Movado Group Plunges 12.63% on Disappointing Q1 Sales

On May 29, 2025, Movado Group's stock experienced a significant drop of 12.63% in pre-market trading.

Movado Group, a luxury watch company, reported a 3.6% year-on-year decline in sales for the first quarter of 2025, falling short of Wall Street's revenue expectations. The company's net sales of $131.8 million were below the analyst estimate of $142.11 million, indicating a challenging quarter for the company.

Despite a recent 26% bounce in share price over the last month, the company's financial performance has been under scrutiny. The gross margin slightly decreased to 54.1% from 54.3% in the previous year, reflecting the company's struggles to maintain profitability amidst declining sales.

In its first-quarter fiscal 2026 report, Movado Group announced net sales of $131.8 million, a 1.9% decrease from the prior year. The company reported a profit of $1.4 million for the fiscal first quarter, with earnings per share aligning with expectations.