NYSE:MOV Movado Group Q1 2025 Earnings Report $14.07 -0.16 (-1.10%) Closing price 03:59 PM EasternExtended Trading$14.06 -0.01 (-0.06%) As of 04:05 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. Earnings HistoryForecast Movado Group EPS ResultsActual EPS$0.13Consensus EPS N/ABeat/MissN/AOne Year Ago EPSN/AMovado Group Revenue ResultsActual Revenue$136.67 millionExpected RevenueN/ABeat/MissN/AYoY Revenue GrowthN/AMovado Group Announcement DetailsQuarterQ1 2025Date5/30/2024TimeN/AConference Call DateThursday, May 30, 2024Conference Call Time9:00AM ETUpcoming EarningsMovado Group's Q1 2026 earnings is scheduled for Thursday, May 29, 2025, with a conference call scheduled at 9:00 AM ET. Check back for transcripts, audio, and key financial metrics as they become available.Q1 2026 Earnings ReportConference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)Quarterly Report (10-Q)Earnings HistoryCompany ProfilePowered by Movado Group Q1 2025 Earnings Call TranscriptProvided by QuartrMay 30, 2024 ShareLink copied to clipboard.There are 5 speakers on the call. Operator00:00:00Good day, everyone, and welcome to Movado Group Incorporated First Quarter Fiscal Year 2025 Earnings Conference Call. As a reminder, today's call is being recorded and may not be reproduced in full or in part without permission from the company. At this time, I would like to turn the conference over to Cody McAllister of ICR. Please go ahead. Speaker 100:00:23Thank you. Good morning, everyone. With me on the call is Efrain Grinberg, Chairman and Chief Executive Officer and Sallie DeMarsilis, Executive Vice President, Chief Operating Officer and Chief Financial Officer. Before we get started, I would like to remind you of the company's safe harbor language, which I'm sure you're all familiar with. Statements contained in this conference call, which are not historical facts, may be deemed to constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Speaker 100:00:52Actual future results may differ materially from those suggested in such statements due to a number of risks and uncertainties, all of which are described in the company's filings with the SEC, which includes today's press release. If any non GAAP financial measure is used on this call, a presentation of the most directly comparable GAAP financial measure to this non GAAP financial measure will be provided as supplemental financial information in our press release. Now, I would like to turn the call over to Efrain Brinberg, Chairman and Chief Executive Officer of Movado Group. Speaker 200:01:22Thank you, Cody. Good morning, and welcome to Movado Group's Q1 conference call. With me today is Sally DeMarsales, our COO and CFO. After I review our progress on our strategic growth initiatives, Sally will review our financial results in greater detail. We would then be glad to answer any questions you might have. Speaker 200:01:43Our results for the Q1 were in line with expectations with our expectations. Sales declined by 5.7 percent to $136,700,000 and operating income was $3,300,000 versus $10,900,000 last year. When we reported fiscal 2024 results in March, we shared our new investment growth strategy in which we would utilize our strong balance sheet and cash position to invest behind our brands and drive growth in our biggest and most important markets. We mentioned that we would see an impact to profitability in the short term, but over time these investments would help build a strong foundation for driving long term sustainable sales and profitable growth. We're already making progress on these initiatives, which will enable us to drive accelerating growth throughout the year. Speaker 200:02:36We are building cohesive storytelling and messaging across our brand portfolio. As the year progresses, we will amplify our marketing investments and support key growth drivers for our brands, particularly in the second half of the year. During the first quarter, we continued to exercise strong discipline on our balance sheet, ending the quarter with $225,400,000 of cash and no debt. I would now like to share some brand and regional highlights for the quarter along with some of the key initiatives that we are working on for the balance of the year. Last year, we began rolling out a brand refresh from Movado, our biggest and most important owned brand. Speaker 200:03:16I would like to share with you some of the progress that we have made and some of the significant steps that we will be taking throughout the year as we continue in this journey. This spring, we launched our new Movado TV commercial, further building our brand image, supporting our iconic museum classic chronograph for him and our iconic museum classic for her. This campaign is intended to support important gifting moments during the spring such as Mother's Day, Father's Day and graduations. We also launched our new Bold Quest collection, supported by a strong digital campaign in both still and still life and video. Bold Quest is one of our most successful launches ever and we're extremely excited by it. Speaker 200:04:03As we move through the year, we will round out the collection with the addition of smaller sizes, chronographs and automatic versions. We are confident that the Bold Quest collection will quickly grow into one of our most important collections. We are also continuing to drive our 3 60 degree messaging for the Movado brand with