Movado Group Inc. reported second-quarter fiscal 2027 results that exceeded Wall Street expectations, driven by broad-based strength across its portfolio of watch brands and a 543-basis-point year-over-year increase in gross margin.
Adjusted earnings per share rose to $0.54 from $0.23 a year earlier, surpassing the $0.35 consensus estimate by $0.19. Revenue increased 4.9% to $169.8 million, beating the $164.17 million forecast by $5.63 million. Net income totaled $12.5 million, more than doubling from $5.3 million in the prior-year period.
Gross margin expanded to 59.4% from 54.1%, including $3.2 million in IEEPA duty refunds. Excluding the refunds, adjusted gross margin was 57.5%, reflecting a 340-basis-point improvement. Operating profit more than doubled to $15.1 million, while operating expenses rose to $85.7 million.
For the first six months of fiscal 2027, revenue increased 6.3% to $312.2 million, and operating income climbed to $22.6 million. Cash and equivalents reached $211.6 million, up from $180.5 million, with no debt reported. Movado returned over $16 million to shareholders through quarterly dividends year-to-date.
Chairman and CEO Efraim Grinberg highlighted momentum across the business and strength in consumer demand despite Middle East geopolitical challenges. He noted a resurgence in traditional watch demand among younger consumers and cited strong performance from product lines such as Movado’s Baby Face mini strap watch and Coach’s Sammy and Iris collections.
The company also announced it will discontinue annual guidance, citing market volatility. For the second half, Movado expects mid-single-digit revenue growth and a gross margin of 55% to 56%, reflecting the absence of first-half inventory benefits. Management remains focused on recovering the remaining $6.8 million in IEEPA duty refunds, though gains will only be recognized upon receipt.
