Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 30, 2024 | May 24, 2024 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Document Period End Date | Apr. 30, 2024 | |
Document Fiscal Year Focus | 2025 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | MOV | |
Entity Registrant Name | MOVADO GROUP, INC. | |
Entity Central Index Key | 0000072573 | |
Current Fiscal Year End Date | --01-31 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 1-16497 | |
Entity Tax Identification Number | 13-2595932 | |
Entity Address, Address Line One | 650 From Road | |
Entity Address, Address Line Two | Ste. 375 | |
Entity Address, City or Town | Paramus | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07652-3556 | |
City Area Code | 201 | |
Local Phone Number | 267-8000 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | NY | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Security Exchange Name | NYSE | |
Common Stock Class Undefined | ||
Entity Common Stock, Shares Outstanding | 15,726,641 | |
Class A Common Stock | ||
Entity Common Stock, Shares Outstanding | 6,483,116 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Apr. 30, 2024 | Jan. 31, 2024 | Apr. 30, 2023 |
Current assets: | |||
Cash and cash equivalents | $ 225,372 | $ 262,059 | $ 198,257 |
Trade receivables, net | 101,722 | 104,472 | 94,037 |
Inventories | 159,618 | 148,031 | 195,235 |
Other current assets | 22,258 | 17,962 | 25,804 |
Income taxes receivable | 8,336 | 11,354 | 12,057 |
Total current assets | 517,306 | 543,878 | 525,390 |
Property, plant and equipment, net | 19,037 | 19,436 | 19,075 |
Operating lease right-of-use assets | 89,155 | 82,661 | 76,194 |
Deferred and non-current income taxes | 43,280 | 43,016 | 45,049 |
Other intangibles, net | 6,935 | 7,493 | 8,996 |
Other non-current assets | 75,702 | 72,598 | 66,792 |
Total assets | 751,415 | 769,082 | 741,496 |
Current liabilities: | |||
Accounts payable | 32,999 | 32,775 | 24,443 |
Accrued liabilities | 41,976 | 38,695 | 48,858 |
Accrued payroll and benefits | 7,340 | 7,591 | 7,597 |
Current operating lease liabilities | 18,192 | 15,696 | 17,558 |
Income taxes payable | 6,459 | 18,318 | 17,557 |
Total current liabilities | 106,966 | 113,075 | 116,013 |
Deferred and non-current income taxes payable | 8,143 | 8,234 | 14,540 |
Non-current operating lease liabilities | 79,749 | 76,396 | 66,743 |
Other non-current liabilities | 52,877 | 52,420 | 49,287 |
Total liabilities | 247,735 | 250,125 | 246,583 |
Commitments and contingencies (Note 8) | |||
Equity: | |||
Preferred Stock, $0.01 par value, 5,000,000 shares authorized; no shares issued | 0 | 0 | 0 |
Capital in excess of par value | 240,923 | 239,062 | 232,419 |
Retained earnings | 465,435 | 470,317 | 455,979 |
Accumulated other comprehensive income | 82,073 | 92,335 | 85,177 |
Treasury Stock, 13,404,954, 13,328,095 and 13,208,339 shares, respectively, at cost | (287,414) | (285,270) | (281,957) |
Total Movado Group, Inc. shareholders' equity | 501,372 | 516,798 | 491,971 |
Noncontrolling interest | 2,308 | 2,159 | 2,942 |
Total equity | 503,680 | 518,957 | 494,913 |
Total liabilities and equity | 751,415 | 769,082 | 741,496 |
Common Stock Class Undefined | |||
Equity: | |||
Common Stock | 291 | 290 | 288 |
Class A Common Stock | |||
Equity: | |||
Common Stock | $ 64 | $ 64 | $ 65 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (PARENTHETICAL) - $ / shares | Apr. 30, 2024 | Jan. 31, 2024 | Apr. 30, 2023 |
Preferred Stock, par value | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred Stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 |
Preferred Stock, shares issued | 0 | 0 | 0 |
Treasury Stock, Shares | 13,404,954 | 13,328,095 | 13,208,339 |
Common Stock Class Undefined | |||
Common Stock, par value | $ 0.01 | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 |
Common Stock, shares issued | 29,131,595 | 29,004,001 | 28,824,156 |
Common Stock, shares outstanding | 29,131,595 | 29,004,001 | 28,824,156 |
Class A Common Stock | |||
Common Stock, par value | $ 0.01 | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 30,000,000 | 30,000,000 | 30,000,000 |
Common Stock, shares issued | 6,483,116 | 6,483,116 | 6,524,805 |
Common Stock, shares outstanding | 6,483,116 | 6,483,116 | 6,524,805 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Income Statement [Abstract] | ||
Net sales | $ 136,669 | $ 144,905 |
Cost of sales | 61,156 | 62,902 |
Gross profit | 75,513 | 82,003 |
Selling, general and administrative | 72,202 | 71,104 |
Operating income | 3,311 | 10,899 |
Non-operating income/(expense): | ||
Other income, net | 2,172 | 1,025 |
Interest expense | (118) | (113) |
Income before income taxes | 5,365 | 11,811 |
Provision for income taxes (Note 9) | 2,302 | 2,534 |
Net income | 3,063 | 9,277 |
Less: Net income attributable to noncontrolling interests | 172 | 149 |
Net income attributable to Movado Group, Inc. | $ 2,891 | $ 9,128 |
Basic income per share: | ||
Weighted basic average shares outstanding | 22,253 | 22,226 |
Net income per share attributable to Movado Group, Inc. | $ 0.13 | $ 0.41 |
Diluted income per share: | ||
Weighted diluted average shares outstanding | 22,673 | 22,672 |
Net income per share attributable to Movado Group, Inc. | $ 0.13 | $ 0.4 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 3,063 | $ 9,277 |
Other comprehensive income/(loss): | ||
Net unrealized gain/(loss) on investments, net of tax provision/(benefit) of $1 and ($11), respectively | 4 | (32) |
Amortization of prior service cost, net of tax provision of $3 and $4, respectively | 12 | 15 |
Foreign currency translation adjustments | (10,339) | 4,002 |
Accumulated other comprehensive income/(loss) before reclassification, net of tax provision/(benefit) of $22 and ($64) | 111 | (323) |
Amounts reclassified from accumulated other comprehensive (loss)/income, net of tax (benefit)/provision of ($10) and $44 | (50) | 220 |
Total other comprehensive (loss)/income, net of taxes | (10,262) | 3,882 |
Comprehensive income/(loss) attributable to noncontrolling interests: | ||
Net income | 172 | 149 |
Foreign currency translation adjustments | (23) | (145) |
Total comprehensive income attributable to noncontrolling interests | 149 | 4 |
Total comprehensive (loss)/income attributable to Movado Group, Inc. | $ (7,348) | $ 13,155 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (PARENTHETICAL) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net unrealized gain/(loss) on investments, tax provision/(benefit) | $ 1 | $ (11) |
Amortization of prior service cost, tax provision | 3 | 4 |
Accumulated other comprehensive income/(loss) before reclassification, tax provision/(benefit) | 22 | (64) |
Amounts reclassified from accumulated other comprehensive (loss)/income, tax (benefit)/provision | $ (10) | $ 44 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 3,063 | $ 9,277 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 2,288 | 2,557 |
Transactional gains | (1,434) | (114) |
Provision for inventories and accounts receivable | 1,210 | 904 |
Deferred income taxes | (457) | (1,029) |
Stock-based compensation | 1,838 | 1,597 |
Other | 82 | 559 |
Changes in assets and liabilities: | ||
Trade receivables | 1,094 | 415 |
Inventories | (15,990) | (8,149) |
Other current assets | (5,090) | (1,985) |
Accounts payable | 1,082 | (7,949) |
Accrued liabilities | 3,067 | 3,739 |
Accrued payroll and benefits | (107) | (9,844) |
Income taxes receivable | 4,462 | (1,166) |
Income taxes payable | (13,264) | (11,083) |
Other non-current assets | 95 | 635 |
Other non-current liabilities | (13) | 139 |
Net cash used in operating activities | (18,074) | (21,497) |
Cash flows from investing activities: | ||
Capital expenditures | (1,624) | (2,257) |
Long-term investments | (3,123) | (600) |
Trademarks and other intangibles | (49) | (26) |
Net cash used in investing activities | (4,796) | (2,883) |
Cash flows from financing activities: | ||
Dividends paid | (7,773) | (29,901) |
Stock repurchases | (1,086) | (381) |
Stock awards and options exercised and other changes | (1,058) | 0 |
Net cash used in financing activities | (9,917) | (30,282) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (3,948) | 1,349 |
Net decrease in cash, cash equivalents and restricted cash | (36,735) | (53,313) |
Cash, cash equivalents, and restricted cash at beginning of year | 262,814 | 252,179 |
Cash, cash equivalents, and restricted cash at end of period | 226,079 | 198,866 |
Reconciliation of cash, cash equivalents, and restricted cash: | ||
Cash and cash equivalents | 225,372 | 198,257 |
Restricted cash included in other non-current assets | 707 | 609 |
Cash, cash equivalents, and restricted cash at end of period | $ 226,079 | $ 198,866 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 2,891 | $ 9,128 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Apr. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Rule 10b5-1 Arrangement Modified | false |
Non-Rule 10b5-1 Arrangement Modified | false |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Apr. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | NOTE 1 – BASIS OF PRESENTATION The accompanying interim unaudited Consolidated Financial Statements have been prepared by Movado Group, Inc. (the “Company”), in a manner consistent with that used in the preparation of the annual audited Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2024 (the “2024 Annual Report on Form 10-K”). The unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America, which require the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the unaudited Consolidated Financial Statements and the reported amounts of revenues and expenses during the periods reported. Actual results could differ from those estimates. In the opinion of management, the accompanying unaudited Consolidated Financial Statements reflect all adjustments, consisting of only normal and recurring adjustments, necessary for a fair statement of the financial position and results of operations for the periods presented. The Consolidated Balance Sheet data at January 31, 2024 is derived from the audited annual financial statements, which are included in the Company’s 2024 Annual Report on Form 10-K and should be read in connection with these interim unaudited financial statements. Operating results for the interim periods presented are not necessarily indicative of the results that may be expected for the full year. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Apr. 30, 2024 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | NOTE 2 – RECENT ACCOUNTING PRONOUNCEMENTS In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-07 "Improvements to Reportable Segment Disclosures" which requires expanded disclosures about an entity's reportable segments, including more enhanced information about a reportable segment's expenses, interim segment profit or loss, and how an entity's chief operating decision maker uses reported segment profit or loss information in assessing segment performance and allocating resources. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within the fiscal years beginning after December 15, 2024. ASU 2023-07 should be adopted on a retrospective basis. Early adoption is permitted. The Company is currently evaluating this ASU to determine the impact of adoption on its Consolidated Financial Statements and related disclosures. In December 2023, the FASB issued ASU 2023-09 "Improvements to Income Tax Disclosures" which requires expanded income tax disclosures primarily related to an entity's effective tax rate reconciliation and income taxes paid. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, and should be adopted on a prospective basis. Early adoption is permitted. The Company is currently evaluating this ASU to determine the impact of adoption on its Consolidated Financial Statements and related disclosures. |
