Movado’s third quarter results were met with a positive market reaction, as investors responded to margin improvements and steady top-line growth. Management credited the quarter’s performance to innovation across brands, with CEO Efraim Grinberg pointing to new product launches and expanded digital marketing as key demand drivers. The company also highlighted a shift in consumer trends benefiting both women’s and men’s collections, as well as direct-to-consumer channels. Grinberg noted, “Innovation in new shapes, and sizes and growing interest from women and younger consumers” supported category momentum.
Is now the time to buy MOV? Find out in our full research report (it’s free for active Edge members).
Movado (MOV) Q3 CY2025 Highlights:
- Revenue: $186.1 million vs analyst estimates of $185.9 million (3.1% year-on-year growth, in line)
- EPS (GAAP): $0.42 vs analyst expectations of $0.57 (26.8% miss)
- Adjusted EBITDA: $15.41 million (8.3% margin, 60.3% year-on-year growth)
- Operating Margin: 6.3%, up from 3.3% in the same quarter last year
- Market Capitalization: $471.5 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Movado’s Q3 Earnings Call
- Hamed Khorsand (BWS Financial) asked if product success was more attributable to influencer campaigns or design appeal among Gen Z. CEO Efraim Grinberg explained it was a combination of social media coverage, digital campaigns, and innovative designs resonating with younger consumers globally.
- Hamed Khorsand (BWS Financial) inquired whether sold-out collections could impair sales. Grinberg clarified that while some limited editions are intentionally sold out, most styles will be replenished to maintain supply-demand balance, with restocking planned for coming quarters.
- Hamed Khorsand (BWS Financial) questioned if recent sales momentum would alter planned spending levels. Grinberg responded that the company would continue to invest in brand building but emphasized ongoing efforts to improve profitability and maintain disciplined expense management.
Catalysts in Upcoming Quarters
In the next several quarters, the StockStory team will be tracking (1) execution of tariff mitigation strategies and the impact of reduced Swiss import duties on margins, (2) continued momentum in direct-to-consumer and digital channels, and (3) progress in rebuilding the Middle East business. We will also monitor the effectiveness of new product launches in driving revenue growth and the company’s ability to balance marketing investments with margin discipline.
Movado currently trades at $21.26, up from $19.43 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).
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