Movado Reports Strong Earnings Beats Amid Tariff Refunds
Movado Group (NYSE: MOV) is gaining momentum in its turnaround, driven by two consecutive quarters of earnings that exceeded expectations. The stock has risen approximately 60% year-to-date as the company benefits from a debt-free balance sheet and tariff refunds. In Q1 fiscal 2026, adjusted EPS came to $0.32 versus an estimate of less than $0.10; in Q2, net sales rose by nearly 5%, with adjusted EPS at $0.54 against expectations of $0.35. A significant portion of the second-quarter earnings boost was due to a one-time tariff refund benefit contributing about $0.11 per share. Despite this, gross margin expanded significantly and cash reserves reached $211.6 million with no fixed debt. The company has also increased its dividend yield to 4.8% as part of shareholder rewards. Movado is capitalizing on a shift in consumer behavior where younger buyers are returning to traditional watches as fashion accessories, supported by new designs and high-profile marketing campaigns.
Topics: Earnings Beats Stock Price Movement Tariffs Turnaround Strategy