a new look at the point of sale that will launch in the second half and new iconic packaging as well. The final piece of the puzzle in support of the Movado brand refresh is our biggest advertising campaign ever, which is planned to launch in September. This campaign will feature distinctly accomplished brand ambassadors who are masters of their craft and who embody the excellence, quality and distinctive image of the Movado brand. Speaker 200:04:53Although most of our Movado brand building efforts have not even launched yet, we're already seeing early results from the initial stages of our brand refresh. Our movado.com direct to consumer platform was up double digits for the Q1, with momentum continuing into the Q2. We are beginning to see improved results in our department store channel as well. These early successes make us eager to see the full impact of our Movado brand building efforts as they roll out over the rest of the year. We had planned our Movado Company stores to be down for the first half as we didn't anniversary certain programs this spring. Speaker 200:05:34We would expect that our outlet business will return to growth in the second half, which should benefit from our new exciting advertising campaign in support of the Movado brand. In our Licensed Brand division, sales were down 4.8% during the quarter. We expect results to improve throughout the year with a return to growth for the 12 months. We're seeing particular strength in our licensed brand jewelry business. In Hugo Boss, we are focused on 2 key families for him, the Candor Automatic and the Sky Traveler Chronograph, a fresh interpretation of a classic. Speaker 200:06:11We're also featuring Lucy, a beautiful new tank for her in our spring advertising campaign with Suki Waterhouse. In Tommy Hilfiger, we continue to stand behind our elevated which was launched late last year with an automatic family further communicating our support of mechanical watches across our brand portfolio. This spring, we are launching a GMT model featuring a Swiss movement. We're also launching the new Stewart watch, a classic multifunction model at $179 In Coach, we are excited to launch our new advertising campaign for him with basketball superstar Jayson Tatum. Jayson is currently featured wearing our new Jackson chronograph. Speaker 200:07:00To further strengthen our presence in men's watches this spring, we are introducing our Charter automatic collection starting at $2.95 We continue to see strong results in the U. S. With momentum in our department store and Amazon channels led by Carrie and by our Carrie and Elliott families. Lacoste continues to perform very well and we are excited by the continued development of our Boston family and the iconic twelve twelve family. We are seeing strong growth in our jewelry collection, which continues to show increasing penetration at point of sale. Speaker 200:07:37And we have an exciting pipeline of new products coming for the second half of the year. In our 3rd full year with the Calvin Klein brand, we continue to be excited by the potential of this great brand in both watches and jewelry. Our amplified marketing programs for CK launches in the Q2 and is focused on building awareness for CK Watches in jewelry in key markets in Europe, India, the Middle East, Brazil and Mexico. During the Q2, we are launching our automatic iconic CK family, featuring a transparent style with distinctive CK branding for him. We are also launching a new family for women, the minimalist feel collection. Speaker 200:08:22While challenges remain in its home U. K. Market, we are pleased with the progress that we are making in our Olivia Burton brand. We are seeing strength in our ob.com business driven by the continued success of our Grosvenor family and increasing penetration of jewelry with the Honeycomb and Celestial Sun collections. From a regional perspective, we are focused on returning our Movado brand to growth in the United States and returning our licensed brand portfolio to growth in Europe. Speaker 200:08:54While the retail environment remains challenging in these regions, we are seeing traction in our marketing efforts and beginning to see slight growth in our major European markets. Many of our marketing efforts and new product initiatives are starting during the Q2 and will accelerate throughout fiscal 2025. We continue to see strong sell through results in Mexico, Brazil, India and the Middle East, which are important markets for the company. While it is still early in the year, we are pleased with the results for the Q1, where we have begun to lay the groundwork for the balance of the year as we focus on returning to as we focus on returning the company to revenue growth. We are focused on collaborating with our retail partners in our major markets and continuing to drive innovation and excitement in our marketing efforts. Speaker 200:09:47Our teams have remained disciplined and continue to focus on our priorities and executing at a high level in a challenging market. As we have said earlier in the year, we are utilizing our strong balance sheet and cash position to invest in our brands and our biggest markets to drive growth and profitability for the long term. We remain committed to the initiatives that we have put in place and we are looking forward to the impact they will have on our business. I would now like to turn the call over to