EXHIBIT 99.1


 








 





	CONTACT:	 	ICR, Inc. 
	 	 	Rachel Schacter/Allison Malkin
	 	 	203-682-8200


 


FINAL


 


MOVADO GROUP, INC. ANNOUNCES RECORD THIRD QUARTER
RESULTS; INCREASES ANNUAL OUTLOOK


 


~ Net Sales of $217.7 million, an Increase
of 28.2% from Third Quarter Fiscal 2021 ~


~ Operating Income Increases ~ 80% to $41.4
million from Prior Year ~


~ Earnings Per Share of $1.33, or Adjusted
Earnings Per Share of $1.36 ~


~ Board Approves New Share Repurchase Program
and 25% Increase in Quarterly Dividend ~


 


Paramus, NJ – November 23,
2021 -- Movado Group, Inc. (NYSE: MOV) today announced third quarter and nine month results for the period ended October 31, 2021.


 


Efraim Grinberg, Chairman and Chief Executive Officer,
stated, “We are very pleased to report record third quarter results that continued our positive momentum from the first half of
the year, highlighted by sales growth of 28%, gross margin expansion of 330 basis points and a nearly 80% increase in operating income.
I am proud of our team’s disciplined execution of our strategy that elevates our powerful brands with increased digital capabilities
and awareness-building marketing. This execution led to acceleration in our performance globally, overcoming pandemic disruptions. The
quarter saw strong sales growth across geographies and channels with robust growth in our Movado brand. We attribute our ongoing strength
to the success of our digital transformation that began several years ago and has made us a more agile company with a strengthened platform
to maximize the power of our global watch and jewelry brands.”


 


Mr. Grinberg continued, “As we begin the final quarter of the year,
we have the plans in place to continue our strong momentum and drive our brands with product innovation and assortments that have us poised
to deliver strong results this holiday season. This, combined with a return to more normalized purchasing patterns from retailers drove
increased wholesale shipments into the third quarter, is reflected in our raised outlook for the year. Beyond holiday, we are excited
about the investments we are making to further our growth, including preparing for the launch of Calvin Klein early next year. Overall,
our strong balance sheet, including net cash of nearly $202 million, affords us the opportunity to invest in the support of our


 


 






     


     


    

 


future growth, while also returning value to shareholders
through an increased dividend and new share repurchase program announced today, as we focus on delivering sustainable, long-term profitable
growth.”


 


Fiscal 2022 Third Quarter Highlights (See attached
table for GAAP and Non-GAAP measures)


		·	Delivered topline growth of 28.2% over third quarter fiscal 2021. Total net sales increased 5.9% as compared
to pre-pandemic third quarter fiscal 2020 with an 8.3% increase in U.S. net sales and a 4.1% increase in International net sales;



		·	Drove gross margin expansion of 330 basis points from prior year period to 57.7% and 420 basis points
from third quarter fiscal 2020;



		·	Generated third quarter operating income of $41.4 million as compared to operating income of $23.1 million
in the third quarter of fiscal 2021. Adjusted operating income was $42.2 million as compared to adjusted operating income of $25.1 million
last year and adjusted operating income of $24.3 million in the third quarter of fiscal 2020;



		·	Delivered diluted earnings per share of $1.33 as compared to $0.63 in the third quarter of fiscal 2021.
Adjusted diluted earnings per share was $1.36 as compared to $0.70 and $0.82 in the third quarter of fiscal 2021 and 2020, respectively;
and



		·	Ended third quarter with net cash of $201.8 million, an increase of $75.9 million as compared to the third
quarter of fiscal 2021.



 


Non-GAAP Items (See attached table for GAAP
and Non-GAAP measures)


Third quarter fiscal 2022 included
the following charges:


		·	$0.7 million pre-tax charge, or $0.6 million after tax, representing $0.03 per diluted share, associated
with the amortization of acquired intangible assets related to the acquisition of Olivia Burton; and



		·	$0.1 million pre-tax charge, or $0.1 million after tax, representing $0.00 per diluted share, associated
with the amortization of acquired intangible assets and deferred compensation related to the acquisition of MVMT.



 


Third quarter fiscal 2021 included
the following charges:


		·	$0.7 million pre-tax charge, or $0.5 million after tax, representing $0.02 per diluted share, associated
with the amortization of acquired intangible assets related to the acquisition of Olivia Burton;
		·	$0.6 million pre-tax charge, or $0.3 million after tax, representing $0.02
per diluted share, associated with the amortization of acquired intangible assets and deferred compensation related to the acquisition
of MVMT; and



 


 






     


     


    

 


		·	$0.8 million pre-tax charge, or $0.6 million after tax, representing $0.03 per diluted share, related
to corporate initiatives primarily in response to the COVID-19 pandemic.



