What Happened?
Shares of luxury watch company Movado (NYSE: MOV) fell 8.5% in the afternoon session after the company reported weak first quarter 2025 results as its revenue and EPS fell short of Wall Street's estimates. The miss was largely due to weaker sales in Movado's owned brands and company-operated stores, which outweighed gains in its licensed brand portfolio. With so much uncertainty from tariffs and a shaky economy, Movado decided not to give guidance for the rest of the year and instead plans to raise prices where needed. Overall, this was a softer quarter.
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What The Market Is Telling Us
Movado’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 9 months ago when the stock dropped 13.3% on the news that the company reported weak second quarter results. Full-year revenue guidance was lowered and missed. In addition, EPS missed, but Movado exceeded analysts' revenue expectations. The company cited a "challenging consumer spending environment compounded by increased expenses to support future growth." Overall, this was a weaker quarter, but expectations were also seemingly low going into the print.
Movado is down 17.7% since the beginning of the year, and at $16.09 per share, it is trading 40% below its 52-week high of $26.82 from June 2024. Investors who bought $1,000 worth of Movado’s shares 5 years ago would now be looking at an investment worth $1,532.
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