Movado Group, Inc. reported fourth‑quarter and full‑year 2026 results that highlighted a return to growth, with net sales rising to $671.3 million for the year and operating income climbing to $29.8 million. Adjusted operating income reached $34.8 million, up 28.7% from $27.1 million in 2025, while earnings per share for the quarter came in at $0.57, beating the consensus estimate of $0.53 but falling short of some analysts’ $0.72 target.
In the fourth quarter, Movado generated $191.6 million in net sales, a 5.6% year‑over‑year increase that surpassed revenue estimates of $183.85 million by $7.73 million. The quarter’s EPS of $0.57 beat the Zacks consensus by $0.04, yet missed the higher analyst expectation of $0.72, reflecting a mixed earnings picture.
Segment performance underscored the company’s channel strengths: wholesale sales grew 25%, Movado.com grew 18%, and company stores grew 9%. Fashion watch and jewelry brands also delivered robust results, driven by product innovation and digital content, particularly in the United States, Mexico and Europe.
Gross margin for the quarter held steady at 54.1%, slightly below the 54.2% recorded in Q4 2025, while operating income of $29.8 million and adjusted operating income of $34.8 million reflected effective cost‑control measures that offset the impact of U.S. tariffs, which added roughly $10 million to cost of goods sold.
Cash and balance‑sheet strength remained solid: Movado ended 2026 with $230.5 million in cash, no debt, and $57.9 million in net cash provided by operating activities. The company also repurchased approximately 208,000 shares during the year, leaving $46.1 million under its authorized repurchase program.
Management noted, “Our strong performance in the 4th quarter allowed us to close fiscal 2026 on a high note, delivering strong growth in net sales, a significant increase in profitability and strong positive cash flow generation. Total net sales grew by 5.6%, leading to full‑year growth of 2.7% – demonstrating accelerating momentum as the year progressed.” The CEO also added, “The Movado brand delivered a very strong quarter across our most important channels, led by our wholesale business with 25% sales growth, Movado.com with 18% sales growth and our Movado Company Stores with 9% growth.” Regarding the balance sheet, “For fiscal year 2026, we generated $57.9 million in net cash provided by operating activities and ended the year with $230.5 million in cash and no debt.” On outlook, “Given the current economic uncertainty, we have elected to not provide fiscal 2027 outlook at this time.”
Investor reaction was cautious, with some analysts noting the EPS miss relative to certain estimates and the absence of FY2027 guidance, which tempered enthusiasm for the otherwise positive revenue beat.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.