Movado Group Inc. Completes Strategic Divestiture of EBEL Brand

Movado Group Inc. (NYSE: MOV) announced the finalization of a binding agreement to sell a 95 percent stake in the Swiss luxury watch brand EBEL to a consortium led by Montres Journe SA, with participation from Chanel and Pierre Jacques. The transaction, valued at US$66.5 million, will leave Movado with a 5 percent minority holding in EBEL.

Rationale for the Sale

The divestiture aligns with Movado’s long‑term strategy to sharpen its focus on the affordable luxury and fashion‑watch segments that constitute the bulk of its revenue. By shedding the premium‑watch business, Movado intends to:

  • Reallocate capital toward expanding its core watch and jewelry brands in North America, Western Europe, and the Far East.
  • Simplify operational complexity and streamline supply chains, thereby improving margins and speed to market.
  • Enhance shareholder value through a more disciplined portfolio management approach, reflected in the current price‑to‑earnings ratio of 18.3.

New Ownership Structure of EBEL

The buyer consortium brings deep expertise and significant financial backing. Montres Journe SA, renowned for its precision craftsmanship, will assume a controlling position, while Chanel’s involvement signals a commitment to brand prestige and market reach. Pierre Jacques, a veteran of the Swiss watch industry, will take the helm as CEO of EBEL, tasked with unlocking the brand’s long‑term potential.

Movado will continue to provide transitional support and will maintain a minority interest, positioning the company to benefit from EBEL’s future growth without diverting attention from its primary business lines.

Market Reaction

Following the announcement, Movado’s shares settled at US$32.56 on October 6, 2026, comfortably within the 52‑week range of US$17.24 to US$40.50. The market’s response suggests confidence that the divestiture will streamline operations and strengthen the company’s competitive stance in the consumer‑discretionary sector.

Outlook

With the EBEL stake now largely divested, Movado is poised to intensify investment in its key watch and jewelry portfolios. The company’s market cap of approximately US$536.9 million underscores a solid valuation base, while the impending focus on core assets is expected to drive earnings growth and improve operational leverage. Analysts anticipate that the reallocation of resources will translate into higher profitability and a stronger positioning against peers in the luxury‑goods arena.