The following is a summary of the Movado Group, Inc. (MOV) Q1 2025 Earnings Call Transcript:

Financial Performance:

• Movado reported a decrease in Q1 sales by 5.7% to $136.7 million and operating income decreased to $3.3 million from $10.9 million compared to last year.

• Gross profit margin was 55.3%, a decrease from last year's 56.6%, due to unfavorable product mix and fixed cost deleverage.

• Net income was $2.9 million, or $0.13 per diluted share, down from $9.1 million or $0.40 per diluted share year over year.

Business Progress:

• Movado continued to focus on its brand refresh, launching new advertising campaigns and product collections such as the Bold Quest.

• Movado.com saw a double-digit increase, and early improvements were noted in department store channels.

• Movado plans significant marketing investments for the second half to support growth in the Movado and licensed brands.

Opportunities:

• Movement plans include further developing its iconic collections and enhancing brand visibility through extensive marketing campaigns expected to roll out in the second half.

• The anticipated sales growth in the U.S. and Europe from these efforts aligns with strategic partnerships and marketing activities.

Risks:

• Initial declines in sales signal potential challenges in maintaining profitability amidst aggressive brand and marketing investments.

• Movado anticipates short-term impacts to profitability due to heightened marketing spends and branding efforts.

More details: Movado IR

Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.