Movado has reported strong operating cash flow and ended last year with no debts despite sales declines due to a challenging retail environment.

The watch retailer posted an operating cash flow of $76.8 million for FY24, up 41.3 per cent year on year, and ended the year with cash of $262.1 million.

Meanwhile, net sales dropped 10.5 per cent to $672.6 million, attributed to declines in wholesale customers’ brick-and-mortar stores, online retail and Movado Company Stores. Net sales in the US fell 13.1 per cent, while international net sales decreased 8.5 per cent.

The company’s net income was $46.7 million compared to net income of $94.5 million in the prior year.

Efraim Grinberg, chairman and CEO of Movado, said the firm’s revenue and earnings exceeded its previous outlook despite a challenging retail backdrop in the US and Europe.

“The year included significant progress in evolving our strategy with important investments made in marketing and product innovation that we believe position us to leverage the strength of our compelling brand portfolio,” Grinberg added.

The company expects net sales to be in a range of $700 million to $710 million and operating income of $32 million to $35 million in FY25.

The retailer will focus on boosting its marketing investments, particularly in the US and major markets in Europe, to drive growth, according to Grinberg.

“Although these investments are expected to constrain earnings in the short term, we are confident that this is the right time to invest behind the momentum in our portfolio of brands and utilize our strong balance sheet to gain market share and position Movado Group for sustained long-term growth in sales and profitability,” he stated.

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