 


Third Quarter Fiscal 2022
(See attached table for GAAP and Non-GAAP measures)


		·	Net sales increased 28.2% to $217.7 million as compared to $169.9 million in the third quarter of fiscal
2021. The increase in net sales reflected growth in wholesale customers’ brick and mortar stores, in online retail (both in the
Company’s owned and wholesale customers’ websites) and in Movado Company Stores. Net sales on a constant dollar basis increased
26.7% as compared to net sales in the third quarter of fiscal 2021. U.S. net sales increased 41.7% as compared to the third quarter of
last year and increased 8.3% as compared to pre-pandemic third quarter fiscal 2020. International net sales increased 19.7% as compared
to the third quarter of last year and increased 4.1% as compared to pre-pandemic third quarter of fiscal 2020.



		·	Gross profit was $125.6 million, or 57.7% of net sales, as compared to $92.5 million, or 54.4% of net
sales, in the third quarter of fiscal 2021. Adjusted gross profit in the third quarter of fiscal 2021 was $92.5 million, or 54.5% of net
sales, which excludes $0.1 million associated with corporate initiatives related to the impact on the business of the COVID-19 pandemic.
The increase in gross margin percentage was primarily the result of favorable changes in channel and product mix and an increase in leverage
of certain fixed costs as a result of higher sales, partially offset by increased shipping costs.



		·	Operating expenses increased $14.8 million to $84.2 million, as compared to $69.4 million in the third
quarter of fiscal 2021. Excluding the operating expense charges mentioned above in the Non-GAAP Items section, operating expenses were
$83.4 million and $67.4 million for the third quarter of fiscal 2022 and fiscal 2021, respectively. This increase was primarily due to
higher marketing expenses and performance-based compensation and an increase in certain operating expenses to support the increase in
net sales. Excluding the operating expense charges mentioned above in the Non-GAAP Items section, as a percent of sales, operating expenses
decreased to 38.3% of sales from 39.7% in the prior year period primarily due to improved sales leverage.



		·	Operating income was $41.4 million compared to operating income of $23.1 million in the third quarter
of fiscal 2021. Adjusted operating income, which excludes the charges listed above in the Non-GAAP Items section, was $42.2 million and
$25.1 million for the third quarter of fiscal 2022 and fiscal 2021, respectively.



		·	The Company recorded a tax provision of $9.6 million, as compared to $7.5 million in the third quarter
of fiscal 2021. Based upon adjusted pre-tax income, the adjusted tax provision was $9.7 million or an adjusted tax rate of 23.1% as compared
to an adjusted tax provision of $8.0 million or an adjusted tax rate of 32.7% in the third quarter of fiscal 2021.



		·	Net income was $31.4 million, or $1.33 per diluted share, as compared to net income of $14.8 million,
or $0.63 per diluted share, in the third quarter of fiscal 2021. Adjusted net income for the third quarter of fiscal 2022 was $32.1 million
or $1.36 per diluted share, which excludes the third quarter fiscal 2022 net charges listed above in the Non-GAAP Items section after
the associated tax effects. This compares to adjusted net income for the fiscal 2021 period of $16.4 million, or $0.70 per diluted share,
which excludes the third quarter fiscal 2021 net charges listed above in the Non-GAAP Items section after the associated tax effects.



 


 






     


     


    

 


Nine Month Results Fiscal 2022 (See attached
table for GAAP and Non-GAAP measures)


		·	Net sales increased 60.5% to $526.4 million as compared to $328.1 million in the same period of fiscal
2021. The increase in net sales reflected growth in wholesale customers’ brick and mortar stores and in Movado Company Stores due
to the partial recovery from the COVID-19 pandemic and in online retail (both in the Company’s owned and wholesale customers’
websites). Net sales on a constant dollar basis increased 56.8% as compared to net sales in the first nine months of fiscal 2021. U.S.
net sales increased 89.6% as compared to the first nine months of last year and increased 15.4% as compared to pre-pandemic first nine
months of fiscal 2020. International net sales increased 41.6% as compared to the first nine months of last year and decreased 5.4% as
compared to pre-pandemic first nine months of fiscal 2020.



		·	Gross profit was $298.2 million, or 56.7% of net sales, as compared to $169.7 million, or 51.7% of net
sales, in the same period last year. Adjusted gross profit for the first nine months of fiscal 2021 was $173.3 million, or 52.8% of net
sales, which excludes $3.6 million in corporate initiative charges related to the impact on the business of the COVID-19 pandemic. The
year over year increase in adjusted gross margin percentage was primarily the result of favorable changes in channel and product mix,
leveraging certain fixed costs as a result of higher sales and favorable foreign currency exchange rates.



