Q2 2025 Movado Group Inc Earnings Call Transcript
Key Points
- Movado Group Inc (MOV) reported virtually flat net sales on a constant dollar basis compared to last year, showing resilience in a challenging consumer spending environment.
- The company maintained a healthy gross margin, despite a slight decline compared to the previous year.
- Movado Group Inc (MOV) has a strong balance sheet with $198 million in cash and no debt.
- Increased marketing investments have led to a 10% increase in unit volume for licensed brands.
- The new advertising campaign featuring high-profile ambassadors like Ludacris and Jessica Alba has received positive press coverage, reaching over 245 million readers.
- Operating profit declined to $3 million, driven by increased marketing investments.
- Net sales decreased by 0.7% compared to the second quarter of fiscal 2024.
- Gross profit as a percentage of sales decreased to 54.2% from 55.7% in the same period last year.
- Operating expenses increased to $83.3 million from $79.6 million in the previous year, driven by higher marketing investments.
- Net income for the second quarter was $3.7 million, or $0.16 per diluted share, down from $8 million, or $0.36 per diluted share, in the year-ago period.
Good day everyone, and welcome to Movado Group, Incorporated second-quarter fiscal year 2025 earnings conference call. As a reminder, today's call is being recorded and may not be reproduced in full or in part without permission from the company.
At this time, I would like to turn the conference over to Allison Malkin with ICR. Please go ahead.
Good morning, everyone. With me on the call is Efraim Grinberg, Chairman and Chief Executive Officer; and Sallie DeMarsilis, Executive Vice President and Chief Operating Officer and Chief Financial Officer.
Before we get started, I would like to remind you of the Company's Safe Harbor language, which I'm sure you're all familiar with. The statements contained in this conference call, which are not historical facts, may be deemed to constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual future results may differ materially from those suggested in such statements due to a number of risks and
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