MOVADO GROUP INC
For the period ended Apr 30, 2026. Filed May 27, 2026.
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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, 2026 · Filed May 27, 2026
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 2025-10-31; filed 2025-11-25.
0001193125-25-294766
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-04-30; filed 2026-05-27.
0001193125-26-240712
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 119 previous paragraphs and 85 current paragraphs.
40 unchanged; 29 reworded; 15 added; 34 removed; 16 previous and 1 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 (15)
Current report
The United States has imposed, and may in the future impose, additional tariffs and other trade restrictions on imported goods. These measures increase the Company’s product and input costs, disrupt sourcing and logistics, require pricing adjustments that may reduce demand, and adversely affect margins and operating performance. Because the United States is the Company’s single largest market, increases in duties applicable to products imported into the United States could have a disproportionate impact on the Company’s results of operations.
Current report
In fiscal year 2026, the United States imposed additional “reciprocal” and other tariffs under the International Emergency Economic Powers Act (“IEEPA”). The Company paid approximately $10.0 million in IEEPA tariffs between February 2025 and February 2026. The Company is evaluating potential recoveries following recent court rulings and U.S. Customs and Border Protection guidance. Due to ongoing administrative and legal uncertainties, no receivable has been recognized at April 30, 2026. The ultimate resolution of this matter could have a material positive impact on the Company’s results of operations, financial position, and cash flows in future periods.
Current report
Following the Supreme Court’s decision, the Trump Administration replaced the IEEPA-based tariffs with tariffs imposed under Section 122 of the Trade Act of 1974. As of the date of this Quarterly Report, Section 122 tariffs impose an incremental 10% ad valorem duty on covered imports. Section 122 tariffs expire after 150 days absent Congressional approval; however, the Administration has launched investigations into trade practices in order to enable the imposition of tariffs under other statutory authorities. As a result, there can be no assurance that tariff levels will decrease when Section 122 authority expires, or that new or higher duties will not be imposed.
Current report
As part of its ongoing efforts to align operating expenses with current business trends, the Company implemented cost-savings initiatives in fiscal year 2025 focused primarily on workforce reductions and certain lease-related actions. In connection with these initiatives, the Company recorded total accruals of $6.1 million for severance, employee-related costs and lease termination-related charges through fiscal year 2026.
Current report
Net sales for the three months ended April 30, 2026 in the Watch and Accessory Brands segment were $123.7 million, above the prior year period by $8.9 million, or 7.7%. The increase in net sales was primarily due to sales mix, 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 in the owned brands category increased $2.5 million, or 7.5%, combined with an increase in net sales recorded in the licensed brands category of $5.3 million, or 6.5%.
Current report
Net sales for the three months ended April 30, 2026 in the United States locations of the Watch and Accessory Brands segment were $41.7 million, above the prior year period by $3.2 million, or 8.2%, resulting primarily from sales mix and increased volumes resulting from higher demand in the Company's wholesale customers. The net sales recorded in the owned brands category increased $1.4 million, or 5.3%, combined with an increase in net sales recorded in the licensed brands category of $1.9 million, or 15.6%.
Current report
Watch and Accessory Brands Operating Income/Loss
Current report
For the three months ended April 30, 2026 the Company recorded operating income of $6.6 million in the Watch and Accessory Brands segment which includes $11.5 million of unallocated corporate expenses as well as $12.9 million of certain intercompany profits related to the Company’s supply chain operations. 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 included $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. The $6.6 million change in operating income/loss was the result of an increase in gross profit of $9.4 million, partially offset by higher SG&A expenses of $2.8 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 a negative impact of fluctuations in foreign exchange rates. The increase in SG&A expenses was primarily due to (i) an increase in professional fees of $1.9 million (which included $0.5 million in costs related to the investigation of misconduct within the Dubai branch), (ii) an increase in marketing expenses of $1.3 million and (iii) an increase in performance-based compensation of $0.9 million. These increases were partially offset by a $1.2 million decrease in foreign exchange losses reflecting lower transactional foreign currency losses during the period and a decrease in payroll related expenses of $0.5 million (which included severance costs in the prior year period of $0.6 million related to the cost-savings initiative discussed under "Recent Developments and Initiatives").