		·	Operating expenses were $218.9 million as compared to $337.7 million in the same period last year. For
the first nine months of fiscal 2022, operating expenses would have been $216.4 million excluding $2.2 million of expenses associated
with the amortization of acquired intangible assets related to Olivia Burton and $0.3 million in adjustments associated with the amortization
of acquired intangible assets and deferred compensation related to the MVMT acquisition. For the first nine months of fiscal 2021, operating
expenses would have been $166.4 million excluding $155.9 million related to the impairment of goodwill and certain intangible assets,
$11.8 million in corporate initiative charges related to the impact to the business from the COVID-19 pandemic, $2.0 million of expenses
associated with the amortization of acquired intangible assets related to Olivia Burton and $1.5 million in adjustments associated with
the amortization of acquired intangible assets and deferred compensation related to the MVMT acquisition. The underlying increase in operating
expenses was primarily due to higher marketing expenses and performance-based compensation and an increase in certain operating expenses
to support the increase in net sales. Excluding the aforementioned impairments, corporate initiative charges, and impacts of the amortization
of acquired intangible assets and deferred compensation related to the MVMT and Olivia Burton acquisitions, as a percent of sales, operating
expenses decreased to 41.1% of sales from 50.7% in the prior year period primarily due to improved sales leverage.



		·	Operating income was $79.3 million as compared to operating loss of $168.0 million in the same period
last year. Adjusted operating income for the first nine months of fiscal 2022 was $81.8 million, which excludes the fiscal 2022 charges
listed in the immediately preceding bullet. This compares to adjusted operating income for the first nine months of fiscal 2021 of $6.9
million, which excludes the fiscal 2021 charges listed in the immediately preceding bullet.



 


 



     


     


    

 


		·	The Company recorded a tax provision in the first nine months of fiscal 2022 of $18.2 million as compared
to a benefit of $26.4 million in the first nine months of last year. The first nine months of fiscal 2022 included a benefit of $0.5 million
primarily associated with the amortization of acquired intangible assets related to Olivia Burton and MVMT. The first nine months of fiscal
2021 included a benefit of $0.4 million associated with the amortization of acquired intangible assets related to Olivia Burton, a $0.6
million benefit related to the amortization of acquired intangible assets and deferred compensation related to MVMT, a $4.7 million benefit
related to corporate initiatives taken in response to the COVID-19 pandemic, and a $24.9 million benefit related to the tax deductible
portion of the impairment of goodwill and certain intangible assets, partially offset by a $0.5 million provision for tax associated with
the sale of a non-operating asset in Switzerland.



		·	Net income was $60.2 million, or $2.54 per diluted share, as compared to net loss for the first nine months
of fiscal 2021 of $141.8 million, or a loss of $6.11 per diluted share. Adjusted net income for the first nine months of fiscal 2022 was
$62.2 million, or $2.63 per diluted share, which excludes the fiscal 2022 charges listed above after the associated tax effects, as described
in the immediately preceding bullet. This compares to adjusted net income for the first nine months of fiscal 2021 of $1.7 million, or
$0.07 per diluted share, which excludes the fiscal 2021 charges listed above after the associated tax effects, as described in the immediately
preceding bullets.



 


Fiscal 2022 Outlook 


The Company is increasing its outlook
and currently expects fiscal 2022 net sales in a range of approximately $715 million to $720 million, gross profit of approximately 56.5%
to 57.0% of net sales, operating profit in a range of 15.0% to 15.5% of net sales and diluted earnings per share of approximately $3.35
to $3.45. Assuming no changes to the current tax rules, the Company anticipates an effective tax rate of approximately 25% for the fiscal
year. The outlook excludes approximately $3.3 million of amortization of acquired intangible assets and deferred compensation for fiscal
2022 related to the Olivia Burton and MVMT brands. This updated outlook does not contemplate significant additional COVID-19 related retail
closures which can adversely impact results. The Company's outlook assumes no further significant fluctuations from prevailing foreign
currency exchange rates.


 


Quarterly Dividend and Share
Repurchase Program


The Company announced today that
the Board of Directors approved a 25% increase to the regular quarterly cash dividend to $0.25 per share from $0.20 per share. A $0.25
dividend will be paid on December 17, 2021 for each share of the Company’s outstanding common stock and class A common stock held
by shareholders of record as of the close of business on December 3, 2021.


