Movado Group Inc (MOV) 2027 Q1 法說會逐字稿

Good day, everybody, and welcome to the Movado Group Inc., first quarter 2027 earnings conference 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.

各位好，歡迎參加 Movado Group Inc. 2027 會計年度第一季財報電話會議。提醒各位，今天的電話會議將被錄音，未經公司許可，不得全部或部分重製。

At this time, I would like to turn the conference over to Allison Malkin of ICR. Please go ahead.

現在我想把會議交給 ICR 的 Allison Malkin。請開始。

Thank you. Good morning, everyone. With me on the call today are Efraim Grinberg, Chairman and Chief Executive Officer; and Sallie DeMarsilis, Executive Vice President 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.

謝謝。各位早安。今天與我一同出席電話會議的有：董事長兼執行長 Efraim Grinberg，以及執行副總裁兼財務長 Sallie DeMarsilis。在開始之前，我想提醒各位公司「安全港」聲明，相信各位都很熟悉。本次電話會議中所包含、非屬歷史事實的陳述，可能構成《1995 年私人證券訴訟改革法》所定義的前瞻性陳述。

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.

由於多項風險與不確定性，實際未來結果可能與此類陳述所暗示者有重大差異；相關風險與不確定性均載於公司向美國證券交易委員會（SEC）提交的文件中，其中亦包括今天的新聞稿。若本次電話會議使用任何非 GAAP 財務衡量指標，我們將在新聞稿所附的補充財務資訊中，提供與該非 GAAP 指標最直接可比的 GAAP 財務衡量指標。

Now I would like to turn the call over to Efraim Grinberg, Chairman and Chief Executive Officer of Movado Group.

現在我想把電話會議交給 Movado Group 董事長兼執行長 Efraim Grinberg。

Thank you, Allison. Good morning, everyone. Thank you for joining us. With me today is Sallie DeMarsilis, our Executive Vice President and Chief Financial Officer. After these prepared remarks, we'll be happy to answer your questions. We are very pleased with our start of the year. Our first quarter performance demonstrates meaningful momentum across our business and continued consumer strength despite a dynamic external environment. Sales increased 8.1% as reported or 4.5% on a constant currency basis, reaching $142.4 million.

謝謝你，Allison。各位早安。感謝各位加入我們。今天與我一同出席的是我們的執行副總裁兼財務長 Sallie DeMarsilis。在這些事先準備的發言之後，我們很樂意回答各位的問題。我們對今年的開局感到非常滿意。我們第一季的表現顯示公司各項業務具備顯著動能，且儘管外部環境多變，消費者需求仍持續強勁。銷售額按報告基礎成長 8.1%，或按固定匯率基礎成長 4.5%，達到 1.424 億美元。

Adjusted operating profit increased to $7.5 million from $900,000 in Q1 of last year. Adjusted earnings per share increased to $0.32 from $0.08, driven by strong execution against our strategic priorities. Continued strong US momentum and improving trends in Europe led the way. This was supported by increased retailer replenishment activity, currency tailwinds and robust direct-to-consumer growth across both movado.com and our company stores.

調整後營業利益由去年第一季的 90 萬美元提升至 750 萬美元。調整後每股盈餘由 0.08 美元提升至 0.32 美元，主要受惠於我們在策略優先事項上的強力執行。美國持續強勁的動能以及歐洲趨勢改善帶動整體表現。這也受到零售商補貨活動增加、匯率順風，以及我們在 movado.com 與公司門市兩大通路的直接面向消費者（DTC）業務強勁成長所支持。

The Middle East region was extremely challenging due to the ongoing conflict. Excluding this region, our growth would have been even more significant, underscoring the strength of our core markets. On the profitability front, gross margin improved 320 basis points due to a favorable mix of business despite a stronger Swiss franc. Our teams executed well against the strategic priorities we've outlined. We ended the quarter with $225 million in cash and no debt, providing us with significant financial flexibility.

