MOVADO GROUP INC Segments Disclosure
NOTE 18 – SEGMENT AND GEOGRAPHIC INFORMATION
The Company follows accounting guidance related to disclosures about segments of an enterprise and related information. This guidance requires disclosure of segment data based on how management makes decisions about allocating resources to segments and measuring their performance.
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 of the Company is the 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’s CODM evaluates operating results based on gross profit, defined as net sales less cost of sales, and operating income, defined as gross profit less selling, general and administrative expenses. The CODM uses gross profit and operating income in the budgeting and forecasting process. The CODM considers budget-to-current forecast and prior forecast-to-current forecast variances for gross profit and operating income for evaluating performance of the segments and making decisions about allocating capital and other resources to each segment.
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. A vast majority of the Company’s tangible International assets are owned by the Company’s Swiss and Hong Kong subsidiaries.
The following table summarizes the Company's net sales in the International locations by region as a percentage of the Company's total net sales for the fiscal years ended 2026, 2025 and 2024.
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|
Twelve Months Ended January 31, |
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|
2026 |
|
2025 |
|
2024 |
|
|||
|
|
|
|
|
|
|
|
|||
Europe |
|
|
34.1 |
% |
|
31.0 |
% |
|
30.9 |
% |
Americas (excluding the United States) |
|
|
9.7 |
% |
|
9.9 |
% |
|
9.4 |
% |
Asia |
|
|
7.0 |
% |
|
8.9 |
% |
|
8.1 |
% |
Middle East |
|
|
5.9 |
% |
|
7.6 |
% |
|
7.9 |
% |
Total International Operations |
|
|
56.7 |
% |
|
57.4 |
% |
|
56.3 |
% |
Operating Segment Data as of and for the Fiscal Year Ended January 31, (in thousands):
|
|
Net Sales |
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|||||||||
|
|
2026 |
|
|
2025 |
|
|
2024 |
|
|||
Watch and Accessory Brands: |
|
|
|
|
|
|
|
|
|
|||
Owned brands category |
|
$ |
172,487 |
|
|
$ |
183,622 |
|
|
$ |
198,612 |
|
Licensed brands category |
|
|
391,398 |
|
|
|
365,216 |
|
|
|
354,099 |
|
After-sales service and all other |
|
|
4,381 |
|
|
|
7,548 |
|
|
|
7,743 |
|
Total Watch and Accessory Brands |
|
|
568,266 |
|
|
|
556,386 |
|
|
|
560,454 |
|
Company Stores |
|
|
103,044 |
|
|
|
96,992 |
|
|
|
103,935 |
|
Consolidated total |
|
$ |
671,310 |
|
|
$ |
653,378 |
|
|
$ |
664,389 |
|
|
|
Watch and Accessory Brands |
|
Company Stores |
|
Consolidated Total |
|
|
Watch and Accessory Brands |
|
Company Stores |
|
Consolidated Total |
|
|
Watch and Accessory Brands |
|
Company Stores |
|
Consolidated Total |
|
|||||||||
|
|
2026 |
|
2026 |
|
2026 |
|
|
2025 |
|
2025 |
|
2025 |
|
|
2024 |
|
2024 |
|
2024 |
|
|||||||||
Net sales |
|
$ |
568,266 |
|
$ |
103,044 |
|
$ |
671,310 |
|
|
$ |
556,386 |
|
$ |
96,992 |
|
$ |
653,378 |
|
|
$ |
560,454 |
|
$ |
103,935 |
|
$ |
664,389 |
|
Cost of sales |
|
|
266,977 |
|
|
40,730 |
