Movado Group, Inc. (NYSE: MOV) Under Investigation for Potential Securities Fraud

• Movado Group, Inc. (NYSE:MOV) is being investigated by Pomerantz LLP for potential securities fraud related to misconduct in its Dubai branch.
• The company has announced the need to restate its financial statements for fiscal years ending January 31, 2024, 2023, and 2022, due to overstated sales and underreported credit notes.
• Despite these challenges, Movado reported strong financial performance with earnings per share of $0.51 and revenue of approximately $181.5 million, surpassing estimates.

Movado Group, Inc. (NYSE:MOV) is under investigation by Pomerantz LLP for potential securities fraud and unlawful business practices. The investigation follows Movado's disclosure of misconduct in its Dubai branch, involving overstated sales and underreported credit notes in the Middle East, India, and Asia Pacific regions. This misconduct, facilitated by the former managing director and certain employees, spanned five years.

Movado has taken corrective actions by terminating the managing director and announcing the need to restate its financial statements for fiscal years ending January 31, 2024, 2023, and 2022. The restatement aims to address inaccuracies in sales and credit reporting. Additionally, Movado identified a material weakness in its internal control over financial reporting, specifically in its risk assessment process related to the Dubai Branch.

Despite these challenges, Movado reported strong financial performance on April 16, 2025. The company achieved earnings per share of $0.51, surpassing the estimated $0.39, and reported revenue of approximately $181.5 million, exceeding the estimated $141.9 million. This indicates that Movado's core business operations remain robust despite the ongoing investigation.

Movado's financial position remains solid, with total assets of approximately $729.2 million and total liabilities of around $245.7 million. The company's stockholders' equity stands at approximately $483.6 million, and it holds cash and cash equivalents amounting to about $208.5 million. Movado's long-term debt is reported to be $75.5 million, reflecting a manageable debt level.

The company's inventory is valued at approximately $156.7 million, and it has net receivables totaling around $102.9 million. Movado's account payables are approximately $34.3 million, with other current liabilities reported to be $78.6 million. These figures suggest that Movado maintains a healthy balance sheet, which may help it navigate the challenges posed by the investigation.