Q1 2025 Movado Group Inc Earnings Call
Operator: Good day everyone, and welcome to Movado Group Incorporated's 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 call over to Cody McAllister of ICR. Please go ahead.
Good day, everyone and welcome to Nevada Group incorporated first quarter fiscal year 2025 earnings conference call.
Speaker Change: Mind, you todays 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.
Yeah.
Speaker Change: Thank you good morning, everyone with me on the call is that from Grinberg, Chairman and Chief Executive Officer, and Sallie be Marcellus 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.
Cody Mcallister: Thank you. Good morning, everyone.
Cody Mcallister: With me on the call is Efraim 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. The 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.
Cody Mcallister: Actual 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 include 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 Efraim Grinberg, Chairman and Chief Executive Officer of Movado Group.
Speaker Change: The 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 Change: Actual 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.
Speaker Change: 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.
Speaker Change: Now I would like to turn the call over to Ephraim Grinberg, Chairman and Chief Executive Officer of my bottom group. Thank.
Efraim Grinberg: Thank you, Cody. Good morning, and welcome to Movado Group's first quarter conference call. With me today is Sallie DeMarsilis, our COO and CFO. After I review our progress on our strategic growth initiatives, Sallie will review our financial results in greater detail. We would then be glad to answer any questions you might have. Our results for the first quarter were in line with expectations. Sales declined by 5.7% to $136.7 million, and operating income was $3.3 million versus $10.9 million last year.
Cody Mcallister: Thank you Cody good morning, and welcome to the Nevada Group's first quarter conference call with me today is Sally the Marsalis, our CLO 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 Change: Our results for the first quarter were in line with expectations with our expectations sales declined by five 7% to $136 7 million and operating income was $3 3 million versus $10 $9 million last year. When we reported fiscal 2024 results in March.
Efraim Grinberg: 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 on 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 Change: We shared our new investment growth strategy, and 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.
Speaker Change: 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.
Speaker Change: We're already making progress on these initiatives, which will enable us to drive accelerating growth throughout the year.
Efraim Grinberg: We 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 $225.4 million of cash and no debt.
Speaker Change: We are building a cohesive we're 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.
Speaker Change: During the first quarter, we continued to exercise strong discipline on our balance sheet, ending the quarter with 225 $4 million of cash and no debt.
Efraim Grinberg: 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 for Movado, our biggest and most important owned brand. I 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 on this journey.
Speaker Change: I would now like to share some brand and regional highlights for the quarter along with some of the key initiatives that we're working on for the balance of the year.
Last year, we began rolling out a brand refresh from Nevada, our biggest and most important owned brand I would like to share with you. Some of the progress that we've made and some of the significant steps that we will be taking throughout the year as we continue in this journey.
Efraim Grinberg: 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 graduation.
Speaker Change: This spring, we launched our new <unk> 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 to.
Speaker Change: 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 live and video. Both quest is one of our most successful launches ever and we're extremely extremely.
Efraim Grinberg: We also launched our new Bold Quest collection, supported by a strong digital campaign in both still life and video. Bold Quest is one of our most successful launches ever, and we're extremely excited by it. As we move through the year, we'll round out the collection with the addition of smaller sizes, chronographs, and automatic versions.
Speaker Change: Really excited by it as we move through the year, we will round out the collection with the addition of smaller sizes chronograph an automatic versions.
Efraim Grinberg: We are confident that the bold quest collection will quickly grow into one of our most important collections. We're also continuing to drive our 360 degree messaging for the Movado brand with a new look at the point 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 Change: We are confident that the bold quest collection will quickly grow into one of our most important collections.
Speaker Change: We're also continuing to drive our 360 degree messaging for Nevada brand with a new look at the point at point of sale that will launch in the second half and new iconic packaging as well the final piece of the puzzle and supported the Nevada brand refresh is our biggest advertising campaign ever which is <unk>.
Speaker Change: And to launch in September. This campaign will feature distinctly accomplished brand ambassadors, who are masters of their craft and who embody the excellent quality and distinctive image of the Novato brand.
Efraim Grinberg: Although 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. Movado.com was up double digits for the first quarter, with momentum continuing into the second quarter. 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.
Speaker Change: Although most of our Novato brand building efforts have not even launched yet we're already seeing early results from the initial stages of our brand refresh our novato dot com direct to consumer platform was up double digits for the first quarter with momentum continuing into the second quarter. We are beginning to see improved res.
