Movado’s second quarter reflected a mix of product-driven growth and external cost pressures, with management attributing performance to successful new watch introductions and the strategic timing of inventory movements ahead of U.S. tariff increases. CEO Efraim Grinberg noted, “We have built a strong position in inventory of Swiss-made watches in the United States and would expect a substantial portion of the year’s needs are covered.” Management also highlighted ongoing traction in digital and wholesale channels, particularly for women’s and licensed brand collections.
Is now the time to buy MOV? Find out in our full research report (it’s free).
Movado (MOV) Q2 CY2025 Highlights:
- Revenue: $161.8 million vs analyst estimates of $156.8 million (3.1% year-on-year growth, 3.2% beat)
- EPS (GAAP): $0.13 vs analyst expectations of $0.31 (57.5% miss)
- Adjusted EBITDA: $8.28 million (5.1% margin, 39.6% year-on-year growth)
- Operating Margin: 3%, up from 1.7% in the same quarter last year
- Market Capitalization: $412.9 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Movado’s Q2 Earnings Call
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Hamed Khorsand (BWS Financial) asked about the consumer response to mini watches and whether this trend would continue. CEO Efraim Grinberg explained the appeal of smaller watches, especially among younger women, and sees the trend expanding.
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Hamed Khorsand (BWS Financial) inquired about the impact of Prime Day and digital events. Grinberg responded that digital-focused retail partners performed well globally, particularly in Europe, and this channel remains a strategic focus.
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Hamed Khorsand (BWS Financial) sought clarity on inventory build-up and the plan to digest excess stock before the holiday season. Grinberg and CFO Sallie DeMarsilis emphasized that most inventory is already in the U.S. and should normalize by year-end as demand absorbs it.
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Oliver Chen questioned the timeline for restructuring charges ending and their impact on results. Grinberg noted most restructuring actions are completed, with only minor charges remaining, while DeMarsilis said cost savings will offset normal expense growth.
No additional analyst questions were asked on the call.
Catalysts in Upcoming Quarters
Going forward, the StockStory team will monitor (1) the resolution of U.S.-Swiss tariff negotiations and any corresponding impact on costs, (2) the pace at which inventory levels normalize and translate into sales, and (3) the effectiveness of new product launches and digital marketing campaigns in sustaining demand. Progress on cost containment and the return to consistent operating margin improvement will also be key signposts.
Movado currently trades at $18.48, up from $17.52 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
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