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Restatement of Previously Issued Consolidated Financial Statements (Tables) | 6 Months Ended
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Jul. 31, 2025
Accounting Changes and Error Corrections [Abstract] |
Restatement Of Previously Issued Consolidated Financial Statements | The Company has included herein its restated unaudited Consolidated Financial Statements at July 31, 2024 and for the three and six month periods ended July 31, 2024. The Company has also included restated impacted amounts within the accompanying footnotes to the Consolidated Financial Statements. On April 28, 2025, the Company received a voluntary request for documents and information relating to that restatement from the Division of Enforcement of the Securities and Exchange Commission (the “SEC”). The Company is cooperating with the SEC in responding to those requests. MOVADO GROUP, INC. CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share amounts) (Unaudited)
|  | July 31, 2024 |
|  | As Previously Reported |  |  | Adjustment |  |  | As Restated |
ASSETS |  |  |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 198,251 |  |  |  | — |  |  | $ | 198,251 |
Trade receivables, net |  |  | 109,784 |  |  |  | (23,075 | ) |  |  | 86,709 |
Inventories |  |  | 176,396 |  |  |  | 6,764 |  |  |  | 183,160 |
Other current assets |  |  | 26,421 |  |  |  | — |  |  |  | 26,421 |
Income taxes receivable |  |  | 13,088 |  |  |  | (397 | ) |  |  | 12,691 |
Total current assets |  |  | 523,940 |  |  |  | (16,708 | ) |  |  | 507,232 |
Property, plant and equipment, net |  |  | 20,315 |  |  |  | — |  |  |  | 20,315 |
Operating lease right-of-use assets |  |  | 85,350 |  |  |  | — |  |  |  | 85,350 |
Deferred and non-current income taxes |  |  | 42,685 |  |  |  | — |  |  |  | 42,685 |
Other intangibles, net |  |  | 6,645 |  |  |  | — |  |  |  | 6,645 |
Other non-current assets |  |  | 80,253 |  |  |  | — |  |  |  | 80,253 |
Total assets |  | $ | 759,188 |  |  | $ | (16,708 | ) |  | $ | 742,480 |
LIABILITIES AND EQUITY |  |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |  |
Accounts payable |  | $ | 36,769 |  |  |  | — |  |  | $ | 36,769 |
Accrued liabilities |  |  | 45,074 |  |  |  | (500 | ) |  |  | 44,574 |
Accrued payroll and benefits |  |  | 9,778 |  |  |  | (1,625 | ) |  |  | 8,153 |
Current operating lease liabilities |  |  | 18,352 |  |  |  | — |  |  |  | 18,352 |
Income taxes payable |  |  | 8,962 |  |  |  | (2,420 | ) |  |  | 6,542 |
Total current liabilities |  |  | 118,935 |  |  |  | (4,545 | ) |  |  | 114,390 |
Deferred and non-current income taxes payable |  |  | 1,028 |  |  |  | — |  |  |  | 1,028 |
Non-current operating lease liabilities |  |  | 76,314 |  |  |  | — |  |  |  | 76,314 |
Other non-current liabilities |  |  | 56,336 |  |  |  | — |  |  |  | 56,336 |
Total liabilities |  |  | 252,613 |  |  |  | (4,545 | ) |  |  | 248,068 |
Commitments and contingencies |  |  |  |  |  |  |  |  |
Equity: |  |  |  |  |  |  |  |  |
Preferred Stock, $0.01 par value, 5,000,000 shares authorized; no shares issued |  |  | — |  |  |  | — |  |  |  | — |
Common Stock, $0.01 par value, 100,000,000 shares authorized; 29,169,952 shares issued |  |  | 292 |  |  |  | — |  |  |  | 292 |
Class A Common Stock, $0.01 par value, 30,000,000 shares authorized; 6,458,376 shares issued |  |  | 64 |  |  |  | — |  |  |  | 64 |
Capital in excess of par value |  |  | 242,039 |  |  |  | — |  |  |  | 242,039 |
Retained earnings |  |  | 461,382 |  |  |  | (12,036 | ) |  |  | 449,346 |
