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Jul 31
Movado Q2 2026 Earnings Report
Movado reported higher revenue and operating income, supported by international growth and strong digital performance.
Key Takeaways
Movado Group delivered a solid Q2 FY2026, with revenue growing 3.1% and adjusted operating income reaching $7.0M. Despite pressures from U.S. tariffs and FX, the company maintained a healthy gross margin and increased profitability year-over-year.
Revenue rose to $161.8M, up from $157.0M last year.
Adjusted net income reached $5.3M, or $0.23 per share.
International net sales increased 6.9%, offsetting a 1.6% decline in U.S. sales.
Cash balance remained strong at $180.5M with no debt.
Movado
Movado
Forward Guidance
Movado did not issue formal guidance for fiscal 2026 due to macroeconomic and tariff-related uncertainty.
Positive Outlook
- Maintained strong cash position with no debt.
- Continued growth in international and digital sales.
- Stable gross margins despite tariff and FX headwinds.
- Cost-control initiatives underway to preserve margins.
- Ongoing dividend payments to shareholders.
Challenges Ahead
- No fiscal 2026 guidance provided due to uncertainty.
- U.S. net sales declined 1.6% YoY.
- Tariff increases weighed on gross margin.
- FX rate fluctuations negatively impacted profit.
- Higher tax rate impacted adjusted earnings.