Movado (MOV) Q1 Earnings Report Preview: What To Look For

Luxury watch company Movado (NYSE:MOV) will be reporting results tomorrow morning. Here's what to look for.

Movado beat analysts' revenue expectations by 2.8% last quarter, reporting revenues of $179.6 million, down 7.5% year on year. It was a solid quarter for the company, with an impressive beat of analysts' earnings estimates and full-year revenue guidance exceeding analysts' expectations.

Is Movado a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Movado's revenue to be flat year on year at $145.2 million, improving from the 11.3% decrease it recorded in the same quarter last year.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Movado has missed Wall Street's revenue estimates four times over the last two years.

Looking at Movado's peers in the apparel, accessories and luxury goods segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Figs posted flat year-on-year revenue, beating analysts' expectations by 1.6%, and Kontoor Brands reported a revenue decline of 5.4%, topping estimates by 3.8%. Figs traded down 4.4% following the results while Kontoor Brands was up 5.7%.

Read our full analysis of Figs's results here and Kontoor Brands's results here.

There has been positive sentiment among investors in the apparel, accessories and luxury goods segment, with share prices up 3.2% on average over the last month. Movado is up 7% during the same time and is heading into earnings with an average analyst price target of $41 (compared to the current share price of $27.26).

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