Current report
In the International locations of the Watch and Accessory Brands segment, for the three months ended April 30, 2026, the Company recorded operating income of $10.8 million which includes $12.9 million of certain intercompany profits related to the Company’s International supply chain operations. For the three months ended April 30, 2025 the Company recorded operating income of $7.0 million in the International locations of the Watch and Accessory Brands segment which included $14.0 million of certain intercompany profits related to the Company’s supply chain operations. The increase in operating income was the result of lower SG&A expenses of $4.1 million, partially offset by a lower gross profit of $0.3 million. The decrease in gross profit of $0.3 million was primarily the result of higher net sales, offset by a lower gross margin percentage primarily due to the negative impact of fluctuations in foreign exchange rates, partially offset by the increased leveraging of certain reduced costs over higher sales. The decrease in SG&A expenses was primarily due to (i) a decrease in certain allocated corporate costs of $2.8 million, (ii) a decrease of $1.3 million in foreign exchange losses reflecting lower transactional foreign currency losses during the period and (iii) a decrease in performance-based compensation of $0.4 million. These decreases were partially offset by an increase in professional fees of $0.5 million (which included $0.1 million in costs related to the investigation of misconduct within the Dubai branch), an increase in payroll related expenses of $0.3 million (which included the impact of $0.6 million of severance costs in the prior year period related to the cost-savings initiative) and an increase in marketing expenses of $0.2 million.
Current report
The Company recorded other income, net of $2.0 million for the three months ended April 30, 2026, primarily due to interest income and distributions received from a venture capital fund in which the Company holds a limited partnership interest.
Current report
The Company recorded other income, net of $1.8 million for the three months ended April 30, 2025, primarily due to interest income.
Current report
These favorable impacts were partially offset by:
Current report
Accrued payroll and benefits, which used $9.4 million more cash, primarily due to payments of performance-based compensation; and
Current report
Accrued liabilities, which used $6.8 million more cash, primarily due to timing of payments.
Current report
Cash used in financing activities was $9.5 million for the three months ended April 30, 2026 as compared to $0.5 million for the three months ended April 30, 2025. The cash used in the current year period included $7.7 million in dividend payments, $1.5 million of open-market share repurchases and $1.4 million related to shares surrendered by employees to satisfy tax withholding obligations upon vesting of certain stock awards, partially offset by $1.1 million received in connection with stock options exercised. Cash used in financing activities for the three months ended April 30, 2025 was due to $0.5 million related to shares surrendered by employees to satisfy tax withholding obligations upon vesting of certain stock awards. No dividend was paid during the three months ended April 30, 2025. However, on April 11, 2025, the Company declared a cash dividend of $0.35 per share ($7.8 million in aggregate), payable on May 6, 2025.
Removed paragraphs (34)
Previous report
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 report
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 report
Net sales for the three months ended October 31, 2025 in the United States locations of the Watch and Accessory Brands segment were $54.2 million, above the prior year period by $2.6 million, or 5.0%, resulting primarily from increased volumes resulting from higher demand in the Company's wholesale customers, partially offset by an unfavorable sales mix. The net sales recorded in the licensed brands category increased $3.4 million, or 20.9%, partially offset by a decrease in net sales recorded in the owned brands category of $1.7 million, or 4.8%.
Previous report
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 report
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 report
Results of operations for the nine months ended October 31, 2025 as compared to the nine months ended October 31, 2024 (As Restated)
Previous report
Net Sales
Previous report
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 report
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 report
Net sales for the nine months ended October 31, 2025 in the United States locations of the Watch and Accessory Brands segment were $137.6 million, above the prior year period by $0.3 million, or 0.2%, resulting primarily from increased volumes resulting from higher demand in the Company's wholesale customers, partially offset by an unfavorable sales mix. The net sales recorded in the licensed brands category increased $7.8 million, or 21.7%, partially offset by a decrease in net sales recorded in the owned brands category of $7.8 million, or 7.8%.
