MOVADO GROUP INC
For the period ended Jul 31, 2026. Filed Aug 26, 2026.
View on SEC.govAbout this filing
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.
Jul 31, 2026 · Filed Aug 26, 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 2026-04-30; filed 2026-05-27.
0001193125-26-240712
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-07-31; filed 2026-08-26.
0001193125-26-366101
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 85 previous paragraphs and 126 current paragraphs.
45 unchanged; 36 reworded; 31 added; 4 removed; 0 previous and 14 current paragraphs rearranged.
Tables are not compared: 2 previous and 4 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 (31)
Current report
Following the Supreme Court's February 2026 decision invalidating the use of IEEPA by the Trump Administration, the Administration imposed a temporary 10% ad valorem import surcharge under Section 122 of the Trade Act of 1974, subject to certain exemptions, which remained in effect through July 24, 2026. In May 2026, the U.S. Court of International Trade ruled that the Section 122 tariffs were also invalid. The Company has not recorded a receivable related to Section 122 tariffs paid by it during the first six months of fiscal 2027 and continues to monitor ongoing litigation related to the potential recovery of these tariffs.
Current report
Upon expiration of the Section 122 surcharge in July 2026, the Administration imposed new tariffs under Section 301 of the Trade Act of 1974 following investigations concerning the failure of certain U.S. trading partners to impose and effectively enforce prohibitions on imports produced with forced labor. Of greatest relevance to the Company, the new Section 301 measures generally impose an additional 12.5% duty on covered imports from China and, with respect to covered imports from Switzerland and Japan, impose additional duties designed to bring the combined applicable most-favored-nation duty and the new Section 301 duty to 12.5%. These measures operate in addition to certain other tariffs that remain in effect, including the pre-existing Section 301 tariffs mentioned above that are applicable to certain imports from China. As a result, the aggregate duties applicable to particular Company imports vary depending on the country of origin, tariff classification and applicability of other tariff measures or exemptions.
Current report
The Administration has also initiated or continued other trade investigations that could result in additional tariffs or other changes to the duties applicable to the Company's U.S. imports. The ultimate scope, duration and impact of these and any future tariff measures remain uncertain.
Current report
Net sales for the three months ended July 31, 2026 in the Watch and Accessory Brands segment were $142.9 million, above the prior year period by $7.2 million, or 5.3%. The increase in net sales was primarily due to increased volumes resulting from higher demand in the Company's wholesale customers, a favorable sales mix and the positive impact of fluctuations in foreign exchange rates. The net sales in the owned brands category increased $0.3 million, or 0.7%, combined with an increase in net sales recorded in the licensed brands category of $8.3 million, or 9.0%.
Current report
Net sales for the three months ended July 31, 2026 in the United States locations of the Watch and Accessory Brands segment were $47.5 million, above the prior year period by $2.7 million, or 5.9%, resulting primarily from increased volumes resulting from higher demand in the Company's wholesale customers and a favorable sales mix. The net sales recorded in the owned brands category increased $0.7 million, or 2.3%, combined with an increase in net sales recorded in the licensed brands category of $2.5 million, or 21.3%.
Current report
For the three months ended July 31, 2026 the Company recorded operating income of $10.2 million in the Watch and Accessory Brands segment, compared to an operating loss of $0.2 million in the prior period. Operating results for the three months ended July 31, 2026 included $13.9 million of unallocated corporate expenses and $14.6 million of certain intercompany profits related to the Company’s supply chain operations, compared to $10.7 million and $14.6 million, respectively, in the prior year period. The $10.4 million improvement in operating income/loss was the result of an increase in gross profit of $12.8 million (which includes $3.2 million of IEEPA duty refunds received), partially offset by higher SG&A expenses of $2.4 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, IEEPA duty refunds received and the positive impact of fluctuations in foreign exchange rates, partially offset by higher shipping costs and higher fixed costs net of increased leveraging over higher sales. The increase in SG&A expenses was primarily driven by (i) an increase in performance-based compensation of $1.8 million, (ii) an increase in marketing expenses of $1.4 million and (iii) an increase in payroll related expenses of $0.1 million. The increase in payroll-related expenses was net of $0.9 million of severance costs incurred in the prior year period in connection with the cost-savings initiative. These increases were partially offset by a $1.1 million decrease in professional fees (which included a decrease of $1.9 million in costs related to the investigation of misconduct within the Dubai branch).