 


The Company also announced today that its Board of Directors has approved
a new share buyback program under which the Company may purchase up to $50 million of its outstanding shares of common stock from


 


 






     


     


    

 


time to time, depending upon a variety
of factors, including market and industry conditions, share price, regulatory requirements and other corporate considerations, as determined
by the Company. The authorization expires on November 23, 2024, subject to extension or earlier termination by the Board of Directors.
The Company may purchase shares of its common stock in open-market and/or privately negotiated transactions in accordance with applicable
securities laws and regulations, including Rule 10b-18 of the Securities Exchange Act of 1934, and repurchases may be executed pursuant
to Rule 10b5-1 under the Securities Exchange Act of 1934. The authorization may be suspended or discontinued at any time without notice.
During the nine months of fiscal 2022, the Company repurchased approximately 548,400 shares of common stock under its preexisting $25
million share repurchase program. As of October 31, 2021, the Company had $8.0 million remaining under the preexisting program, which
expires on September 30, 2022.


 


Conference Call


The Company’s management will host a conference
call and audio webcast to discuss its results today, November 23rd at 9:00 a.m. Eastern Time. The conference call may be accessed
by dialing (877) 407-0784. Additionally, a live webcast of the call can be accessed at www.movadogroup.com.
The webcast will be archived on the Company’s website approximately one hour after the conclusion of the call. Additionally, a telephonic
re-play of the call will be available at 12:00 p.m. ET on November 23, 2021 until 11:59 p.m. ET on December 7, 2021 and can be accessed
by dialing (844) 512-2921 and entering replay pin number 13725226.


 


Movado Group, Inc. designs, sources,
and distributes MOVADO®, MVMT®, OLIVIA BURTON®, EBEL®, CONCORD®, COACH®, TOMMY HILFIGER®, HUGO BOSS®,
LACOSTE®, and SCUDERIA FERRARI® watches worldwide, and operates Movado company stores in the United States and Canada.


 


In this release, the Company presents certain financial measures that
are not calculated according to generally accepted accounting principles in the United States (“GAAP”). Specifically, the
Company is presenting adjusted gross profit, adjusted gross margin, adjusted operating expenses and adjusted operating income, which
are gross profit, gross margin, operating expenses and operating income, respectively, under GAAP, adjusted to eliminate the amortization
of acquisition accounting adjustments related to the Olivia Burton and MVMT acquisitions, corporate initiatives and the impairment of
goodwill and certain intangible assets. The Company is also presenting adjusted tax provision, which is the tax provision under GAAP,
adjusted to eliminate the impact of charges for the Olivia Burton and MVMT acquisitions, corporate initiatives, the impairment of goodwill
and certain intangible assets and the gain on the sale of a non-operating asset. The Company believes these adjusted measures are useful
because they give investors information about the Company’s financial performance without the effect of certain items that the
Company believes are not characteristic of its usual operations. The Company is also presenting adjusted net income, adjusted earnings
per share and adjusted effective tax rate, which are net income, earnings per share and effective tax rate, respectively, under GAAP,
adjusted to eliminate the after-tax impact of amortization of acquisition accounting adjustments related to the Olivia Burton and MVMT
acquisitions, corporate initiatives, the impairment of goodwill and certain intangibles and the gain on the sale of a non-operating asset.
The Company believes that adjusted net income, adjusted earnings per share and adjusted effective tax rate are useful measures of performance
because they give investors information about the Company’s financial performance without the effect of certain items that the
Company believes are not characteristic of its usual operations. Additionally, the Company is presenting constant currency information
to provide a framework to assess how its business performed excluding the effects of foreign


 


 






     


     


    

 


currency exchange rate fluctuations in the current
period. Comparisons of financial results on a constant dollar basis are calculated by translating each foreign currency at the same U.S.
dollar exchange rate as in effect for the prior-year period for both periods being compared. The Company believes this information is
useful to investors to facilitate comparisons of operating results. These non-GAAP financial measures are designed to complement the GAAP
financial information presented in this release. The non-GAAP financial measures presented should not be considered in isolation from
or as a substitute for the comparable GAAP financial measures, and the methods of their calculation may differ substantially from similarly
titled measures used by other companies.