Speaker Change: And our department store channel as well these early successes make us eager to see the full impact of our Novato brand building efforts as they rollout over the rest of the year.
Efraim Grinberg: We had planned our Movado Company stores to be down for the first half, as we didn't anniversary certain programs this spring. We would expect that our outlet business would 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.
Speaker Change: We had planned our novato company stores to be down for the first half as we didnt anniversary certain from programs. This spring.
Speaker Change: We 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 Novato Brad.
Speaker Change: And our licensed brand Division sales were down four 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.
Efraim Grinberg: 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. For Hugo Boss, we are focused on two key families for him, the Candor automatic and the Sky Traveler chronograph, a fresh interpretation of a classic.
Speaker Change: In Hugo Boss, we are focused on two key families for him the candor automatic and the Sky traveler chronograph, a fresh interpretation of a classic. We're also featuring Lucy a beautiful new tanks for her and our spring advertising campaign with Snooki Waterhouse.
Efraim Grinberg: We're also featuring Lucy, a beautiful new tank for her, in our spring advertising campaign with Suki Waterhouse and Tommy Hilfiger. We continue to stand behind our elevated TH85 collection, 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 Stuart watch, a classic multifunction model at one hundred and seventy nine dollars. And in Coach, we are excited to launch our new advertising campaign for him with basketball superstar Jason Tatum. Jason is currently featured wearing our new Jackson chronograph.
Speaker Change: And Tommy Hilfiger, we continue to stand behind our elevated Th 85 collection, which was launched late last year with an automatic family further communicating our supportive mechanical watches across our brand portfolio. This spring, we're launching a GMP model featuring a Swiss movement. We're all.
Speaker Change: So launching the new Stuart watch a classic multi function model at $179.
Speaker Change: In coach we are excited to launch our new advertising campaign for him with basketball superstar adjacent data.
Speaker Change: Jason is currently featured wearing our new Jackson chronograph.
Speaker Change: Further strengthen our presence in men's watches. This spring we are introducing our charter automatic collection starting at $295. We continue to see strong results in the U S with momentum in our department store and Amazon channels led by Carrie.
Efraim Grinberg: To further strengthen our presence in men's watches this spring, we are introducing our Charter Automatic Collection starting at $295. We continue to see strong results in the U.S., with momentum in our department store and Amazon channels led by our Kari and Elliot families. Lacoste continues to perform very well, and we are excited by the continued development of our Boston family and the iconic 1212 family. We are seeing strong growth in our jewelry collection, which continues to show increasing penetration at point of sale.
Carey and Elliott families.
Speaker Change: Lacoste continues to perform very well and we're excited by the continued development of our Boston family and the iconic 12 12 family. We are seeing strong growth in our jewelry collection, which continues to show increasing penetration at point of sale.
Efraim Grinberg: And we have an exciting pipeline of new products coming for the second half of the year. In our third 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 launch in the second quarter and are focused on building awareness for CK watches and jewelry in key markets in Europe, India, the Middle East, Brazil, and Mexico. In the second quarter, we're launching our automatic iconic CK family, featuring a transparent style with distinctive CK branding for him. We're also launching a new family for women, the minimalist feel collection.
Speaker Change: We have an exciting pipeline of new products coming for the second half of the year.
And our third full year with the Calvin Klein brand, we continue to be excited by the potential of this great brand in both watches and jewelry are.
Speaker Change: Our amplified marketing programs for CK launches in the second quarter and is focused on building awareness for CK watches and jewelry and key markets in Europe, India, The Middle East, Brazil and Mexico.
Speaker Change: During the second quarter, we are launching our automatic iconix VK families featuring a transparent style with distinctive CK branding for him. We're also launching a new family for women the minimalist feel collection.
Speaker Change: While challenges remain at some UK market. We are pleased with the progress that we're making in our Olivia Burton brand, we're seeing strength in our Ob Dot com business driven by the continued success of our Grosvenor family and increasing penetration of jewelry with the honeycomb and celestial sudden collections.
Efraim Grinberg: While challenges remain in its home UK 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 focus, 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 Change: From a regional focus from a regional perspective, we are focused on returning our novato brand to growth in the United States and returning our licensed brand portfolio to growth in Europe, while the retail environment remains challenging in these regions. We are seeing traction in our marketing efforts and beginning to see slight growth in our.
Efraim Grinberg: While 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 second quarter 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 first quarter, where we have begun to lay the groundwork for the balance of the year as we focus on returning the company to revenue growth.
