Movado Group, Inc. MOV posted fourth-quarter fiscal 2025 results, wherein the top line met the Zacks Consensus Estimate and increased year over year. The bottom line beat the consensus mark but declined from the year-ago period. Despite a tough macroeconomic environment, the company achieved net sales growth and registered gross margin expansion, even as it ramped up marketing spend.

Movado Group’s Quarterly Performance: Key Insights

MOV posted adjusted earnings per share of 51 cents, beating the Zacks Consensus Estimate of 39 cents but declining from 55 cents in the prior-year quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Movado Group reported net sales of $181.5 million, up 3.3% from $175.8 million in the year-ago quarter. Top line increased 5% year over year on a constant dollar basis. This growth was driven by strong performance in international wholesale channels and online retail. However, it was partially offset by declines in brick-and-mortar sales from U.S. wholesale customers and Movado Company Stores, along with unfavorable foreign exchange rate fluctuations. 

U.S. net sales declined 2.9% year over year, while international net sales grew 8.8% (or 12.2% on a constant dollar basis) compared with the same period last year.

Insight Into MOV’s Margins & Expenses

Gross profit increased 4.5% to $98.3 million from $94.1 million in the year-ago quarter. Also, the gross margin expanded 70 basis points (bps) to 54.2% from 53.5% in the fourth quarter of fiscal 2024. This increase was mainly driven by favorable shifts in channel and product mix, along with the greater leverage of lower fixed costs on higher sales. This was partially offset by the negative effect of foreign currency exchange rates.

Operating expenses totaled $89.1 million, up 7% from $83.3 million reported in the year-ago period. Adjusted operating expenses for the fiscal fourth quarter were $84.8 million. This increase was mainly caused by higher marketing costs and certain one-time charges, partially offset by lower payroll and related expenses.

Operating income was $9.2 million, down 14.8% from $10.8 million in the same quarter of fiscal 2024. Adjusted operating income for the fourth quarter of fiscal 2025 was $13.5 million.

MOV Stock Past Three-Month Performance

Image Source: Zacks Investment Research

MOV’s Financial Snapshot: Cash, Debt & Equity Overview

Movado Group ended the fiscal fourth quarter with cash and cash equivalents of $208.5 million and no debt. Inventory totaled $156.7 million at the end of the fiscal quarter, up from $153.9 million in the same period last year.

During fiscal 2025, the net cash used in operating activities was $1.5 million. 

In fiscal 2025, the company repurchased approximately 120,000 shares under its share repurchase program. $50 million remained available under the company’s current share repurchase program, which was authorized on Dec. 5, 2024.

In the past three months, shares of this Zacks Rank #3 (Hold) company have lost 28.7% compared with the industry’s 9.8% decline.

Key Picks

Some better-ranked stocks are The Gap, Inc. GAP, Stitch Fix SFIX and Canada Goose GOOS.

The Gap is a premier international specialty retailer offering a diverse range of clothing, accessories and personal care products. It sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for The Gap’s fiscal 2025 earnings and revenues indicates growth of 7.7% and 1.6%, respectively, from the reported levels of fiscal 2024. GAP delivered a trailing four-quarter average earnings surprise of 77.5%.

Stitch Fix delivers customized shipments of apparel, shoes and accessories for women, men and kids. It currently has a Zacks Rank of 2 (Buy).

The Zacks Consensus Estimate for Stitch Fix’s fiscal 2025 earnings implies growth of 64.7% from the year-ago actual. SFIX delivered a trailing four-quarter average earnings surprise of 48.9%.

Canada Goose is a global outerwear brand. GOOS is a designer, manufacturer, distributor and retailer of premium outerwear for men, women and children. It carries a Zacks Rank #2 at present.

The Zacks Consensus Estimate for Canada Goose’s current fiscal year’s earnings and revenues implies decline of 1.4% and 4.9%, respectively, from the year-ago actuals. Canada Goose delivered a trailing four-quarter average earnings surprise of 71.3%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

The Gap, Inc. (GAP) : Free Stock Analysis Report

Movado Group Inc. (MOV) : Free Stock Analysis Report

Canada Goose Holdings Inc. (GOOS) : Free Stock Analysis Report

Stitch Fix, Inc. (SFIX) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research