 


This press release contains certain forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company has tried, whenever possible, to identify
these forward-looking statements using words such as “expects,” “anticipates,” “believes,” “targets,”
“goals,” “projects,” “intends,” “plans,” “seeks,” “estimates,”
“may,” “will,” “should” and variations of such words and similar expressions. Similarly, statements
in this press release that describe the Company's business strategy, outlook, objectives, plans, intentions or goals are also forward-looking
statements. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause
the Company's actual results, performance or achievements and levels of future dividends to differ materially from those expressed in,
or implied by, these statements. These risks and uncertainties may include, but are not limited to general economic and business conditions
which may impact disposable income of consumers in the United States and the other significant markets (including Europe) where the Company’s
products are sold, uncertainty regarding such economic and business conditions, including inflation and tightness in the labor market,
trends in consumer debt levels and bad debt write-offs, general uncertainty related to possible terrorist attacks, natural disasters,
pandemics, including the effect of the COVID-19 pandemic and other diseases on travel and traffic in the Company’s retail stores
and the stores of its wholesale customers, supply disruptions, delivery delays and increased shipping costs as a result of the COVID-19
pandemic, power outages in China,, adverse impact on the Company’s wholesale customers and customer traffic in the Company’s
stores as a result of increased uncertainty and economic disruption caused by the COVID-19 pandemic, uncertainty relating to the availability
and efficacy of vaccines and treatments for COVID-19, the impact of the United Kingdom’s exit from the European Union, defaults
on or downgrades of sovereign debt and the impact of any of those events on consumer spending, changes in consumer preferences and popularity
of particular designs, new product development and introduction, decrease in mall traffic and increase in e-commerce, the ability of the
Company to successfully implement its business strategies, competitive products and pricing, including price increases to offset increased
costs, the impact of “smart” watches and other wearable tech products on the traditional watch market, seasonality, availability
of alternative sources of supply in the case of the loss of any significant supplier or any supplier’s inability to fulfill the
Company’s orders, the loss of or curtailed sales to significant customers, the Company’s dependence on key employees and officers,
the ability to successfully integrate the operations of acquired businesses without disruption to other business activities, the possible
impairment of acquired intangible assets including goodwill if the carrying value of any reporting unit were to exceed its fair value,
risks associated with the Company’s minority investments in early-stage growth companies and venture capital funds that invest in
such companies; volatility in reported earnings resulting from changes in the estimated fair value of contingent acquisition consideration,
the continuation of the Company’s major warehouse and distribution centers, the continuation of licensing arrangements with third
parties, losses possible from pending or future litigation and administrative proceedings, the ability to secure and protect trademarks,
patents and other intellectual property rights, the ability to lease new stores on suitable terms in desired markets and to complete construction
on a timely basis, the ability of the Company to successfully manage its expenses on a continuing basis, information systems failure or
breaches of network security, complex and quickly-evolving regulations regarding privacy and data protection, the continued availability
to the Company of financing and credit on favorable terms, business disruptions, and general risks associated with doing business outside
the United States including, without limitation, import duties, tariffs (including retaliatory tariffs), quotas, political and economic
stability, changes to existing laws or regulations, and success of hedging strategies with respect to currency exchange rate fluctuations,
and the other factors discussed in the Company’s Annual Report on Form 10-K and other filings with the Securities and Exchange Commission.
These statements reflect the Company's current beliefs and are based upon information currently available to it. Be advised that developments
subsequent to this press release are likely to cause these statements to become outdated with the passage of time. The Company assumes
no duty to update its forward looking statements and this release shall not be construed to indicate the assumption by the Company of
any duty to update its outlook in the future.


 


 


 


 


(Tables to follow)


 






     


     


    

 





MOVADO
GROUP, INC.


CONSOLIDATED
STATEMENTS OF OPERATIONS


(In
thousands, except per share data)


(Unaudited)


 


	 	 	Three Months Ended	 	 	Nine Months Ended	 
	 	 	October 31,	 	 	October 31,	 
	 	 	2021	 	 	2020	 	 	2021	 	 	2020	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net sales	 	$	217,746	 	 	$	169,863	 	 	$	526,418	 	 	$	328,067	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cost of sales	 	 	92,172	 	 	 	77,410	 	 	 	228,189	 	 	 	158,365	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Gross profit	 	 	125,574	 	 	 	92,453	 	 	 	298,229	 	 	 	169,702	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Operating expenses	 	 	84,171	 	 	 	69,386	 	 	 	218,937	 	 	 	181,795	 
	Impairment of goodwill and intangible assets	 	 	–	 	 	 	–	 	 	 	–	 	 	 	155,919	 
	Total operating expenses	 	 	84,171	 	 	 	69,386	 	 	 	218,937	 	 	 	337,714	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Operating income/(loss)	 	 	41,403	 	 	 	23,067	 	 	 	79,292	 	 	 	(168,012	)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other income	 	 	86	 	 	 	8	 	 	 	443	 	 	 	31	 
	Gain on sale of a non-operating asset	 	 	–	 	 	 	–	 	 	 	–	 	 	 	1,317	 
	Interest expense	 	 	(133	)	 	 	(608	)	 	 	(582	)	 	 	(1,469	)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Income/(loss) before income taxes	 	 	41,356	 	 	 	22,467	 	 	 	79,153	 	 	 	(168,133	)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Provision/(benefit) for income taxes	 	 	9,561	 	 	 	7,524	 	 	 	18,206	 	 	 	(26,365	)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net income/(loss)	 	 	31,795	 	 	 	14,943	 	 	 	60,947	 	 	 	(141,768	)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Less: Net income attributable to noncontrolling interests	 	 	390	 	 	 	118	 	 	 	723	 	 	 	15	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net income/(loss) attributable to Movado Group, Inc.	 	$	31,405	 	 	$	14,825	 	 	$	60,224	 	 	$	(141,783	)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Diluted Income Per Share Information	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net income/(loss) attributable to Movado Group, Inc.	 	$	1.33	 	 	$	0.63	 	 	$	2.54	 	 	$	(6.11	)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Weighted diluted average shares outstanding	 	 	23,600	 	 	 	23,375	 	 	 	23,679	 	 	 	23,223	 



