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Restatement of Previously Issued Consolidated Financial Statements (Tables)

9 Months Ended

Oct. 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 October 31, 2024 and for the three and nine month periods ended October 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)

		October 31, 2024
		As Previously Reported				Adjustment				As Restated
ASSETS
Current assets:
Cash and cash equivalents		$	181,548				—			$	181,548
Trade receivables, net			139,163				(25,310	)			113,853
Inventories			168,929				7,208				176,137
Other current assets			22,625				—				22,625
Income taxes receivable			7,922				(622	)			7,300
Total current assets			520,187				(18,724	)			501,463
Property, plant and equipment, net			20,480				—				20,480
Operating lease right-of-use assets			88,892				—				88,892
Deferred and non-current income taxes			43,767				—				43,767
Other intangibles, net			6,192				—				6,192
Other non-current assets			86,358				—				86,358
Total assets		$	765,876			$	(18,724	)		$	747,152
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable		$	29,429				—			$	29,429
Accrued liabilities			51,245				(750	)			50,495
Accrued payroll and benefits			12,541				(2,625	)			9,916
Current operating lease liabilities			18,851				—				18,851
Income taxes payable			9,760				(2,775	)			6,985
Total current liabilities			121,826				(6,150	)			115,676
Deferred and non-current income taxes payable			1,188				—				1,188
Non-current operating lease liabilities			79,410				—				79,410
Other non-current liabilities			57,028				—				57,028
Total liabilities			259,452				(6,150	)			253,302
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; 29,174,709 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			243,311				—				243,311
Retained earnings			458,660				(12,259	)			446,401
Accumulated other comprehensive income			90,323				(61	)			90,262
Treasury Stock, 13,490,483 shares, at cost			(289,067	)			—				(289,067	)
Total Movado Group, Inc. shareholders' equity			503,583				(12,320	)			491,263
Noncontrolling interest			2,841				(254	)			2,587
Total equity			506,424				(12,574	)			493,850
Total liabilities and equity		$	765,876			$	(18,724	)		$	747,152

MOVADO GROUP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

		Three Months Ended October 31, 2024												Nine Months Ended October 31, 2024
		As Previously Reported				Adjustment				As Restated				As Previously Reported				Adjustment				As Restated
Net sales		$	182,727			$	(2,203	)		$	180,524			$	478,709			$	(6,806	)		$	471,903
Cost of sales			84,331				(437	)			83,894				218,435				(1,334	)			217,101
Gross profit			98,396				(1,766	)			96,630				260,274				(5,472	)			254,802
Selling, general and administrative			91,846				(1,249	)			90,597				247,383				(3,374	)			244,009
Operating income			6,550				(517	)			6,033				12,891				(2,098	)			10,793
Non-operating income/(expense):
Other income, net			1,522				—				1,522				5,571				—				5,571
Interest expense			(144	)			—				(144	)			(372	)			—				(372	)
Income/(loss) before income taxes			7,928				(517	)			7,411				18,090				(2,098	)			15,992
Provision/(benefit) for income taxes			2,495				(130	)			2,365				5,733				(492	)			5,241
Net income/(loss)			5,433				(387	)			5,046				12,357				(1,606	)			10,751
Less: Net income/(loss) attributable to noncontrolling interest			383				(164	)			219				695				(255	)			440
Net income/(loss) attributable to Movado Group, Inc.		$	5,050			$	(223	)		$	4,827			$	11,662			$	(1,351	)		$	10,311
Basic income/(loss) per share:
Weighted basic average shares outstanding			22,283				—				22,283				22,280				—				22,280
Net income/(loss) per share attributable to Movado Group, Inc.		$	0.23			$	(0.01	)		$	0.22			$	0.52			$	(0.06	)		$	0.46
Diluted income/(loss) per share:
Weighted diluted average shares outstanding			22,559				—				22,559				22,627				—				22,627
Net income/(loss) per share attributable to Movado Group, Inc.		$	0.22			$	(0.01	)		$	0.21			$	0.52			$	(0.06	)		$	0.46