Earnings Per Share and Cash Div
Earnings Per Share and Cash Dividends | 3 Months Ended |
Apr. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share and Cash Dividends | NOTE 3 – EARNINGS PER SHARE AND CASH DIVIDENDS The Company presents net income attributable to Movado Group, Inc. after adjusting for noncontrolling interests, as applicable, per share on a basic and diluted basis. Basic earnings per share is computed using weighted average shares outstanding during the period. Diluted earnings per share is computed using the weighted average number of shares outstanding adjusted for dilutive common stock equivalents. The number of shares used in calculating basic and diluted earnings per share is as follows (in thousands): Three Months Ended April 30, 2024 2023 Weighted average common shares outstanding: Basic 22,253 22,226 Effect of dilutive securities: Stock awards and options to purchase shares of 420 446 Diluted 22,673 22,672 For the three months ended April 30, 2024 and 2023, approximately 590,000 and 345,000 , respectively, of potentially dilutive common stock equivalents were excluded from the computation of diluted earnings per share because their effect would have been antidilutive. On March 26, 2024, the Company declared a quarterly cash dividend of $ 0.35 per share payable on April 23, 2024, to shareholders of record on April 9, 2024 . The total dividends of $ 7.8 million were paid on April 23, 2024 . During the three months ended April 30, 2023, the Company paid a special cash dividend of $ 1.00 per share, as well as a quarterly cash dividend of $ 0.35 per share, for a total of $ 29.9 million. |
Inventories
Inventories | 3 Months Ended |
Apr. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 4 – INVENTORIES Inventories consisted of the following (in thousands): April 30, January 31, April 30, Finished goods $ 129,316 $ 117,909 $ 158,206 Component parts 26,697 26,386 34,174 Work-in-process 3,605 3,736 2,855 $ 159,618 $ 148,031 $ 195,235 |
Debt and Lines of Credit
Debt and Lines of Credit | 3 Months Ended |
Apr. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt and Lines of Credit | NOTE 5 – DEBT AND LINES OF CREDIT The Company and its U.S. and Swiss subsidiaries (collectively, the "Borrowers") are parties to an Amended and Restated Credit Agreement originally dated October 12, 2018 (as subsequently amended, the “Credit Agreement”) with the lenders party thereto and Bank of America, N.A. as administrative agent (in such capacity, the “Agent”). The Credit Agreement provides for a $ 100.0 million senior secured revolving credit facility (the “Facility”) and has a maturity date of October 28, 2026 . The Facility includes a $ 15.0 million letter of credit subfacility, a $ 25.0 million swingline subfacility and a $ 75.0 million sublimit for borrowings by the Swiss Borrower, with provisions for uncommitted increases to the Facility of up to $ 50.0 million in the aggregate subject to customary terms and conditions. The Credit Agreement contains affirmative and negative covenants binding on the Company and its subsidiaries that are customary for credit facilities of this type, including, but not limited to, restrictions and limitations on the incurrence of debt and liens, dispositions of assets, capital expenditures, dividends and other payments in respect of equity interests, the making of loans and equity investments, mergers, consolidations, liquidations and dissolutions, and transactions with affiliates (in each case, subject to various exceptions). The borrowings under the Facility are joint and several obligations of the Borrowers and are also cross-guaranteed by each Borrower, except that the Swiss Borrower is not liable for, nor does it guarantee, the obligations of the U.S. Borrowers. In addition, the Borrowers’ obligations under the Facility are secured by first priority liens, subject to permitted liens, on substantially all of the U.S. Borrowers’ assets other than certain excluded assets. The Swiss Borrower does not provide collateral to secure the obligations under the Facility. As of both April 30, 2024, and April 30, 2023, there were no amounts of loans outstanding under the Facility. Availability under the Facility was reduced by the aggregate number of letters of credit outstanding, issued in connection with retail and operating facility leases to various landlords and for Canadian payroll to the Royal Bank of Canada, totaling approximately $ 0.3 million at both April 30, 2024 and April 30, 2023. At April 30, 2024, the letters of credit have expiration dates through April 28, 2025 . As of both April 30, 2024, and April 30, 2023, availability under the Facility was $ 99.7 million. The Company had weighted average borrowings under the Facility of zero during both the three months ended April 30, 2024 and 2023. The Company's Swiss subsidiary maintains unsecured lines of credit with a Swiss bank that are subject to repayment upon demand. As of April 30, 2024, and 2023, these lines of credit totaled 6.5 million Swiss Francs for both pe riods, with a dollar equivalent of $ 7.1 million and $ 7.3 million, respectively. As of April 30, 2024, and 2023, there wer e no borro wings against these lines. As of April 30, 2024 and 2023, two European banks had guaranteed obligations to third parties on behalf of two of the Company’s foreign subsidiaries in the dollar equivalent of $ 1.3 million, for both periods, in various foreign currencies, of which $ 0.7 million and $ 0.6 million, respectively, was a restricted deposit as it relates to lease agreements. Cash paid for interest, including unused commitments fees and amortization of debt fees, was $ 0.1 million for both the three month periods ended April 30, 2024 and April 30, 2023. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Apr. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | NOTE 6 – DERIVATIVE FINANCIAL INSTRUMENTS The Company addresses certain financial exposures that include the use of derivative financial instruments. The Company enters into foreign currency forward contracts to reduce the effects of fluctuating foreign currency exchange rates. As of April 30, 2024, the Company's net forward contracts hedging portfolio designated as qualified cash flow hedging instruments consisted of 6.0 million Euros equivalent with various expiry dates ranging through May 31, 2024 . The net gain or loss on the derivatives is reported as a component of accumulated other comprehensive income/(loss) and reclassified into earnings in the same period during which the hedged transaction affects earnings using the same revenue or expense category that the hedged item impacted. The Company also enters into foreign currency forward contracts not designated as qualified hedges in accordance with ASC 815, Derivatives and Hedging. As of April 30, 2024, the Company’s net forward contracts hedging portfolio not designated as qualified hedges consisted of 2.8 million Chinese Yuan equivalent, 22.0 million Swiss Francs equivalent, 22.2 million US dollars equivalent, 12.2 million Euros equivalent and 1.2 million British Pounds equivalent with various expiry dates ranging through October 3 , 2024 . Changes in the fair value of these derivatives are recognized in earnings in the period they arise. Net gains or losses related to these forward contracts are included in cost of sales, selling and general and administrative expenses in the Consolidated Statements of Operations. The cash flows related to these foreign currency contracts are classified in operating activities . The following table presents the fair values of the Company's derivative financial instruments included in the Consolidated Balance Sheets as of April 30, 2024, January 31, 2024 and April 30, 2023 (in thousands): Asset Derivatives Liability Derivatives Balance April 30, January 31, April 30, Balance April 30, January 31, April 30, Derivatives designated as hedging instruments: Foreign Exchange Contracts Other Current $ 112 $ 26 $ — Accrued $ — $ 11 $ 351 Total Derivative Instruments $ 112 $ 26 $ — $ — $ 11 $ 351 Asset Derivatives Liability Derivatives Balance April 30, January 31, April 30, Balance April 30, January 31, April 30, Derivatives not designated as hedging instruments: Foreign Exchange Contracts Other Current $ — $ 528 $ 591 Accrued $ 697 $ — $ — Total Derivative Instruments $ — $ 528 $ 591 $ 697 $ — $ — As of April 30, 2024, January 31, 2024 and April 30, 2023, the balance of net deferred gains on derivative financial instruments designated as cash flow hedges included in accumulated other comprehensive income/(loss) were $ 0.1 million, $ 43,000 and ($ 0.3 ) million, respectively. For the three months ended April 30, 2024, and April 30, 2023, the Company reclassified $ 0.1 million and ($ 0.2 ) million, respectively, f rom accumulated other comprehensive income/(loss) to Net sales in the Consolidated Statements of Operations. No ineffectiveness has been recorded for the three months ended April 30, 2024. See Note 7 - Fair Value Measurements for fair value and presentation in the Consolidated Balance Sheets for derivatives. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Apr. 30, 2024 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |
