Movado Watch Co. Sees Stock Soar on Turnaround

Movado Group, historically known as a watch manufacturer, is now recognized by analysts as a company with strong potential. Over the past year, Movado has transformed its narrative from facing tariff-related challenges to becoming a compelling turnaround story. This shift is underscored by two consecutive quarters of earnings beats.

The company navigated approximately $10 million in added costs due to tariffs on imported watches during fiscal years 2025 and 2026. However, a reversal began with the first fiscal quarter of the current year. Movado reported adjusted earnings per share (EPS) of 32 cents, significantly exceeding the less than 10 cents estimated by Wall Street. This news fueled a roughly 45% jump in share price over a short period, contributing to a 60% year-to-date increase.

Further momentum was observed in the second quarter, with net sales rising 4.9% to $169.8 million, surpassing analyst expectations of $164.2 million. Adjusted EPS reached 54 cents, more than double the 23 cents from the previous year, and topped the consensus estimate of 35 cents. Net income more than quadrupled to $12.3 million from $3 million a year prior. The company ended the quarter with $211.6 million in cash and no fixed debt.