Accumulated other comprehensive income |  |  | 87,838 |  |  |  | (36 | ) |  |  | 87,802 |
Treasury Stock, 13,408,334 shares, at cost |  |  | (287,499 | ) |  |  | — |  |  |  | (287,499 | )
Total Movado Group, Inc. shareholders' equity |  |  | 504,116 |  |  |  | (12,072 | ) |  |  | 492,044 |
Noncontrolling interest |  |  | 2,459 |  |  |  | (91 | ) |  |  | 2,368 |
Total equity |  |  | 506,575 |  |  |  | (12,163 | ) |  |  | 494,412 |
Total liabilities and equity |  | $ | 759,188 |  |  | $ | (16,708 | ) |  | $ | 742,480 |
MOVADO GROUP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited)
|  | Three Months Ended July 31, 2024 |  |  | Six Months Ended July 31, 2024 |
|  | As Previously Reported |  |  | Adjustment |  |  | As Restated |  |  | As Previously Reported |  |  | Adjustment |  |  | As Restated |
Net sales |  | $ | 159,313 |  |  | $ | (2,313 | ) |  | $ | 157,000 |  |  | $ | 295,982 |  |  | $ | (4,603 | ) |  | $ | 291,379 |
Cost of sales |  |  | 72,948 |  |  |  | (1,200 | ) |  |  | 71,748 |  |  |  | 134,104 |  |  |  | (897 | ) |  |  | 133,207 |
Gross profit |  |  | 86,365 |  |  |  | (1,113 | ) |  |  | 85,252 |  |  |  | 161,878 |  |  |  | (3,706 | ) |  |  | 158,172 |
Selling, general and administrative |  |  | 83,335 |  |  |  | (725 | ) |  |  | 82,610 |  |  |  | 155,537 |  |  |  | (2,125 | ) |  |  | 153,412 |
Operating income |  |  | 3,030 |  |  |  | (388 | ) |  |  | 2,642 |  |  |  | 6,341 |  |  |  | (1,581 | ) |  |  | 4,760 |
Non-operating income/(expense): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other income, net |  |  | 1,877 |  |  |  | — |  |  |  | 1,877 |  |  |  | 4,049 |  |  |  | — |  |  |  | 4,049 |
Interest expense |  |  | (110 | ) |  |  | — |  |  |  | (110 | ) |  |  | (228 | ) |  |  | — |  |  |  | (228 | )
Income/(loss) before income taxes |  |  | 4,797 |  |  |  | (388 | ) |  |  | 4,409 |  |  |  | 10,162 |  |  |  | (1,581 | ) |  |  | 8,581 |
Provision/(benefit) for income taxes |  |  | 936 |  |  |  | (93 | ) |  |  | 843 |  |  |  | 3,238 |  |  |  | (362 | ) |  |  | 2,876 |
Net income/(loss) |  |  | 3,861 |  |  |  | (295 | ) |  |  | 3,566 |  |  |  | 6,924 |  |  |  | (1,219 | ) |  |  | 5,705 |
Less: Net income attributable to noncontrolling interest |  |  | 140 |  |  |  | (43 | ) |  |  | 97 |  |  |  | 312 |  |  |  | (91 | ) |  |  | 221 |
Net income/(loss) attributable to Movado Group, Inc. |  | $ | 3,721 |  |  | $ | (252 | ) |  | $ | 3,469 |  |  | $ | 6,612 |  |  | $ | (1,128 | ) |  | $ | 5,484 |
Basic income/(loss) per share: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Weighted basic average shares outstanding |  |  | 22,303 |  |  |  | — |  |  |  | 22,303 |  |  |  | 22,278 |  |  |  | — |  |  |  | 22,278 |
Net income/(loss) per share attributable to Movado Group, Inc. |  | $ | 0.17 |  |  | $ | (0.01 | ) |  | $ | 0.16 |  |  | $ | 0.30 |  |  | $ | (0.05 | ) |  | $ | 0.25 |
Diluted income/(loss) per share: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Weighted diluted average shares outstanding |  |  | 22,658 |  |  |  | — |  |  |  | 22,658 |  |  |  | 22,665 |  |  |  | — |  |  |  | 22,665 |
Net income/(loss) per share attributable to Movado Group, Inc. |  | $ | 0.16 |  |  | $ | (0.01 | ) |  | $ | 0.15 |  |  | $ | 0.29 |  |  | $ | (0.05 | ) |  | $ | 0.24 |
MOVADO GROUP, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
|  | Six Months Ended July 31, 2024 |
|  | As Previously Reported |  |  | Adjustment |  |  | As Restated |
Cash flows from operating activities: |  |  |  |  |  |  |  |  |
Net income/(loss) |  | $ | 6,924 |  |  | $ | (1,219 | ) |  | $ | 5,705 |
