Movado Group Plunges 28.76% Amid Misconduct Probe

On April 21, 2025, Movado Group's stock experienced a significant drop of 28.76% in pre-market trading, sparking concerns among investors and analysts alike.

Levi & Korsinsky has initiated an investigation into Movado Group, Inc. regarding potential violations of federal securities laws. The investigation follows revelations made by Movado in an SEC filing on April 11, 2025, which disclosed allegations of misconduct within the Dubai branch of its Swiss subsidiary, MGI Luxury Group Sárl. The misconduct involved overstated sales, premature recognition of sales, and underreporting of credit notes in the Middle East, India, and Asia Pacific regions. The company's former managing director of the Dubai branch, along with certain employees, were found to have engaged in these activities over a period of approximately five years, beginning in the fiscal year ended January 31, 2021.

As a result of the investigation, Movado has determined that its historical consolidated financial statements for the fiscal years ended January 31, 2024, 2023, and 2022, as well as the interim periods within fiscal years 2025 and 2024, require restatement. The restated financials reflect a reduction in operating expenses due to the reversal of certain accruals resulting from lower adjusted operating results. Additionally, the company has identified a material weakness in its internal control over financial reporting, specifically related to the lack of functional segregation of duties in the Dubai branch.

Investors are advised to contact Levi & Korsinsky for additional information and to explore their legal options. The firm has a proven track record in securities litigation and is committed to securing compensation for aggrieved shareholders. The investigation underscores the importance of robust internal controls and the potential consequences of financial misconduct on a company's reputation and stock performance.