Movado Group Inc.

Good day, everybody, and welcome to Movado first quarter and fiscal year 2026 earnings call. As a reminder, today's call is being recorded and may not be reproduced in full or in part without permission from the company. At this time, I would like to turn the conference over to Alison Mackin of ICR. Please go ahead.

Everyone with me on the call are Efren Grunberg, Chairman and Chief Executive Officer and Sally DeMarsalis, Executive Vice President and Chief Operating Officer and Chief Financial Officer. Before we get started, I would like to remind you of the company's safe harbor language, which I'm sure you're all familiar with. The statements contained in this conference call, which are not historical facts, may be deemed to constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual future results may differ materially from those suggested in such statements due to a number of risks and uncertainties, all of which are described in the company's filings with the SEC, which includes today's press release. If any non-GAAP financial measure is used on this call, a presentation of the most directly comparable GAAP financial measure to this non-GAAP financial measure will be provided as supplemental financial information in our press release. Now, I would like to turn the call over to Ephraim Grimberg, Chairman and Chief Executive Officer of Movado Group.

Thank you, Alison. Good morning, and welcome to Movado Group's first quarter earnings call. I am joined today by Sally DeMarcellis, our Executive Vice President and CFO. I will first review our first quarter results and our progress against our strategic initiatives. Sally will then review our financial results in greater detail. We would then be glad to take questions. We are pleased by our performance in the first quarter, especially as it involved navigating through an increasingly uncertain global economic environment. For the quarter, we delivered sales of $131.8 million versus $134.4 million last year, down 1.9%. or 1% on a constant currency basis. Our adjusted operating income for the first quarter of fiscal 2026 was $870,000 versus operating income of $2.1 million last year. We made good progress on reducing our operating expenses through our cost savings initiatives, although some of the benefits were offset by unrealized losses due to significant currency fluctuations. Our adjusted earnings per share for the quarter were 8 cents, down slightly from 9 cents last year on a lower tax rate. We ended the quarter with $203 million in cash and no debt. We are pleased that our board approved a dividend of 35 cents per share for the first quarter. Despite an uncertain retail environment, we continue to execute on our strategic priorities. introducing product innovation and delivering compelling value for our consumers worldwide. For the first quarter, our U.S. sales were down 1.6%, while international sales were down 2.2% or 0.7% on a constant currency basis. We continue to make meaningful progress on our Movado brand refresh, even as we navigate a challenged retail environment. We're particularly pleased with the recent introduction of our new Mini Bangle collections and the Bold Mini Quest, which have received a strong consumer response. These new styles, opening at $750 and $595 respectively, are helping to elevate the brand positioning and broaden our reach. Additionally, the amplification of our partnership with Movado brand ambassador and NBA star Tyrese Halliburton, who is currently making a standout playoff run, has further enhanced our visibility. We have been utilizing social media campaigns, leveraging both influencers and dynamic content across Instagram and TikTok to connect with our target consumers and strengthen engagement with more to come this year. In our licensed brands, we have seen particularly strong growth with sales improving by high single digits. Coach continues to connect with Gen Z and millennials, particularly through our Sammy and Cass collections. Our Charter Chronograph collection is expanding the penetration of our men's offerings. In Hugo Boss, we continue to drive improving performance with the success of the Sky Traveler family for him and the Lucy collection for her. while continuing to grow our Boss jewelry business. Lacoste continues to grow with the continued success of LC33, the Lacoste Boston family, and our best-selling Metropole bracelet from our jewelry collection. In Calvin Klein, we're focusing on driving our women's business with our iconic Pulse collection and the newly launched Meridian family, a new mini rectangular-shaped watch. We're also seeing a strong response to our new elongated drop collection in CK jewelry. In Tommy Hilfiger, we have seen success in our skeleton watch product families, led by the Baker watch, while our bank chronograph in iconic Tommy Hilfiger colors is also performing well. And for women, we have seen a strong response to the new Tia Square watch and will be expanding introductions throughout the year. In Olivia Burton, we have seen strong trends in the US and the UK, with consumers responding to our shape cases, like our iconic Grosvenor, now available in a mini execution, and our Grove family. For the quarter, we saw an improved trend in our outlet division, with sales only down 1.7%, and that improvement has continued into the second quarter, with trends improving throughout the month of May. As we progress through the current quarter and position ourselves for the second half, we are seeing some positive signs while continuing to navigate a retail and economic environment affected by tariff-related uncertainties. At the current temporary U.S. tariff rates, we believe we can partially mitigate the associated cost increases through available levers, including selective price increases. However, we recognize that the current tariff rates are subject to change based upon pending trade negotiations and legal challenges. Given the global uncertainty, we are focused on managing the controllables and operating with a high level of flexibility and agility while staying focused on delivering innovation, quality, and value for our consumers. Due to the macroeconomic and tariff-related uncertainty, we're not providing outlook at this time. Still, we see resilience in the category, with young consumers embracing trend-forward watches and jewelry. Across our portfolio, we have seen strong momentum in women's watch collections and men's jewelry offerings, both of which are helping to drive engagement and growth. I would now like to turn the call over to Sally to walk you through the financials in greater detail. We would then be glad to answer any of the questions you might have.