Current report
In the United States locations of the Watch and Accessory Brands segment, for the three months ended July 31, 2026, the Company recorded an operating loss of $7.7 million, compared to an operating loss of $17.0 million in the prior period. Operating results for the three months ended July 31, 2026 included unallocated corporate expenses of $13.9 million, compared to $10.7 million in the prior period. The decrease in operating loss was the result of an increase in gross profit of $9.6 million (which includes $3.2 million of IEEPA duty refunds received), partially offset by an increase in SG&A expenses of $0.4 million when compared to the prior year period. The increase in gross profit of $9.6 million was the result of higher net sales, combined with a higher gross margin percentage primarily due to a favorable sales mix and IEEPA duty refunds received, partially offset by higher shipping costs and higher fixed costs net of increased leveraging over higher sales. The increase in SG&A expenses was primarily due to (i) an increase in performance-based compensation of $1.5 million and (ii) higher marketing expenses of $0.3 million. These increases were offset by a $1.0 million decrease in professional fees (which included a decrease of $1.9 million in costs related to the investigation of misconduct within the Dubai branch) and a decrease in payroll related expenses of $0.6 million (which included $0.3 million of severance costs incurred in the prior year period in connection with the cost-savings initiative).
Current report
In the International locations of the Watch and Accessory Brands segment, for the three months ended July 31, 2026, the Company recorded operating income of $18.0 million, compared to operating income of $16.8 million in the prior period. Operating results for the three months ended July 31, 2026 included certain intercompany profits related to the Company’s International supply chain operations of $14.6 million, compared to $14.6 million in the prior period. The increase in operating income was the result of an increase in gross profit of $3.2 million, partially offset by an increase in SG&A expenses of $2.0 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 favorable sales mix, the positive impact of fluctuations in foreign exchange rates and the increased leveraging of certain reduced costs over higher sales, partially offset by higher shipping costs. The increase in SG&A expenses was primarily due to (i) higher marketing expenses of $1.1 million, (ii) an increase in payroll related expenses of $0.7 million (the increase in payroll related expenses was net of $0.6 million of severance costs incurred in the prior year period in connection with the cost-savings initiative) and (iii) an increase in performance-based compensation of $0.3 million.
Current report
The Company recorded operating income of $4.6 million and $4.2 million in the Company Stores segment for the three months ended July 31, 2026 and 2025, respectively. The increase in operating income of $0.4 million was primarily related to an increase in gross profit of $0.5 million, mainly due to higher sales combined with a higher gross margin percentage. SG&A expenses remained relatively flat as compared to the prior year period with an increase in payroll related expenses offset by lower marketing expenses. As of July 31, 2026, and 2025, the Company Stores segment operated 57 retail outlet locations.
Current report
The Company recorded other income, net of $1.3 million for the three months ended July 31, 2026, primarily due to interest income.
Current report
The Company recorded other income, net of $1.2 million for the three 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 report
Results of operations for the six months ended July 31, 2026 as compared to the six months ended July 31, 2025
Current report
Net Sales
Current report
Net sales for the six months ended July 31, 2026 were $312.2 million, representing an $18.6 million or 6.3% increase from the prior year period. For the six months ended July 31, 2026, fluctuations in foreign currency exchange rates positively impacted net sales by $5.4 million when compared to the prior year period. Excluding this $5.4 million impact, net sales would have increased by 4.5% as compared to the prior year period.
Current report
Net sales for the six months ended July 31, 2026 in the Watch and Accessory Brands segment were $266.6 million, above the prior year period by $16.1 million, or 6.4%. The increase in net sales was primarily due to increased volumes resulting from higher demand in the Company's wholesale customers, a favorable sales mix and the positive impact of fluctuations in foreign exchange rates. The net sales in the owned brands category increased $2.8 million, or 3.7%, combined with an increase in net sales recorded in the licensed brands category of $13.5 million, or 7.8%.
