What Happened:
Shares of luxury watch company Movado (NYSE:MOV) fell 13.3% in the afternoon session after the company reported second quarter earnings results. Full-year revenue guidance was lowered and missed. In addition, EPS missed, but Movado exceeded analysts' revenue expectations. The company cited a "challenging consumer spending environment compounded by increased expenses to support future growth." Overall, this was a weaker quarter, but expectations were also seemingly low going into the print.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Movado? Access our full analysis report here, it’s free.
What is the market telling us:
Movado’s shares are not very volatile than the market average and over the last year have had only 3 moves greater than 5%. Moves this big are very rare for Movado and that is indicating to us that this news had a significant impact on the market’s perception of the business.
Movado is down 35.3% since the beginning of the year, and at $19.62 per share it is trading 36.6% below its 52-week high of $30.97 from December 2023. Investors who bought $1,000 worth of Movado’s shares 5 years ago would now be looking at an investment worth $850.82.
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