Movado Group Inc

Movado Group reported strong fiscal second-quarter results, with sales rising 4.9% to $169.8 million and diluted earnings per share increasing to $0.54 from $0.23. Adjusted operating income more than doubled to $15.1 million, driven by broad-based growth across U.S. and international markets, product launches, pricing actions, and lower promotions. Gross margin reached 59.4%, helped by $3.2 million in IEEPA duty refunds, but management expects second-half gross margin to be 55%–56% as those benefits fade. The company anticipates mid-single-digit sales growth for the remainder of fiscal 2027 and will no longer provide an annual outlook. Movado also plans to expand its partnership with Tapestry, launching Kate Spade watches next fiscal year.

Zacks Investment Research featured Green Dot, Priority Technology, and Movado Group as small-cap stocks with bullish outlooks, each carrying a Zacks Rank #1 (Strong Buy). Green Dot posted a strong double-beat in its latest quarter, with sales growing nearly 18% year-over-year and gross dollar volume reaching $43.2 billion, while its current-year consensus EPS estimate of $1.68 has risen nearly 17% over the past year. Priority Technology saw 11.1% year-over-year sales growth and gross margin expansion of roughly 70 basis points, affirming its full-year guidance, with consensus estimates pointing to 20% EPS growth this fiscal year and 17% in fiscal 2027. Movado Group crushed the Zacks Consensus EPS estimate by more than 430% and posted a 5% sales surprise, with revenue of $142 million climbing over 8% year-over-year and adjusted EPS soaring 300%.

Tapestry reported first-quarter revenues of $1.92 billion, up 21.2% year on year and beating analyst estimates by 7.6%, making it the standout performer among 15 tracked consumer discretionary apparel and accessories stocks. The group as a whole exceeded revenue consensus by 1.6% and issued in-line guidance for the next quarter, with share prices up an average 4.9% since reporting. Movado posted the best stock reaction, rising 25.4% after revenues of $142.4 million beat by 5.4%, while Under Armour was the weakest, with flat revenues of $1.17 billion and a 6.7% share decline following disappointing EPS guidance. Stitch Fix and G-III also beat estimates, with Stitch Fix reporting $340.3 million in revenue and G-III reporting $536 million, though G-III's revenue fell 8.2% year on year.