activities was $6.3 million for the nine months ended October 31, 2025 as compared to cash used in investing activities of $11.9 million for the nine months ended October 31, 2024. The cash used in the nine months ended October 31, 2025 was primarily related to capital expenditures of $3.5 million mainly due to expenditures related to Company stores and shop-in-shops and $2.7 million of long-term investments. Cash used in investing activities for the nine months ended October 31, 2024 included $6.4 million of capital expenditures and $5.5 million of long-term investments.

Previous wording

Cash used in financing activities was $17.6 million for the six months ended July 31, 2025 as compared to cash used in financing activities of $17.7 million for the six months ended July 31, 2024. The cash used in the six months ended July 31, 2025 included $15.6 million in dividends paid, $1.6 million in stock repurchased in the open market and $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. Cash used in financing activities for the six months ended July 31, 2024 included $15.5 million in dividends paid, $1.1 million in stock repurchased in the open market and $1.1 million of shares repurchased as a result of the surrender of shares by employees in connection with the vesting of certain stock awards.

Current wording

Cash used in financing activities was $25.4 million for the nine months ended October 31, 2025 as compared to cash used in financing activities of $27.0 million for the nine months ended October 31, 2024. The cash used in the nine months ended October 31, 2025 included $23.3 million in dividends paid, $1.6 million in stock repurchased in the open market and $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. Cash used in financing activities for 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.

Previous wording

The Company had weighted average borrowings under the Facility of zero during both the three and six months ended July 31, 2025 and 2024, respectively.

Current wording

The Company had weighted average borrowings under the Facility of zero during both the three and nine months ended October 31, 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 July 31, 2025, and 2024, these lines of credit totaled 6.5 million Swiss Francs for both periods, with a dollar equivalent of $8.0 million and $7.4 million, respectively. As of July 31, 2025, and 2024, there were no borrowings against these lines. As of July 31, 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 $1.4 million, respectively, in various foreign currencies, of which $0.8 million and $0.7 million, 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 October 31, 2025, and 2024, these lines of credit totaled 6.5 million Swiss Francs for both periods, with a dollar equivalent of $8.1 million and $7.5 million, respectively. As of October 31, 2025, and 2024, there were no borrowings against these lines. As of October 31, 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 $1.4 million, respectively, in various foreign currencies, of which $0.8 million and $0.8 million, respectively, was a restricted deposit as it relates to lease agreements.

Previous wording

Cash paid for interest, including unused commitments fees, was $0.1 million for both the six month periods ended July 31, 2025 and July 31, 2024, respectively.

Current wording

Cash paid for interest, including unused commitments fees, was $0.2 million for both the nine month periods ended October 31, 2025 and October 31, 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 $14.1 million of these commitments through fiscal 2025 and an additional $1.9 million during the first six months of fiscal 2026 and may be called upon to satisfy capital calls in respect of the remaining $5.6 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. During the three-month period ended July 31, 2025, the Company recorded a non-cash impairment charge of $0.4 million related to one of its investments in a venture capital fund in which the Company has a limited partnership interest. The write-down was a result of a decline in the fair value of the investment primarily attributable to a deterioration in the financial condition and operating performance of certain of the underlying portfolio companies within the fund that was determined to be other than temporary. The Company will continue to regularly evaluate the carrying value of its investments.

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 $2.7 million during the first nine months of fiscal 2026 and may be called upon to satisfy capital calls in respect of the remaining $4.8 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. During the three-month period ended July 31, 2025, the Company recorded a non-cash impairment charge of $0.4 million related to one of its investments in a venture capital fund in which the Company has a limited partnership interest. The write-down was a result of a decline in the fair value of the investment primarily attributable to a deterioration in the financial condition and operating performance of certain of the underlying portfolio companies within the fund that was determined to be other than temporary. The Company will continue to regularly evaluate the carrying value of its investments.

Previous wording

During the six months ended July 31, 2025, the Company declared and paid two separate cash dividends each at $0.35 per share aggregating to $15.6 million. During the six months ended July 31, 2024, the Company declared and paid two separate cash dividends each at $0.35 per share aggregating to $15.5 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 nine months ended October 31, 2025, the Company declared and paid three separate cash dividends each at $0.35 per share aggregating to $23.3 million. During the nine months ended October 31, 2024, the Company declared and paid three separate cash dividends each at $0.35 per share aggregating to $23.3 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.