Movado Sales Climb Double Digits in Q4

Paramus, N.J.—Movado Group reported double-digit growth in net sales in both its fourth quarter and full year, boosted by a strong performance from its namesake and newly-acquired brands.

Fourth-quarter net sales climbed more than 35 percent to $199.4 million, compared with $149.2 million a year ago.

Quarterly sales in the U.S. increased by 56 percent while international sales were up 18 percent.

The watch company attributed its sales growth to the strength of its owned and licensed brands, which include Tommy Hilfiger, Coach, Hugo Boss and Lacoste.

Gross profit for the quarter totaled $110.6 million, or 55 percent of sales, compared with the $78.7 million, or 52 percent of sales, reported in the previous fourth quarter.

Its retail business grew nearly 2 percent in the fourth quarter, with 44 outlet stores, including one in Canada, compared with 40 stores last year.

“In a challenging global retail marketplace, particularly during the holiday season, we were very pleased to deliver such a strong quarter and end to our fiscal year,” said CEO Efraim Grinberg during the company’s earning call Thursday morning.

Full-year net sales clocked in at $679.6 million, nearly 20 percent higher than the $568 million reported a year ago.

Gross profit for the fiscal year was $369.4 million, or 54 percent of sales, compared with the $298.1 million, or 52 percent of sales, reported the previous year.

Sales in the U.S. increased more than 18 percent annually while international sales rose nearly 20 percent.

“One of our strategic priorities has been to grow our international business and expand our global footprint. Last year we grew sales in our international markets by close to 20 percent to over $300 million, representing over half of the company’s revenues for the first time,” Grinberg said in a letter to shareholders.

The company acquired affordable watch brand MVMT in 2018 and Olivia Burton, a U.K.-based watch and fashion jewelry brand, the year before, increasing its presence in the fashion watch market.

In its results, Movado broke down by category which brands were the most successful this fiscal year and why.

The Movado brand continued to grow market share in the U.S., with its Museum Classic on Mesh and Bold Evolution watches, which will be featured in an upcoming spring television campaign, performing well. Its limited series Museum 47 collection, meanwhile, drove its e-commerce business up more than 50 percent in the fourth quarter.

The brand’s first smartwatch, the Movado Connect, also drew in tech-savvy