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Oct 31, 2022

Movado Q3 2023 Earnings Report

Reported net sales of $211.4 million and EPS of $1.28.

Key Takeaways

Movado Group reported strong Q3 results with topline growth in constant currency and solid profitability, driven by disciplined execution of its strategy. The company maintained a healthy gross margin and managed expenses, leading to an adjusted operating margin of 18.4%.

Net sales reached $211.4 million.

Constant currency net sales were $225.1 million.

Operating income was $38.3 million, representing 18.1% of net sales.

EPS was reported at $1.28, with adjusted EPS at $1.31.

Total Revenue
$211M
Previous year: $218M
-2.9%
EPS
$1.31
Previous year: $1.36
-3.7%
Gross Profit
$121M
Previous year: $126M
-3.6%
Cash and Equivalents
$187M
Previous year: $202M
-7.5%
Free Cash Flow
$27K
Previous year: $14.2M
-99.8%
Total Assets
$776M
Previous year: $741M
+4.7%

Movado

Movado

Forward Guidance

The Company is updating its fiscal 2023 outlook given the prevailing foreign exchange headwinds and the uncertain retail environment.

Positive Outlook

  • Outstanding product pipeline across the portfolio.
  • Excitement about the new Alta collection in Movado.
  • Strong balance sheet with $186.7 million in cash and no debt.
  • Confident in positioning to navigate the uncertain environment.
  • Focus on profitably growing the world-class portfolio of brands.

Challenges Ahead

  • Prevailing foreign exchange headwinds.
  • Uncertain retail environment.
  • Softer spending environment.
  • Impact of increasing inflation.
  • Geopolitical unrest