Movado Group, Inc. (NYSE:MOV) posted mixed third-quarter results on Tuesday, with an earnings shortfall overshadowing a modest revenue beat. The stock’s earnings performance came in well below expectations, even as sales showed year-over-year improvement.
The company reported adjusted earnings of $0.45 per share—far under the analyst consensus of $0.86. Revenue, however, totaled $186.1 million, slightly ahead of the $184.64 million forecast and up 3.1% from $180.5 million in the same quarter last year.
Gross margin improved to 54.3%, an increase of 80 basis points from the 53.5% reported in the third quarter of fiscal 2025. U.S. net sales rose 6.9%, while international sales ticked up 0.6%, though they fell 2.5% on a constant-currency basis.
“We are pleased with our third quarter results, delivering a 3% increase in net sales, 80 basis points of expansion in gross margin and a doubling in diluted earnings per share versus the third quarter last year, even as we absorbed material tariff cost increases in the period,” said Efraim Grinberg, Chairman and Chief Executive Officer.
Movado also emphasized its solid balance sheet, finishing the quarter with $183.9 million in cash and no outstanding debt. The board approved a quarterly dividend of $0.35 per share.
Looking to the future, Grinberg noted the potential benefits of the newly announced U.S.-Switzerland framework trade agreement, which is expected to cut Movado’s overall U.S. tariff rate on Swiss watches to 15%, or roughly one-third of what the company has been paying since August.
“This change, together with the continued dedication and focused execution of our global team, should continue to drive improving results and create new opportunities for growth in both sales and profitability,” he added.
Movado did not issue formal guidance for fiscal 2026, citing economic uncertainty and the unpredictable impact of tariff developments on its operations.