Fair Value Measurements | NOTE 7 – FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Accounting guidance establishes a fair value hierarchy which prioritizes the inputs used in measuring fair value into three broad levels as follows: • Level 1 – Quoted prices in active markets for identical assets or liabilities. • Level 2 – Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly. • Level 3 – Unobservable inputs based on the Company’s assumptions. The guidance requires the use of observable market data if such data is available without undue cost and effort. The following tables present the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of April 30, 2024 and 2023 and January 31, 2024 (in thousands): Fair Value at April 30, 2024 Balance Sheet Location Level 1 Level 2 Level 3 Total Assets: Available-for-sale securities Other current assets $ 251 $ — $ — $ 251 Short-term investment Other current assets 151 — — 151 SERP assets - employer Other non-current assets 559 — — 559 SERP assets - employee Other non-current assets 49,093 — — 49,093 Defined benefit plan assets Other non-current liabilities — — 32,996 32,996 Hedge derivatives Other current assets — 112 — 112 Total $ 50,054 $ 112 $ 32,996 $ 83,162 Liabilities: SERP liabilities - employee Other non-current liabilities $ 49,093 $ — $ — $ 49,093 Hedge derivatives Accrued liabilities — 697 — 697 Total $ 49,093 $ 697 $ — $ 49,790 Fair Value at January 31, 2024 Balance Sheet Location Level 1 Level 2 Level 3 Total Assets: Available-for-sale securities Other current assets $ 246 $ — $ — $ 246 Short-term investment Other current assets 155 — — 155 SERP assets - employer Other non-current assets 510 — — 510 SERP assets - employee Other non-current assets 48,800 — — 48,800 Defined benefit plan assets Other non-current liabilities — — 33,731 33,731 Hedge derivatives Other current assets — 554 — 554 Total $ 49,711 $ 554 $ 33,731 $ 83,996 Liabilities: SERP liabilities - employee Other non-current liabilities $ 48,800 $ — $ — $ 48,800 Hedge derivatives Accrued liabilities — 11 — 11 Total $ 48,800 $ 11 $ — $ 48,811 Fair Value at April 30, 2023 Balance Sheet Location Level 1 Level 2 Level 3 Total Assets: Available-for-sale securities Other current assets $ 219 $ — $ — $ 219 Short-term investment Other current assets 153 — — 153 SERP assets - employer Other non-current assets 467 — — 467 SERP assets - employee Other non-current assets 45,302 — — 45,302 Defined benefit plan assets Other non-current liabilities — — 29,508 29,508 Hedge derivatives Other current assets — 591 — 591 Total $ 46,141 $ 591 $ 29,508 $ 76,240 Liabilities: SERP liabilities - employee Other non-current liabilities $ 45,302 $ — $ — $ 45,302 Hedge derivatives Accrued liabilities — 351 — 351 Total $ 45,302 $ 351 $ — $ 45,653 The fair values of the Company’s available-for-sale securities are based on quoted market prices. The fair value of the short-term investment, which is a guaranteed investment certificate, is based on its purchase price plus one half of a percent calculated annually. The assets related to the Company’s defined contribution supplemental executive retirement plan (“SERP”) consist of both employer (employee unvested) and employee assets which are invested in investment funds with fair values calculated based on quoted market prices. The SERP liability represents the Company’s liability to the employees in the plan for their vested balances. The hedge derivatives consist of cash flow hedging instruments and forward contracts (see Note 6 for further discussion) and are entered into by the Company principally to reduce its exposure to Swiss Franc and Euro exchange rate risks. Fair values of the Company’s hedge derivatives are calculated based on quoted foreign exchange rates and quoted interest rates. The Company sponsors a defined benefit pension plan in Switzerland. The plan covers certain international employees and is based on years of service and compensation on a career-average pay basis. The assets within the plan are classified as a Level 3 asset within the fair value hierarchy and consist of an investment in pooled assets and include separate employee accounts that are invested in equity securities, debt securities and real estate. The values of the separate accounts invested are based on values provided by the administrator of the funds that cannot be readily derived from or corroborated by observable market data. The value of the assets is part of the defined benefit plan and included in other non-current liabilities in the Consolidated Balance Sheets at April 30, 2024, January 31, 2024, and April 30, 2023. There were no transfers between any levels of the fair value hierarchy for any of the Company’s fair value measurements. Investments Without Readily Determinable Fair Values From time to time the Company may make minority investments in growth companies in the consumer products sector and other sectors relevant to its business, including certain of the Company's suppliers and customers, as well as in venture capital funds that invest in companies in media, entertainment, information technology and technology-related fields and in digital assets. Through fiscal 2024, the Company invested approximately $ 8.4 million and during the first quarter of fiscal 2025, the Company invested an additiona l $ 3.1 million in venture capital funds. The Company has evaluated and will regularly evaluate the carrying value of its investments . One consumer products company in which the Company made an equity investment in fiscal year 2022 sold its business and assets in the first quarter of fiscal 2024 in a transaction that is expected to yield little or no return for equity holders. As a result, the Company has fully impaired its $ 0.5 million investment in this entity in the first quarter of fiscal 2024 and is recorded in Other income, net in the Consolidated Statements of Operations. T h e carrying value of the investments are recorded in Other non-current assets in the Consolidated Balance Sheets at April 30, 2024, January 31, 2024 and April 30, 2023. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 8 – COMMITMENTS AND CONTINGENCIES The Company has minimum commitments related to the Company’s license agreements and endorsement agreements with brand ambassadors, and also includes service agreements. The Company sources, distributes, advertises and sells watches and jewelry pursuant to its exclusive license agreements with unaffiliated licensors. Royalty amounts under the license agreements are generally based on a stipulated percentage of revenues, although most of these agreements contain provisions for the payment of minimum annual royalty amounts. The license agreements have various terms, and some have renewal options, provided that minimum sales levels are achieved. Additionally, the license agreements require the Company to pay minimum annual advertising amounts. The Company believes that income tax reserves are adequate; however, amounts asserted by taxing authorities could be greater or less than amounts accrued and reflected in the Consolidated Balance Sheet. Accordingly, the Company could record adjustments to the amounts for federal, state, and foreign liabilities in the future as the Company revises estimates or settles or otherwise resolves the underlying matters. In the ordinary course of business, the Company may take new positions that could increase or decrease unrecognized tax benefits in future periods. In December 2016, U.S. Customs and Border Protection (“U.S. Customs”) issued an audit report concerning the methodology used by the Company to allocate the cost of certain watch styles imported into the U.S. among the component parts of those watches for tariff purposes. The report disputed the reasonableness of the Company’s historical allocation formulas and proposed an alternative methodology that would imply $ 5.1 million in underpaid duties for all imports that entered the United States during the audit period which extended from August 1, 2011 through July 15, 2016, plus possible penalties and interest. Although the Company believes that U.S. Customs’ alternative duty methodology and estimate are not consistent with the Company’s facts and circumstances and has consistently disputed U.S. Customs’ position, the Company established reserves for a portion of the alleged underpayment indicated in the audit report. Between February 2017 and January 2021, the Company made numerous submissions to U.S. Customs containing supplemental analyses and information in response to U.S. Customs’ information requests. On May 1, 2023, the statute of limitations lapsed with respect to all entries encompassed by the audit period. As a result, during the second quarter of fiscal 2024, the Company released the reserves that it had established in respect of those entries. The Company is involved in legal proceedings and claims from time to time, in the ordinary course of its business. Legal reserves are recorded in accordance with the accounting guidance for contingencies. Contingencies are inherently unpredictable and it is possible that results of operations, balance sheets or cash flows could be materially and adversely affected in any particular period by unfavorable developments in, or resolution or disposition of, such matters. For those legal proceedings and claims for which the Company believes that it is probable that a reasonably estimable loss may result, the Company records a reserve for the potential loss. For proceedings and claims where the Company believes it is reasonably possible that a loss may result that is materially in excess of amounts accrued for the matter, the Company either discloses an estimate of such possible loss or range of loss or includes a statement that such an estimate cannot be made. As of April 30, 2024, the Company is party to legal proceedings and contingencies, the resolution of which is not expected to materially affect its financial condition, future results of operations beyond the amounts accrued, or cash flows. |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 9 – INCOME TAXES The Company recorded an income tax provision of $ 2.3 million and $ 2.5 million for the three months ended April 30, 2024 and 2023, respectively. The effective tax rate was 42.9 % and 21.5 % for the three months ended April 30, 2024 and 2023, respectively. The significant components of the effective tax rate changed primarily due to a limitation on a portion of the foreign tax credits and deductions related to the tax on Global Intangible Low-Taxed Income ("GILTI") and no tax benefit being recognized on certain foreign losses. At April 30, 2024, the Company had no deferred tax liability for substantially all of the undistributed foreign earnings of approximately $ 305.2 million because the Company intends to permanently reinvest such earnings in its foreign operations. It is not practicable to estimate the tax liability related to a future distribution of these permanently reinvested foreign earnings. |
Equity
Equity | 3 Months Ended |
Apr. 30, 2024 | |
Equity [Abstract] | |
Equity | NOTE 10 – EQUITY The components of equity for the three months ended April 30, 2024 and 2023 are as follows (in thousands): Movado Group, Inc. Shareholders' Equity Preferred Common Common Amount Class A (2) Class A Amount Capital in of Value Retained Accumulated Treasury Noncontrolling Total Balance, January 31, 2024 $ — 29,004 $ 290 6,483 $ 64 $ 239,062 $ 470,317 $ 92,335 $ ( 285,270 ) $ 2,159 $ 518,957 Net income attributable to Movado Group, Inc. 2,891 172 3,063 Dividends ($ 0.35 per share) ( 7,773 ) ( 7,773 ) Stock awards and options exercised 127 1 ( 1 ) ( 1,058 ) ( 1,058 ) Stock repurchases ( 1,086 ) ( 1,086 ) Supplemental executive retirement plan 1 24 24 Stock-based compensation expense 1,838 1,838 Net unrealized gain on investments, net of tax provision of $ 1 4 4 Net change in effective portion of hedging contracts, net of tax provision of $ 12 61 61 Amortization of prior service cost, net of tax provision of $ 3 12 12 Foreign currency translation adjustment (3) ( 10,339 ) ( 23 ) ( 10,362 ) Balance, April 30, 2024 $ — 29,132 $ 291 6,483 $ 64 $ 240,923 $ 465,435 $ 82,073 $ ( 287,414 ) $ 2,308 $ 503,680 Preferred Common Common Amount Class A (2) Class A Amount Capital in of Value Retained Accumulated Treasury Noncontrolling Interest Total Balance, January 31, 2023 $ — 28,807 $ 288 6,525 $ 65 $ 230,782 $ 476,752 $ 81,295 $ ( 281,576 ) $ 2,938 $ 510,544 Net income attributable to Movado Group, Inc. 9,128 149 9,277 Dividends ($ 1.35 per share) ( 29,901 ) ( 29,901 ) Stock awards and options exercised 17 — Stock repurchases ( 381 ) ( 381 ) Supplemental executive retirement plan 40 40 Stock-based compensation expense 1,597 1,597 Net unrealized loss on investments, net of tax benefit of ($ 11 ) ( 32 ) ( 32 ) Net change in effective portion of hedging contracts, net of tax benefit of ($ 20 ) ( 103 ) ( 103 ) Amortization of prior service cost, net of tax provision of $ 4 15 15 Foreign currency translation adjustment (3) 4,002 ( 145 ) 3,857 Balance, April 30, 2023 $ — 28,824 $ 288 6,525 $ 65 $ 232,419 $ 455,979 $ 85,177 $ ( 281,957 ) $ 2,942 $ 494,913 (1) Each share of common stock is entitled to one vote per share on all matters submitted to a vote of the shareholders. (2) Each share of class A common stock is entitled to 10 votes per share on all matters submitted to a vote of the shareholders. Each holder of class A common stock is entitled to convert, at any time, any and all of such shares into the same number of shares of common stock. Each share of class A common stock is converted automatically into common stock in the event that the beneficial or record ownership of such shares of class A common stock is transferred to any person, except to certain family members or affiliated persons deemed “permitted transferees” pursuant to the Company’s Restated Certificate of Incorporation, as amended. The class A common stock is not publicly traded, and consequently, there is currently no established public trading market for these shares. (3) The currency translation adjustment is not adjusted for income taxes to the extent that it relates to permanent investments of earnings in international subsidiaries. |