Previous report
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 report
Company Stores Net Sales
Previous report
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 report
Gross Profit
Previous report
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 report
For the nine months ended October 31, 2025 the Company recorded operating income of $9.0 million in the Watch and Accessory Brands segment which includes $35.3 million of unallocated corporate expenses as well as $48.6 million of certain intercompany profits related to the Company’s supply chain operations. For the nine months ended October 31, 2024, the Company recorded operating income of $5.4 million in the Watch and Accessory Brands segment which included $26.6 million of unallocated corporate expenses as well as $48.8 million of certain intercompany profits related to the Company’s supply chain operations. The $3.6 million increase in operating income was the result of an increase in gross profit of $3.3 million, combined with lower SG&A expenses of $0.3 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 and a negative impact of fluctuations in foreign exchange rates. The decrease in SG&A expenses was primarily due to (i) lower marketing expenses of $7.8 million, (ii) a decrease in payroll related expense of $6.7 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 $7.6 million, costs of $3.0 million related to the internal investigation of allegations of misconduct within the Dubai branch and a $2.6 million increase in foreign exchange losses mainly due to a highly volatile foreign currency environment.
Previous report
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 report
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 report
Company Stores Operating Income
Previous report
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 report
Other Non-Operating Income, net
Previous report
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 report
The Company recorded other income, net of $5.6 million for the nine months ended October 31, 2024, primarily due to interest income.
Previous report
Interest Expense
Previous report
Income Taxes
Previous report
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 report
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 report
Income taxes payable used $17.0 million less cash in the current year period primarily due to greater payments made in the prior year period;
Previous report
Other current assets provided $8.7 million of additional cash primarily due to lower prepayments in the current year period; and
Previous report
Accrued liabilities and accrued payroll together generated approximately $8.8 million of incremental cash flow primarily due to an increase in accruals for tariffs and performance-based compensation.
Previous report
These positive effects were partially offset by:
Previous report
Inventories, which used $2.2 million more cash than in the prior year period;
Previous report
Income taxes receivable, which provided less cash than the prior year period of $6.8 million, reflecting earlier receipt of refunds in the prior year.
Previous report
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.
Reworded paragraphs (29)
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: 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.
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 maintain effective internal control over financial reporting in the future; 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 of tariffs and other trade barriers; 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 …
Excerpt shortened here; the source contains the full paragraph.
Previous wording
The Company’s Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States and those significant policies are more fully described in Note 1 to the Company’s Consolidated Financial Statements and contained in the Company's 2025 Annual Report on Form 10-K and are incorporated by reference herein. The preparation of these financial statements and the application of certain critical accounting policies require management to make judgments based on estimates and assumptions that affect the information reported. On an on-going basis, management evaluates its estimates and judgments, including those related to sales discounts and markdowns, product returns, bad debt, inventories, income taxes, warranty obligations, useful lives of property, plant and equipment, impairments of long-lived assets, stock-based compensation and contingencies and litigation. Management bases its estimates and judgments about the carrying values of assets and liabilities that are not readily apparent from other sources on historical experience, contractual commitments and on various other factors that are believed to be reasonable under the circumstances. Actual results could differ from these estimates.
Current wording
The Company’s Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States and those significant policies are more fully described in Note 1 to the Company’s Consolidated Financial Statements and contained in the Company's 2026 Annual Report on Form 10-K and are incorporated by reference herein. The preparation of these financial statements and the application of certain critical accounting policies require management to make judgments based on estimates and assumptions that affect the information reported. On an on-going basis, management evaluates its estimates and judgments, including those related to sales returns, markdown allowances, inventories, income taxes, useful lives of property, plant and equipment, impairments of long-lived assets and stock-based compensation. Management bases its estimates and judgments about the carrying values of assets and liabilities that are not readily apparent from other sources on historical experience, contractual commitments and on various other factors that are believed to be reasonable under the circumstances. Actual results could differ from these estimates.
Previous wording
The Company divides its watch and accessory business into two principal categories: the owned brands category and the licensed brands category. The owned brands category consists of the Movado®, Concord®, EBEL®, Olivia Burton® and MVMT® brands. Products in the licensed brands category include the following brands manufactured and distributed under license agreements with the respective brand owners: Coach®, Tommy Hilfiger®, Hugo Boss®, Lacoste® and Calvin Klein®.