Sallie to go through our financial results as well as our outlook. Speaker 300:10:21Thank you, Efraim, and good morning, everyone. For today's call, I will review our Q1 fiscal 2025 results and balance sheet and then discuss our outlook for the remainder of the year. Overall, we are pleased with our performance for the Q1 of fiscal 2025. As expected, our performance trailed the Q1 of fiscal 2024, yet included significant progress on our key strategic initiatives, which we believe has us positioned to achieve our annual objectives. Turning to a review of the quarter. Speaker 300:10:52For the Q1 of fiscal 2025, sales were $136,700,000 as compared to $144,900,000 last year, a decrease of 5.7%. In constant dollars, net sales decreased 6.1%. By segment, net sales decreased across our own brands, licensed brands and company stores. By geography, U. S. Speaker 300:11:18Net sales decreased 6.2%. International net sales decreased 5.4% as compared to the Q1 of last year. On a constant currency basis, international net sales decreased 6.1%. Gross profit as a percent of sales was 55.3% compared to 56.6% in the Q1 of last year. The decrease in gross margin rate as compared to the same period last year was primarily driven by unfavorable channel and product mix and the deleverage of certain fixed costs as a result of lower sales. Speaker 300:11:53Operating expenses were $72,200,000 as compared to $71,100,000 for the same period of last year. The increase was driven primarily by an increase in payroll related expenses. Primarily as a result of the reduction in sales and gross margin, operating income decreased by $7,600,000 to $3,300,000 as compared to $10,900,000 in the Q1 of fiscal 2024. We recorded approximately $2,100,000 of other non operating income in the Q1 of fiscal 2025, which is primarily comprised of interest earned on our global cash position. We recorded income tax expense of $2,300,000 in the Q1 of fiscal 2025 as compared to $2,500,000 in the Q1 of fiscal 2024. Speaker 300:12:44Net income in the Q1 was $2,900,000 or $0.13 per diluted share as compared to $9,100,000 or $0.40 per diluted share in the year ago period. Now turning to our balance sheet. Cash at the end of the Q1 was $225,400,000 as compared to $198,300,000 in the prior year period. Accounts receivable were $101,700,000 as compared to $94,000,000 at the same period of last year due to timing and mix of business. Inventory at the end of the quarter was $159,600,000 a decrease of $35,600,000 or 18.2 percent below the same period of last year, primarily due to the timing of receipts. Speaker 300:13:31We are comfortable with the composition and balance of our inventory at year end at quarter end. In the Q1 of fiscal 2025, capital expenditures were $1,600,000 and we repurchased approximately 39,000 shares under our share repurchase program. As of April 30, 2024, we had $16,800,000 remaining under our authorized repurchase program. Subject to prevailing market conditions and the business environment, we plan to utilize our share repurchase plan to offset dilution in fiscal 2025. Now I would like to discuss our outlook. Speaker 300:14:07For fiscal 2025, we continue to expect net sales in a range of approximately 700,000,000 dollars to $710,000,000 gross margin of approximately 55 percent operating income in a range of $32,000,000 to $35,000,000 This expectation includes increased investment in marketing and brand building of approximately $25,000,000 as we have previously communicated, as well as an increase in performance based compensation and other payroll related costs as compared to fiscal 2024. An effective tax rate of 22% and earnings in a range of approximately $1.20 to $1.30 per diluted share. As previously mentioned, we expect the incremental marketing spend to drive long term top line growth. However, sales trends are expected to improve behind the spend as the year progresses. The company therefore expects to return to sales growth in the second half of the year. Speaker 300:15:05This outlook does not contemplate significant further impact of economic deterioration and assumes no further significant fluctuations from prevailing foreign currency exchange rates. I would now like to open the call up for questions. Operator00:15:20Thank Our first question is from Michael Legg with The Benchmark Company. Please proceed. Speaker 400:15:51Hello? Speaker 200:15:52Hi. Good morning, Mike. Speaker 400:15:54Good morning. Sorry, my connection, if I say it out. Can you just talk a little bit about when you give your forecast, we obviously know the marketing spend is going to help move that revenue lumber. Can you talk about your viewpoint on Speaker 200:16:13Mike, you're cutting out. Speaker 400:16:19From the consumer. Speaker 200:16:22So I guess you asked our viewpoint about the consumer, I think. Speaker 400:16:29Is that correct? Yes. Speaker 200:16:30Okay. Speaker 400:16:31Yes. Speaker 200:16:31Yes. So we believe that the consumer is challenged right now, especially in our target audiences in the U. S. And Europe. But historically, we have seen that when we do creative things from a product perspective and also from a marketing perspective, which we are diligently working on for this year Speaker 400:17:02that we Speaker 200:17:02will be able to drive the consumer that you have to work harder and when the consumer is challenged to drive demand and that's what our plan is based