Current report
Net sales for the six months ended July 31, 2026 in the United States locations of the Watch and Accessory Brands segment were $89.2 million, above the prior year period by $5.8 million, or 7.0%, resulting primarily from increased volumes resulting from higher demand in the Company's wholesale customers and a favorable sales mix. The net sales recorded in the owned brands category increased $2.1 million, or 3.6%, combined with an increase in net sales recorded in the licensed brands category of $4.4 million, or 18.5%.
Current report
Company Stores Net Sales
Current report
Gross Profit
Current report
Gross profit for the six months ended July 31, 2026 was $182.4 million or 58.4% of net sales as compared to $158.9 million or 54.1% of net sales in the prior year period. Gross profit for the six months ended July 31, 2026 included $3.2 million of IEEPA duty refunds received. The increase in gross profit of $23.5 million was due to higher net sales combined with a higher gross margin percentage. The increase in the gross margin percentage of approximately 430 basis points for the six months ended July 31, 2026 reflected a favorable sales mix (approximately 330 basis points), IEEPA duty refunds received (approximately 100 basis points) and the increased leveraging of certain reduced costs over higher sales (approximately 20 basis points), partially offset by higher shipping costs (approximately 20 basis points).
Current report
SG&A expenses for the six months ended July 31, 2026 were $160.5 million, an increase from the prior year period of $5.9 million, or 3.8%. The increase in SG&A expenses was primarily driven by (i) an increase in performance-based compensation of $2.7 million, (ii) an increase in marketing expenses of $2.5 million, (iii) higher professional fees of $0.6 million (the increase in professional fees was net of a $1.5 million decrease in costs incurred related to the investigation of misconduct within the Dubai branch) and (iv) an increase in payroll related expenses of $0.1 million. The increase in payroll-related expenses was net of $1.5 million of severance costs incurred in the prior year period in connection with the cost-savings initiative. These increases were partially offset by a $0.7 million decrease in foreign exchange losses reflecting lower transactional foreign currency losses during the period. For the six months ended July 31, 2026, fluctuations in foreign currency rates related to the foreign subsidiaries increased reported SG&A expenses by $1.5 million when compared to the prior year period.
Current report
In the United States locations of the Watch and Accessory Brands segment, for the six months ended July 31, 2026, the Company recorded an operating loss of $12.0 million, compared to an operating loss of $24.0 million in the prior period. Operating results for the six months ended July 31, 2026 included unallocated corporate expenses of $25.4 million, compared to $18.7 million in the prior period.
Current report
Company Stores Operating Income
Current report
Other Non-Operating Income, net
Current report
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 report
Interest Expense
Current report
Income Taxes
Current report
The Company recorded an income tax provision of $5.5 million and $2.6 million for the six months ended July 31, 2026 and 2025, respectively. The effective tax rate was 22.0% and 37.2% for the six months ended July 31, 2026 and 2025, respectively.
Current report
The Company recorded net income attributable to Movado Group, Inc. of $19.2 million and $4.4 million for the six months ended July 31, 2026 and 2025, respectively.
Current report
Income taxes receivable/payable, net, which provided $4.1 million of additional cash, primarily due to timing of payments;
Current report
Inventories, which used $2.2 million less cash compared to the prior year period, primarily reflecting lower inventory levels driven by disciplined inventory management; and
Current report
During the second quarter of fiscal 2027, the Company incurred and capitalized $0.4 million of fees related to the amendment. These fees, along with the unamortized fees of $0.1 million paid related to the base Credit Agreement, are being amortized on a straight-line basis over 60 months, the revised term of the Facility, and are included in other non-current assets on the Consolidated Balance Sheets.
Removed paragraphs (4)
Previous 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.
Previous 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%.
Previous 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%.
Previous report
The Company recorded other income, net of $1.8 million for the three months ended April 30, 2025, primarily due to interest income.
Reworded paragraphs (36)
Previous wording
Critical accounting policies are those that are most important to the portrayal of the Company’s financial condition and the results of operations and require management’s most difficult, subjective and complex judgments as a result of the need to make estimates about the effect of matters that are inherently uncertain. The Company's most critical accounting policies have been discussed in the Company's 2026 Annual Report on Form 10-K and are incorporated by reference herein. As of April 30, 2026, there have been no material changes to any of the Company's critical accounting policies.