 


 






     


     


    

 


MOVADO
GROUP, INC.


GAAP
AND NON-GAAP MEASURES


(In
thousands, except for percentage data)


(Unaudited)


 


	 	 	As Reported

                                                                                              Three Months Ended

                                                                                October
31,
	 	 	% Change	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	2021	 	 	2020	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total net sales, as reported	 	$	217,746
	 	 	$	169,863
	 	 	 	28.2%
	
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total net sales, constant dollar basis	 	$	215,219
	 	 	$	169,863 
	 	 	 	26.7%
	



 


 


	 	 	As Reported

                                                                                              Nine Months Ended

                                                                                October
31,
	 	 	% Change	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	2021	 	 	2020	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total net sales, as reported	 	$	526,418
	 	 	$	328,067
	 	 	 	60.5%
	
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total net sales, constant dollar basis	 	$	514,299
	 	 	$	328,067
	 	 	 	56.8%	



 


 






     


     


    

 





MOVADO GROUP, INC.


GAAP AND NON-GAAP MEASURES


(In thousands, except per share data)


(Unaudited)


 


		 	Net Sales	 	 	Gross Profit	 	 	Operating
                                            Income/

                                                                                (Loss)
	 	 	Pre-tax Income/
    (Loss)	 	 	Provision/

                                                                                (Benefit)
                                            for Income Taxes
	 	 	Net Income/

                                                                                (Loss) Attributable to Movado Group, Inc.
	 	 	Diluted

                                                                                EPS
	 
	Three Months Ended October 31, 2021	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	As Reported (GAAP)	 	$	217,746	 	 	$	125,574	 	 	$	41,403	 	 	$	41,356	 	 	$	9,561	 	 	$	31,405	 	 	$	1.33	 
	Olivia Burton Costs (1)	 	 	–	 	 	 	–	 	 	 	714	 	 	 	714	 	 	 	136	 	 	 	578	 	 	 	0.03	 
	MVMT Costs (2)	 	 	–	 	 	 	–	 	 	 	103	 	 	 	103	 	 	 	26	 	 	 	77	 	 	 	0.00	 
	Adjusted Results (Non-GAAP)	 	$	217,746	 	 	$	125,574	 	 	$	42,220	 	 	$	42,173	 	 	$	9,723	 	 	$	32,060	 	 	$	1.36	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Three Months Ended October 31, 2020	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	As Reported (GAAP)	 	$	169,863	 	 	$	92,453	 	 	$	23,067	 	 	$	22,467	 	 	$	7,524	 	 	$	14,825	 	 	$	0.63	 
	Olivia Burton Costs (1)	 	 	–	 	 	 	–	 	 	 	677	 	 	 	677	 	 	 	128	 	 	 	549	 	 	 	0.02	 
	MVMT Costs (2)	 	 	–	 	 	 	–	 	 	 	555	 	 	 	555	 	 	 	211	 	 	 	344	 	 	 	0.02	 
	Corporate Initiatives (3)	 	 	–	 	 	 	43	 	 	 	781	 	 	 	781	 	 	 	143	 	 	 	638	 	 	 	0.03	 
	Adjusted Results (Non-GAAP)	 	$	169,863	 	 	$	92,496	 	 	$	25,080	 	 	$	24,480	 	 	$	8,006	 	 	$	16,356	 	 	$	0.70	 




 



 





		 	Net Sales	 	 	Gross Profit	 	 	Operating
                                            Income/

                                                                                (Loss)
	 	 	Pre-tax Income/ (Loss)	 	 	Provision/

                                                                                (Benefit)
                                            for Income Taxes
	 	 	Net Income/
    (Loss) Attributable to Movado Group, Inc.	 	 	Diluted