on for this coming year. Obviously, when we instituted the plan at the end of last year, we knew that we could affect real change towards the second half of this year, and that is still remains our plan. We're really excited about the launch of Quest. And so we see that innovation and it's an excellent value opening at $5.95 in the Movado Bold collection is doing really well and that will also accelerate throughout the year as we build demand for the BOLT collection and our Quest family, as well as our classic museum collections. And within each of our brands, we have important marketing initiatives and important products launching throughout the year. Speaker 400:18:15Does making Speaker 200:18:20Mike, I think there's something wrong with your connection. Mike? Speaker 400:18:30Yes. Hi, sorry. I was just asking, does your guidance Speaker 200:18:44Mike, I'm sorry, we can't hear you. Mike? Yes. No, I think there's something wrong with your connection. You may have to hang up and dial back in. Speaker 200:19:13Mike, are you back? Operator00:19:17I'm going to check on him. One moment. Speaker 400:19:19Thank Speaker 200:19:19you. Thank you. Okay. If we don't hear back in a few seconds, I will end the call. Okay. Speaker 200:19:51Well, I guess we won't have Mike back, but thank you all for participating on today's call and we look forward to communicating throughout the year and we do have very exciting plans in place for the second half and I look forward to sharing those with you Operator00:20:11on future calls. We do Speaker 400:20:13have Mike back. Speaker 200:20:13Okay, Mike, go ahead. Speaker 400:20:16I apologize. Just wanted to understand if your guidance factors in any interest rate cuts helping the consumer? Speaker 200:20:25Not particularly, no. Speaker 400:20:29Okay. Speaker 200:20:31We're still planning on operating in a challenging environment that doesn't deteriorate. Speaker 400:20:36So if we get interest rate cuts helping the consumer, it could be obviously a positive towards I Speaker 200:20:42would think that yes, I would think that that would be a positive with the consumer. Now I don't think you get an immediate effect of that benefit either. Speaker 400:20:52Okay. Okay. And then just any guidance you can give us? I know it's during the quarter, but a graduation, Mother's Day, Father's Day, you talked a little bit about seeing strength in some areas. Just any comments on how we're seeing the holidays come in? Speaker 200:21:09Yes. I think it's obviously Mother's Day is past us. Father's Day is in graduations. A lot of it comes throughout May June. And so it's a little early for us to see that, but we are seeing some pockets of improvement, although it's not and as I talked about very, very strong trends on our own website. Speaker 200:21:37And so that yields us leads us to have a good sense of optimism, some strengthening of our department store channel, which is obviously an important channel for the company. But I would still believe that the really major effect for the and benefit for the company will begin to come into the second half of this year. Speaker 400:22:05Okay. Great. And then just one last question. Just how is jewelry doing versus expectations? Speaker 200:22:10Jewelry is doing very well. So that we're really pleased with it. And that's in our licensed brand portfolio. And in Olivia Burton, We are in the process of we'll launch some major new collections for the Movado brand as we reposition the jewelry category in Movado during the second half and probably more into the Q4. But within our license brand portfolio, we're seeing some real good pockets of strength in jewelry. Speaker 200:22:44It is a major focus for the company and we did have growth in that area during Q1. Speaker 400:22:54Okay. Thank you. Congrats on getting the quarter up. Speaker 200:22:57Okay. Thank you. Thank you very much, Mike. And as I said earlier, we look forward to talking with all of you again during our Q2 conference call and be able to continue to share progress on our marketing initiatives and product introductions for this coming year. Thank you very much. Operator00:23:22Thank you. This will complete today's call. You may disconnect your lines at this time. Thank you for your participation.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallMovado Group Q1 202500:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsPress Release(8-K)Quarterly report(10-Q) Movado Group Earnings HeadlinesINVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Movado Group, Inc. - MOVMay 5 at 1:45 PM | globenewswire.comMovado Group (NYSE:MOV) Downgraded to Hold Rating by StockNews.comMay 2, 2025 | americanbankingnews.comThink NVDA’s run was epic? You ain’t seen nothin’ yetAsk most investors and they’ll probably tell you Nvidia is the undisputed AI stock of the decade. In 2023, it surged 239%. And in 2024, it soared another 171% on the year… But what if I told you there was a way to target those types of “peak Nvidia” profit opportunities in 24 hours or less?May 6, 2025 | Timothy Sykes (Ad)MOVADO ALERT: Bragar Eagel & Squire, P.C. is Investigating Movado Group, Inc. on Behalf of Movado Stockholders and Encourages Investors to Contact the FirmApril 29, 2025 | globenewswire.comINVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Movado Group, Inc. - MOVApril 29, 2025 | globenewswire.comINVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Movado Group, Inc. - MOVApril 28, 2025 | prnewswire.comSee More Movado Group Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Movado Group? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Movado Group and other key companies, straight to your email. Email Address About Movado GroupMovado Group (NYSE:MOV) designs, sources, markets, and distributes watches in the United States and internationally. The company operates in two segments, Watch and Accessory Brands, and Company Stores. The company offers its watches under the Movado, Concord, Ebel, Olivia Burton, and MVMT brands, as well as licensed brands comprising Coach, Tommy Hilfiger, HUGO BOSS, Lacoste, and Calvin Klein. It also designs, sources, markets, and distributes jewelry and other accessories; and provides after-sales and shipping services. The company's customers include jewelry store chains, department stores, independent regional jewelers, network of independent distributors, online marketplaces, licensors' retail stores, and third-party e-commerce retailers. It sells directly to consumers through its e-commerce platforms. The company was formerly known as North American Watch Corporation and changed its name to Movado Group, Inc. in 1996. Movado Group, Inc. was founded in 1961 and is headquartered in Paramus, New Jersey.View Movado Group ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Palantir Stock Drops Despite Stellar Earnings: What's Next?Is Eli Lilly a Buy After Weak Earnings and CVS-Novo Partnership?Is Reddit Stock a Buy, Sell, or Hold After Earnings Release?Warning or Opportunity After Super Micro Computer's EarningsAmazon Earnings: 2 Reasons to Love It, 1 Reason to Be CautiousRocket Lab Braces for Q1 Earnings Amid Soaring ExpectationsMeta Takes A Bow With Q1 Earnings - Watch For Tariff Impact in Q2 Upcoming Earnings ARM (5/7/2025)AppLovin (5/7/2025)Fortinet (5/7/2025)MercadoLibre (5/7/2025)Cencora (5/7/2025)Carvana (5/7/2025)Walt Disney (5/7/2025)Emerson Electric (5/7/2025)Johnson Controls International (5/7/2025)Lloyds Banking Group (5/7/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. 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There are 5 speakers on the call. Operator00:00:00Good day, everyone, and welcome to Movado Group Incorporated First Quarter Fiscal Year 2025 Earnings Conference Call. As a reminder, today's call is being recorded and may not be reproduced in full or in part without permission from the company. At this time, I would like to turn the conference over to Cody McAllister of ICR. Please go ahead. Speaker 100:00:23Thank you. Good morning, everyone. With me on the call is Efrain Grinberg, Chairman and Chief Executive Officer and Sallie DeMarsilis, Executive Vice President, Chief Operating Officer and Chief Financial Officer. Before we get started, I would like to remind you of the company's safe harbor language, which I'm sure you're all familiar with. Statements contained in this conference call, which are not historical facts, may be deemed to constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Speaker 100:00:52Actual future results may differ materially from those suggested in such statements due to a number of risks and uncertainties, all of which are described in the company's filings with the SEC, which includes today's press release. If any non GAAP financial measure is used on this call, a presentation of the most directly comparable GAAP financial measure to this non GAAP financial measure will be provided as supplemental financial information in our press release. Now, I would like to turn the call over to Efrain Brinberg, Chairman and Chief Executive Officer of Movado Group. Speaker 200:01:22Thank you, Cody. Good morning, and welcome to Movado Group's Q1 conference call. With me today is Sally DeMarsales, our COO and CFO. After I review our progress on our strategic growth initiatives, Sally will review our financial results in greater detail. We would then be glad to answer any questions you might have. Speaker 200:01:43Our results for the Q1 were in line with expectations with our expectations. Sales declined by 5.7 percent to $136,700,000 and operating income was $3,300,000 versus $10,900,000 last year. When we reported fiscal 2024 results in March, we shared our new investment growth strategy in which we would utilize our strong balance sheet and cash position to invest behind our brands and drive growth in our biggest and most important markets. We mentioned that we would see an impact to profitability in the short term, but over time these investments would help build a strong foundation for driving long term sustainable sales and profitable growth. We're already making progress on these initiatives, which will enable us to drive accelerating growth throughout the year. Speaker 200:02:36We are building cohesive storytelling and messaging across our brand portfolio. As the year progresses, we will amplify our marketing investments and support key growth drivers for our brands, particularly in the second half of the year. During the first quarter, we continued to exercise strong discipline on our balance sheet, ending the quarter with $225,400,000 of cash and no debt. I would now like to share some brand and regional highlights for the quarter along with some of the key initiatives that we are working on for the balance of the year. Last year, we began rolling out a brand refresh from