Movado Group FY25 sales fall as company prepares for tariff impact

US-based, Swiss-founded watch firm Movado Group reported a 1.7 percent drop in net sales for the fiscal year 2025, amounting to 653.4 million dollars. The company, which owns and operates brands like Movado, Ebel, Concord and Olivia Burton, said the decline could be attributed to a drop in US wholesale clients’ brick and mortar stores, as well as the “negative impact of fluctuations in foreign exchange rates.

Net sales were only partially offset by growth in international wholesale channels and online retail in the US, however, this region also recorded a net sales decrease of 4 percent compared to FY24. International sales, meanwhile, rose 0.2 percent. Operating income fell from 48.5 million dollars in 2024 to 20 million dollars, while adjusted operating income amounted to 27.1 million dollars.

Gross profit for the period dropped from 364.2 million dollars to 353.1 million dollars, reflecting 54 percent of net sales. Movado said “unfavourable changes in channel and product mix, the decreased leverage of higher fixed costs over lower sales and the unfavourable impact of foreign currency exchange rates” caused the decline in this case.

Movado noted that it has opted to not provide a fiscal 2026 outlook due to the “current economic uncertainty and the unpredictable impact of recent tariff developments on the company’s business”. Despite this, there are plans to “take actions to partially mitigate the impact of the recent tariff changes, including select price increases at the wholesale and retail levels”, the report concluded.