Speaker Change: Our major European markets.
Speaker Change: Many of our marketing efforts and new product initiatives are starting during the second quarter and will accelerate throughout fiscal 2025.
Speaker Change: 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 first quarter, where we have begun to lay the groundwork for the balance of the year as we focus on returning to.
Speaker Change: As we focus on returning the company to revenue growth.
Efraim Grinberg: We are focused on collaborating with our retail partners in our major markets and continuing to drive innovation and excitement in our marketing efforts. Our teams have remained disciplined and continue to focus on our priorities and execute at a high level in a challenging market. As we 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.
Speaker Change: We are focused on collaborating with our retail partners and our major markets and continuing to drive innovation and excitement in our marketing efforts. Our teams remain 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 bal.
Speaker Change: <unk> sheet and cash position to invest in our brands and our big and our biggest markets to drive growth and profitability for the long term, we remain committed to the initiatives that we've 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 Sally to go through our financial results.
Efraim Grinberg: 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.
Sallie A. DeMarsilis: <unk> as well as our outlook.
Sallie A. DeMarsilis: Thank you, Efraim, and good morning, everyone. On today's call, I will review our first quarter 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 first quarter of fiscal 2025. As expected, our performance trailed the first quarter of fiscal 2024, yet it included significant progress on our key strategic initiatives, which we believe has us positioned to achieve our annual objective.
And good morning, everyone for today's call I will review, our first quarter fiscal 2025 results and balance sheet, and then discuss our outlook for the remainder of the year.
Sallie A. DeMarsilis: Overall, we are pleased with our performance for the first quarter of fiscal 2025 as expected our performance trailed the first quarter of fiscal 2024 get included significant progress on our key strategic initiatives, which we believe has us positioned to achieve our annual objectives.
Sallie A. DeMarsilis: Turning to a review of the quarter, for the first quarter of fiscal 2025, sales were $136.7 million, as compared to $144.9 million last year, a decrease of 5.7%. In constant dollars, net sales decreased 6.1% by segment across our own brands, licensed brands, and company stores. By geography, U.S. net sales decreased 6.2%, and international net sales decreased 5.4%, as compared to the first quarter of last year. On a constant currency basis, international net sales decreased by 6.1%.
Sallie A. DeMarsilis: Turning to a review of the quarter for the first quarter of fiscal 2025 sales were $136 7 million as compared to $144 $9 million last year, a decrease of five 7%.
Sallie A. DeMarsilis: In constant dollars net sales decreased six 1%.
Sallie A. DeMarsilis: By segment net sales decreased across our own brands licensed brands and company stores.
Sallie A. DeMarsilis: By geography U S net sales decreased six 2%.
Sallie A. DeMarsilis: International net sales decreased five 4% as compared to the first quarter of last year on a constant currency basis International net sales decreased six 1%.
Sallie A. DeMarsilis: Gross profit as a percent of sales was 55.3% compared to 56.6% in the first quarter 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. Operating expenses were $72.2 million as compared to $71.1 million for the same period of last year. The increase was driven primarily by an increase in payroll-related expenses.
Sallie A. DeMarsilis: Gross profit as a percent of sales was 55, 3% compared to 56, 6% in the first quarter 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.
Sallie A. DeMarsilis: Operating expenses were $72 $2 million as compared to $71 1 million for the same period of last year.
Sallie A. DeMarsilis: The increase was driven primarily by an increase in payroll related expenses.
Sallie A. DeMarsilis: Primarily as a result of the reduction in sales and gross margin, operating income decreased by $7.6 million to $3.3 million as compared to $10.9 million in the first quarter of fiscal 2024. We recorded approximately $2.1 million of other non-operating income in the first quarter of fiscal 2025, which is primarily comprised of interest earned on our global cash position. We recorded an income tax expense of $2.3 million in the first quarter of fiscal 2025, as compared to $2.5 million in the first quarter of fiscal 2024.
Primarily as a result of the reduction in sales and gross margin operating income decreased by $7 6 million to $3 3 million as compared to $10 9 million in the first quarter of fiscal 2024.
Sallie A. DeMarsilis: We recorded approximately $2 1 million.
Sallie A. DeMarsilis: Other non operating income in the first quarter of fiscal 2025, which is primarily comprised of interest earned on our global cash position.
