Singular Diligence On Movado Group, Inc (MOV) by Tobias Carlisle, Greenbackd
This month’s issue of Singular Diligence cover Movado Group, the designer and marketer of luxury watches.
Movado the company is more than just the Movado brand. The company owns two other brands in addition to the namesake Movado brand: Concord, and Ebel. The Movado brand is considered an “accessible luxury” brand, but Concord, and Ebel are genuine luxury watches. Concord watches usually sell for over $10,000 a piece. Ebel sells for mostl $1,500 to $5,000. About 80% of Ebel sales are to women.
Additionally, Movado has been making licensed watches for about 15 years. In 1999, it introduced Coach-branded watches, which generated $16 million in sales that first year. MOV has since obtained the license for Tommy Hilfiger (2001), Hugo Boss (2005), Lacoste (2006), Juicy Couture (2006), and Ferrari (2012).
The Electron Global Fund was up 2% for September, bringing its third-quarter return to -1.7% and its year-to-date return to 8.5%. Meanwhile, the MSCI World Utilities Index was down 7.2% for September, 1.7% for the third quarter and 3.3% year to date. The S&P 500 was down 4.8% for September, up 0.2% for the third Read More
MOV went public in 1993 (as the North American Watch Company). It remains under the control of the founding Grinberg family through a Class A stock that delivers 67% voting control.
Movado is an unusually cheap stock, not just in comparison to other stocks today, and not just in comparison to its peers. It’s cheap relative to the price the average stock has traded for in the past. MOV is not a growth stock, but it is undervalued.
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