Treasury Stock
Treasury Stock | 3 Months Ended |
Apr. 30, 2024 | |
Equity [Abstract] | |
Treasury Stock | NOTE 11 – TREASURY STOCK On November 23, 2021, the Board approved a share repurchase program under which the Company is authorized to purchase up to $ 50.0 million of its outstanding common stock through November 23, 2024, depending on market conditions, share price and other factors. Under the share repurchase program, the Company is permitted to purchase shares of its common stock from time to time through open market purchases, repurchase plans, block trades or otherwise. During the three months ended April 30, 2024, the Company repurchased a total of 39,000 shares of its common stock at a total cost of $ 1.1 million, or an average of $ 27.85 per share. During the three months ended April 30, 2023, the Company repurchased a total of 14,000 shares of its common stock at a total cost of $ 0.4 million, or an average of $ 27.24 per share. At April 30, 2024, $ 16.8 million remains available for purchase under the Company's November 23, 2021 repurchase program. There were 37,859 and zero shares of common stock repurchased during the three months ended April 30, 2024 and 2023, respectively, as a result of the surrender of shares in connection with the vesting of restricted stock awards or stock options. At the election of an employee, shares having an aggregate value on the vesting date equal to the employee’s withholding tax obligation may be surrendered to the Company. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Apr. 30, 2024 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | NOTE 12 – ACCUMULATED OTHER COMPREHENSIVE INCOME The accumulated balances at April 30, 2024 and 2023, and January 31, 2024, related to each component of accumulated other comprehensive income are as follows (in thousands): April 30, January 31, April 30, Foreign currency translation adjustments $ 83,501 $ 93,840 $ 87,007 Available-for-sale securities 173 169 150 Cash flow hedges 104 43 ( 274 ) Unrecognized prior service cost related to defined benefit pension plan ( 159 ) ( 171 ) ( 216 ) Net actuarial loss related to defined benefit pension plan ( 1,546 ) ( 1,546 ) ( 1,490 ) Total accumulated other comprehensive income $ 82,073 $ 92,335 $ 85,177 Amounts reclassified from accumulated other comprehensive income/(loss) to operating income in the Consolidated Statements of Operations during the three months ended April 30, 2024 and April 30, 2023 were $ 0.1 mi llion and ($ 0.2 ) million, respectively. |
Revenue
Revenue | 3 Months Ended |
Apr. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | NOTE 13 – REVENUE Disaggregation of Revenue The following table presents the Company’s net sales disaggregated by customer type. Sales and usage-based taxes are excluded from net sales (in thousands): For the Three Months Ended Customer Type 2024 2023 Wholesale $ 107,760 $ 114,848 Direct to consumer 28,147 29,169 After-sales service 762 888 Net Sales $ 136,669 $ 144,905 The Company’s revenue from contracts with customers is recognized at a point in time. The Company’s net sales disaggregated by geography are based on the location of the Company’s customer (see Note 15 – Segment and Geographic Information). Wholesale Revenue The Company’s wholesale revenue consists primarily of revenues from independent distributors, department stores, chain stores, independent jewelry stores and third-party e-commerce retailers. The Company recognizes and records its revenue when obligations under the terms of a contract with the customer are satisfied, and control is transferred to the customer. Transfer of control passes to wholesale customers upon shipment or upon receipt depending on the agreement with the customer and shipping terms. Wholesale revenue is measured as the amount of consideration the Company ultimately expects to receive in exchange for transferring goods. Wholesale revenue is included entirely within the Watch and Accessory Brands segment (see Note 15 – Segment and Geographic Information), consistent with how management makes decisions regarding the allocation of resources and performance measurement. Direct to Consumer Revenue The Company’s direct to consumer revenue primarily consists of revenues from the Company’s outlet stores, the Company’s owned e-commerce websites and concession stores, and consumer repairs. The Company recognizes and records its revenue when obligations under the terms of a contract with the customer are satisfied, and control is transferred to the customer. Control passes to outlet store customers at the time of sale and to substantially all e-commerce customers upon shipment. Direct to Consumer revenue is included in either the Watch and Accessory Brands segment or Company Stores Segment based on how the Company makes decisions about the allocation of resources and performance measurement. Revenue derived from outlet stores and related e-commerce is included within the Company Stores Segment. Other Direct to Consumer revenue (i.e., revenue derived from other Company-owned e-commerce websites, concession stores and consumer repairs) is included within the Watch and Accessory Brands segment. (See Note 15 – Segment and Geographic Information). After-Sales Service All watches sold by the Company come with limited warranties covering the movement against defects in materials and workmanship. The Company’s after-sales service revenues consists of out of warranty service provided to customers and authorized third party repair centers, and sale of watch parts. The Company recognizes and records its revenue when obligations under the terms of a contract with the customer are satisfied and control is transferred to the customer. After-sales service revenue is measured as the amount of consideration the Company ultimately expects to receive in exchange for transferring goods. Revenue from after sales service, including consumer repairs, is included entirely within the Watch and Accessory Brands segment, consistent with how management makes decisions about the allocation of resources and performance measurement. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Apr. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | NOTE 14 – STOCK-BASED COMPENSATION Under the Company’s Stock Incentive Plan, as amended and restated as of June 22, 2023 (the “Plan”), the Compensation and Human Capital Committee of the Board of Directors, which consists of three of the Company’s non-employee directors, has the authority to grant participants incentive stock options, nonqualified stock options, restricted stock, stock appreciation rights and stock awards, for up to 12,000,000 shares of common stock. Stock Options: Stock options granted to participants under the Plan generally become exercisable after three years and remain exercisable until the tenth anniversary of the date of grant. All stock options granted under the Plan have an exercise price equal to or greater than the fair market value of the Company’s common stock on the grant date. There were no stock options granted during the three months ended April 30, 2024 and April 30, 2023. The fair value of the stock options, less expected forfeitures, is amortized on a straight-line basis over the vesting term. Total compensation expense for stock option grants recognized during the three months ended April 30, 2024 and 2023 was $ 0.3 m illion and $ 0.6 million, respectively. As of April 30, 2024, th ere was $ 0.7 million of unrecognized compensation cost related to unvested stock options. These costs are expected to be recognized over a weighted-average period of 0.9 year s. There were no stock options exercised during each of the three months ended April 30, 2024 and 2023. The following table summarizes the Company’s stock options activity during the first quarter of fiscal 2025: Outstanding Weighted Option Weighted Aggregate Options outstanding at January 31, 662,375 options exercisable) 1,014,189 $ 24.20 $ 12.42 -$ 42.12 6.2 $ 6,049 Granted — — — Exercised — — — Expired ( 58,700 ) $ 42.12 $ 42.12 Options outstanding at April 30, 2024 955,489 $ 23.10 $ 12.42 -$ 38.04 6.3 $ 4,948 Exercisable at April 30, 2024 798,500 $ 20.17 6.0 $ 4,948 Expected to vest at April 30, 2024 154,388 $ 38.04 7.9 $ - Stock Awards: Under the Plan, the Company can also grant stock awards to employees and directors. For the three months ended April 30, 2024 and 2023, compensation expense for stock awards was $ 1.5 million and $ 1.0 million, respectively. As of April 30, 2024, there was $ 12.6 million of unrecognized compensation cost related to unvested stock awards. These costs are expected to be recognized over a weighted-average period o f 2.3 years. The following table summarizes the Company’s stock awards activity during the first quarter of fiscal 2025: Number of Weighted- Weighted- Aggregate Units outstanding at January 31, 2024 485,956 $ 30.15 Units granted 311,366 $ 27.78 Units vested ( 126,302 ) $ 27.85 Units forfeited — — Units outstanding at April 30, 2024 671,020 $ 29.48 2.2 $ 17,091 Stock awards granted by the Company can be classified as either time-based stock awards or performance-based stock awards. Time-based stock awards vest over time in the number of shares established at grant date, subject to continued employment. Performance-based stock awards vest over time subject both to continued employment and to the achievement of corporate financial performance goals. Upon the vesting of a stock award, shares are issued from the pool of authorized shares. The number of shares to be issued related to the outstanding performance-based stock awards can vary from 0 % to 200 % of the target number of underlying stock award units, established at grant date, depending on the particular stock awards and the extent of the achievement of the predetermined financial goals. There were 37,859 and zero shares of common stock of the Company tendered by the employee for the payment of the employee's withholding tax obligation totaling $ 1.1 million an d zero for the three months ended April 30, 2024 and 2023, respectively. The total fair value of stock award units that vested during the first three months of fiscal 2025 was $ 3.5 million . |
