Loading...
01/10 20:10
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call summary reveals several concerns: missed earnings expectations, declining sales, and lack of fiscal outlook due to economic uncertainties. Despite cost-saving measures and strong cash position, the negative impact of currency fluctuations and tariffs, coupled with declining margins, overshadow positive developments like new partnerships and product launches. The Q&A section highlights uncertainties, particularly regarding tariffs and foreign exchange losses. The lack of share repurchases and unclear management responses further contribute to a negative sentiment, leading to a predicted stock price movement of -2% to -8%.
Sales $131.8 million, down 1.9% year-over-year (from $134.4 million), primarily due to decreases in owned brands and company stores, partially offset by an increase in licensed brands.
Adjusted Operating Income $870,000, down from $2.1 million year-over-year, due to unrealized losses from currency fluctuations despite progress in reducing operating expenses.
Adjusted Earnings Per Share (EPS) $0.08, down from $0.09 year-over-year, attributed to a lower tax rate.
Gross Profit Margin 54.1%, down from 54.3% year-over-year, primarily driven by negative impacts from currency fluctuations, increased shipping costs, and fixed cost deleverage over lower sales.
Operating Expenses $70.5 million, slightly down from $70.8 million year-over-year, with savings from cost initiatives offset by unrealized currency losses and increased performance-based compensation.
Net Income $1.9 million or $0.08 per diluted share, down from $2 million or $0.09 per diluted share year-over-year.
Cash Position $203 million, down from $225.4 million year-over-year, reflecting changes in cash management.
Accounts Receivable $87.3 million, up from $81 million year-over-year, due to timing and mix of business.
Inventory $24.1 million increase year-over-year, attributed to the timing of receipts.
Capital Expenditures $1.5 million for the first three months of fiscal 2026.
New Product Introductions: Recent introduction of Mini Bangle collections and Bold Mini Quest, priced at $750 and $595 respectively, received strong consumer response.
Brand Refresh: Progress on Movado brand refresh, enhancing brand positioning and broadening reach.
Market Expansion: Strong growth in licensed brands with sales improving by high single digits, particularly in Coach, Hugo Boss, Lacoste, Calvin Klein, Tommy Hilfiger, and Olivia Burton.
Operational Efficiencies: Reduced operating expenses through cost savings initiatives, although offset by unrealized losses from currency fluctuations.
Sales Performance: Sales decreased by 1.9% year-over-year, with US sales down 1.6% and international sales down 2.2%.
Strategic Shifts: Focus on managing controllables and operating with flexibility amid macroeconomic uncertainties and tariff-related challenges.
Earnings Expectations: Movado Group, Inc. missed earnings expectations with reported EPS of $0.08 compared to expectations of $0.39.
Economic Environment: The company is navigating through an increasingly uncertain global economic environment, which has negatively impacted sales.
Sales Decline: Sales decreased by 1.9% year-over-year, with U.S. sales down 1.6% and international sales down 2.2%.
Currency Fluctuations: Unrealized losses due to significant currency fluctuations have impacted operating income and gross profit margins.
Tariff Uncertainties: The company faces tariff-related uncertainties that could affect cost increases, with current rates subject to change based on trade negotiations.
Supply Chain Challenges: The company is actively engaging with supply chain partners to mitigate impending cost increases for U.S. imports.
No Fiscal Outlook: Due to macroeconomic and tariff-related uncertainties, the company has opted not to provide a fiscal 2026 outlook.
Sales Performance: Sales of $131.8 million, down 1.9% year-over-year, with a focus on product innovation and brand refresh.
Cost Savings Initiatives: Progress made in reducing operating expenses through cost savings initiatives.
Product Innovation: Introduction of new Mini Bangle collections and Bold Mini Quest, enhancing brand positioning.
Partnership Amplification: Strengthening visibility through partnership with NBA star Tyrese Haliburton.
Social Media Campaigns: Utilizing influencers and dynamic content on Instagram and TikTok to engage target consumers.
Licensed Brands Growth: High single-digit growth in licensed brands, particularly with Coach and Hugo Boss.
Outlet Division Improvement: Sales down only 1.7%, with trends improving into the second quarter.
Revenue Outlook: No fiscal 2026 outlook provided due to macroeconomic and tariff-related uncertainties.
Tariff Impact: Current tariff rates may change; the company plans to mitigate cost increases through selective price increases.
Capital Expenditures: Capital expenditures for the first three months of fiscal 2026 were $1.5 million.
Cash Position: Ended the quarter with $203 million in cash and no debt.
Dividend per share: $0.35 per share for the first quarter.
Share repurchase program: Did not repurchase shares under the $50 million share repurchase program during the quarter.
The earnings call reveals strong financial performance with revenue and net income growth, improved gross margin, and cash flow. The company is optimistic about product launches and market strategy, especially targeting Gen Z. While there are challenges like tariffs and Middle East performance, the optimistic guidance, shareholder returns, and Q&A insights suggest a positive sentiment. The market strategy and shareholder return plan are particularly strong, indicating a likely positive stock price movement.
Despite macroeconomic uncertainties and a slight decline in gross margins, the company reported a 3% increase in sales and a significant rise in adjusted operating profit. The strong international performance, strategic inventory management, and a share repurchase program further contribute to a positive outlook. The Q&A section highlighted effective management strategies and a focus on market trends, with no unclear responses. These factors suggest a positive stock price movement over the next two weeks.
The earnings call summary reveals several concerns: missed earnings expectations, declining sales, and lack of fiscal outlook due to economic uncertainties. Despite cost-saving measures and strong cash position, the negative impact of currency fluctuations and tariffs, coupled with declining margins, overshadow positive developments like new partnerships and product launches. The Q&A section highlights uncertainties, particularly regarding tariffs and foreign exchange losses. The lack of share repurchases and unclear management responses further contribute to a negative sentiment, leading to a predicted stock price movement of -2% to -8%.
The earnings call reveals several concerns: declining sales and operating income, currency fluctuations, and tariff uncertainties. The lack of fiscal guidance further adds to investor uncertainty. Although there are positive aspects like a strong cash position and a dividend, these are overshadowed by the negative financial performance and unclear future outlook. The Q&A session didn't alleviate concerns, as management failed to provide a clear strategy to address challenges. These factors are likely to lead to a negative stock price reaction in the short term.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