Sallie A. DeMarsilis: We recorded income tax expense of $2 3 million in the first quarter of fiscal 2025 as compared to $2 $5 million in the first quarter of fiscal 2024.
Sallie A. DeMarsilis: Net income in the first quarter was $2.9 million, or $0.13 per diluted share, as compared to $9.1 million, or $0.40 per diluted share, in the year-ago period. Now, turning to our balance. Cash at the end of the first quarter was $225.4 million as compared to $198.3 million in the prior year period. Accounts receivable were $101.7 million as compared to $94 million in the same period of last year due to timing and mix of business.
Sallie A. DeMarsilis: Net income in the first quarter was $2 9 million or <unk> 13 per diluted share as compared to $9 1 million or <unk> 40 per diluted share in the year ago period.
Sallie A. DeMarsilis: Inventory at the end of the quarter was $159.6 million, a decrease of $35.6 million, or 18.2%, below the same period of last year, primarily due to the timing of receipts. We are comfortable with the composition and balance of our inventory at quarter end. In the first quarter of fiscal 2025, capital expenditures were $1.6 million, and we repurchased approximately 39,000 shares under our share repurchase program. As of April 30, 2024, we had $16.8 million remaining under our Authorized Repurchase Program.
Sallie A. DeMarsilis: Now turning to our balance sheet.
Sallie A. DeMarsilis: Cash at the end of the first quarter was $225 4 million as compared to $198 3 million in the prior year period.
Sallie A. DeMarsilis: Accounts receivable 100, or $101 7 million as compared to $94 million at the same period of last year due to timing and mix of business.
Sallie A. DeMarsilis: Inventory at the end of the quarter was $159 6 million.
Sallie A. DeMarsilis: A decrease of $35 6 million or 18, 2% below the same period of last year, primarily due to the timing of receipt.
Sallie A. DeMarsilis: We are comfortable with the composition and balance of our inventory at year end at quarter end.
Sallie A. DeMarsilis: In the first quarter of fiscal 2025 capital expenditures were $1 $6 million and we repurchased approximately 39000 shares under our share repurchase program.
Sallie A. DeMarsilis: As of April 32024, we had $16 $8 million remaining under our authorized repurchase program.
Sallie A. DeMarsilis: 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. For fiscal 2025, we continue to expect net sales in a range of approximately $700 million to $710 million, a gross margin of approximately 55%, and operating income in a range of $32 to $35 million.
Sallie A. DeMarsilis: Direct to prevailing market conditions, and the business environment, we plan to utilize our share repurchase plan to offset dilution in fiscal 2025.
Sallie A. DeMarsilis: Now I would like to discuss our outlook for fiscal 2025, we continue to expect net sales in a range of approximately 700 million to $710 million.
Sallie A. DeMarsilis: Gross margin of approximately 55%.
Sallie A. DeMarsilis: Operating income in a range of 32% to $35 million.
Sallie A. DeMarsilis: This expectation includes increased investment in marketing and brand building of approximately $25 million, 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 spending as the year progresses.
Sallie A. DeMarsilis: This expectation includes increased investment in marketing and brand building of approximately $25 million.
Sallie A. DeMarsilis: As we have previously communicated as well as an increase in performance based compensation and other payroll related costs as compared to fiscal 2024.
Sallie A. DeMarsilis: An effective tax rate of 22% and earnings in a range of approximately $1 20 to $1 30 per diluted share.
Sallie A. DeMarsilis: 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.
Sallie A. DeMarsilis: The company therefore expects to return to sales growth in the second half of the year. This outlook does not contemplate any further significant impact of economic deterioration and assumes no further significant fluctuations from prevailing foreign currency exchange rates.
Sallie A. DeMarsilis: The company, therefore expects to return to sales growth in the second half of the year.
Sallie A. DeMarsilis: This outlook does not contemplate significant further impact of economic deterioration and assumes no further significant fluctuations from prevailing foreign currency exchange rates.
Sallie A. DeMarsilis: I would now like to open the call up for questions. Thank you. If you would like to ask...
Speaker Change: I would now like to open the call up for questions.
Operator: Thank you. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. And for participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question is from Michael Legg with the Benchmark Company. Please proceed.
Speaker Change: Thank you.
Speaker Change: I'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two if he would like to remove your question from the queue and for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys.
Speaker Change: Our first question is from Michael <unk> with the benchmark company. Please proceed.
Speaker Change: Hello.
Mike: Hi, good morning, Mike.