Segment and Geographic Informat
Segment and Geographic Information | 3 Months Ended |
Apr. 30, 2024 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | NOTE 15 – SEGMENT AND GEOGRAPHIC INFORMATION The Company conducts its business in two operating segments: Watch and Accessory Brands and Company Stores. The Company’s Watch and Accessory Brands segment includes the designing, manufacturing and distribution of watches and, to a lesser extent, jewelry and other accessories, of owned and licensed brands, in addition to revenue generated from after-sales service activities and shipping. The Company Stores segment includes the Company’s retail outlet business. The Chief Executive Officer of the Company is the chief operating decision maker (“CODM”) and regularly reviews operating results for each of the two operating segments to assess performance and makes operating decisions about the allocation of the Company’s resources. The Company divides its business into two major geographic locations: United States operations and International, which includes the results of all non-U.S. Company operations. The allocation of geographic revenue is based upon the location of the customer. The Company’s International operations in Europe, the Americas (excluding the United States), the Middle East and Asia accounted for 32.1 %, 10.0 %, 9.8 % and 7.4 % , respectively, of the Company’s total net sales for the three months ended April 30, 2024. For the three months ended April 30, 2023, the Company’s International operations in Europe, the Americas (excluding the United States), the Middle East and Asia accounted for 30.4 %, 12.0 %, 9.5 % and 7.2 %, respectively, of the Company’s total net sales. Certain prior year reclassifications have been made to the allocation of geographic revenue between the Middle East and Asia. Operating Segment Data as of and for the Three Months Ended April 30, 2024 and 2023 (in thousands): Net Sales 2024 2023 Watch and Accessory Brands: Owned brands category $ 39,947 $ 45,132 Licensed brands category 76,357 80,207 After-sales service and all other 3,098 220 Total Watch and Accessory Brands 119,402 125,559 Company Stores 17,267 19,346 Consolidated total $ 136,669 $ 144,905 Operating Income 2024 2023 Watch and Accessory Brands $ 2,853 $ 8,829 Company Stores 458 2,070 Consolidated total $ 3,311 $ 10,899 Total Assets April 30, January 31, April 30, Watch and Accessory Brands $ 691,039 $ 710,067 $ 674,964 Company Stores 60,376 59,015 66,532 Consolidated total $ 751,415 $ 769,082 $ 741,496 Geographic Location Data as of and for the Three Months Ended April 30, 2024 and 2023 (in thousands): Net Sales Operating (Loss)/Income 2024 2023 2024 2023 United States (1) $ 55,564 $ 59,209 $ ( 9,036 ) $ ( 6,961 ) International (2) 81,105 85,696 12,347 17,860 Consolidated total $ 136,669 $ 144,905 $ 3,311 $ 10,899 United States and International net sales are net of intercompany sales of $ 70.5 million and $ 64.6 million for the three months ended April 30, 2024 and 2023, respectively. (1) The United States operating loss included $ 10.9 million and $ 11.4 million of unallocated corporate expenses for the three months ended April 30, 2024 and 2023, respectively. (2) The International operating income included $ 14.2 million and $ 17.3 million of certain intercompany profits related to the Company’s supply chain operations for the three months ended April 30, 2024 and 2023, respectively. Total Assets April 30, January 31, April 30, United States $ 347,020 $ 361,980 $ 364,485 International 404,395 407,102 377,011 Consolidated total $ 751,415 $ 769,082 $ 741,496 Property, Plant and Equipment, Net April 30, January 31, April 30, United States $ 11,865 $ 11,950 $ 12,982 International 7,172 7,486 6,093 Consolidated total $ 19,037 $ 19,436 $ 19,075 |
Earnings Per Share and Cash D_2
Earnings Per Share and Cash Dividends (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Number of Shares Used in Calculating Basic and Diluted Earnings (Loss) Per Share | The number of shares used in calculating basic and diluted earnings per share is as follows (in thousands): Three Months Ended April 30, 2024 2023 Weighted average common shares outstanding: Basic 22,253 22,226 Effect of dilutive securities: Stock awards and options to purchase shares of 420 446 Diluted 22,673 22,672 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | Inventories consisted of the following (in thousands): April 30, January 31, April 30, Finished goods $ 129,316 $ 117,909 $ 158,206 Component parts 26,697 26,386 34,174 Work-in-process 3,605 3,736 2,855 $ 159,618 $ 148,031 $ 195,235 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Financial Instruments Included in Consolidated Balance Sheets | The following table presents the fair values of the Company's derivative financial instruments included in the Consolidated Balance Sheets as of April 30, 2024, January 31, 2024 and April 30, 2023 (in thousands): Asset Derivatives Liability Derivatives Balance April 30, January 31, April 30, Balance April 30, January 31, April 30, Derivatives designated as hedging instruments: Foreign Exchange Contracts Other Current $ 112 $ 26 $ — Accrued $ — $ 11 $ 351 Total Derivative Instruments $ 112 $ 26 $ — $ — $ 11 $ 351 Asset Derivatives Liability Derivatives Balance April 30, January 31, April 30, Balance April 30, January 31, April 30, Derivatives not designated as hedging instruments: Foreign Exchange Contracts Other Current $ — $ 528 $ 591 Accrued $ 697 $ — $ — Total Derivative Instruments $ — $ 528 $ 591 $ 697 $ — $ — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of April 30, 2024 and 2023 and January 31, 2024 (in thousands): Fair Value at April 30, 2024 Balance Sheet Location Level 1 Level 2 Level 3 Total Assets: Available-for-sale securities Other current assets $ 251 $ — $ — $ 251 Short-term investment Other current assets 151 — — 151 SERP assets - employer Other non-current assets 559 — — 559 SERP assets - employee Other non-current assets 49,093 — — 49,093 Defined benefit plan assets Other non-current liabilities — — 32,996 32,996 Hedge derivatives Other current assets — 112 — 112 Total $ 50,054 $ 112 $ 32,996 $ 83,162 Liabilities: SERP liabilities - employee Other non-current liabilities $ 49,093 $ — $ — $ 49,093 Hedge derivatives Accrued liabilities — 697 — 697 Total $ 49,093 $ 697 $ — $ 49,790 Fair Value at January 31, 2024 Balance Sheet Location Level 1 Level 2 Level 3 Total Assets: Available-for-sale securities Other current assets $ 246 $ — $ — $ 246 Short-term investment Other current assets 155 — — 155 SERP assets - employer Other non-current assets 510 — — 510 SERP assets - employee Other non-current assets 48,800 — — 48,800 Defined benefit plan assets Other non-current liabilities — — 33,731 33,731 Hedge derivatives Other current assets — 554 — 554 Total $ 49,711 $ 554 $ 33,731 $ 83,996 Liabilities: SERP liabilities - employee Other non-current liabilities $ 48,800 $ — $ — $ 48,800 Hedge derivatives Accrued liabilities — 11 — 11 Total $ 48,800 $ 11 $ — $ 48,811 Fair Value at April 30, 2023 Balance Sheet Location Level 1 Level 2 Level 3 Total Assets: Available-for-sale securities Other current assets $ 219 $ — $ — $ 219 Short-term investment Other current assets 153 — — 153 SERP assets - employer Other non-current assets 467 — — 467 SERP assets - employee Other non-current assets 45,302 — — 45,302 Defined benefit plan assets Other non-current liabilities — — 29,508 29,508 Hedge derivatives Other current assets — 591 — 591 Total $ 46,141 $ 591 $ 29,508 $ 76,240 Liabilities: SERP liabilities - employee Other non-current liabilities $ 45,302 $ — $ — $ 45,302 Hedge derivatives Accrued liabilities — 351 — 351 Total $ 45,302 $ 351 $ — $ 45,653 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Equity [Abstract] | |
Components of Equity | The components of equity for the three months ended April 30, 2024 and 2023 are as follows (in thousands): Movado Group, Inc. Shareholders' Equity Preferred Common Common Amount Class A (2) Class A Amount Capital in of Value Retained Accumulated Treasury Noncontrolling Total Balance, January 31, 2024 $ — 29,004 $ 290 6,483 $ 64 $ 239,062 $ 470,317 $ 92,335 $ ( 285,270 ) $ 2,159 $ 518,957 Net income attributable to Movado Group, Inc. 2,891 172 3,063 Dividends ($ 0.35 per share) ( 7,773 ) ( 7,773 ) Stock awards and options exercised 127 1 ( 1 ) ( 1,058 ) ( 1,058 ) Stock repurchases ( 1,086 ) ( 1,086 ) Supplemental executive retirement plan 1 24 24 Stock-based compensation expense 1,838 1,838 Net unrealized gain on investments, net of tax provision of $ 1 4 4 Net change in effective portion of hedging contracts, net of tax provision of $ 12 61 61 Amortization of prior service cost, net of tax provision of $ 3 12 12 Foreign currency translation adjustment (3) ( 10,339 ) ( 23 ) ( 10,362 ) Balance, April 30, 2024 $ — 29,132 $ 291 6,483 $ 64 $ 240,923 $ 465,435 $ 82,073 $ ( 287,414 ) $ 2,308 $ 503,680 Preferred Common Common Amount Class A (2) Class A Amount Capital in of Value Retained Accumulated Treasury Noncontrolling Interest Total Balance, January 31, 2023 $ — 28,807 $ 288 6,525 $ 65 $ 230,782 $ 476,752 $ 81,295 $ ( 281,576 ) $ 2,938 $ 510,544 Net income attributable to Movado Group, Inc. 9,128 149 9,277 Dividends ($ 1.35 per share) ( 29,901 ) ( 29,901 ) Stock awards and options exercised 17 — Stock repurchases ( 381 ) ( 381 ) Supplemental executive retirement plan 40 40 Stock-based compensation expense 1,597 1,597 Net unrealized loss on investments, net of tax benefit of ($ 11 ) ( 32 ) ( 32 ) Net change in effective portion of hedging contracts, net of tax benefit of ($ 20 ) ( 103 ) ( 103 ) Amortization of prior service cost, net of tax provision of $ 4 15 15 Foreign currency translation adjustment (3) 4,002 ( 145 ) 3,857 Balance, April 30, 2023 $ — 28,824 $ 288 6,525 $ 65 $ 232,419 $ 455,979 $ 85,177 $ ( 281,957 ) $ 2,942 $ 494,913 (1) Each share of common stock is entitled to one vote per share on all matters submitted to a vote of the shareholders. (2) Each share of class A common stock is entitled to 10 votes per share on all matters submitted to a vote of the shareholders. Each holder of class A common stock is entitled to convert, at any time, any and all of such shares into the same number of shares of common stock. Each share of class A common stock is converted automatically into common stock in the event that the beneficial or record ownership of such shares of class A common stock is transferred to any person, except to certain family members or affiliated persons deemed “permitted transferees” pursuant to the Company’s Restated Certificate of Incorporation, as amended. The class A common stock is not publicly traded, and consequently, there is currently no established public trading market for these shares. (3) The currency translation adjustment is not adjusted for income taxes to the extent that it relates to permanent investments of earnings in international subsidiaries. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Component of Accumulated Other Comprehensive Income | The accumulated balances at April 30, 2024 and 2023, and January 31, 2024, related to each component of accumulated other comprehensive income are as follows (in thousands): April 30, January 31, April 30, Foreign currency translation adjustments $ 83,501 $ 93,840 $ 87,007 Available-for-sale securities 173 169 150 Cash flow hedges 104 43 ( 274 ) Unrecognized prior service cost related to defined benefit pension plan ( 159 ) ( 171 ) ( 216 ) Net actuarial loss related to defined benefit pension plan ( 1,546 ) ( 1,546 ) ( 1,490 ) Total accumulated other comprehensive income $ 82,073 $ 92,335 $ 85,177 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Net Sales Disaggregated by Customer Type | The following table presents the Company’s net sales disaggregated by customer type. Sales and usage-based taxes are excluded from net sales (in thousands): For the Three Months Ended Customer Type 2024 2023 Wholesale $ 107,760 $ 114,848 Direct to consumer 28,147 29,169 After-sales service 762 888 Net Sales $ 136,669 $ 144,905 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Options Activity | The following table summarizes the Company’s stock options activity during the first quarter of fiscal 2025: Outstanding Weighted Option Weighted Aggregate Options outstanding at January 31, 662,375 options exercisable) 1,014,189 $ 24.20 $ 12.42 -$ 42.12 6.2 $ 6,049 Granted — — — Exercised — — — Expired ( 58,700 ) $ 42.12 $ 42.12 Options outstanding at April 30, 2024 955,489 $ 23.10 $ 12.42 -$ 38.04 6.3 $ 4,948 Exercisable at April 30, 2024 798,500 $ 20.17 6.0 $ 4,948 Expected to vest at April 30, 2024 154,388 $ 38.04 7.9 $ - |