Current wording
Critical accounting policies are those that are most important to the portrayal of the Company’s financial condition and the results of operations and require management’s most difficult, subjective and complex judgments as a result of the need to make estimates about the effect of matters that are inherently uncertain. The Company's most critical accounting policies have been disclosed in the Company's 2026 Annual Report on Form 10-K and are incorporated by reference herein. As of July 31, 2026, there have been no material changes to any of the Company's critical accounting policies.
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® and, beginning spring 2027, Kate Spade New York®.
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®, Calvin Klein® and, beginning spring 2027, Kate Spade New York®.
Previous wording
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 wording
In fiscal year 2026, the United States imposed additional “reciprocal” and other tariffs under the International Emergency Economic Powers Act (“IEEPA”). These tariffs were invalidated by the Supreme Court in February 2026. The Company paid approximately $10.0 million in IEEPA tariffs between February 2025 and February 2026. During the second quarter of fiscal 2027, the Company received approximately $3.2 million of refunds of previously paid IEEPA tariffs, which was recognized as a benefit to cost of sales during the quarter. The Company continues to pursue potential recoveries of the remaining amounts following recent court rulings and U.S. Customs and Border Protection (“CBP”) guidance. The Company has elected to apply a gain contingency model in accordance with ASC 450-30, Gain Contingencies, to account for potential recoveries of previously paid IEEPA tariffs. Under this model, a gain contingency is not recognized in the Consolidated Financial Statements until the gain is realized or realizable, which is at the earlier of when CBP affirms the Company’s refund claim or the refund is received in cash.
Previous 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.
Current wording
During the first six months 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 OBBBA did not have a material impact on the Company's Consolidated Financial Statements for fiscal 2026 and the first quarter of fiscal 2027.
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 six months of fiscal 2027.
Previous 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.
Current wording
The following is a discussion of the results of operations for the three and six months ended July 31, 2026 compared to the three and six months ended July 31, 2025, along with a discussion of the changes in financial condition during the first six months of fiscal 2027. The Company’s results of operations for the first six 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 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.
Current wording
Net sales for the three months ended July 31, 2026 were $169.8 million, representing a $7.9 million or 4.9% increase from the prior year period. For the three months ended July 31, 2026, fluctuations in foreign currency exchange rates positively impacted net sales by $0.7 million when compared to the prior year period. Excluding this $0.7 million impact, net sales would have increased by 4.4% as compared to the prior year period.
Previous 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).
Current wording
Gross profit for the three months ended July 31, 2026 was $100.8 million or 59.4% of net sales as compared to $87.6 million or 54.1% of net sales in the prior year period. Gross profit for the three months ended July 31, 2026 included $3.2 million of IEEPA duty refunds received. The increase in gross profit of $13.3 million was due to higher net sales combined with a higher gross margin percentage. The increase in the gross margin percentage of approximately 530 basis points for the three months ended July 31, 2026 reflected a favorable sales mix (approximately 380 basis points), IEEPA duty refunds received (approximately 190 basis points) and the positive impact of fluctuations in foreign exchange rates (approximately 30 basis points), partially offset by higher shipping costs (approximately 50 basis points) and higher fixed costs net of increased leveraging over higher sales (approximately 20 basis points).
Previous 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.
Current wording
SG&A expenses for the three months ended July 31, 2026 were $85.9 million, an increase from the prior year period of $2.4 million, or 2.9%. The increase in SG&A expenses was primarily driven by (i) an increase in performance-based compensation of $1.8 million, (ii) an increase in marketing expenses of $1.1 million and (iii) a $0.3 million increase in payroll-related expenses. The increase in payroll-related expenses was net of $0.9 million of severance costs incurred in the prior year period in connection with the cost-savings initiative discussed under “Recent Developments and Initiatives”. These increases were partially offset by a $1.1 million decrease in professional fees, which included a decrease of $1.9 million in costs related to the investigation of misconduct within the Dubai branch of the Company's Swiss subsidiary. For the three months ended July 31, 2026, fluctuations in foreign currency rates related to the foreign subsidiaries increased reported SG&A expenses by $1.0 million when compared to the prior year period.