Michael Frederick Legg: Morning, sorry if I don't connect you if I fade 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 that?
Mike: Good morning, So I have by connection if I say that can you just talk a little bit about when you gave you a forecast and we obviously know the marketing spend is going to help move that Rev.
Speaker Change: Revenue Lambert.
Speaker Change: About your viewpoint.
Speaker Change: Yeah.
Operator: Mike, you're cutting; you're cutting out.
Maggie: Maggie cutting youre cutting out.
Operator: from the consumer
Maggie: From the consumer.
Efraim Grinberg: So I guess you're asking our viewpoint about the consumer, I think. Is that correct? Yeah. Okay. Yeah.
Speaker Change: So I.
Speaker Change: I guess you asked.
Speaker Change: Our viewpoint about the consumer I think that's correct.
Speaker Change: Yes, okay.
Efraim Grinberg: So we believe that the consumer is challenged right now, especially in our target audiences in the US 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, we will be able to engage the consumer. You have to work harder when the consumer is challenged to drive demand, and that's what our plan is based on for this coming year.
Speaker Change: Yeah. So.
Speaker Change: We believe that the consumer is challenged.
Speaker Change: Now, especially in our target audiences.
Speaker Change: In the U S and Europe, but but historically, we have seen that when we do creative things from a product perspective and also from <unk>.
Speaker Change: Marketing perspective, which.
Speaker Change: We are diligently working on for this year.
Speaker Change: That we will.
Speaker Change: You'll be able to drive the consumer that you have to work harder and when the consumer's challenged.
Speaker Change: Drive demand and Thats.
Speaker Change: That's what our plan is based on.
Speaker Change: For this coming year.
Efraim Grinberg: Obviously, when we instituted the plan at the end of last year, we knew that we could affect real change by the second half of this year, and that still remains our goal. We're really excited about the launch of Quest, and so we see that innovation, and it's an excellent value, opening at $595, in the Movado Bold Collection is doing really well, and that will also accelerate throughout the year as we build demand for the Bold 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 Change: Obviously, when we instituted the plan at the end of last year.
Speaker Change: We knew that we could affect real change.
Speaker Change: The second half of this year.
Speaker Change: And that is still remains 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 $595 and.
Operator: [inaudible]
Speaker Change: And then Nevada bold collection.
Speaker Change: <unk> is doing really well in.
Speaker Change: And that will also accelerate throughout the year as we build demand for for the bold collection in our quest family as.
Speaker Change: As well as our classic museum collections and within each of our brands.
Speaker Change: We have important marketing initiatives and important products launching throughout the year.
Speaker Change: Does making.
Operator: Mike, I think there's something wrong with your connection.
Speaker Change: Mike I think there's something wrong with your connection.
Speaker Change: Mike.
Michael Frederick Legg: Yes, hi. Sorry. I was just asking, does, what is your guidance?
Mike: Yes, hi, sorry.
I was just asking does to your guidance.
Mike: Okay.
Operator: Mike, I'm sorry, we can't hear you. Mike. Unknown Attendee, Oliver Chen, Efraim Grinberg, Rachel Schacter, Movado Group Inc. Now, I think there's something wrong with your connection. You may have to hang up and dial back in.
Speaker Change: Mike I'm, sorry, we can't hear you.
Speaker Change: Mike.
Speaker Change: Yeah.
Speaker Change: No I think there's something wrong with your connection you may have to hang up and dial back in.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Mike are you back.
Operator: I'm going to check on him in a moment. Thank you.
Speaker Change: I'm going to check on him.
Speaker Change: Thank you. Thank you.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: Okay.
Operator: Okay, if we don't hear back in a few seconds, I will end the call. Okay. Well, 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 on future calls.
Speaker Change: Okay. If we don't hear back in a few seconds I will end the call.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: I guess, we won't have to make 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.
Speaker Change: And I look forward to sharing.
Speaker Change: Those with you we do have Mike dance here too Okay. Mike go ahead I apologize.
Michael Frederick Legg: Michael Legg, Unknown Attendee, Oliver Chen, Efraim Grinberg, Rachel Schacter, Movado Group Inc. guidance has factors in any interest rate cuts helping the consumer.
Michael Frederick Legg: Just wanted to understand if Europe.
Speaker Change: Guidance has factored in any interest rate cuts, helping the consumer.
Efraim Grinberg: Not particularly so, no.
Speaker Change: Not particularly now.
Michael Frederick Legg: Okay. Okay.