MOVADO GROUP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

		Nine Months Ended October 31, 2024
		As Previously Reported				Adjustment				As Restated
Cash flows from operating activities:
Net income/(loss)		$	12,357			$	(1,606	)		$	10,751
Adjustments to reconcile net income/(loss) to net cash provided by operating activities:
Depreciation and amortization			6,960				—				6,960
Transactional losses			594				—				594
Provision for inventories and accounts receivable			4,489				—				4,489
Deferred income taxes			(1,582	)			—				(1,582	)
Stock-based compensation			4,094				—				4,094
Other			265				—				265
Changes in assets and liabilities:
Trade receivables			(37,026	)			6,806				(30,220	)
Inventories			(24,697	)			(1,334	)			(26,031	)
Other current assets			(4,675	)			—				(4,675	)
Accounts payable			(3,709	)			—				(3,709	)
Accrued liabilities			11,974				(750	)			11,224
Accrued payroll and benefits			4,994				(2,625	)			2,369
Income taxes receivable			8,374				608				8,982
Income taxes payable			(19,855	)			(1,099	)			(20,954	)
Other non-current assets			(3,141	)			—				(3,141	)
Other non-current liabilities			(43	)			—				(43	)
Net cash used in operating activities		$	(40,627	)		$	-			$	(40,627	)

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 nine months ended October 31, 2024.

		For the Three Months Ended October 31, 2024
		As Previously Reported				Adjustment				As Restated
Net income/(loss)		$	5,433			$	(387	)		$	5,046
Other comprehensive income/(loss):
Foreign currency translation adjustments			2,266				(25	)			2,241
Total other comprehensive income/(loss)			2,485				(25	)			2,460
Comprehensive income/(loss) attributable to noncontrolling interests:
Net income/(loss)			383				(164	)			219
Foreign currency translation adjustments			(1	)			1				-
Total comprehensive income/(loss) attributable to noncontrolling interests			382				(163	)			219
Total comprehensive income/(loss) attributable to Movado Group, Inc.		$	7,536			$	(249	)		$	7,287
		For the Nine Months Ended October 31, 2024
		As Previously Reported				Adjustment				As Restated
Net income/(loss)		$	12,357			$	(1,606	)		$	10,751
Other comprehensive income/(loss):
Foreign currency translation adjustments			(2,247	)			(61	)			(2,308	)
Total other comprehensive (loss)/income			(2,012	)			(61	)			(2,073	)
Comprehensive income/(loss) attributable to noncontrolling interests:
Net income/(loss)			695				(255	)			440
Foreign currency translation adjustments			(13	)			1				(12	)
Total comprehensive income/(loss) attributable to noncontrolling interests			682				(254	)			428
Total comprehensive income/(loss) attributable to Movado Group, Inc.		$	9,663			$	(1,413	)		$	8,250

The following amounts (in thousands) were restated in the Consolidated Statement of Changes in Equity for the three and nine months ended October 31, 2024.

		For the Three Months Ended October 31, 2024
		As Previously Reported				Adjustment				As Restated
Retained earnings beginning balance		$	461,382			$	(12,036	)		$	449,346
Net income/(loss) attributable to Movado Group, Inc.			5,050				(223	)			4,827
Retained earnings ending balance			458,660				(12,259	)			446,401
Accumulated other comprehensive income beginning balance			87,838				(36	)			87,802
Foreign currency translation adjustment			2,266				(25	)			2,241
Accumulated other comprehensive income ending balance			90,323				(61	)			90,262
Noncontrolling interest beginning balance			2,459				(91	)			2,368
Net income attributable to Movado Group, Inc.			383				(164	)			219
Foreign currency translation adjustment			(1	)			1				-
Noncontrolling interest ending balance			2,841				(254	)			2,587
Total equity ending balance		$	506,424			$	(12,574	)		$	493,850
		For the Nine Months Ended October 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.			11,662				(1,351	)			10,311
Retained earnings ending balance			458,660				(12,259	)			446,401
Accumulated other comprehensive income beginning balance			92,335				-				92,335
Foreign currency translation adjustment			(2,247	)			(61	)			(2,308	)
Accumulated other comprehensive income ending balance			90,323				(61	)			90,262
Noncontrolling interest beginning balance			2,159				-				2,159
Net income attributable to Movado Group, Inc.			695				(255	)			440
Foreign currency translation adjustment			(13	)			1				(12	)
Noncontrolling interest ending balance			2,841				(254	)			2,587
Total equity ending balance		$	506,424			$	(12,574	)		$	493,850

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- References

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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