Previous 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.
Current wording
The Company recorded an income tax provision of $3.5 million and $2.0 million for the three months ended July 31, 2026 and 2025, respectively. The effective tax rate was 22.1% and 38.5% for the three months ended July 31, 2026 and 2025, respectively.
Previous 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.
Current wording
The Company recorded net income attributable to Movado Group, Inc. of $12.3 million and $3.0 million for the three months ended July 31, 2026 and 2025, respectively.
Previous 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.
Current wording
Net sales for the six months ended July 31, 2026 in the International locations of the Watch and Accessory Brands segment were $177.4 million, above the prior year by $10.3 million, or 6.1%, which included fluctuations in foreign currency exchange rates that positively impacted net sales by $5.4 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 licensed brands category in the Company's wholesale customers. The net sales increase recorded in the licensed brands category was $9.1 million, or 6.1%, 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. The net sales increase recorded in the owned brands category was $0.7 million, or 3.9%, primarily due to net sales increases in Asia, the Americas (excluding the United States) and the Middle East, partially offset by a net sales decrease in Europe.
Previous 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.
Current wording
Net sales for the six months ended July 31, 2026 in the Company Stores segment were $45.6 million, $2.5 million or 5.7% above the prior year period. The net sales increase was primarily due to a 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 July 31, 2026 and 2025, the Company operated 57 retail outlet locations.
Previous wording
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 wording
For the six months ended July 31, 2026 the Company recorded operating income of $16.9 million in the Watch and Accessory Brands segment, compared to an operating loss of $0.2 million in the prior period. Operating results for the six months ended July 31, 2026 included $25.4 million of unallocated corporate expenses and $27.5 million of certain intercompany profits related to the Company’s supply chain operations, compared to $18.7 million and $28.6 million, respectively, in the prior year period. The $17.0 million change in operating income/loss was the result of an increase in gross profit of $22.2 million (which includes $3.2 million of IEEPA duty refunds received), partially offset by higher SG&A expenses of $5.2 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, IEEPA duty refunds received and the increased leveraging of certain reduced costs over higher sales, partially offset by higher shipping costs. The increase in SG&A expenses was primarily due to (i) an increase in performance-based compensation of $2.7 million, (ii) an increase in marketing expenses of $2.7 million and (iii) an increase in professional fees of $0.6 million. The increase in professional fees was net of a $1.5 million decrease in costs related to the investigation of misconduct within the Dubai branch. These increases were partially offset by a $0.7 million decrease in foreign exchange losses reflecting lower transactional foreign currency losses during the period and a decrease in payroll related expenses of $0.4 million (which included the impact of $1.5 million of severance costs in the prior year period in connection with the cost-savings initiative).
Previous 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.
Current wording
The decrease in operating loss was the result of an increase in gross profit of $19.3 million (which includes $3.2 million of IEEPA duty refunds received), partially offset by an increase in SG&A expenses of $7.3 million when compared to the prior year period. The increase in gross profit of $19.3 million was the result of higher net sales, combined with a higher gross margin percentage primarily due to a favorable sales mix, IEEPA duty refunds received and the increased leveraging of certain fixed costs as a result of higher sales, partially offset by higher shipping costs. The increase in SG&A expenses was primarily due to (i) an increase in performance-based compensation of $2.8 million, (ii) an increase in certain unallocated corporate costs of $2.8 million, (iii) higher marketing expenses of $1.4 million and (iv) an increase in professional fees of $0.5 million. The increase in professional fees was net of a $1.5 million decrease in costs related to the investigation of misconduct within the Dubai branch). These increases were partially offset by a decrease in payroll related expenses of $1.4 million (which included the impact of $0.3 million of severance costs in the prior year period related to the cost-savings initiative).