Current wording
The Company divides its watch and accessory business into two principal categories: the owned brands category and the licensed brands category. The owned brands category consists of the Movado®, Concord®, EBEL®, Olivia Burton® and MVMT® brands. Products in the licensed brands category include the following brands manufactured and distributed under license agreements with the respective brand owners: Coach®, Tommy Hilfiger®, Hugo Boss®, Lacoste® and Calvin Klein® and, beginning spring 2027, Kate Spade New York®.
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: 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.
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% under Section 301 of the Trade Act of 1974, and imports of Chinese-origin packaging have been subject to a 25% Section 301 tariff.
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 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.
Current wording
During the first quarter of fiscal year 2027, the Company paid $0.3 million related to severance and employee-related costs, with the remaining $0.5 million balance expected to be paid during the remainder of fiscal year 2027.
Previous wording
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law by President Trump. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The Company will continue to evaluate and monitor potential impact on future periods, however, the Company does not expect the OBBBA to have a material impact on its Consolidated Financial Statements.
Current wording
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law by President Trump. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The OBBBA did not have a material impact on the Company's Consolidated Financial Statements for fiscal 2026 and the first quarter of fiscal 2027.
Previous 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.
Current wording
The following is a discussion of the results of operations for the three months ended April 30, 2026 compared to the three months ended April 30, 2025, along with a discussion of the changes in financial condition during the first three months of fiscal 2027. The Company’s results of operations for the first three months of fiscal 2027 should not be deemed indicative of the results that the Company will experience for the full year of fiscal 2027. 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, 2026 filed with the Securities and Exchange Commission on March 19, 2026.
Previous 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.
Current wording
Net sales for the three months ended April 30, 2026 were $142.4 million, representing a $10.6 million or 8.1% increase from the prior year period. For the three months ended April 30, 2026, fluctuations in foreign currency exchange rates positively impacted net sales by $4.7 million when compared to the prior year period. Excluding this $4.7 million impact, net sales would have increased by 4.5% as compared to the prior year period.
Previous 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).
Current wording
Net sales for the three months ended April 30, 2026 in the International locations of the Watch and Accessory Brands segment were $82.0 million, above the prior year by $5.7 million, or 7.5%, which included fluctuations in foreign currency exchange rates that positively impacted net sales by $4.7 million when compared to the prior year period. In addition to the positive impact of fluctuations in foreign exchange rates, the increase in net sales was primarily due to increased volumes resulting from higher demand in the owned brands category in the Company's wholesale customers. The net sales increase recorded in the owned brands category was $1.1 million, or 14.9%, primarily due to a net sales increase in Asia, while Europe, the Americas (excluding the United States) and the Middle East remained relatively flat. The net sales increase recorded in the licensed brands category was $3.4 million, or 5.0%, primarily due to net sales increases in Europe, the Americas (excluding the United States) and Asia, partially offset by a net sales decrease in the Middle East.
Previous 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.
Current wording
Net sales for the three months ended April 30, 2026 in the Company Stores segment were $18.7 million, $1.7 million or 10.2% above the prior year period. The net sales increase was primarily due to favorable sales mix, an increase in sales from the Company's online outlet store at www.movadocompanystore.com and a new store opening in the second quarter of the prior year. As of April 30, 2026 and 2025, the Company operated 57 and 56 retail outlet locations, respectively.
Previous 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).
Current wording
Gross profit for the three months ended April 30, 2026 was $81.6 million or 57.3% of net sales as compared to $71.4 million or 54.1% of net sales in the prior year period. The increase in gross profit of $10.2 million was due to higher net sales combined with a higher gross margin percentage. The increase in the gross margin percentage of approximately 320 basis points for the three months ended April 30, 2026 reflected a favorable sales mix (approximately 260 basis points) and the increased leveraging of certain reduced costs over higher sales (approximately 90 basis points), partially offset by a negative impact of fluctuations in foreign exchange rates (approximately 30 basis points).
Previous 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.
