• Annual Revenue: $653.4 million, a 1.7% decline from the previous year.
• Fourth Quarter Revenue: $181.5 million, a 3.3% increase from the previous year.
• Adjusted Operating Income (Annual): $27.1 million, down from $48.5 million last year.
• Adjusted Operating Income (Q4): $13.5 million, an increase of $2.8 million from the previous year.
• Adjusted Earnings Per Share (Annual): $1.12.
• Adjusted Earnings Per Share (Q4): $0.51.
• Cash Position: $208.5 million with no debt.
• Gross Margin (Q4): 54.2%, up from 53.5% in the previous year.
• Operating Expenses (Q4): $84.8 million, up from $83.3 million last year.
• Net Income (Q4): $11.5 million or $0.51 per diluted share, up from $9.8 million or $0.43 per diluted share last year.
• Inventory: $156.7 million, slightly up from $153.9 million last year.
• Share Repurchases: Approximately 120,000 shares repurchased during fiscal 2025.
• Dividend: Quarterly dividend of $0.35 declared.

• Warning! GuruFocus has detected 2 Warning Sign with CFG.

Release Date: April 16, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Movado Group Inc (NYSE:MOV) reported a 3.3% increase in fourth-quarter sales, reaching $181.5 million.
• The company ended the fiscal year with $208.5 million in cash and no debt, indicating strong financial health.
• Movado Group Inc (NYSE:MOV) declared a quarterly dividend of $0.35, demonstrating a commitment to returning value to shareholders.
• The company is implementing a comprehensive brand refresh and marketing campaign, featuring high-profile personalities to boost brand visibility.
• Movado Group Inc (NYSE:MOV) is introducing new products, including watches with lab-grown diamonds, to stay on trend and appeal to a broader customer base.

Negative Points

• Sales for the fiscal year declined by 1.7% to $653.4 million compared to the previous year.
• Adjusted operating income decreased significantly from $48.5 million last year to $27.1 million this year.
• The company faced irregularities in its Dubai sales office, leading to financial restatements and termination of the office leader.
• Movado Group Inc (NYSE:MOV) is experiencing challenges due to increased tariffs, which could impact gross margins and consumer demand.
• The company is not providing a fiscal 2026 outlook due to economic uncertainty and unpredictable tariff impacts.

Q & A Highlights

Q: Could you talk about your marketing strategy this year given that you plan to spend less? A: Efraim Grinberg, Chairman and CEO, explained that Movado will focus more on digital venues, allowing for timely adjustments based on sales performance. The company aims to enhance conversion with retail partners globally, increasing the productivity of marketing efforts in the upcoming seasons.

Q: Are you expecting sales to increase this year? A: Efraim Grinberg stated that due to global uncertainties, including tariffs and trade issues, it's difficult to predict sales growth. The company is focusing on execution and controlling expenses, which are largely variable, to navigate the uncertain retail environment.

Q: How is Movado planning to handle economic uncertainty and potential tariffs? A: Efraim Grinberg mentioned that Movado is assessing the tariff structure to implement sustainable price increases. The company will maintain a good, better, best strategy across brands, ensuring value-oriented price points are available if economic challenges arise.

Q: Are there additional cost savings initiatives to ensure free cash flow generation this year? A: Efraim Grinberg confirmed the intention to generate free cash flow, focusing on inventory levels and variable expenses like marketing. The digital marketing approach allows for closer-to-execution commitments, providing flexibility in managing costs.

Q: What is the company's approach to managing inventory and expenses? A: Efraim Grinberg highlighted that maintaining some inventory is beneficial, and the company is focused on managing variable expenses. The digital marketing strategy offers flexibility, and the aim is to sustain planned sales levels without reducing marketing efforts.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.