Previous wording
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 wording
In the International locations of the Watch and Accessory Brands segment, for the six months ended July 31, 2026, the Company recorded operating income of $28.8 million, compared to operating income of $23.8 million in the prior period. Operating results for the six months ended July 31, 2026 included $27.5 million of certain intercompany profits related to the Company’s International supply chain operations, compared to $28.6 million in the prior period. The increase in operating income was the result of a higher gross profit of $2.9 million combined with lower SG&A expenses of $2.1 million. The increase in gross profit of $2.9 million was primarily the result of higher net sales, partially offset by a lower gross margin percentage primarily due to an unfavorable sales mix, 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 and (ii) a decrease of $0.7 million in foreign exchange losses reflecting lower transactional foreign currency losses during the period. These decreases were partially offset by higher marketing expenses of $1.3 million and an increase in payroll related expenses of $1.0 million. The increase in payroll-related expenses was net of $1.2 million of severance costs incurred in the prior year period in connection with the cost-savings initiative.
Previous 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.
Current wording
The Company recorded operating income of $5.0 million and $4.4 million in the Company Stores segment for the six months ended July 31, 2026 and 2025, respectively. The increase in operating income of $0.6 million was primarily related to an increase in gross profit of $1.3 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 and an increase in rent related expenses mainly due to a new store opening in the second quarter of the prior year. As of July 31, 2026, and 2025, the Company Stores segment operated 57 retail outlet locations.
Previous wording
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 wording
The Company recorded other income, net of $3.2 million for the six months ended July 31, 2026, primarily due to interest income and distributions received from a venture capital fund in which the Company holds a limited partnership interest.
Previous 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.
Current wording
The significant components of the effective tax rate for the six month period changed primarily due to an increase in the utilization of foreign tax credits related to Net Controlled Foreign Corporation Tested Income and excess tax benefits related to stock-based compensation in the current year as compared to deficiencies in the prior year, partially offset by changes in jurisdictional earnings.
Previous 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.
Current wording
At July 31, 2026, and July 31, 2025, the Company had $211.6 million and $180.5 million, respectively, of cash and cash equivalents. Of this total, $128.0 million and $71.9 million, respectively, consisted of cash and cash equivalents at the Company's foreign subsidiaries.
Previous 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.
Current wording
At July 31, 2026, the Company had working capital of $403.5 million as compared to $384.8 million at July 31, 2025. The increase in working capital was primarily the result of an increase in cash and a decrease in accrued liabilities, partially offset by a decrease in inventories, other current assets and an increase in income taxes payable. The Company defines working capital as the difference between current assets and current liabilities.
Previous 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.
Current wording
Net cash provided by operating activities was $6.5 million for the six months ended July 31, 2026, compared to net cash used in operating activities of $11.0 million for the six months ended July 31, 2025, representing an increase of approximately $17.6 million. The increase was primarily driven by the $15.0 million increase in net income and, on a net basis, favorable changes in working capital.
Previous wording
Accounts payable, which provided $12.4 million of additional cash, primarily due to the timing of supplier payments; and
Current wording
Accounts payable, which provided $15.8 million of additional cash, primarily due to the timing of supplier payments;
Previous wording
Trade receivables, which provided $11.8 million of additional cash compared to the prior year period, reflecting improved collections and tighter receivables management.
Current wording
Trade receivables, which provided $2.0 million of additional cash compared to the prior year period, reflecting improved collections and tighter receivables management.
Previous wording
Accrued liabilities, which used $6.8 million more cash, primarily due to timing of payments.
Current wording
Accrued liabilities, which resulted in $13.2 million more cash used than in the prior year period, primarily due to timing of payments; and
Previous wording
Accrued payroll and benefits, which used $9.4 million more cash, primarily due to payments of performance-based compensation; and
Current wording
Accrued payroll and benefits, which used $8.1 million more cash, primarily due to payments of performance-based compensation.
Previous 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.
Current wording
Cash used in investing activities was $3.6 million for the six months ended July 31, 2026, compared to $4.8 million for the six months ended July 31, 2025. The cash used in investing activities during the current year period primarily related to capital expenditures of $2.3 million mainly for leasehold improvements and shop-in-shops, and $1.1 million of long-term investments. Cash used in investing activities for the six months ended July 31, 2025 included $2.8 million of capital expenditures and $1.9 million of long-term investments.
Previous wording
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.