Current wording
SG&A expenses for the three months ended April 30, 2026 were $74.6 million, an increase from the prior year period of $3.5 million, or 5.0%. The increase in SG&A expenses was primarily driven by (i) higher professional fees of $1.9 million (which included $0.5 million in costs related to the investigation of misconduct within the Dubai branch of the Company's Swiss subsidiary), (ii) an increase in marketing expenses of $1.4 million and (iii) an increase in performance-based compensation of $1.0 million. These increases were partially offset by a $1.2 million decrease in foreign exchange losses reflecting lower transactional foreign currency losses during the period and a decrease in payroll related expenses of $0.2 million (which included the impact of $0.6 million of severance costs in the prior year period related to the cost-savings initiative discussed under "Recent Developments and Initiatives"). For the three months ended April 30, 2026, fluctuations in foreign currency rates related to the foreign subsidiaries unfavorably impacted SG&A expenses by $0.5 million when compared to the prior year period.
Previous 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).
Current wording
In the United States locations of the Watch and Accessory Brands segment, for the three months ended April 30, 2026, the Company recorded an operating loss of $4.2 million which includes unallocated corporate expenses of $11.5 million. For the three months ended April 30, 2025 the Company recorded an operating loss of $7.0 million in the United States locations of the Watch and Accessory Brands segment which included unallocated corporate expenses of $8.0 million. The decrease in operating loss was the result of an increase in gross profit of $9.7 million partially offset by an increase in SG&A expenses of $6.9 million when compared to the prior year period. The increase in gross profit of $9.7 million was the result of higher net sales, combined with a higher gross margin percentage primarily due to a favorable 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) an increase in certain unallocated corporate costs of $2.8 million, (ii) an increase in professional fees of $1.4 million (which included $0.4 million in costs related to the investigation of misconduct within the Dubai branch), (iii) an increase in performance-based compensation of $1.3 million and (iv) higher marketing expenses of $1.1 million. These increases were partially offset by a decrease in payroll related expenses of $0.8 million.
Previous 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.
Current wording
The Company recorded operating income of $0.4 million and $0.3 million in the Company Stores segment for the three months ended April 30, 2026 and 2025, respectively. The increase in operating income of $0.1 million was primarily related to an increase in gross profit of $0.8 million, mainly due to higher sales, partially offset by a lower gross margin percentage. Operating profit was negatively impacted by an increase in SG&A expenses of $0.7 million primarily due to an increase in payroll related expenses, higher marketing expenses and an increase in rent related expenses mainly due to a new store opening in the second quarter of the prior year. As of April 30, 2026, and 2025, the Company Stores segment operated 57 and 56 retail outlet locations, respectively.
Previous 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.
Current wording
The Company recorded an income tax provision of $1.9 million and $0.7 million for the three months ended April 30, 2026 and 2025, respectively. The effective tax rate was 22.0% and 34.0% for the three months ended April 30, 2026 and 2025, respectively.
Previous 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.
Current wording
The significant components of the effective tax rate for the three month period changed primarily due to excess tax benefits related to stock-based compensation in the current year as compared to deficiencies in the prior year, and changes in jurisdictional earnings, partially offset by changes in certain foreign valuation allowances.
Previous 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.
Current wording
The Company recorded net income attributable to Movado Group, Inc. of $6.9 million and $1.4 million for the three months ended April 30, 2026 and 2025, respectively.
Previous 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.
Current wording
At April 30, 2026 and April 30, 2025, the Company had $225.3 million and $203.1 million, respectively, of cash and cash equivalents. Of this total, $141.6 million and $86.4 million, respectively, consisted of cash and cash equivalents at the Company's foreign subsidiaries.
Previous 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.
Current wording
At April 30, 2026 the Company had working capital of $401.5 million as compared to $385.5 million at April 30, 2025. The increase in working capital was primarily the result of an increase in cash and a decrease in accrued liabilities and accounts payable, partially offset by a decrease in inventories, trade receivables, net and other current assets. The Company defines working capital as the difference between current assets and current liabilities.
Previous wording
Net cash provided by operating activities was $1.3 million for the nine months ended October 31, 2025, compared with net cash used in operating activities of $40.6 million for the nine months ended October 31, 2024, an increase of approximately $41.9 million. The improvement primarily reflects favorable changes in certain working capital items and a $3.3 million increase in net income, partially offset by increased cash used in inventories and accounts payable.