Summary of Stock Awards Activity | The following table summarizes the Company’s stock awards activity during the first quarter of fiscal 2025: Number of Weighted- Weighted- Aggregate Units outstanding at January 31, 2024 485,956 $ 30.15 Units granted 311,366 $ 27.78 Units vested ( 126,302 ) $ 27.85 Units forfeited — — Units outstanding at April 30, 2024 671,020 $ 29.48 2.2 $ 17,091 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Segment Reporting [Abstract] | |
Operating Segment Data | Operating Segment Data as of and for the Three Months Ended April 30, 2024 and 2023 (in thousands): Net Sales 2024 2023 Watch and Accessory Brands: Owned brands category $ 39,947 $ 45,132 Licensed brands category 76,357 80,207 After-sales service and all other 3,098 220 Total Watch and Accessory Brands 119,402 125,559 Company Stores 17,267 19,346 Consolidated total $ 136,669 $ 144,905 Operating Income 2024 2023 Watch and Accessory Brands $ 2,853 $ 8,829 Company Stores 458 2,070 Consolidated total $ 3,311 $ 10,899 Total Assets April 30, January 31, April 30, Watch and Accessory Brands $ 691,039 $ 710,067 $ 674,964 Company Stores 60,376 59,015 66,532 Consolidated total $ 751,415 $ 769,082 $ 741,496 |
Geographic Segment Data | Geographic Location Data as of and for the Three Months Ended April 30, 2024 and 2023 (in thousands): Net Sales Operating (Loss)/Income 2024 2023 2024 2023 United States (1) $ 55,564 $ 59,209 $ ( 9,036 ) $ ( 6,961 ) International (2) 81,105 85,696 12,347 17,860 Consolidated total $ 136,669 $ 144,905 $ 3,311 $ 10,899 United States and International net sales are net of intercompany sales of $ 70.5 million and $ 64.6 million for the three months ended April 30, 2024 and 2023, respectively. (1) The United States operating loss included $ 10.9 million and $ 11.4 million of unallocated corporate expenses for the three months ended April 30, 2024 and 2023, respectively. (2) The International operating income included $ 14.2 million and $ 17.3 million of certain intercompany profits related to the Company’s supply chain operations for the three months ended April 30, 2024 and 2023, respectively. Total Assets April 30, January 31, April 30, United States $ 347,020 $ 361,980 $ 364,485 International 404,395 407,102 377,011 Consolidated total $ 751,415 $ 769,082 $ 741,496 Property, Plant and Equipment, Net April 30, January 31, April 30, United States $ 11,865 $ 11,950 $ 12,982 International 7,172 7,486 6,093 Consolidated total $ 19,037 $ 19,436 $ 19,075 |
Earnings Per Share and Cash D_3
Earnings Per Share and Cash Dividends - Schedule of Number of Shares Used in Calculating Basic and Diluted Earnings (Loss) Per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Weighted average common shares outstanding: | ||
Basic | 22,253 | 22,226 |
Effect of dilutive securities: | ||
Stock awards and options to purchase shares of common stock | 420 | 446 |
Diluted | 22,673 | 22,672 |
Earnings Per Share and Cash D_4
Earnings Per Share and Cash Dividends - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 26, 2024 | Apr. 30, 2024 | Apr. 30, 2023 | |
Dividends Payable [Line Items] | |||
Dilutive common stock equivalents were excluded from the computation of diluted earnings per share | 590,000 | 345,000 | |
Cash dividend declared and payable | $ 0.35 | ||
Common stock special dividend paid per share | $ 1 | ||
Dividends paid | $ 7,773 | $ 29,901 | |
Quarterly Cash Dividend | |||
Dividends Payable [Line Items] | |||
Cash dividend declared and payable | $ 0.35 | ||
Dividends paid | $ 7,800 | ||
Dividend payable date | Apr. 23, 2024 | ||
Dividend payable, record date | Apr. 09, 2024 |
Inventories - Components of Inv
Inventories - Components of Inventories (Details) - USD ($) $ in Thousands | Apr. 30, 2024 | Jan. 31, 2024 | Apr. 30, 2023 |
Inventory, Net [Abstract] | |||
Finished goods | $ 129,316 | $ 117,909 | $ 158,206 |
Component parts | 26,697 | 26,386 | 34,174 |
Work-in-process | 3,605 | 3,736 | 2,855 |
Inventories | $ 159,618 | $ 148,031 | $ 195,235 |
Debt and Lines of Credit - Addi
Debt and Lines of Credit - Additional Information (Details) | 3 Months Ended | ||||
Oct. 12, 2018 USD ($) | Apr. 30, 2024 USD ($) Bank Subsidiary | Apr. 30, 2023 USD ($) Bank Subsidiary | Apr. 30, 2024 CHF (SFr) Bank Subsidiary | Apr. 30, 2023 CHF (SFr) Bank Subsidiary | |
Debt Instrument [Line Items] | |||||
Cash paid for interest | $ 100,000 | $ 100,000 | |||
Unsecured Debt | Swiss subsidiary | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | 7,100,000 | 7,300,000 | SFr 6,500,000 | SFr 6,500,000 | |
Outstanding borrowing amount | 0 | 0 | |||
Revolving Credit Facility | Secured Debt | Credit Agreement Due on October 28, 2026 | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 100,000,000 | ||||
Uncommitted increase to borrowing capacity | $ 50,000,000 | ||||
Credit facility matures date | Oct. 28, 2026 | ||||
Loan drawn under the facility | 0 | 0 | |||
Line of credit facility remaining borrowing capacity | 99,700,000 | 99,700,000 | |||
Weighted average borrowings amount | $ 0 | 0 | |||
Letter of Credit | |||||
Debt Instrument [Line Items] | |||||
Credit facility matures date | Apr. 28, 2025 | ||||
Outstanding borrowing amount | $ 300,000 | $ 300,000 | |||
Letter of Credit | Secured Debt | Credit Agreement Due on October 28, 2026 | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 15,000,000 | ||||
Letter of Credit | Unsecured Debt | Swiss subsidiary | |||||
Debt Instrument [Line Items] | |||||
Number of European banks guaranteed obligations to third parties | Bank | 2 | 2 | 2 | 2 | |
Number of foreign subsidiaries under guaranteed obligation | Subsidiary | 2 | 2 | 2 | 2 | |
Guaranteed obligations to third parties | $ 1,300,000 | $ 1,300,000 | |||
Restricted deposit relates to lease agreement | $ 700,000 | $ 600,000 | |||
Swingline | Secured Debt | Credit Agreement Due on October 28, 2026 | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | 25,000,000 | ||||
Swiss Borrowers | Secured Debt | Credit Agreement Due on October 28, 2026 | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 75,000,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) € in Millions, ¥ in Millions, £ in Millions, SFr in Millions | 3 Months Ended | |||||||
Apr. 30, 2024 USD ($) | Apr. 30, 2023 USD ($) | Apr. 30, 2024 EUR (€) | Apr. 30, 2024 CNY (¥) | Apr. 30, 2024 CHF (SFr) | Apr. 30, 2024 USD ($) | Apr. 30, 2024 GBP (£) | Jan. 31, 2024 USD ($) | |
Derivatives Fair Value [Line Items] | ||||||||
Reclassify amounts from accumulated other comprehensive (loss)/income to net sales | $ 100,000 | $ (200,000) | ||||||
Cash flow hedge ineffectiveness | $ 0 | |||||||
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax | |||||||
Net deferred gains on derivative financial instruments designated as cash flow hedges included in accumulated other comprehensive income (loss) | $ (274,000) | $ 104,000 | $ 43,000 | |||||
Derivatives Designated As Hedging Instruments | Foreign Exchange Forward | ||||||||
Derivatives Fair Value [Line Items] | ||||||||
Net forward contracts hedging portfolio | € | € 6 | |||||||
Derivatives Not Designated as Hedging Instrument | Foreign Exchange Forward | ||||||||
Derivatives Fair Value [Line Items] | ||||||||
Net forward contracts hedging portfolio | € 12.2 | ¥ 2.8 | SFr 22 | $ 22,200,000 | £ 1.2 | |||
Maximum | Derivatives Designated As Hedging Instruments | ||||||||
Derivatives Fair Value [Line Items] | ||||||||
Expiry dates ranging | May 31, 2024 | |||||||
Maximum | Derivatives Not Designated as Hedging Instrument | Foreign Exchange Forward | ||||||||
Derivatives Fair Value [Line Items] | ||||||||
Expiry dates ranging | Oct. 03, 2024 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Derivative Financial Instruments Included in Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Apr. 30, 2024 | Jan. 31, 2024 | Apr. 30, 2023 |
Derivatives Designated As Hedging Instruments | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives, Fair Value | $ 112 | $ 26 | $ 0 |
Liability Derivatives, Fair Value | 0 | 11 | 351 |
Derivatives Designated As Hedging Instruments | Other Current Assets | Foreign Exchange Contracts | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives, Fair Value | 112 | 26 | 0 |
Derivatives Designated As Hedging Instruments | Accrued Liabilities | Foreign Exchange Contracts | |||
Derivatives, Fair Value [Line Items] | |||
Liability Derivatives, Fair Value | 0 | 11 | 351 |
Derivatives Not Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives, Fair Value | 0 | 528 | 591 |
Liability Derivatives, Fair Value | 697 | 0 | 0 |
Derivatives Not Designated as Hedging Instrument | Other Current Assets | Foreign Exchange Contracts | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives, Fair Value | 0 | 528 | 591 |
Derivatives Not Designated as Hedging Instrument | Accrued Liabilities | Foreign Exchange Contracts | |||
Derivatives, Fair Value [Line Items] | |||
Liability Derivatives, Fair Value | $ 697 | $ 0 | $ 0 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Apr. 30, 2024 | Jan. 31, 2024 | Apr. 30, 2023 |
Assets: | |||
Total assets measured at fair value | $ 83,162 | $ 83,996 | $ 76,240 |
Liabilities: | |||
Total liabilities measured at fair value | 49,790 | 48,811 | 45,653 |
Level 1 | |||
Assets: | |||
Total assets measured at fair value | 50,054 | 49,711 | 46,141 |
Liabilities: | |||
Total liabilities measured at fair value | 49,093 | 48,800 | 45,302 |
Level 2 | |||
Assets: | |||
Total assets measured at fair value | 112 | 554 | 591 |
Liabilities: | |||
Total liabilities measured at fair value | 697 | 11 | 351 |
Level 3 | |||
Assets: | |||
Total assets measured at fair value | 32,996 | 33,731 | 29,508 |
Liabilities: | |||
Total liabilities measured at fair value | 0 | 0 | 0 |
