Movado Group Q2 Profit More Than Doubles
Movado Group(NYSE:MOV) reported second quarter fiscal 2026 results on September 4, 2025, posting a 3.1% sales increase to $161.8 million compared to the prior-year period and more than doubling adjusted operating profit to $7 million compared to the prior-year period, despite a $2.2 million tariff headwind. Management highlighted advances in licensed brand performance and operating expense reductions, while navigating elevated U.S. tariffs on Swiss imports and continued uncertainty in key markets. The following analysis unpacks strategic inventory moves, brand performance dynamics, and cost-saving execution affecting the long-term investment thesis.
Inventory at quarter-end was up $28.3 million, or 15.5%, over the same period last year, with $16 million of this positioned in the U.S. at quarter-end, as the company proactively shifted Swiss-made watches stateside ahead of new 39% tariffs on Swiss imports. This move followed a period of low inventory at year-end and enables the company to fulfill a substantial portion of this year's needs with reduced tariff exposure on existing stock, even as the company anticipates continuing uncertainty in tariff policy.
This inventory strategy helps offset some of the tariff impact and provides flexibility to respond to further changes in trade policy.
Source Fool.com