Speaker Change: Okay.
Efraim Grinberg: We're still planning on operating in a challenging environment that doesn't deteriorate.
Speaker Change: We're still planning on operating in a challenging environment that doesn't deteriorate.
Michael Frederick Legg: So if we get interest rate cuts helping the consumer, it could be obviously a positive towards I would think that yeah, I would think that that would be a positive with the consumer now I don't think you get an immediate effect of of of that that benefit either Okay, okay, and then just Any guidance you can give us I know it's it during the quarter, but a graduation mother's day father's day You know, you talked a little bit about seeing strength in some areas Um, just any comments on what on how we're seeing the holidays come in
Speaker Change: If we get interest rate cuts, helping the consumer there it could be obviously a positive towards I would 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 of that benefit either.
Speaker Change: Okay, Okay, and then just.
Speaker Change: Any guidance you can give us I know, it's it during the quarter, but our graduation mother's day father's day.
Speaker Change: You talked a little bit about seeing strength in some areas.
Speaker Change: Just any comments on how.
Speaker Change: We are seeing the holidays come in yes.
Efraim Grinberg: Yeah, I think Mother's Day is past, as Father's Day is graduations, a lot of it comes throughout May and 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. And so that 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 and benefit for the company will begin to come in the second half of this year.
Speaker Change: Yes, I think it's obviously mothers day has passed as fathers day and graduation is a lot of it comes throughout May and June.
Speaker Change: And.
Speaker Change: So it's a little early for us to see that but we are seeing some pockets of improvement although it is not.
Speaker Change: And as I talked about the very very strong trends on on our own website.
Speaker Change: And so that that yields us leads us to have a good sense of optimism some strengthening of our department store channel, which is obviously an important.
Speaker Change: Channel.
Speaker Change: For the company.
Speaker Change: But I would I would still believe that.
Speaker Change: The really major effect and benefit for the company will begin to come into the second half of this year.
Michael Frederick Legg: Okay, great. And then just one last question. Just how's Julie doing versus expectations?
Speaker Change: Okay, Great and then just one last question just how's jewelry is doing versus expectations.
Efraim Grinberg: Jewelry is doing very well, so we're really pleased with it, and that's in our licensed brand portfolio, and in Olivia Burton. We're 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 fourth quarter. But within our licensed brand portfolio, we're seeing some really good pockets of strength in jewelry. It is a major focus for the company, and we did have growth in that area during Q1.
Speaker Change: Jewelry is doing very well so that.
Speaker Change: We're really pleased with it and Thats in our licensed brand portfolio and in Olivia Burton we are in the process of.
Speaker Change: Uh huh.
Speaker Change: We will launch some major new collections for the <unk> brand.
Speaker Change: As we reposition the jewelry category in novato during the second half.
Speaker Change: And probably more into the fourth quarter, but.
Speaker Change: Within our licensed brand portfolio, we are seeing some real good pockets of strength in jewelry it as a major.
Speaker Change: Focus for for the company and we did have growth in that area.
Speaker Change: During Q1.
Michael Frederick Legg: Okay, thank you. Congratulations on getting the quarter out. Okay.
Speaker Change: Okay. Thank you congrats on getting the quarter out.
Efraim Grinberg: Okay. Thank you. Thank you very much, Mike. And as I said earlier, we look forward to talking with all of you again during our second quarter conference call and being able to continue to share progress on our marketing initiatives and product introductions for this coming year. Thank you very much. Thank you. This will, Thank you for your participation. Unknown Attendee, Oliver Chen, Efraim Grinberg, Rachel Schacter, Movado Group
Michael Frederick Legg: Okay. Thank you. Thank you very much Mike and as I said earlier, we look forward to two.
Michael Frederick Legg: To talking with all of you again doing.
Michael Frederick Legg: Our second quarter.
Michael Frederick Legg: Conference call and be able to continue to share progress on our.
Michael Frederick Legg: Marketing initiatives and product introductions for this coming year. Thank you very much.
Operator: Thank you. This will complete today's call. You may disconnect your lines at this time. Thank you for your participation.
Michael Frederick Legg: Thank you this will come.
Speaker Change: Today's call you may disconnect your lines at this time, thank you for your participation.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
[music].
Speaker Change: Thanks.
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Sure.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Sure.
Speaker Change: [music].
Operator: ?? ?? ?? ?? ?? Thanks for watching!
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Sure.
Speaker Change: Okay.