Thu, May 29, 1:35 PM (26 days ago)
**Movado Group, Inc. (MOV) Q1 2026 Financial Summary** **Financial Health & Performance:** - **Revenue:** $131.8 million, a 1.9% decrease from Q1 2025 ($134.4 million). - **Net Income:** $1.4 million, down from $2.0 million in Q1 2025. - **Gross Profit Margin:** 54.1%, a slight decrease from 54.3% in Q1 2025. - **Operating Income:** $291,000, down from $2.1 million in Q1 2025. - **Cash Flow:** $7.2 million used in operating activities, compared to $18.1 million in Q1 2025. **Segment Performance:** - **Watch and Accessory Brands:** Revenue down 2.0% to $114.8 million. - **Owned Brands:** Revenue down 17.0% to $33.1 million. - **Licensed Brands:** Revenue up 8.3% to $80.2 million. - **Company Stores:** Revenue down 1.7% to $17.0 million. **Geographic Performance:** - **United States:** Revenue down 1.4% to $54.7 million. - **International:** Revenue down 2.3% to $77.1 million. **Trends & Uncertainties:** - **Tariffs:** Increased tariffs on Chinese, Swiss, and Japanese goods may impact cost of sales and sales volumes. - **Cost-Savings Initiative:** $10.0 million in annual savings expected from headcount reductions. - **Inflation & Interest Rates:** Uncertainty due to inflation and elevated interest rates. - **Geopolitical Concerns:** Potential impacts from international hostilities and supply disruptions. **Future Operations:** - **Capital Expenditures:** $1.5 million in Q1 2026, primarily for Company stores and shop-in-shops. - **Dividends:** $7.8 million declared, payable on May 6, 2025. - **Share Repurchase:** $50.0 million remaining under the December 5, 2024 program. **Liquidity & Capital Resources:** - **Cash & Cash Equivalents:** $203.1 million, down from $225.4 million in Q1 2025. - **Working Capital:** $385.5 million, down from $398.5 million in Q1 2025. - **Credit Facility:** $99.7 million available under the $100.0 million revolving credit facility. **Risk Factors:** - **Internal Controls:** Material weakness in internal control over financial reporting. - **Market Risks:** Foreign currency exchange rate risk and commodity price fluctuations. - **Legal Proceedings:** Ongoing legal matters, though not expected to materially affect financial condition.