Movado Group 2026 Q2 Earnings Earnings and Net Income Decline Despite Revenue Growth

Movado Group reported mixed results for its fiscal 2026 second quarter, with revenue growth failing to offset a decline in earnings. The company’s EPS and net income both fell year-over-year, as the business navigated ongoing challenges from U.S. tariffs and a difficult retail environment.

Revenue
Movado Group’s total revenue rose 3.1% year-over-year to $161.83 million in Q2 2026, driven by strong performance across its segments. The Watch and Accessory Brands segment accounted for the largest share, generating $135.68 million. Within this, the Licensed brands category outperformed with $92.42 million in revenue, growing 6.5%, compared to $42.12 million from Owned brands. Company Stores added $26.15 million, while After-sales service and all other segments contributed $1.14 million. The results reflected strategic efforts to optimize inventory and align with market trends.

Earnings/Net Income
The company’s earnings declined, with EPS falling 18.8% to $0.13 and net income dropping 12% to $3.14 million. The decline highlights the pressure on profitability from ongoing cost and margin challenges.

Price Action
Following the earnings report, the stock rose 6.51% in the latest trading day and gained 7.21% over the previous week, with an 8.91% increase month-to-date.

Post-Earnings Price Action Review
A strategy of buying Movado Group shares after an earnings beat and holding for 30 days yielded a 13.28% return, underperforming the 79.85% benchmark. Despite the modest Sharpe ratio of 0.06, the strategy saw no maximum drawdown, indicating limited downside risk.

CEO Commentary
Efraim Grinberg, CEO, acknowledged the 3% revenue growth and a doubling of adjusted operating profit to $7 million. However, he noted the drag from U.S. tariffs and a 5.6% decline in Movado brand sales. Grinberg emphasized progress in rebuilding inventory, launching new products, and enhancing digital and in-store experiences. He expressed optimism about long-term positioning, new product momentum, and the fashion watch resurgence.

Guidance
The company has not issued earnings guidance for fiscal 2026 due to macroeconomic and tariff uncertainties. Grinberg expects $10 million in annualized cost savings from prior expense cuts and anticipates U.S.-Switzerland tariff stabilization in the coming months.

Additional News
On June 17, 2025, Seeking Alpha reported on Movado Group’s stock, though access to the page was restricted. No new M&A activity, C-level changes, or dividend/buyback announcements were disclosed in the available timeframe, which spanned three weeks prior to the August 28, 2025 earnings report. The company remained focused on operational efficiency and brand positioning amid macroeconomic challenges.