The following is a summary of the Movado Group, Inc. (MOV) Q1 2025 Earnings Call Transcript:

Financial Performance:

• Movado reported a decrease in Q1 sales by 5.7% to $136.7 million and operating income decreased to $3.3 million from $10.9 million compared to last year.

• Gross profit margin was 55.3%, a decrease from last year's 56.6%, due to unfavorable product mix and fixed cost deleverage.

• Net income was $2.9 million, or $0.13 per diluted share, down from $9.1 million or $0.40 per diluted share year over year.

Business Progress:

• Movado continued to focus on its brand refresh, launching new advertising campaigns and product collections such as the Bold Quest.

• Movado.com saw a double-digit increase, and early improvements were noted in department store channels.

• Movado plans significant marketing investments for the second half to support growth in the Movado and licensed brands.

Opportunities:

• Movement plans include further developing its iconic collections and enhancing brand visibility through extensive marketing campaigns expected to roll out in the second half.

• The anticipated sales growth in the U.S. and Europe from these efforts aligns with strategic partnerships and marketing activities.

Risks:

• Initial declines in sales signal potential challenges in maintaining profitability amidst aggressive brand and marketing investments.

• Movado anticipates short-term impacts to profitability due to heightened marketing spends and branding efforts.

More details: Movado IR

Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.