Current wording
Cash used in financing activities was $18.4 million for the six months ended July 31, 2026 as compared to $17.6 million for the six months ended July 31, 2025. The cash used in the current year period included $16.6 million in dividend payments, $1.5 million of open-market share repurchases, $2.4 million related to shares surrendered by employees to satisfy tax withholding obligations upon vesting of certain stock awards, offset by $2.5 million received in connection with stock options exercised and $0.3 million of debt issuance costs paid in connection with the amendment of the Company's revolving credit facility. Cash used in financing activities for the six months ended July 31, 2025 was due to $15.6 million in dividends paid, $1.6 million in stock repurchased in the open market and $0.5 million related to shares surrendered by employees to satisfy tax withholding obligations upon vesting of certain stock awards.
Previous wording
The Company and its U.S. and Swiss subsidiaries (collectively, the "Borrowers") are parties to an Amended and Restated Credit Agreement originally dated October 12, 2018 (as subsequently amended, the “Credit Agreement”) with the lenders party thereto and Bank of America, N.A. as administrative agent (in such capacity, the “Agent”). The Credit Agreement provides for a $100.0 million senior secured revolving credit facility (the “Facility”) and has a maturity date of October 28, 2026. The Facility includes a $15.0 million letter of credit subfacility, a $25.0 million swingline subfacility and a $75.0 million sublimit for borrowings by the Swiss Borrower, with provisions for uncommitted increases to the Facility of up to $50.0 million in the aggregate subject to customary terms and conditions. The Credit Agreement contains affirmative and negative covenants binding on the Company and its subsidiaries that are customary for credit facilities of this type, including, but not limited to, restrictions and limitations on the incurrence of debt and liens, dispositions of assets, capital expenditures, dividends and other payments in respect of equity interests, the making of loans and equity investments, mergers, consolidations, liquidations and dissolutions, and transactions with affiliates (in each case, subject to various exceptions).
Current wording
The Company and its U.S. and Swiss subsidiaries (collectively, the “Borrowers”) are parties to an Amended and Restated Credit Agreement originally dated October 12, 2018 (as subsequently amended, the “Credit Agreement”) with the lenders party thereto and Bank of America, N.A. as administrative agent (in such capacity, the “Agent”). After giving effect to Amendment No. 7 thereto dated July 16, 2026, the Credit Agreement provides for a $75.0 million senior secured revolving credit facility (the “Facility”) and has a maturity date of July 16, 2031. The Facility includes a $15.0 million letter of credit subfacility, and a $25.0 million swingline subfacility, with provisions for uncommitted increases to the Facility of up to $50.0 million in the aggregate subject to customary terms and conditions. The Credit Agreement contains affirmative and negative covenants binding on the Company and its subsidiaries that are customary for credit facilities of this type, including, but not limited to, restrictions and limitations on the incurrence of debt and liens, dispositions of assets, capital expenditures, dividends and other payments in respect of equity interests, the making of loans and equity investments, mergers, consolidations, liquidations and dissolutions, and transactions with affiliates (in each case, subject to various exceptions).
Previous wording
As of both April 30, 2026, and April 30, 2025, there were no amounts of loans outstanding under the Facility. Availability under the Facility was reduced by the aggregate number of letters of credit outstanding, issued in connection with retail and operating facility leases to various landlords and for Canadian payroll to the Royal Bank of Canada, totaling approximately $0.3 million at both April 30, 2026 and April 30, 2025. At April 30, 2026, the letters of credit have expiration dates through April 27, 2027. As of both April 30, 2026, and April 30, 2025, availability under the Facility was $99.7 million. For additional information regarding the Facility, see Note 6 - Debt and Lines of Credit to the Consolidated Financial Statements.
Current wording
As of both July 31, 2026, and July 31, 2025, there were no amounts of loans outstanding under the Facility. Availability under the Facility was reduced by the aggregate amount of letters of credit outstanding, issued in connection with retail and operating facility leases to various landlords and for Canadian payroll to the Royal Bank of Canada, totaling approximately $0.3 million at both July 31, 2026 and July 31, 2025. At July 31, 2026, the letters of credit have expiration dates through June 1, 2027. As of July 31, 2026, and July 31, 2025, availability under the Facility was $74.7 million and $99.7 million, respectively. For additional information regarding the Facility, see Note 6 - Debt and Lines of Credit to the Consolidated Financial Statements.
