On this page of StockholderLetter.com we present the latest annual shareholder letter from MOVADO GROUP INC — ticker symbol MOV. Reading current and past MOV letters to shareholders can bring important insights into the investment thesis.
May 9, 2024
Dear Shareholders,
We knew we were opera ng in a di   cult environment last year as infla on in Europe and the United
States dampened discre onary purchases generally. However, business became increasingly di   cult as
the year progressed, and our overall results were impacted. For the year we delivered net sales of
$672.6 million, down 10.5% from the prior year, while achieving $2.06 in diluted earnings per share.
We tempered the impact of the di   cult market environment by opera ng the Company e   ciently. Our
teams reduced inventory by $38.2 million and increased opera ng cash flow. As a result, we generated
$76.8 million of opera ng cash flow and ended the year with $262 million in cash and no debt.
Movado Group has historically operated with a long-term view to deliver results for our shareholders,
customers, employees, and brands. We also have a strong track record of making appropriate
adjustments during economically challenging periods that enable us to emerge in a stronger posi on.
With the objec ve of driving sustainable long-term profitable growth, we made the decision to u lize
our strong balance sheet to increase our marke ng investments. When we reported results for last year,
we announced a strategy centered around $25 million in incremental investments to support brand
development for this year. Through these ini a ves, we aim to strengthen brand equity, increase
demand, gain market share, improve results, and return the Company to revenue growth in Fiscal 2025.
As we adjusted our expecta ons for the year, we began laying the founda on for this return to growth.
We set clear priori es and began execu ng them. During the 4th quarter, we rolled out several product
and brand ini a ves in the United States and our largest European markets, and we have seen some
encouraging results. We plan to build upon these ini a ves during Fiscal 2025.
We have a tremendous por olio of brands, led by our Movado brand, which embarked on a brand
refresh last fall. This refresh is part of a mul year journey designed to yield long-las ng results that
includes a new adver sing campaign, an updated brand logo, and increased marke ng investment.
Although it is early in the journey, we are already beginning to see improving trends, especially in our
Movado.com direct-to-consumer business. We are commi ed to con nuing to elevate the Movado
brand through innova ve but iconic product designs and amplified marke ng, as we work to strengthen
brand loyalty among exis ng consumers and introduce new consumers to the Movado brand. We are
beginning to see strong consumer demand for our recently introduced Movado Museum Chronograph
and our architectural new Movado Bold Quest. And we have a very exci ng and ambi ous marke ng
campaign planned as we head into the holiday season during the second half of the year.
In our licensed brand por olio, we are privileged to partner with remarkable global brands. Last year we
saw business in our largest markets in Europe decline for our licensed brands as the consumer was
increasingly challenged by infla onary pressures. As with our owned brands, we are commi ed to
returning our licensed brand por olio to growth, and we have allocated a significant por on of our
incremental investment in brand development to our licensed brand por olio.
In prepara on for this investment, during the holiday season last year we began tes ng focused
strategies to support iconic product families in our Tommy Hilfiger and Hugo Boss brands in the United
Kingdom, France and Germany, and we began to see improving trends. We are building upon those
strategies this year by accelera ng our focus on iconic products such as the Tommy Hilfiger TH85
collec on and the Hugo Boss Candor family.
We are applying similar strategies to our Lacoste, Calvin Klein, and Coach licensed brands. We were
excited to successfully launch Lacoste jewelry last year, and we plan to grow the brand this year through
focused support of the iconic L.12.12 collec on and the aspira onal Lacoste Boston collec on. We
successfully launched Calvin Klein two years ago, and we believe that it represents an important global
growth opportunity in both watches and jewelry for all genders as we con nue to develop iconic
collec ons featuring Calvin Klein   s modern, clean lines. Our growth plans for the Coach brand focus on
the United States through the introduc on of new products like the Cary and Ellio collec ons and a
new adver sing campaign featuring basketball superstar Jayson Tatum wearing our new Jackson
Chronograph watch.
Geographically, our growth plan centers on our primary markets - the United States and Europe - as well
as con nuing to expand our already solid presence in La n America, Mexico, India, and the Middle East.
In 2022 we announced our plan to Make Time. Built around the three pillars of making me to empower
our workforce, evolve our business, and enrich our communi es, our plan to Make Time established our
environmental, social, and governance priori es through the end of 2025. We are proud to report the
ac ons we have taken to advance the pillars of our Make Time plan in our 2024 Corporate Responsibility
Report. We remain commi ed to behaving ethically, managing responsibly, and improving the quality of
life of those within the Company   s sphere of influence.
Although we con nue to see headwinds ahead economically in many parts of the world with stubborn
infla on and elevated interest rates, we are being aggressive in our brand-building e   orts to support our
brands and our largest markets. While our short-term profitability will be a   ected, these investments
will help us return to consistent growth and sustainable profitability for the future. I believe that we
have tremendous leaders and associates who understand what we need to do this year to ensure the
Company returns to growth while steadfastly suppor ng our retailers and consumers. I would like to
thank our employees, our customers, our vendors and partners, and our shareholders for their
con nued e   orts and dedica on.
Sincerely yours,
Efraim Grinberg, Chairman/CEO
 • shareholder letter icon 5/9/2024 Letter Continued (Full PDF)
 • stockholder letter icon 5/11/2023 MOV Stockholder Letter
 • stockholder letter icon More "Consumer Goods" Category Stockholder Letters
 • Benford's Law Stocks icon MOV Benford's Law Stock Score = 89