                                                                                EPS
	 
	Nine Months Ended October 31, 2021	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	As Reported (GAAP)	 	$	526,418	 	 	$	298,229	 	 	$	79,292	 	 	$	79,153	 	 	$	18,206	 	 	$	60,224	 	 	$	2.54	 
	Olivia Burton Costs (1)	 	 	–	 	 	 	–	 	 	 	2,161	 	 	 	2,161	 	 	 	411	 	 	 	1,750	 	 	 	0.08	 
	MVMT Costs (2)	 	 	–	 	 	 	–	 	 	 	335	 	 	 	335	 	 	 	84	 	 	 	251	 	 	 	0.01	 
	Adjusted Results (Non-GAAP)	 	$	526,418	 	 	$	298,229	 	 	$	81,788	 	 	$	81,649	 	 	$	18,701	 	 	$	62,225	 	 	$	2.63	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Nine Months Ended October 31, 2020	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	As Reported (GAAP)	 	$	328,067	 	 	$	169,702	 	 	$	(168,012	)	 	$	(168,133	)	 	$	(26,365	)	 	$	(141,783	)	 	$	(6.11	)
	Olivia Burton Costs (1)	 	 	–	 	 	 	–	 	 	 	2,033	 	 	 	2,033	 	 	 	386	 	 	 	1,647	 	 	 	0.07	 
	MVMT Costs (2)	 	 	–	 	 	 	–	 	 	 	1,536	 	 	 	1,536	 	 	 	584	 	 	 	952	 	 	 	0.04	 
	Corporate Initiatives (3)	 	 	–	 	 	 	3,551	 	 	 	15,389	 	 	 	15,389	 	 	 	4,735	 	 	 	10,654	 	 	 	0.46	 
	Goodwill and Intangible Asset Impairment (4)	 	 	–	 	 	 	–	 	 	 	155,919	 	 	 	155,919	 	 	 	24,867	 	 	 	131,052	 	 	 	5.64	 
	Gain On Sale of a Non-Operating Asset (5)	 	 	–	 	 	 	–	 	 	 	–	 	 	 	(1,317	)	 	 	(474	)	 	 	(843	)	 	 	(0.03	)
	Adjusted Results (Non-GAAP)	 	$	328,067	 	 	$	173,253	 	 	$	6,865	 	 	$	5,427	 	 	$	3,733	 	 	$	1,679	 	 	$	0.07	 



 


	(1)		Related to the amortization of acquired intangible assets for Olivia Burton.
	(2)		Related to the amortization of acquired intangible assets and the MVMT brand's deferred compensation,
where applicable.
	(3)		Related to provision due to the impact to the business of the COVID-19 pandemic, including
restructuring plan.
	(4)		Related to the impairment of goodwill and impairment of certain of MVMT's intangible assets.
	(5)		Related to a gain on sale of a non-operating asset in Switzerland.




 


 



     


     


    

 


MOVADO
GROUP, INC.


CONSOLIDATED
BALANCE SHEETS


(In
thousands)


(Unaudited)


 