|
|
307,707 |
|
|
|
261,774 |
|
|
38,464 |
|
|
300,238 |
|
|
|
259,269 |
|
|
40,961 |
|
|
300,230 |
|
Gross profit |
|
|
301,289 |
|
|
62,314 |
|
|
363,603 |
|
|
|
294,612 |
|
|
58,528 |
|
|
353,140 |
|
|
|
301,185 |
|
|
62,974 |
|
|
364,159 |
|
Selling, general and administrative |
|
|
286,286 |
|
|
47,488 |
|
|
333,774 |
|
|
|
286,874 |
|
|
46,251 |
|
|
333,125 |
|
|
|
269,882 |
|
|
45,807 |
|
|
315,689 |
|
Operating income (1) (2) |
|
$ |
15,003 |
|
$ |
14,826 |
|
$ |
29,829 |
|
|
$ |
7,738 |
|
$ |
12,277 |
|
$ |
20,015 |
|
|
$ |
31,303 |
|
$ |
17,167 |
|
$ |
48,470 |
|
Other income, net |
|
|
|
|
|
|
5,033 |
|
|
|
|
|
|
|
7,125 |
|
|
|
|
|
|
|
5,994 |
|
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Interest expense |
|
|
|
|
|
|
(507 |
) |
|
|
|
|
|
|
(489 |
) |
|
|
|
|
|
|
(497 |
) |
||||||
Income before income taxes |
|
|
|
|
|
$ |
34,355 |
|
|
|
|
|
|
$ |
26,651 |
|
|
|
|
|
|
$ |
53,967 |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Depreciation and amortization |
|
$ |
7,208 |
|
$ |
2,208 |
|
$ |
9,416 |
|
|
$ |
7,096 |
|
$ |
2,216 |
|
$ |
9,312 |
|
|
$ |
7,266 |
|
$ |
2,378 |
|
$ |
9,644 |
|
|
|
Total Assets |
|
Capital Expenditure |
|
|||||||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
|
2024 |
|
|||||
Watch and Accessory Brands |
|
$ |
690,068 |
|
|
$ |
668,403 |
|
|
$ |
3,194 |
|
|
$ |
5,740 |
|
|
$ |
7,784 |
|
Company Stores |
|
|
52,553 |
|
|
|
60,828 |
|
|
|
1,318 |
|
|
|
2,226 |
|
|
|
439 |
|
Consolidated total |
|
$ |
742,621 |
|
|
$ |
729,231 |
|
|
$ |
4,512 |
|
|
$ |
7,966 |
|
|
$ |
8,223 |
|
Geographic Location Data as of and for the Fiscal Year Ended January 31, (in thousands):
|
|
Net Sales (3) |
|
|||||||||
|
|
2026 |
|
|
2025 |
|
|
2024 |
|
|||
|
|
|
|
|
|
|
|
|
|
|||
United States |
|
$ |
290,548 |
|
|
$ |
278,532 |
|
|
$ |
290,256 |
|
International |
|
|
380,762 |
|
|
|
374,846 |
|
|
|
374,133 |
|
Consolidated total |
|
$ |
671,310 |
|
|
$ |
653,378 |
|
|
$ |
664,389 |
|
United States and International net sales are net of intercompany sales of $269.7 million, $287.6 million and $260.1 million for the fiscal years ended January 31, 2026, 2025 and 2024, respectively.
Long-Lived Assets consist of Operating Right-of-Use Assets and Property, Plant and Equipment, Net.
|
|
Long-Lived Assets |
|
|
Operating Lease Right-of-Use Assets |
|
|
Property, Plant and Equipment, Net |
|
|||||||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||||
United States |
|
$ |
62,267 |
|
|
$ |
75,160 |
|
|
$ |
50,705 |
|
|
$ |
61,916 |
|
|
$ |
11,562 |
|
|
$ |
13,244 |
|
International |
|
|
22,711 |
|
|
|
30,769 |
|
|
|
17,168 |
|
|
|
24,093 |
|
|
|
5,543 |
|
|
|
6,676 |
|
Consolidated total |
|
$ |
84,978 |
|
|
$ |
105,929 |
|
|
$ |
67,873 |
|
|
$ |
86,009 |
|
|
$ |
17,105 |
|
|
$ |
19,920 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 19, 2026 | Showing above |
| 2025 | Apr 16, 2025 | |
| 2024 | Mar 26, 2024 | |
| 2023 | Mar 23, 2023 | |
| 2022 | Mar 24, 2022 | |
| 2021 | Mar 25, 2021 | |
| 2020 | Mar 26, 2020 | |
| 2019 | Mar 28, 2019 | |
| 2018 | Mar 29, 2018 | |
| 2017 | Mar 20, 2017 | |
| 2016 | Mar 31, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.