Movado, our biggest and most important owned brand. Speaker 200:03:16I would like to share with you some of the progress that we have made and some of the significant steps that we will be taking throughout the year as we continue in this journey. This spring, we launched our new Movado TV commercial, further building our brand image, supporting our iconic museum classic chronograph for him and our iconic museum classic for her. This campaign is intended to support important gifting moments during the spring such as Mother's Day, Father's Day and graduations. We also launched our new Bold Quest collection, supported by a strong digital campaign in both still and still life and video. Bold Quest is one of our most successful launches ever and we're extremely excited by it. Speaker 200:04:03As we move through the year, we will round out the collection with the addition of smaller sizes, chronographs and automatic versions. We are confident that the Bold Quest collection will quickly grow into one of our most important collections. We are also continuing to drive our 3 60 degree messaging for the Movado brand with a new look at the point of sale that will launch in the second half and new iconic packaging as well. The final piece of the puzzle in support of the Movado brand refresh is our biggest advertising campaign ever, which is planned to launch in September. This campaign will feature distinctly accomplished brand ambassadors who are masters of their craft and who embody the excellence, quality and distinctive image of the Movado brand. Speaker 200:04:53Although most of our Movado brand building efforts have not even launched yet, we're already seeing early results from the initial stages of our brand refresh. Our movado.com direct to consumer platform was up double digits for the Q1, with momentum continuing into the Q2. We are beginning to see improved results in our department store channel as well. These early successes make us eager to see the full impact of our Movado brand building efforts as they roll out over the rest of the year. We had planned our Movado Company stores to be down for the first half as we didn't anniversary certain programs this spring. Speaker 200:05:34We would expect that our outlet business will return to growth in the second half, which should benefit from our new exciting advertising campaign in support of the Movado brand. In our Licensed Brand division, sales were down 4.8% during the quarter. We expect results to improve throughout the year with a return to growth for the 12 months. We're seeing particular strength in our licensed brand jewelry business. In Hugo Boss, we are focused on 2 key families for him, the Candor Automatic and the Sky Traveler Chronograph, a fresh interpretation of a classic. Speaker 200:06:11We're also featuring Lucy, a beautiful new tank for her in our spring advertising campaign with Suki Waterhouse. In Tommy Hilfiger, we continue to stand behind our elevated which was launched late last year with an automatic family further communicating our support of mechanical watches across our brand portfolio. This spring, we are launching a GMT model featuring a Swiss movement. We're also launching the new Stewart watch, a classic multifunction model at $179 In Coach, we are excited to launch our new advertising campaign for him with basketball superstar Jayson Tatum. Jayson is currently featured wearing our new Jackson chronograph. Speaker 200:07:00To further strengthen our presence in men's watches this spring, we are introducing our Charter automatic collection starting at $2.95 We continue to see strong results in the U. S. With momentum in our department store and Amazon channels led by Carrie and by our Carrie and Elliott families. Lacoste continues to perform very well and we are excited by the continued development of our Boston family and the iconic twelve twelve family. We are seeing strong growth in our jewelry collection, which continues to show increasing penetration at point of sale. Speaker 200:07:37And we have an exciting pipeline of new products coming for the second half of the year. In our 3rd full year with the Calvin Klein brand, we continue to be excited by the potential of this great brand in both watches and jewelry. Our amplified marketing programs for CK launches in the Q2 and is focused on building awareness for CK Watches in jewelry in key markets in Europe, India, the Middle East, Brazil and Mexico. During the Q2, we are launching our automatic iconic CK family, featuring a transparent style with distinctive CK branding for him. We are also launching a new family for women, the minimalist feel collection. Speaker 200:08:22While challenges remain in its home U. K. Market, we are pleased with the progress that we are making in our Olivia Burton brand. We are seeing strength in our ob.com business driven by the continued success of our Grosvenor family and increasing penetration of jewelry with the Honeycomb and Celestial Sun collections. From a regional perspective, we are focused on returning our Movado brand to growth in the United States and returning our licensed brand portfolio to growth in Europe. Speaker 200:08:54While the retail environment remains challenging in these regions, we are seeing traction in our marketing efforts and beginning to see slight growth in our major European markets. Many of our marketing efforts and new product initiatives