Movado Group reported a 5 percent rise in Q2 net sales, attributing the growth largely to younger shoppers and a surge in women’s interest in traditional watches.
Sales Rise Driven by Younger Shoppers
CEO and chairman Efraim Grinberg told analysts that Gen Z buyers in the United States, Mexico and Brazil are beginning to collect multiple timepieces. “As they become more mature and older and have a higher availability of income, they will move into better watches as well,” he said.
The company sees this shift as a move away from wearables toward watches as fashion accessories. While the Apple Watch’s debut in 2015 raised questions about the sector, many younger consumers now treat watches as style statements rather than tech devices.
Grinberg highlighted that trendy shapes and mini‑sized pieces are resonating with this cohort, especially the licensed Coach line, which has become a favorite among Gen Z.
In a brief aside, the pattern mirrors the early 2000s when luxury brands revived interest in classic analog pieces after a period dominated by digital watches. That earlier rebound also relied on younger buyers seeking heritage items, suggesting Movado’s current strategy taps a familiar market cycle.
Brand Performance and New Collections
Across its portfolio, Movado’s owned and licensed brands all posted gains. Online sales for the flagship Movado brand rose 8 percent, while outlet locations logged a 3 percent increase and average selling prices climbed.
New women’s pieces such as the “Museum Bangle” and “Velura” performed well, and the mini “Baby Face” watch sold out within a month of its spring launch. Upcoming color drops are slated for the fall, available on the brand’s website and select retailers.
Coach’s mini “Iris” line stood out, with a “Sammy” mini collection slated for later in the year. The brand’s fall campaign will feature actress Lola Tung, aiming to draw more young buyers.
Olivia Burton focused on the U.S. and U.K., delivering a 23 percent quarterly sales jump. Its tonneau‑shaped “Cambridge” collection will headline the fall push.
Tommy Hilfiger reported solid results for the “Mia” and “Nora” women’s watches, while its “Bryant” men’s chronographs also saw demand. Calvin Klein’s square‑face women’s watches sold out quickly, and a new cushion‑shaped men’s line called “Shape” entered the market.
Hugo Boss highlighted the “Grand Prix,” “Sky Traveler,” and “Violet” women’s collections. Lacoste’s “LC33” and “Metropole” jewelry lines contributed to its sales lift.
Financial Highlights and Outlook
For the quarter ending July 31, net sales reached $169.8 million, up 5 percent year‑over‑year (4 percent on a constant‑dollar basis). U.S. sales grew 5 percent; international markets also rose 5 percent, led by Latin America and India, while Europe posted low single‑digit growth.
Gross profit climbed to $100.8 million, representing 60 percent of net sales, up from $87.6 million and 54 percent a year earlier. The improvement reflects IEEPA duty refunds, with $3.2 million already recovered and $6.8 million still pending.
In the first half, total net sales were $312.2 million, a 6 percent increase (5 percent constant‑dollar). U.S. figures rose 7 percent, and international sales grew 6 percent (3 percent constant‑dollar).
Movado announced a new global licensing agreement with Kate Spade New York, set to launch a watch collection in spring 2027.
Looking ahead, the company will not provide full‑year guidance but expects mid‑single‑digit top‑line growth in the second half and a gross margin of 55‑56 percent, excluding any further IEEPA refunds.
Grinberg concluded that despite ongoing Middle‑East conflict challenges, consumer demand remains strong, reflecting progress in the company’s long‑term strategy.