由於持續的衝突，中東地區面臨極為嚴峻的挑戰。若排除該地區，我們的成長將更為顯著，凸顯核心市場的實力。在獲利方面，儘管瑞士法郎走強，受惠於有利的業務組合，毛利率提升 320 個基點。我們的團隊在既定的策略優先事項上執行到位。本季末我們持有 2.25 億美元現金且無負債，為我們提供顯著的財務彈性。

In recognition of our solid financial position and belief in the long-term health of our business, I am also pleased to share that our Board approved a $0.05 per share increase in our quarterly cash dividend to $0.40 per share.

基於我們穩健的財務狀況以及對公司長期健康發展的信心，我也很高興分享董事會已核准將季度現金股利每股提高 0.05 美元至每股 0.40 美元。

I'd now like to discuss our performance in the context of our key strategic priorities. Our first priority is to put our customers at the center of everything we do. In that regard, we continue to strengthen consumer engagement across digital platforms while delivering trend-right products that honors each brand's unique identity. We're particularly encouraged by the resurgence of the fashion watch category, especially among younger consumers globally who are increasingly attracted to traditional watches.

接下來我想在我們的關鍵策略優先事項脈絡下，說明本季表現。我們的第一項優先事項，是將客戶置於我們所做一切的核心。在此方面，我們持續強化數位平台上的消費者互動，同時提供符合潮流趨勢的產品，並尊重各品牌獨特的品牌識別。我們尤其受到時尚腕錶品類復甦的鼓舞，特別是在全球年輕消費者之間，他們正日益被傳統腕錶所吸引。

Let me share some brand highlights. Movado delivered strong performance with renewed interest in both innovative new designs and iconic classics. Several best-selling styles sold out during the quarter, and we expect to replenish these key items by summer. Movado.com sales increased 12.8%, reflecting strong direct-to-consumer demand and our improved digital capabilities. Our company stores achieved a 10.2% sales increase, while our enhanced analytics and customer engagement tools are helping us better understand consumer preferences and optimize assortments across all our channels.

我分享一些品牌亮點。Movado 表現強勁，市場對創新新設計與經典標誌款的興趣再度升溫。本季多款暢銷款式售罄，我們預期將在夏季前補足這些關鍵商品。Movado.com 銷售成長 12.8%，反映直接面向消費者需求強勁，以及我們數位能力的提升。公司門市銷售成長 10.2%；同時，我們強化的分析能力與客戶互動工具，正協助我們更深入了解消費者偏好，並在所有通路最佳化商品組合。

Our second strategic priority is to deliver consumer and brand-focused innovation. In that regard, the Movado brand sales growth was driven by retailer replenishment and continued consumer response to our Bangle collection, Museum Velura and the new Mini Bold Evolution Tank. The Heritage 1917 Collection for both men and women continue to exceed expectations, and our new Curve jewelry collection is resonating strongly on movado.com, validating our strategy to expand jewelry within the Movado portfolio.

我們的第二項策略優先事項，是提供以消費者與品牌為核心的創新。在此方面，Movado 品牌的銷售成長主要由零售商補貨，以及消費者對我們 Bangle 系列、Museum Velura 與全新 Mini Bold Evolution Tank 的持續良好反應所帶動。Heritage 1917 系列（男女款）持續超出預期；而我們全新的 Curve 珠寶系列在 movado.com 上引起強烈共鳴，驗證我們在 Movado 產品組合中擴展珠寶品類的策略。

Looking ahead to Father's Day and the second quarter, we're excited about two launches, the new Sporty BOLD Verso S collection and the vintage-inspired Kingmatic collection, both experiencing strong early demand. Additionally, our limited drop of the new 23-millimeter Baby Face watch in spring colors sold out quickly, validating consumer appetite for smaller distinctive sizes.

展望父親節與第二季，我們對兩項新品上市感到振奮：全新 Sporty BOLD Verso S 系列與復古靈感的 Kingmatic 系列，兩者在早期即展現強勁需求。此外，我們限量推出的全新 23 毫米 Baby Face 腕錶春季配色迅速售罄，驗證消費者對更小且具辨識度尺寸的偏好。

Across our licensed brands, we're seeing strong momentum. Net sales were up 6.5% for the first quarter over last year. Excluding the Middle East, licensed brand sales increased 9.2% on a constant currency basis, with new shapes and sizes driving results across multiple markets and categories. Coach is seeing strong Gen Z engagement, particularly with the iconic Signature C dial on our Sammy Oval family. The new 22-millimeter [Iris] family is off to a strong start, further validating demand for innovation in smaller women's watches.