are starting during the Q2 and will accelerate throughout fiscal 2025. We continue to see strong sell through results in Mexico, Brazil, India and the Middle East, which are important markets for the company. While it is still early in the year, we are pleased with the results for the Q1, where we have begun to lay the groundwork for the balance of the year as we focus on returning to as we focus on returning the company to revenue growth. We are focused on collaborating with our retail partners in our major markets and continuing to drive innovation and excitement in our marketing efforts. Speaker 200:09:47Our teams have remained disciplined and continue to focus on our priorities and executing at a high level in a challenging market. As we have said earlier in the year, we are utilizing our strong balance sheet and cash position to invest in our brands and our biggest markets to drive growth and profitability for the long term. We remain committed to the initiatives that we have put in place and we are looking forward to the impact they will have on our business. I would now like to turn the call over to Sallie to go through our financial results as well as our outlook. Speaker 300:10:21Thank you, Efraim, and good morning, everyone. For today's call, I will review our Q1 fiscal 2025 results and balance sheet and then discuss our outlook for the remainder of the year. Overall, we are pleased with our performance for the Q1 of fiscal 2025. As expected, our performance trailed the Q1 of fiscal 2024, yet included significant progress on our key strategic initiatives, which we believe has us positioned to achieve our annual objectives. Turning to a review of the quarter. Speaker 300:10:52For the Q1 of fiscal 2025, sales were $136,700,000 as compared to $144,900,000 last year, a decrease of 5.7%. In constant dollars, net sales decreased 6.1%. By segment, net sales decreased across our own brands, licensed brands and company stores. By geography, U. S. Speaker 300:11:18Net sales decreased 6.2%. International net sales decreased 5.4% as compared to the Q1 of last year. On a constant currency basis, international net sales decreased 6.1%. Gross profit as a percent of sales was 55.3% compared to 56.6% in the Q1 of last year. The decrease in gross margin rate as compared to the same period last year was primarily driven by unfavorable channel and product mix and the deleverage of certain fixed costs as a result of lower sales. Speaker 300:11:53Operating expenses were $72,200,000 as compared to $71,100,000 for the same period of last year. The increase was driven primarily by an increase in payroll related expenses. Primarily as a result of the reduction in sales and gross margin, operating income decreased by $7,600,000 to $3,300,000 as compared to $10,900,000 in the Q1 of fiscal 2024. We recorded approximately $2,100,000 of other non operating income in the Q1 of fiscal 2025, which is primarily comprised of interest earned on our global cash position. We recorded income tax expense of $2,300,000 in the Q1 of fiscal 2025 as compared to $2,500,000 in the Q1 of fiscal 2024. Speaker 300:12:44Net income in the Q1 was $2,900,000 or $0.13 per diluted share as compared to $9,100,000 or $0.40 per diluted share in the year ago period. Now turning to our balance sheet. Cash at the end of the Q1 was $225,400,000 as compared to $198,300,000 in the prior year period. Accounts receivable were $101,700,000 as compared to $94,000,000 at the same period of last year due to timing and mix of business. Inventory at the end of the quarter was $159,600,000 a decrease of $35,600,000 or 18.2 percent below the same period of last year, primarily due to the timing of receipts. Speaker 300:13:31We are comfortable with the composition and balance of our inventory at year end at quarter end. In the Q1 of fiscal 2025, capital expenditures were $1,600,000 and we repurchased approximately 39,000 shares under our share repurchase program. As of April 30, 2024, we had $16,800,000 remaining under our authorized repurchase program. Subject to prevailing market conditions and the business environment, we plan to utilize our share repurchase plan to offset dilution in fiscal 2025. Now I would like to discuss our outlook. Speaker 300:14:07For fiscal 2025, we continue to expect net sales in a range of approximately 700,000,000 dollars to $710,000,000 gross margin of approximately 55 percent operating income in a range of $32,000,000 to $35,000,000 This expectation includes increased investment in marketing and brand building of approximately $25,000,000 as we have previously communicated, as well as an increase in performance based compensation and other payroll related costs as compared to fiscal 2024. An effective tax rate of 22% and earnings in a range of approximately $1.20 to $1.30 per diluted share. As previously mentioned, we expect the incremental marketing spend to drive long term top line growth. However, sales trends are expected to improve behind the spend as the year progresses. The company therefore expects to return to sales growth in the second half of the year. Speaker 300:15:05This outlook does not contemplate significant further impact of economic deterioration and assumes no further significant fluctuations from prevailing foreign currency exchange rates. I would now like to open the call up for questions. Operator00:15:20Thank Our first question is from