Adjustments to reconcile net income/(loss) to net cash provided by operating activities: |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | 4,582 |  |  |  | — |  |  |  | 4,582 |
Transactional gains |  |  | (75 | ) |  |  | — |  |  |  | (75 | )
Provision for inventories and accounts receivable |  |  | 2,292 |  |  |  | — |  |  |  | 2,292 |
Deferred income taxes |  |  | (553 | ) |  |  | — |  |  |  | (553 | )
Stock-based compensation |  |  | 2,855 |  |  |  | — |  |  |  | 2,855 |
Other |  |  | 171 |  |  |  | — |  |  |  | 171 |
Changes in assets and liabilities: |  |  |  |  |  |  |  |  |
Trade receivables |  |  | (6,864 | ) |  |  | 4,603 |  |  |  | (2,261 | )
Inventories |  |  | (31,401 | ) |  |  | (897 | ) |  |  | (32,298 | )
Other current assets |  |  | (8,375 | ) |  |  | — |  |  |  | (8,375 | )
Accounts payable |  |  | 3,493 |  |  |  | — |  |  |  | 3,493 |
Accrued liabilities |  |  | 6,608 |  |  |  | (500 | ) |  |  | 6,108 |
Accrued payroll and benefits |  |  | 2,243 |  |  |  | (1,625 | ) |  |  | 618 |
Income taxes receivable |  |  | 4,126 |  |  |  | 382 |  |  |  | 4,508 |
Income taxes payable |  |  | (22,218 | ) |  |  | (744 | ) |  |  | (22,962 | )
Other non-current assets |  |  | 276 |  |  |  | — |  |  |  | 276 |
Other non-current liabilities |  |  | 6 |  |  |  | — |  |  |  | 6 |
Net cash used in operating activities |  | $ | (35,910 | ) |  | $ | - |  |  | $ | (35,910 | )
The restatement had no impact on investing and financing activities or cash balances. The following amounts (in thousands) were restated in the Consolidated Statement of Comprehensive Income (Loss) for the three and six months ended July 31, 2024.
|  | For the Three Months Ended July 31, 2024 |
|  | As Previously Reported |  |  | Adjustment |  |  | As Restated |
Net income/(loss) |  | $ | 3,861 |  |  | $ | (295 | ) |  | $ | 3,566 |
Other comprehensive income/(loss): |  |  |  |  |  |  |  |  |
Foreign currency translation adjustments |  |  | 5,826 |  |  |  | (44 | ) |  |  | 5,782 |
Total other comprehensive income/(loss) |  |  | 5,765 |  |  |  | (44 | ) |  |  | 5,721 |
Comprehensive income/(loss) attributable to noncontrolling interests: |  |  |  |  |  |  |  |  |
Net income/(loss) |  |  | 140 |  |  |  | (43 | ) |  |  | 97 |
Foreign currency translation adjustments |  |  | 11 |  |  |  | - |  |  |  | 11 |
Total comprehensive income/(loss) attributable to noncontrolling interests |  |  | 151 |  |  |  | (43 | ) |  |  | 108 |
Total comprehensive income/(loss) attributable to Movado Group, Inc. |  | $ | 9,475 |  |  | $ | (296 | ) |  | $ | 9,179 |
|  | For the Six Months Ended July 31, 2024 |
|  | As Previously Reported |  |  | Adjustment |  |  | As Restated |
Net income/(loss) |  | $ | 6,924 |  |  | $ | (1,219 | ) |  | $ | 5,705 |
Other comprehensive income/(loss): |  |  |  |  |  |  |  |  |
Foreign currency translation adjustments |  |  | (4,513 | ) |  |  | (36 | ) |  |  | (4,549 | )
Total other comprehensive (loss)/income |  |  | (4,497 | ) |  |  | (36 | ) |  |  | (4,533 | )
Comprehensive income/(loss) attributable to noncontrolling interests: |  |  |  |  |  |  |  |  |
Net income/(loss) |  |  | 312 |  |  |  | (91 | ) |  |  | 221 |
Foreign currency translation adjustments |  |  | (12 | ) |  |  | - |  |  |  | (12 | )
Total comprehensive income/(loss) attributable to noncontrolling interests |  |  | 300 |  |  |  | (91 | ) |  |  | 209 |
Total comprehensive income/(loss) attributable to Movado Group, Inc. |  | $ | 2,127 |  |  | $ | (1,164 | ) |  | $ | 963 |
The following amounts (in thousands) were restated in the Consolidated Statement of Changes in Equity for the three and six months ended July 31, 2024.
