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Restatement of Previously Issued Consolidated Financial Statements (Tables)

6 Months Ended

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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No definition available.

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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

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