MOV - Movado offers mixed Q1 update maintains guidance

2023-05-25 08:25:58 ET

Movado ( NYSE: MOV ) posted a mixed Q1 report and an in-line full-year forecast on Thursday.

For the first quarter, $0.43 in adjusted earnings per share beat the consensus estimate by $0.17. However, an 11.3% drop in revenue year over year to $144.9M was $3.4M short of expectations. Gross profit margin contracted 260 basis points from Q1 2022 to 56.6%.

“We began the year in line with our expectations amidst a challenging macro environment and following our best-ever first quarter performance last year. Despite this backdrop, our teams continued to execute against our strategic priorities to maximize the power of our brands with exceptional innovation,” CEO Efraim Grinberg said. “As we look ahead, we continue to believe we will face a difficult consumer environment in the U.S. and Europe, our two largest regions. However, we believe we are well positioned to capture the opportunities in the marketplace and will continue to execute with discipline.”

Management guided toward between $725M and $750M in revenue, suggesting upside to the $736.70M consensus expectation. A guide of between $2.70 and $2.90 in earnings per share came in line with the $2.79 consensus.

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