Movado Group's Q1 2026: Navigating Sales Momentum, Inventory Challenges, and Digital Marketing Strategies Amid Economic Uncertainty

Sales momentum and economic uncertainty, inventory management and cash flow, and marketing strategy and digital focus are the key contradictions discussed in Movado Group's latest 2026Q1 earnings call.



Sales Performance and Economic Environment:
- Movado Group reported sales of $131.8 million for Q1 2026, a 1.9% decrease from the previous year or 1% decrease on a constant currency basis.
- The decline was attributed to challenging global economic conditions and currency fluctuations.

Geographic and Branded Performance:
- US sales decreased by 1.6%, with international sales down 2.2% or 0.7% on a constant currency basis.
- Growth in licensed brands such as Coach, Hugo Boss, and Lacoste offset the decline in owned brands and company stores.

Operating Income and Financial Performance:
- The company's adjusted operating income for Q1 2026 was $870,000, down from $2.1 million last year.
- This was primarily due to unrealized losses from currency fluctuations and an increase in performance-based compensation.

Brand Refresh and Product Innovation:
- Movado introduced new product lines such as the Mini Bangle collections and the Bold Mini Quest, priced at $750 and $595 respectively.
- These introductions aimed to elevate brand positioning and broaden the company's reach.

Operating Expenses and Cost Management:
- The company made progress in reducing investment and marketing expenditures and payroll-related costs.
- However, the benefits were partially offset by an increase in performance-based compensation and unrealized currency losses.