Movado Group, Inc. (NYSE:MOV) reported fiscal first-quarter 2027 results on Wednesday that came in ahead of analyst expectations, driven by stronger sales growth and a significant improvement in profit margins.
The watch and accessories company posted adjusted earnings per share of $0.32, comfortably above the consensus forecast of $0.08. Revenue reached $142.4 million, exceeding analyst estimates of $135.39 million.
Shares of Movado rose 1.85% in premarket trading following the earnings announcement.
Adjusted earnings per share increased from $0.08 in the same quarter last year, while quarterly revenue rose 8.1% year-over-year from $131.8 million.
Gross margin expanded by 320 basis points to 57.3%, compared with 54.1% a year earlier. The company said the improvement was supported by a favourable product and channel mix, along with stronger cost leverage resulting from higher sales volumes.
Operating income climbed to $7.0 million during the quarter, compared with just $0.3 million in the first quarter of fiscal 2026.
Movado ended the quarter with $225.3 million in cash and no outstanding debt.
“We are pleased with our start to the year, accelerating the momentum from year-end and delivering a strong first quarter,” said Efraim Grinberg, Chairman and Chief Executive Officer. “We increased net sales by 8%, expanded gross margin by 320 basis points, and delivered earnings per share of $0.30 compared to $0.06 in the prior year — while also making meaningful progress on our strategic initiatives.”
Sales in the United States increased 8.7%, while international sales rose 7.6%, or 1.6% on a constant-currency basis. The company said its largest markets, including the United States and Europe, delivered particularly strong performances, although weakness in the Middle East linked to regional conflict partially offset some of the gains.
Movado’s board of directors also approved a 14% increase in the quarterly dividend, raising it to $0.40 per share from $0.35 per share. The dividend is scheduled to be paid on June 24, 2026.
Due to ongoing economic uncertainty and geopolitical tensions, including the conflict in the Middle East, the company declined to issue formal guidance for fiscal 2027.
Movado added that first-quarter performance benefited from favourable foreign exchange movements and warned that revenue growth is expected to slow during the second quarter.