Previous wording
The Company had weighted average borrowings under the Facility of zero during both the three months ended April 30, 2026 and 2025, respectively.
Current wording
The Company had weighted average borrowings under the Facility of zero during both the three and six months ended July 31, 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 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.
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 July 31, 2026, and 2025, these lines of credit totaled 6.5 million Swiss Francs for both periods, with a dollar equivalent of $8.0 million for both periods. As of July 31, 2026, and 2025, there were no borrowings against these lines. As of July 31, 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 $1.5 million in various foreign currencies in both periods. Of these amounts $0.8 million in both periods represented restricted deposits related to lease agreements.
Previous wording
Cash paid for interest, including unused commitments fees, was $0.1 million for both the three month periods ended April 30, 2026 and April 30, 2025, respectively.
Current wording
Cash paid for interest, including unused commitment fees, was $0.1 million for both the six-month periods ended July 31, 2026 and July 31, 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 $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.
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 $1.1 million during the first six months of fiscal 2027 and may be called upon to satisfy capital calls in respect of the remaining $2.9 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. These investments are carried at cost, less any related impairments, adjusted for observable price changes, if any, as fair values are not readily determinable. Other than the additional investments made during the six months ended July 31, 2026, there were no impairment charges or observable price changes related to these investments.
Previous 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.
Current wording
During the six months ended July 31, 2026, the Company declared and paid two separate cash dividends of $0.35 per share and $0.40 per share aggregating to $16.6 million. 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. 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 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.
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 six months ended July 31, 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 six months ended July 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. At July 31, 2026, $44.6 million remains available for purchase under the Company's December 5, 2024 repurchase program.
Rearranged current paragraphs (14)
Current report — wording carried from elsewhere
Net sales for the three months ended July 31, 2026 in the International locations of the Watch and Accessory Brands segment were $95.4 million, above the prior year by $4.5 million, or 5.0%, which included fluctuations in foreign currency exchange rates that positively impacted net sales by $0.7 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 licensed brands category in the Company's wholesale customers. There was a net sales increase recorded in the licensed brands category of $5.7 million, or 7.1%, due to net sales increases across all regions. This increase was partially offset by a net sales decrease recorded in the owned brands category of $0.4 million, or 4.5%, primarily due to net sales decreases in Europe and the Middle East, partially offset by net sales increases in the Americas (excluding the United States) and Asia.
Current report — wording carried from elsewhere
Net sales for the three months ended July 31, 2026 in the Company Stores segment were $26.9 million, $0.7 million or 2.8% above the prior year period. The net sales increase was primarily due to a favorable sales mix, partially offset by a decrease in sales from the Company's online outlet store at www.movadocompanystore.com. As of July 31, 2026 and 2025, the Company operated 57 retail outlet locations.
Current report — wording carried from elsewhere
The significant components of the effective tax rate for the three month period changed primarily due to an increase in the utilization of foreign tax credits related to Net Controlled Foreign Corporation Tested Income and changes in certain foreign valuation allowances, partially offset by changes in jurisdictional earnings.
Current report — wording carried from elsewhere
Net Sales: Comparative net sales by business segment were as follows (in thousands):
Current report — wording carried from elsewhere
Comparative net sales by categories were as follows (in thousands):
Current report — wording carried from elsewhere
Watch and Accessory Brands Net Sales
Current report — wording carried from elsewhere
United States Watch and Accessory Brands Net Sales
Current report — wording carried from elsewhere
International Watch and Accessory Brands Net Sales
Current report — wording carried from elsewhere
Selling, General and Administrative (“SG&A”)
Current report — wording carried from elsewhere
Watch and Accessory Brands Operating Income/Loss
Current report — wording carried from elsewhere
U.S. Watch and Accessory Brands Operating Loss
Current report — wording carried from elsewhere
International Watch and Accessory Brands Operating Income
Current report — wording carried from elsewhere
Interest expense was $0.2 million primarily due to the payment of unused commitment fees for both the six months ended July 31, 2026 and 2025. There were no borrowings under the Company's revolving credit facility during the six months ended July 31, 2026 and 2025.
Current report — wording carried from elsewhere
Net Income Attributable to Movado Group, Inc.