Movado Group Inc. (NYSE: MOV) shares advanced 3% in early trading after the watchmaker reported second-quarter fiscal 2027 results that exceeded analyst expectations on both the top and bottom lines.
Adjusted earnings per share totaled $0.54, surpassing the consensus estimate of $0.35 by 54%. The figure included $0.11 from IEEPA duty refunds. Excluding this benefit, adjusted EPS grew approximately 87% year-over-year. Revenue reached $169.8 million, up 4.9% from $161.8 million in the prior-year period and ahead of the $164.17 million estimate.
Gross margin expanded 340 basis points to 57.5% on a pro forma basis, excluding duty refunds, driven by favorable channel and product mix. Operating income rose to $14.9 million from $4.0 million a year earlier, with adjusted operating income totaling $15.1 million, or 8.9% of net sales. The company maintained a strong balance sheet, ending the quarter with $211.6 million in cash and no debt.
Sales growth was broad-based, spanning owned and licensed brands, direct and wholesale channels, and key regions led by the U.S. and Europe. U.S. net sales increased 4.9%, while international net sales rose 4.9% on a reported basis and 4.1% on a constant-currency basis.
Movado’s board declared a quarterly dividend of $0.40 per share, payable on September 22, 2026. For the second half of fiscal 2027, the company expects revenue growth in the mid-single-digit range and a gross margin between 55% and 56%, excluding any additional IEEPA duty refunds. Movado discontinued annual guidance to prioritize long-term strategy execution.
Efraim Grinberg, Chairman and Chief Executive Officer, said the results capped an excellent first half, reflecting broad-based gains across brands, channels, and geographies.