Michael Legg with The Benchmark Company. Please proceed. Speaker 400:15:51Hello? Speaker 200:15:52Hi. Good morning, Mike. Speaker 400:15:54Good morning. Sorry, my connection, if I say it out. Can you just talk a little bit about when you give your forecast, we obviously know the marketing spend is going to help move that revenue lumber. Can you talk about your viewpoint on Speaker 200:16:13Mike, you're cutting out. Speaker 400:16:19From the consumer. Speaker 200:16:22So I guess you asked our viewpoint about the consumer, I think. Speaker 400:16:29Is that correct? Yes. Speaker 200:16:30Okay. Speaker 400:16:31Yes. Speaker 200:16:31Yes. So we believe that the consumer is challenged right now, especially in our target audiences in the U. S. And Europe. But historically, we have seen that when we do creative things from a product perspective and also from a marketing perspective, which we are diligently working on for this year Speaker 400:17:02that we Speaker 200:17:02will be able to drive the consumer that you have to work harder and when the consumer is challenged to drive demand and that's what our plan is based on for this coming year. Obviously, when we instituted the plan at the end of last year, we knew that we could affect real change towards the second half of this year, and that is still remains our plan. We're really excited about the launch of Quest. And so we see that innovation and it's an excellent value opening at $5.95 in the Movado Bold collection is doing really well and that will also accelerate throughout the year as we build demand for the BOLT collection and our Quest family, as well as our classic museum collections. And within each of our brands, we have important marketing initiatives and important products launching throughout the year. Speaker 400:18:15Does making Speaker 200:18:20Mike, I think there's something wrong with your connection. Mike? Speaker 400:18:30Yes. Hi, sorry. I was just asking, does your guidance Speaker 200:18:44Mike, I'm sorry, we can't hear you. Mike? Yes. No, I think there's something wrong with your connection. You may have to hang up and dial back in. Speaker 200:19:13Mike, are you back? Operator00:19:17I'm going to check on him. One moment. Speaker 400:19:19Thank Speaker 200:19:19you. Thank you. Okay. If we don't hear back in a few seconds, I will end the call. Okay. Speaker 200:19:51Well, I guess we won't have Mike back, but thank you all for participating on today's call and we look forward to communicating throughout the year and we do have very exciting plans in place for the second half and I look forward to sharing those with you Operator00:20:11on future calls. We do Speaker 400:20:13have Mike back. Speaker 200:20:13Okay, Mike, go ahead. Speaker 400:20:16I apologize. Just wanted to understand if your guidance factors in any interest rate cuts helping the consumer? Speaker 200:20:25Not particularly, no. Speaker 400:20:29Okay. Speaker 200:20:31We're still planning on operating in a challenging environment that doesn't deteriorate. Speaker 400:20:36So if we get interest rate cuts helping the consumer, it could be obviously a positive towards I Speaker 200:20:42would think that yes, I would think that that would be a positive with the consumer. Now I don't think you get an immediate effect of that benefit either. Speaker 400:20:52Okay. Okay. And then just any guidance you can give us? I know it's during the quarter, but a graduation, Mother's Day, Father's Day, you talked a little bit about seeing strength in some areas. Just any comments on how we're seeing the holidays come in? Speaker 200:21:09Yes. I think it's obviously Mother's Day is past us. Father's Day is in graduations. A lot of it comes throughout May June. And so it's a little early for us to see that, but we are seeing some pockets of improvement, although it's not and as I talked about very, very strong trends on our own website. Speaker 200:21:37And so that yields us leads us to have a good sense of optimism, some strengthening of our department store channel, which is obviously an important channel for the company. But I would still believe that the really major effect for the and benefit for the company will begin to come into the second half of this year. Speaker 400:22:05Okay. Great. And then just one last question. Just how is jewelry doing versus expectations? Speaker 200:22:10Jewelry is doing very well. So that we're really pleased with it. And that's in our licensed brand portfolio. And in Olivia Burton, We are in the process of we'll launch some major new collections for the Movado brand as we reposition the jewelry category in Movado during the second half and probably more into the Q4. But within our license brand portfolio, we're seeing some real good pockets of strength in jewelry. Speaker 200:22:44It is a major focus for the company and we did have growth in that area during Q1. Speaker 400:22:54Okay. Thank you. Congrats on getting the quarter up. Speaker 200:22:57Okay. Thank you. Thank you very much, Mike. And as I said earlier, we look forward to talking with all of you again during our Q2 conference call and be able to continue to share progress on our marketing initiatives and product introductions for this coming year. Thank you very much. Operator00:23:22Thank you. This will complete today's call. You may disconnect your lines at this time. Thank you for your participation.Read morePowered by