	 	 	October
                                            31,

                                                                                2021
	 	 	January
                                            31,

                                                                                2021
	 	 	October 31,

                                                                                2020
	 
	ASSETS	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cash and cash equivalents	 	$	201,814	 	 	$	223,811	 	 	$	163,218	 
	Trade receivables, net	 	 	136,373	 	 	 	76,931	 	 	 	103,506	 
	Inventories	 	 	170,714	 	 	 	152,580	 	 	 	176,841	 
	Other current assets	 	 	20,151	 	 	 	23,479	 	 	 	24,014	 
	Income taxes receivable	 	 	7,099	 	 	 	24,850	 	 	 	4,014	 
	Total current assets	 	 	536,151	 	 	 	501,651	 	 	 	471,593	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Property, plant and equipment, net	 	 	19,365	 	 	 	22,349	 	 	 	24,002	 
	Operating lease right-of-use assets	 	 	68,669	 	 	 	76,070	 	 	 	77,932	 
	Deferred and non-current income taxes	 	 	41,687	 	 	 	42,507	 	 	 	54,748	 
	Other intangibles, net	 	 	14,511	 	 	 	17,081	 	 	 	17,123	 
	Other non-current assets	 	 	60,634	 	 	 	59,599	 	 	 	56,380	 
	Total assets	 	$	741,017	 	 	$	719,257	 	 	$	701,778	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	LIABILITIES AND EQUITY	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Accounts payable	 	$	29,473	 	 	$	28,187	 	 	$	35,562	 
	Accrued liabilities	 	 	69,975	 	 	 	51,124	 	 	 	59,612	 
	Accrued payroll and benefits	 	 	19,798	 	 	 	18,047	 	 	 	12,693	 
	Current operating lease liabilities	 	 	13,853	 	 	 	15,861	 	 	 	14,210	 
	Income taxes payable	 	 	11,936	 	 	 	14,452	 	 	 	11,275	 
	Total current liabilities	 	 	145,035	 	 	 	127,671	 	 	 	133,352	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Loans payable to bank, non current	 	 	–	 	 	 	21,230	 	 	 	37,266	 
	Deferred and non-current income taxes payable	 	 	20,354	 	 	 	21,895	 	 	 	20,893	 
	Non-current operating lease liabilities	 	 	62,853	 	 	 	68,412	 	 	 	71,658	 
	Other non-current liabilities	 	 	53,212	 	 	 	50,115	 	 	 	45,179	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Redeemable noncontrolling interest	 	 	2,445	 	 	 	2,600	 	 	 	2,772	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Shareholders' equity	 	 	454,349	 	 	 	425,264	 	 	 	389,345	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Noncontrolling interest	 	 	2,769	 	 	 	2,070	 	 	 	1,313	 
	Total equity	 	 	457,118	 	 	 	427,334	 	 	 	390,658	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total liabilities, redeemable noncontrolling interest and equity	 	$	741,017	 	 	$	719,257	 	 	$	701,778	 



 


 






     


     


    




 


MOVADO
GROUP, INC.


CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS


(In
thousands)


(Unaudited)


 


	 	 	Nine Months Ended
	 	 	October 31,
	 	 	 	 	 
	 	 	2021	 	 	2020	 
	Cash flows from operating activities:	 	 	 	 	 	 	 	 
	Net income/(loss)	 	$	60,224	 	 	$	(141,783	)
	Impairment of goodwill and intangible assets	 	 	–	 	 	 	155,919	 
	Non-cash corporate initiatives	 	 	–	 	 	 	6,685	 
	Depreciation and amortization	 	 	9,401	 	 	 	10,546	 
	Other non-cash adjustments	 	 	9,111	 	 	 	(26,402	)
	Changes in working capital	 	 	(40,969	)	 	 	(12,120	)
	Changes in non-current assets and liabilities	 	 	927	 	 	 	449	 
	Net cash provided by/(used in) operating activities	 	 	38,694	 	 	 	(6,706	)
	 	 	 	 	 	 	 	 	 
	Cash flows from investing activities:	 	 	 	 	 	 	 	 
	Capital expenditures	 	 	(3,637	)	 	 	(2,428	)
	Long-term investments	 	 	(1,100	)	 	 	–	 
	Proceeds from sale of a non-operating asset	 	 	–	 	 	 	1,317	 
	Tradenames and other intangibles	 	 	(193	)	 	 	(118	)
	Net cash used in investing activities	 	 	(4,930	)	 	 	(1,229	)
	 	 	 	 	 	 	 	 	 
	Cash flows from financing activities:	 	 	 	 	 	 	 	 
	Repayment of bank borrowings	 	 	(21,140	)	 	 	(47,699	)
	Proceeds from bank borrowings	 	 	–	 	 	 	30,879	 
	Stock repurchase	 	 	(17,023	)	 	 	–	 
	Dividends paid	 	 	(16,226	)	 	 	–	 
	Stock awards and options exercised and other changes	 	 	496	 	 	 	(497	)
	Debt issuance costs	 	 	(99	)	 	 	(300	)
	Net cash used in financing activities	 	 	(53,992	)	 	 	(17,617	)
	 	 	 	 	 	 	 	 	 
	Effect of exchange rate changes on cash, cash equivalents, and restricted cash	 	 	(1,786	)	 	 	2,926	 
	Net change in cash, cash equivalents, and restricted cash	 	 	(22,014	)	 	 	(22,626	)
	Cash, cash equivalents, and restricted cash at beginning of period	 	 	224,423	 	 	 	186,438	 
	 	 	 	 	 	 	 	 	 
	Cash, cash equivalents, and restricted cash at end of period	 	$	202,409	 	 	$	163,812	 
	 	 	 	 	 	 	 	 	 
	Reconciliation of cash, cash equivalents, and restricted cash:	 	 	 	 	 	 	 	 
	Cash and cash equivalents	 	$	201,814	 	 	$	163,218	 
	Restricted cash included in other non-current assets	 	 	595	 	 	 	594	 
	Cash, cash equivalents, and restricted cash	 	$	202,409	 	 	$	163,812