Other Current Assets | Available-for-sale securities | |||
Assets: | |||
Total assets measured at fair value | 251 | 246 | 219 |
Other Current Assets | Short-term investment | |||
Assets: | |||
Total assets measured at fair value | 151 | 155 | 153 |
Other Current Assets | Hedge derivatives-Assets | |||
Assets: | |||
Total assets measured at fair value | 112 | 554 | 591 |
Other Current Assets | Level 1 | Available-for-sale securities | |||
Assets: | |||
Total assets measured at fair value | 251 | 246 | 219 |
Other Current Assets | Level 1 | Short-term investment | |||
Assets: | |||
Total assets measured at fair value | 151 | 155 | 153 |
Other Current Assets | Level 1 | Hedge derivatives-Assets | |||
Assets: | |||
Total assets measured at fair value | 0 | 0 | 0 |
Other Current Assets | Level 2 | Available-for-sale securities | |||
Assets: | |||
Total assets measured at fair value | 0 | 0 | 0 |
Other Current Assets | Level 2 | Short-term investment | |||
Assets: | |||
Total assets measured at fair value | 0 | 0 | 0 |
Other Current Assets | Level 2 | Hedge derivatives-Assets | |||
Assets: | |||
Total assets measured at fair value | 112 | 554 | 591 |
Other Current Assets | Level 3 | Available-for-sale securities | |||
Assets: | |||
Total assets measured at fair value | 0 | 0 | 0 |
Other Current Assets | Level 3 | Short-term investment | |||
Assets: | |||
Total assets measured at fair value | 0 | 0 | 0 |
Other Current Assets | Level 3 | Hedge derivatives-Assets | |||
Assets: | |||
Total assets measured at fair value | 0 | 0 | 0 |
Other Non-current Assets | SERP assets - employer | |||
Assets: | |||
Total assets measured at fair value | 559 | 510 | 467 |
Other Non-current Assets | SERP assets - employee | |||
Assets: | |||
Total assets measured at fair value | 49,093 | 48,800 | 45,302 |
Other Non-current Assets | Defined Benefit Plan Assets | |||
Assets: | |||
Total assets measured at fair value | 29,508 | ||
Other Non-current Assets | Level 1 | SERP assets - employer | |||
Assets: | |||
Total assets measured at fair value | 559 | 510 | 467 |
Other Non-current Assets | Level 1 | SERP assets - employee | |||
Assets: | |||
Total assets measured at fair value | 49,093 | 48,800 | 45,302 |
Other Non-current Assets | Level 1 | Defined Benefit Plan Assets | |||
Assets: | |||
Total assets measured at fair value | 0 | ||
Other Non-current Assets | Level 2 | SERP assets - employer | |||
Assets: | |||
Total assets measured at fair value | 0 | 0 | 0 |
Other Non-current Assets | Level 2 | SERP assets - employee | |||
Assets: | |||
Total assets measured at fair value | 0 | 0 | 0 |
Other Non-current Assets | Level 2 | Defined Benefit Plan Assets | |||
Assets: | |||
Total assets measured at fair value | 0 | ||
Other Non-current Assets | Level 3 | SERP assets - employer | |||
Assets: | |||
Total assets measured at fair value | 0 | 0 | 0 |
Other Non-current Assets | Level 3 | SERP assets - employee | |||
Assets: | |||
Total assets measured at fair value | 0 | 0 | 0 |
Other Non-current Assets | Level 3 | Defined Benefit Plan Assets | |||
Assets: | |||
Total assets measured at fair value | 29,508 | ||
Other non-current liabilities | SERP liabilities - employee | |||
Liabilities: | |||
Total liabilities measured at fair value | 49,093 | 48,800 | 45,302 |
Other non-current liabilities | Defined Benefit Plan Assets | |||
Assets: | |||
Total assets measured at fair value | 32,996 | 33,731 | |
Other non-current liabilities | Level 1 | SERP liabilities - employee | |||
Liabilities: | |||
Total liabilities measured at fair value | 49,093 | 48,800 | 45,302 |
Other non-current liabilities | Level 1 | Defined Benefit Plan Assets | |||
Assets: | |||
Total assets measured at fair value | 0 | 0 | |
Other non-current liabilities | Level 2 | SERP liabilities - employee | |||
Liabilities: | |||
Total liabilities measured at fair value | 0 | 0 | 0 |
Other non-current liabilities | Level 2 | Defined Benefit Plan Assets | |||
Assets: | |||
Total assets measured at fair value | 0 | 0 | |
Other non-current liabilities | Level 3 | SERP liabilities - employee | |||
Liabilities: | |||
Total liabilities measured at fair value | 0 | 0 | 0 |
Other non-current liabilities | Level 3 | Defined Benefit Plan Assets | |||
Assets: | |||
Total assets measured at fair value | 32,996 | 33,731 | |
Accrued Liabilities | Hedge derivatives-Liabilities | |||
Liabilities: | |||
Total liabilities measured at fair value | 697 | 11 | 351 |
Accrued Liabilities | Level 1 | Hedge derivatives-Liabilities | |||
Liabilities: | |||
Total liabilities measured at fair value | 0 | 0 | 0 |
Accrued Liabilities | Level 2 | Hedge derivatives-Liabilities | |||
Liabilities: | |||
Total liabilities measured at fair value | 697 | 11 | 351 |
Accrued Liabilities | Level 3 | Hedge derivatives-Liabilities | |||
Liabilities: | |||
Total liabilities measured at fair value | $ 0 | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Apr. 30, 2024 | Jan. 31, 2024 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Transfers into level 1 to level 2, assets | $ 0 | |
Transfers into level 2 to level 1, assets | 0 | |
Transfers into level 1 to level 2, liabilities | 0 | |
Transfers into level 2 to level 1, liabilities | 0 | |
Investments | 500,000 | |
Transfers into level 3, assets | 0 | |
Transfers out of level 3, assets | 0 | |
Transfers into level 3, liabilities | 0 | |
Transfers out of level 3, liabilities | 0 | |
Investment in venture capital funds | $ 3,100,000 | $ 8,400,000 |
Short-term investment | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Fair value, investment | The fair value of the short-term investment, which is a guaranteed investment certificate, is based on its purchase price plus one half of a percent calculated annually. |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | 1 Months Ended |
Dec. 31, 2016 USD ($) | |
Loss Contingencies [Line Items] | |
Underpaid duty charges due to alternative duty methodology | $ 5.1 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Income Tax Contingency [Line Items] | ||
Income tax provision (benefit) | $ 2,302,000 | $ 2,534,000 |
Effective tax rate for continuing operations | 42.90% | 21.50% |
Deferred tax liability, undistributed foreign earnings | $ 0 | |
Undistributed foreign earnings | $ 305,200,000 |
Equity - Components of Equity (
Equity - Components of Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 30, 2024 | Apr. 30, 2023 | ||
Beginning Balance | $ 518,957 | $ 510,544 | |
Net income/(loss) attributable to Movado Group, Inc. | 3,063 | 9,277 | |
Dividends | (7,773) | (29,901) | |
Stock awards and options exercised | (1,058) | ||
Stock repurchases | (1,086) | (381) | |
Supplemental executive retirement plan | 24 | 40 | |
Stock-based compensation expense | 1,838 | 1,597 | |
Net unrealized gain (loss) on investments, net of tax (benefit) provision | 4 | (32) | |
Net change in effective portion of hedging contracts, net of tax (benefit) provision | 61 | (103) | |
Amortization of prior service cost, net of tax provision | 12 | 15 | |
Foreign currency translation adjustment | [1] | (10,362) | 3,857 |
Ending Balance | $ 503,680 | $ 494,913 | |
Class A Common Stock | |||
Beginning Balance, Shares | 6,483,116 | ||
Ending Balance, Shares | 6,483,116 | 6,524,805 | |
Common Stock | |||
Beginning Balance | $ 290 | $ 288 | |
Beginning Balance, Shares | [2] | 29,004 | 28,807 |
Stock awards and options exercised | $ 1 | ||
Stock awards and options exercised, shares | [2] | 127 | 17 |
Supplemental executive retirement plan, shares | [2] | 1 | |
Ending Balance | $ 291 | $ 288 | |
Ending Balance, Shares | [2] | 29,132 | 28,824 |
Common Stock | Class A Common Stock | |||
Beginning Balance | $ 64 | $ 65 | |
Beginning Balance, Shares | [3] | 6,483 | 6,525 |
Ending Balance | $ 64 | $ 65 | |
Ending Balance, Shares | [3] | 6,483 | 6,525 |
Capital in Excess of Par Value | |||
Beginning Balance | $ 239,062 | $ 230,782 | |
Stock awards and options exercised | (1) | ||
Supplemental executive retirement plan | 24 | 40 | |
Stock-based compensation expense | 1,838 | 1,597 | |
Ending Balance | 240,923 | 232,419 | |
Retained Earnings | |||
Beginning Balance | 470,317 | 476,752 | |
Net income/(loss) attributable to Movado Group, Inc. | 2,891 | 9,128 | |
Dividends | (7,773) | (29,901) | |
Ending Balance | 465,435 | 455,979 | |
Accumulated Other Comprehensive Income | |||
Beginning Balance | 92,335 | 81,295 | |
Net unrealized gain (loss) on investments, net of tax (benefit) provision | 4 | (32) | |
Net change in effective portion of hedging contracts, net of tax (benefit) provision | 61 | (103) | |
Amortization of prior service cost, net of tax provision | 12 | 15 | |
Foreign currency translation adjustment | [1] | (10,339) | 4,002 |
Ending Balance | 82,073 | 85,177 | |
Treasury Stock | |||
Beginning Balance | (285,270) | (281,576) | |
Stock awards and options exercised | (1,058) | ||
Stock repurchases | (1,086) | (381) | |
Ending Balance | (287,414) | (281,957) | |
Noncontrolling Interest | |||
Beginning Balance | 2,159 | 2,938 | |
Net income/(loss) attributable to Movado Group, Inc. | 172 | 149 | |
Foreign currency translation adjustment | [1] | (23) | (145) |
Ending Balance | $ 2,308 | $ 2,942 | |
[1] The currency translation adjustment is not adjusted for income taxes to the extent that it relates to permanent investments of earnings in international subsidiaries. Each share of common stock is entitled to one vote per share on all matters submitted to a vote of the shareholders. Each share of class A common stock is entitled to 10 votes per share on all matters submitted to a vote of the shareholders. Each holder of class A common stock is entitled to convert, at any time, any and all of such shares into the same number of shares of common stock. Each share of class A common stock is converted automatically into common stock in the event that the beneficial or record ownership of such shares of class A common stock is transferred to any person, except to certain family members or affiliated persons deemed “permitted transferees” pursuant to the Company’s Restated Certificate of Incorporation, as amended. The class A common stock is not publicly traded, and consequently, there is currently no established public trading market for these shares. |
Equity - Components of Equity_2
Equity - Components of Equity (Parenthetical) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Dividends per share | $ 0.35 | $ 1.35 |
Net unrealized (loss) on investments, tax (benefit) | $ 1 | $ (11) |
Net change in effective portion of hedging contracts, tax (benefit) provision | 12 | (20) |
Amortization of prior service cost, tax provision | $ 3 | $ 4 |
Common Stock Class Undefined | ||
Common Stock, Voting Rights | Each share of common stock is entitled to one vote per share on all matters submitted to a vote of the shareholders. | |
Class A Common Stock | ||
Common Stock, Voting Rights | Each share of class A common stock is entitled to 10 votes per share on all matters submitted to a vote of the shareholders. | |
Common stock, Conversion basis | Each holder of class A common stock is entitled to convert, at any time, any and all of such shares into the same number of shares of common stock. Each share of class A common stock is converted automatically into common stock in the event that the beneficial or record ownership of such shares of class A common stock is transferred to any person, except to certain family members or affiliated persons deemed “permitted transferees” pursuant to the Company’s Restated Certificate of Incorporation, as amended. |