|  | For the Three Months Ended July 31, 2024 |
|  | As Previously Reported |  |  | Adjustment |  |  | As Restated |
Retained earnings beginning balance |  | $ | 465,435 |  |  | $ | (11,784 | ) |  | $ | 453,651 |
Net income/(loss) attributable to Movado Group, Inc. |  |  | 3,721 |  |  |  | (252 | ) |  |  | 3,469 |
Retained earnings ending balance |  |  | 461,382 |  |  |  | (12,036 | ) |  |  | 449,346 |
Accumulated other comprehensive income beginning balance |  |  | 82,073 |  |  |  | 8 |  |  |  | 82,081 |
Foreign currency translation adjustment |  |  | 5,826 |  |  |  | (44 | ) |  |  | 5,782 |
Accumulated other comprehensive income ending balance |  |  | 87,838 |  |  |  | (36 | ) |  |  | 87,802 |
Noncontrolling interest beginning balance |  |  | 2,308 |  |  |  | (48 | ) |  |  | 2,260 |
Net income attributable to Movado Group, Inc. |  |  | 140 |  |  |  | (43 | ) |  |  | 97 |
Foreign currency translation adjustment |  |  | 11 |  |  |  | - |  |  |  | 11 |
Noncontrolling interest ending balance |  |  | 2,459 |  |  |  | (91 | ) |  |  | 2,368 |
Total equity ending balance |  | $ | 506,575 |  |  | $ | (12,163 | ) |  | $ | 494,412 |
|  | For the Six Months Ended July 31, 2024 |
|  | As Previously Reported |  |  | Adjustment |  |  | As Restated |
Retained earnings beginning balance |  | $ | 470,317 |  |  | $ | (10,908 | ) |  | $ | 459,409 |
Net income/(loss) attributable to Movado Group, Inc. |  |  | 6,612 |  |  |  | (1,128 | ) |  |  | 5,484 |
Retained earnings ending balance |  |  | 461,382 |  |  |  | (12,036 | ) |  |  | 449,346 |
Accumulated other comprehensive income beginning balance |  |  | 92,335 |  |  |  | - |  |  |  | 92,335 |
Foreign currency translation adjustment |  |  | (4,513 | ) |  |  | (36 | ) |  |  | (4,549 | )
Accumulated other comprehensive income ending balance |  |  | 87,838 |  |  |  | (36 | ) |  |  | 87,802 |
Noncontrolling interest beginning balance |  |  | 2,159 |  |  |  | - |  |  |  | 2,159 |
Net income attributable to Movado Group, Inc. |  |  | 312 |  |  |  | (91 | ) |  |  | 221 |
Foreign currency translation adjustment |  |  | (12 | ) |  |  | - |  |  |  | (12 | )
Noncontrolling interest ending balance |  |  | 2,459 |  |  |  | (91 | ) |  |  | 2,368 |
Total equity ending balance |  | $ | 506,575 |  |  | $ | (12,163 | ) |  | $ | 494,412 |

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- Definition Tabular disclosure of prior period adjustments to previously issued financial statements including (1) the effect of the correction on each financial statement line item and any per-share amounts affected for each prior period presented (2) the cumulative effect of the change on retained earnings or other appropriate components of equity or net assets in the statement of financial position, as of the beginning of the earliest period presented, and (3) the effect of the prior period adjustments (both gross and net of applicable income tax) on the net income of each prior period presented in the entity's annual report for the year in which the adjustments are made. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 7 -Publisher FASB -URI https://asc.fasb.org/1943274/2147483443/250-10-50-7 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 8 -Publisher FASB -URI https://asc.fasb.org/1943274/2147483443/250-10-50-8 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147483443/250-10-50-9 + Details
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