在我們的授權品牌方面，我們看到強勁動能。第一季淨銷售額較去年同期成長 6.5%。若排除中東地區，授權品牌銷售按固定匯率基礎成長 9.2%，多個市場與品類的表現皆由新造型與新尺寸所帶動。Coach 在 Z 世代互動上表現強勁，尤其是我們 Sammy Oval 系列上經典的 Signature C 錶盤。全新 22 毫米 [Iris] 系列開局強勁，進一步驗證在較小尺寸女錶上對創新的需求。

Lacoste is building strong momentum with new LC33 execution, including a square version in signature khaki green. The Rene collection named after Rene Lacoste himself is resonating well. Our Metropole bracelet continues to drive jewelry sales globally. HUGO BOSS performance is led by the Grand Prix Chronograph family and the new Grand Prix Vitesse with expanding men's classic assortments. The North Pendant, our latest men's jewelry innovation, has quickly become a bestseller.

Lacoste 透過全新 LC33 的設計演繹持續累積強勁動能，其中包括以標誌性卡其綠呈現的方形版本。以 René Lacoste 本人命名的 Rene 系列反應良好。我們的 Metropole 手鍊持續推動全球珠寶銷售。HUGO BOSS 的表現由 Grand Prix Chronograph 系列與全新 Grand Prix Vitesse 所帶動，並擴大男士經典款式的商品組合。North Pendant 作為我們最新的男士珠寶創新，已迅速成為暢銷品。

Tommy Hilfiger's Bruce family continues to drive global performance. We're increasingly penetrating the women's market with strong demand for new shapes and sizes, particularly the MIA and the newly introduced McKinsey collections. In Calvin Klein, the Mini Pulse family continues its strong performance, while the new sophisticated square is quickly becoming a bestseller. Men's is gaining traction with the new 39-millimeter Motion family.

Tommy Hilfiger 的 Bruce 系列持續推動全球表現。我們正加速滲透女錶市場，對新造型與新尺寸的需求強勁，尤其是 MIA 與新推出的 McKinsey 系列。在 Calvin Klein 方面，Mini Pulse 系列持續維持強勁表現，而全新精緻方形款也迅速成為暢銷品。男錶方面，隨著全新 39 毫米 Motion 系列推出，正逐步獲得市場動能。

And finally, Olivia Burton's retail sell-through in the US and the UK remains strong, both in-store and online, driven by the Mini Grove and the Mini Grosvenor collections. Our third strategic priority is to deliver compelling consumer storytelling. We recently launched digital content celebrating the 145th anniversary of Movado, inviting consumers to experience not only our rich heritage, but also the quality and craftsmanship behind every Movado watch.

最後，Olivia Burton 在美國與英國的零售終端銷售（sell-through）依然強勁，無論是實體店或線上，主要由 Mini Grove 與 Mini Grosvenor 系列帶動。我們的第三項策略重點是打造引人入勝的消費者敘事。我們近期推出數位內容，慶祝 Movado 145 週年，邀請消費者不僅體驗我們深厚的品牌傳承，也了解每一只 Movado 腕錶背後的品質與工藝。

Engagement has been exceptionally strong across digital platforms. Our brand ambassadors, Ludacris, Christian McCaffrey, Julianne Moore, Jessica Alba and Tyrese Haliburton continue to authentically represent our collections. Across the portfolio, we're deepening consumer connections through strategic storytelling, including our association with Checo Perez and the Cadillac Formula 1 team for Tommy Hilfiger. We will continue amplifying these initiatives across our brand portfolio throughout the year.

在各大數位平台上的互動表現格外強勁。我們的品牌大使 Ludacris、Christian McCaffrey、Julianne Moore、Jessica Alba 與 Tyrese Haliburton 持續以真誠方式詮釋並代表我們的系列。在整體品牌組合中，我們透過策略性敘事深化與消費者的連結，包括 Tommy Hilfiger 與 Checo Perez 以及 Cadillac 一級方程式（Formula 1）車隊的合作關係。我們將在全年持續於品牌組合中放大並推進這些計畫。

Our fourth strategic priority is to expand margins and increase profitability. In that regard, we improved gross margin by 320 basis points in Q1, primarily due to a favorable sales mix and continuing to elevate our full price-selling. Our focus remains on three key drivers: introducing higher-margin products, driving full price selling through stronger brand positioning while reducing promotional activity and improving efficiency across our value chain and operations.