Current wording
Net cash provided by operating activities was $7.0 million for the three months ended April 30, 2026, compared to net cash used in operating activities of $7.2 million for the three months ended April 30, 2025, representing an increase of approximately $14.2 million. The increase was primarily driven by favorable changes in working capital and a $5.6 million increase in net income.
Previous wording
Accounts payable, which used $5.6 million more cash, reflecting the timing of supplier payments; and
Current wording
Accounts payable, which provided $12.4 million of additional cash, primarily due to the timing of supplier payments; and
Previous wording
Trade receivables used $12.4 million less cash than in the prior year period reflecting improved collections and tighter receivables management;
Current wording
Trade receivables, which provided $11.8 million of additional cash compared to the prior year period, reflecting improved collections and tighter receivables management.
Previous 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.
Current wording
Cash used in investing activities was $1.7 million for the three months ended April 30, 2026, compared to $2.8 million for the three months ended April 30, 2025. The cash used in investing activities during the current year period primarily related to capital expenditures of $1.2 million mainly for leasehold improvements and shop-in-shops, and $0.5 million of long-term investments. Cash used in investing activities for the three months ended April 30, 2025 included $1.5 million of capital expenditures and $1.3 million of long-term investments.
Previous 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.
Current wording
The Company had weighted average borrowings under the Facility of zero during both the three months ended April 30, 2026 and 2025, 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, 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.
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, 2026, and 2025, these lines of credit totaled 6.5 million Swiss Francs for both periods, with a dollar equivalent of $8.3 million and $7.9 million, respectively. As of April 30, 2026, and 2025, there were no borrowings against these lines. As of April 30, 2026 and 2025, two European banks had guaranteed obligations to third parties on behalf of two of the Company’s foreign subsidiaries in the dollar equivalent of $1.6 million and $1.5 million, respectively, in various foreign currencies, of which $0.8 million in both periods represented restricted deposits related 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, 2025 and October 31, 2024, respectively.
Current wording
Cash paid for interest, including unused commitments fees, was $0.1 million for both the three month periods ended April 30, 2026 and April 30, 2025, 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 $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.
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 $17.5 million of these commitments through fiscal 2026 and an additional $0.5 million during the first three months of fiscal 2027 and may be called upon to satisfy capital calls in respect of the remaining $3.5 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, 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.
Current wording
During the three months ended April 30, 2026, the Company declared and paid a cash dividend of $0.35 per share for $7.7 million. 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. 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 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 nine months ended October 31, 2025, the Company repurchased a total of 100,000 shares of its common stock under the December 5, 2024 share repurchase program at a total cost of $1.6 million, or an average of $15.94 per share. During the nine months ended October 31, 2024, the Company repurchased a total of 120,000 shares of its common stock under the November 23, 2021 share repurchase program at a total cost of $2.6 million, or an average of $21.90 per share. At October 31, 2025, $48.4 million remains available for purchase under the Company's December 5, 2024 repurchase program.
Current wording
On December 5, 2024, 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 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, 2026, the Company repurchased a total of 61,000 shares of its common stock under the December 5, 2024 share repurchase program at a total cost of $1.5 million, or an average of $25.26 per share. During the three months ended April 30, 2025, the Company did not repurchase any shares of its common stock. At April 30, 2026, $44.6 million remains available for purchase under the Company's December 5, 2024 repurchase program.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Results of operations for the three months ended April 30, 2026 as compared to the three months ended April 30, 2025
Rearranged previous paragraphs (16)
Previous report — wording carried elsewhere
Results of operations for the three months ended October 31, 2025 as compared to the three months ended October 31, 2024 (As Restated)
Previous report — wording carried elsewhere
Watch and Accessory Brands Operating Income
Previous report — wording carried elsewhere
The Company recorded other income, net of $1.3 million and $1.5 million for the three months ended October 31, 2025, primarily due to interest 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
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 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, 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 report — wording carried elsewhere
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 report — wording carried elsewhere
Net Income Attributable to Movado Group, Inc.