MOV Shareholder/Stockholder Letter Transcript:

May 9, 2024
Dear Shareholders,
We knew we were opera ng in a di   cult environment last year as infla on in Europe and the United
States dampened discre onary purchases generally. However, business became increasingly di   cult as
the year progressed, and our overall results were impacted. For the year we delivered net sales of
$672.6 million, down 10.5% from the prior year, while achieving $2.06 in diluted earnings per share.
We tempered the impact of the di   cult market environment by opera ng the Company e   ciently. Our
teams reduced inventory by $38.2 million and increased opera ng cash flow. As a result, we generated
$76.8 million of opera ng cash flow and ended the year with $262 million in cash and no debt.
Movado Group has historically operated with a long-term view to deliver results for our shareholders,
customers, employees, and brands. We also have a strong track record of making appropriate
adjustments during economically challenging periods that enable us to emerge in a stronger posi on.
With the objec ve of driving sustainable long-term profitable growth, we made the decision to u lize
our strong balance sheet to increase our marke ng investments. When we reported results for last year,
we announced a strategy centered around $25 million in incremental investments to support brand
development for this year. Through these ini a ves, we aim to strengthen brand equity, increase
demand, gain market share, improve results, and return the Company to revenue growth in Fiscal 2025.
As we adjusted our expecta ons for the year, we began laying the founda on for this return to growth.
We set clear priori es and began execu ng them. During the 4th quarter, we rolled out several product
and brand ini a ves in the United States and our largest European markets, and we have seen some
encouraging results. We plan to build upon these ini a ves during Fiscal 2025.
We have a tremendous por olio of brands, led by our Movado brand, which embarked on a brand
refresh last fall. This refresh is part of a mul year journey designed to yield long-las ng results that
includes a new adver sing campaign, an updated brand logo, and increased marke ng investment.
Although it is early in the journey, we are already beginning to see improving trends, especially in our
Movado.com direct-to-consumer business. We are commi ed to con nuing to elevate the Movado
brand through innova ve but iconic product designs and amplified marke ng, as we work to strengthen
brand loyalty among exis ng consumers and introduce new consumers to the Movado brand. We are
beginning to see strong consumer demand for our recently introduced Movado Museum Chronograph
and our architectural new Movado Bold Quest. And we have a very exci ng and ambi ous marke ng
campaign planned as we head into the holiday season during the second half of the year.
In our licensed brand por olio, we are privileged to partner with remarkable global brands. Last year we
saw business in our largest markets in Europe decline for our licensed brands as the consumer was
increasingly challenged by infla onary pressures. As with our owned brands, we are commi ed to
returning our licensed brand por olio to growth, and we have allocated a significant por on of our
incremental investment in brand development to our licensed brand por olio.

In prepara on for this investment, during the holiday season last year we began tes ng focused
strategies to support iconic product families in our Tommy Hilfiger and Hugo Boss brands in the United
Kingdom, France and Germany, and we began to see improving trends. We are building upon those
strategies this year by accelera ng our focus on iconic products such as the Tommy Hilfiger TH85
collec on and the Hugo Boss Candor family.
We are applying similar strategies to our Lacoste, Calvin Klein, and Coach licensed brands. We were
excited to successfully launch Lacoste jewelry last year, and we plan to grow the brand this year through
focused support of the iconic L.12.12 collec on and the aspira onal Lacoste Boston collec on. We
successfully launched Calvin Klein two years ago, and we believe that it represents an important global
growth opportunity in both watches and jewelry for all genders as we con nue to develop iconic
collec ons featuring Calvin Klein   s modern, clean lines. Our growth plans for the Coach brand focus on
the United States through the introduc on of new products like the Cary and Ellio collec ons and a
new adver sing campaign featuring basketball superstar Jayson Tatum wearing our new Jackson
Chronograph watch.
Geographically, our growth plan centers on our primary markets - the United States and Europe - as well
as con nuing to expand our already solid presence in La n America, Mexico, India, and the Middle East.
In 2022 we announced our plan to Make Time. Built around the three pillars of making me to empower
our workforce, evolve our business, and enrich our communi es, our plan to Make Time established our
environmental, social, and governance priori es through the end of 2025. We are proud to report the
ac ons we have taken to advance the pillars of our Make Time plan in our 2024 Corporate Responsibility
Report. We remain commi ed to behaving ethically, managing responsibly, and improving the quality of
life of those within the Company   s sphere of influence.
Although we con nue to see headwinds ahead economically in many parts of the world with stubborn
infla on and elevated interest rates, we are being aggressive in our brand-building e   orts to support our
brands and our largest markets. While our short-term profitability will be a   ected, these investments
will help us return to consistent growth and sustainable profitability for the future. I believe that we
have tremendous leaders and associates who understand what we need to do this year to ensure the
Company returns to growth while steadfastly suppor ng our retailers and consumers. I would like to
thank our employees, our customers, our vendors and partners, and our shareholders for their
con nued e   orts and dedica on.
Sincerely yours,
Efraim Grinberg, Chairman/CEO



shareholder letter icon 5/9/2024 Letter Continued (Full PDF)
 

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