Treasury Stock - Additional Inf
Treasury Stock - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Apr. 30, 2024 | Apr. 30, 2023 | Nov. 23, 2021 | |
Equity Class Of Treasury Stock [Line Items] | |||
Stock repurchase program, total cost of shares repurchased | $ 1,086,000 | $ 381,000 | |
Surrender of Shares by Employee | |||
Equity Class Of Treasury Stock [Line Items] | |||
Stock repurchase program, number of shares repurchased | 37,859 | 0 | |
November 23, 2021 Share repurchase Program | |||
Equity Class Of Treasury Stock [Line Items] | |||
Stock repurchase program, number of shares authorized | $ 50,000,000 | ||
Stock repurchase program, total cost of shares repurchased | $ 1,100,000 | ||
Stock repurchase program, number of shares repurchased | 39,000 | ||
Stock repurchase program, average per share price of shares repurchased | $ 27.85 | ||
Stock repurchase program, remaining authorized repurchase amount | $ 16,800,000 | ||
March 25, 2021 and November 23, 2021 Share Repurchase Program | |||
Equity Class Of Treasury Stock [Line Items] | |||
Stock repurchase program, total cost of shares repurchased | $ 400,000 | ||
Stock repurchase program, number of shares repurchased | 14,000 | ||
Stock repurchase program, average per share price of shares repurchased | $ 27.24 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Component of Accumulated Other Comprehensive Income (Details) - USD ($) | Apr. 30, 2024 | Jan. 31, 2024 | Apr. 30, 2023 |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Foreign currency translation adjustments | $ 83,501,000 | $ 93,840,000 | $ 87,007,000 |
Available-for-sale securities | 173,000 | 169,000 | 150,000 |
Cash flow hedges | 104,000 | 43,000 | (274,000) |
Total accumulated other comprehensive income | 82,073,000 | 92,335,000 | 85,177,000 |
Unrecognized Prior Service Cost | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Defined benefit pension plan | (159,000) | (171,000) | (216,000) |
Net Actuarial Loss | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Defined benefit pension plan | $ (1,546,000) | $ (1,546,000) | $ (1,490,000) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Amount reclassified from accumulated other comprehensive income (loss) | $ 0.1 | $ (0.2) |
Revenue - Summary of Net Sales
Revenue - Summary of Net Sales Disaggregated by Customer Type (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Disaggregation Of Revenue [Line Items] | ||
Net sales | $ 136,669 | $ 144,905 |
Wholesale | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 107,760 | 114,848 |
Direct to consumer | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 28,147 | 29,169 |
After-sales service | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | $ 762 | $ 888 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 04, 2013 | Apr. 30, 2024 | Apr. 30, 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense | $ 0.3 | $ 0.6 | |
Stock options exercised | 0 | 0 | |
Stock options granted | 0 | ||
Unrecognized compensation cost related to unvested stock options | $ 0.7 | ||
Weighted-average period | 10 months 24 days | ||
Common stock tendered by employee for withholding tax obligation | 37,859 | 0 | |
Employee's withholding tax obligation | $ 1.1 | $ 0 | |
Stock Award Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense | $ 1.5 | $ 1 | |
Weighted-average period | 2 years 3 months 18 days | ||
Unrecognized compensation cost | $ 12.6 | ||
Fair value of stock award units vested | $ 3.5 | ||
Performance-Based Stock Awards | Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares issued percentage of target number of underlying stock award units | 0% | ||
Performance-Based Stock Awards | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares issued percentage of target number of underlying stock award units | 200% | ||
Stock Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of common stock shares | 12,000,000 | ||
Options granted to participants exercisable period | 3 years |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | Jan. 31, 2024 | |
Schedule of stock options activity | |||
Outstanding Option Beginning Balance | 1,014,189 | ||
Granted | 0 | ||
Exercised | 0 | 0 | |
Expired | (58,700) | ||
Outstanding Option Ending Balance | 955,489 | 1,014,189 | |
Exercisable | 798,500 | 662,375 | |
Expected to vest | 154,388 | ||
Weighted Average Exercise Price per Option, Beginning Balance | $ 24.2 | ||
Granted, Weighted Average Exercise Price per Option | 0 | ||
Exercised. Weighted Average Exercise Price per Option | 0 | ||
Expired, Weighted Average Exercise Price per Option | 42.12 | ||
Weighted Average Exercise Price per Option, Ending Balance | 23.1 | $ 24.2 | |
Exercisable, Weighted Average Exercise Price per Option | 20.17 | ||
Expected to vest, Weighted Average Exercise Price per Option | 38.04 | ||
Option Price Per Share, Granted | 0 | ||
Option Price Per Share, Exercised | 0 | ||
Option Price Per Share, Expired | $ 42.12 | ||
Options outstanding, Weighted Average Remaining Contractual Term (years) | 6 years 3 months 18 days | 6 years 2 months 12 days | |
Exercisable, Weighted Average Remaining Contractual Term (years) | 6 years | ||
Expected to vest, Weighted Average Remaining Contractual Term (years) | 7 years 10 months 24 days | ||
Options outstanding, Aggregate Intrinsic Value | $ 4,948 | $ 6,049 | |
Exercisable, Aggregate Intrinsic Value | 4,948 | ||
Expected to vest, Aggregate Intrinsic Value | $ 0 | ||
Minimum | |||
Schedule of stock options activity | |||
Option Price Per Share, Beginning Balance | $ 12.42 | ||
Option Price Per Share, Ending Balance | 12.42 | $ 12.42 | |
Maximum | |||
Schedule of stock options activity | |||
Option Price Per Share, Beginning Balance | 42.12 | ||
Option Price Per Share, Ending Balance | $ 38.04 | $ 42.12 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Stock Options Activity (Parenthetical) (Details) - shares | Apr. 30, 2024 | Jan. 31, 2024 |
Share-Based Payment Arrangement [Abstract] | ||
Exercisable | 798,500 | 662,375 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Awards Activity (Details) - Stock Award Units $ / shares in Units, $ in Thousands | 3 Months Ended |
Apr. 30, 2024 USD ($) $ / shares shares | |
Number of Stock Award Units | |
Stock Award Units, Beginning Balance | shares | 485,956 |
Units granted | shares | 311,366 |
Units vested | shares | (126,302) |
Units forfeited | shares | 0 |
Stock Award Units, Ending Balance | shares | 671,020 |
Weighted Average Grant Date Fair Value | |
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 30.15 |
Units granted, Weighted Average Grant Date Fair Value | $ / shares | 27.78 |
Units vested, Weighted Average Grant Date Fair Value | $ / shares | 27.85 |
Units forfeited, Weighted Average Grant Date Fair Value | $ / shares | 0 |
Weighted Average Grant Date Fair Value Ending Balance | $ / shares | $ 29.48 |
Weighted-Average Remaining Contractual Term (years) | |
Units outstanding, Weighted-Average Remaining Contractual Term (years) | 2 years 2 months 12 days |
Aggregate Intrinsic Value | |
Units outstanding, Aggregate Intrinsic Value | $ | $ 17,091 |
Segment and Geographic Inform_3
Segment and Geographic Information - Additional Information (Details) $ in Thousands | 3 Months Ended | |
Apr. 30, 2024 USD ($) Location Segment | Apr. 30, 2023 USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of operating segments | Segment | 2 | |
Number of geographic locations | Location | 2 | |
Net sales | $ 136,669 | $ 144,905 |
Intersegment Eliminations | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 70,500 | $ 64,600 |
Geographic Concentration Risk | Europe | Total net sales | ||
Segment Reporting Information [Line Items] | ||
International Operations Contribution | 32.10% | 30.40% |
Geographic Concentration Risk | Americas (excluding the United States) | Total net sales | ||
Segment Reporting Information [Line Items] | ||
International Operations Contribution | 10% | 12% |
Geographic Concentration Risk | Middle East | Total net sales | ||
Segment Reporting Information [Line Items] | ||
International Operations Contribution | 9.80% | 9.50% |
Geographic Concentration Risk | Asia | Total net sales | ||
Segment Reporting Information [Line Items] | ||
International Operations Contribution | 7.40% | 7.20% |
Segment and Geographic Inform_4
Segment and Geographic Information - Operating Segment Data (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 30, 2024 | Apr. 30, 2023 | Jan. 31, 2024 | |
Operating segment data | |||
Net sales | $ 136,669 | $ 144,905 | |
Operating Income | 3,311 | 10,899 | |
Total Assets | 751,415 | 741,496 | $ 769,082 |
Watch and Accessory Brands | |||
Operating segment data | |||
Net sales | 119,402 | 125,559 | |
Operating Income | 2,853 | 8,829 | |
Total Assets | 691,039 | 674,964 | 710,067 |
Watch and Accessory Brands | Owned brands category | |||
Operating segment data | |||
Net sales | 39,947 | 45,132 | |
Watch and Accessory Brands | Licensed brands category | |||
Operating segment data | |||
Net sales | 76,357 | 80,207 | |
Watch and Accessory Brands | After-sales service and all other | |||
Operating segment data | |||
Net sales | 3,098 | 220 | |
Company Stores | |||
Operating segment data | |||
Net sales | 17,267 | 19,346 | |
Operating Income | 458 | 2,070 | |
Total Assets | $ 60,376 | $ 66,532 | $ 59,015 |
Segment and Geographic Inform_5
Segment and Geographic Information - Geographic Location Data (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Apr. 30, 2024 | Apr. 30, 2023 | Jan. 31, 2024 | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | $ 136,669 | $ 144,905 | ||
Operating (Loss)/Income | 3,311 | 10,899 | ||
Total Assets | 751,415 | 741,496 | $ 769,082 | |
Property, Plant and Equipment, Net | 19,037 | 19,075 | 19,436 | |
United States | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | [1] | 55,564 | 59,209 | |
Operating (Loss)/Income | [1] | (9,036) | (6,961) | |
Total Assets | 347,020 | 364,485 | 361,980 | |
Property, Plant and Equipment, Net | 11,865 | 12,982 | 11,950 | |
International | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Net sales | [2] | 81,105 | 85,696 | |
Operating (Loss)/Income | [2] | 12,347 | 17,860 | |
Total Assets | 404,395 | 377,011 | 407,102 | |
Property, Plant and Equipment, Net | $ 7,172 | $ 6,093 | $ 7,486 | |
[1] The United States operating loss included $ 10.9 million and $ 11.4 million of unallocated corporate expenses for the three months ended April 30, 2024 and 2023, respectively. The International operating income included $ 14.2 million and $ 17.3 million of certain intercompany profits related to the Company’s supply chain operations for the three months ended April 30, 2024 and 2023, respectively. |
Segment and Geographic Inform_6
Segment and Geographic Information - Geographic Location Data (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
United States | ||
Segment Reporting Information [Line Items] | ||
Unallocated corporate expenses | $ 10.9 | $ 11.4 |
International | ||
Segment Reporting Information [Line Items] | ||
Profits related to the company's supply chain operations | $ 14.2 | $ 17.3 |