Hamed Khorsand

Michael Legg

- Movado Group reported a return to growth in Q2 2026, with sales increasing **3%** to **$161.8 million** and adjusted operating profit more than doubling to **$7 million**.  **[72573_tx_351597_1]**  Net income for the quarter was **$5.3 million**, or **$0.23** per diluted share.  **[72573_tx_351597_4]** 
- Gross margin was **54.1%**, impacted by **$2.2 million** from unmitigated U.S. tariff expenses and a **130 basis point** impact from additional tariffs.  **[72573_tx_351597_1]** **[72573_tx_351597_4]**  The company built a strong inventory of Swiss-made watches in the U.S. to cover a substantial portion of the year's needs, anticipating further tariff impacts.  **[72573_tx_351597_1]** **[72573_tx_351597_5]** 
- Operating expenses decreased by **$2 million** due to strategic marketing reductions, contributing to improved profitability, with approximately **$10 million** in annualized savings expected from prior expense reduction actions.  **[72573_tx_351597_1]** **[72573_tx_351597_4]** 
- The company maintains a strong balance sheet with over **$180 million** in cash and no debt.  **[72573_tx_351597_1]** **[72573_tx_351597_5]**  Approximately **100,000 shares** have been repurchased year-to-date, with **$48.4 million** remaining under the authorized share repurchase program.  **[72573_tx_351597_5]** 
- Movado Group is **not providing a fiscal 2026 outlook** due to the current macroeconomic environment and ongoing uncertainty regarding tariffs.  **[72573_tx_351597_5]**

MOVADO GROUP (MOV)