我們的第四項策略重點是擴大毛利率並提升獲利能力。在這方面，我們於第一季將毛利率提升了 320 個基點，主要受惠於有利的銷售組合，以及持續提升全價銷售占比。我們的重點仍聚焦於三項關鍵驅動因素：推出更高毛利產品、透過更強的品牌定位推動全價銷售並降低促銷活動，以及提升整體價值鏈與營運效率。

While progress may vary quarter-to-quarter, we believe these initiatives position us to deliver meaningful long-term margin improvement. As we look ahead, we remain encouraged by the improving trends across the business and by demonstrated consumer resilience. While the external environment remains dynamic, we believe our strong portfolio of brands, disciplined execution, healthy balance sheet and commitment to innovation position us well for the remainder of the year. We are particularly optimistic about the renewed momentum in the fashion watch category, the strength in our direct-to-consumer business and the positive reception to our new product introductions across both owned and licensed brands.

儘管進展可能在各季度間有所差異，我們相信這些舉措將使我們得以實現具意義的長期毛利率改善。展望未來，我們對業務各面向的改善趨勢以及已展現的消費者韌性仍感到鼓舞。儘管外部環境仍在變動，我們相信憑藉強大的品牌組合、嚴謹的執行力、健康的資產負債表以及對創新的承諾，將使我們在今年剩餘時間保持良好態勢。我們尤其看好時尚腕錶品類重拾動能、直面消費者（DTC）業務的強勁表現，以及自有與授權品牌新產品上市所獲得的正面回饋。

While we're not providing guidance due to the current economic and geopolitical uncertainty, including the unpredictable impact of the current Middle East conflict, we expect sales growth to moderate in the second quarter, particularly on a constant currency basis, following the strong replenishment activity we experienced in Q1.

由於目前經濟與地緣政治不確定性（包括當前中東衝突帶來的不可預測影響），我們不提供財測指引；在第一季經歷強勁補貨活動之後，我們預期第二季銷售成長將趨於溫和，尤其以固定匯率基礎衡量時更為明顯。

Our focus remains on controlling what we can control, investing behind our brand. (technical difficulty)

我們的重點仍是掌控我們能掌控的部分，持續投資於我們的品牌。(技術問題)

We are having technical difficulty. Thank you for your patience. The conference will be resuming momentarily. Once again, we are having technical difficulties.

我們遇到技術問題。感謝各位的耐心等候。會議將在片刻後恢復。再次說明，我們目前有技術問題。

I understand we dropped off for a second. So I will finish my comments and then turn it over to Sallie.

我了解我們剛才短暫中斷了一下。因此我會完成我的發言，然後把時間交給 Sallie。

Our focus remains on controlling what we can control, investing behind our brands, deepening consumer engagement, improving operational efficiencies and driving long-term profitability. I want to recognize our global teams for their commitments to our strategy and execution within a complex environment.

我們的重點仍是掌控我們能掌控的部分，持續投資於我們的品牌、深化消費者互動、提升營運效率，並推動長期獲利能力。我想肯定我們全球團隊在複雜環境中對策略的承諾與執行。

Now I'll turn the call over to Sallie to review our financial results in greater detail.

接下來我把電話會議交給 Sallie，請她更詳細地回顧我們的財務結果。

Thank you, Efraim, and good morning, everyone. For today's call, I will review our financial results for the first quarter of fiscal 2027. My comments today will focus on adjusted results. Please refer to the description of the special item included in our results for the first quarter of fiscal 2027 in our press release issued earlier today, which also includes a reconciliation table of GAAP and non-GAAP measures.

謝謝你，Efraim，各位早安。在今天的電話會議中，我將回顧 2027 會計年度第一季的財務結果。我今天的發言將聚焦於調整後（adjusted）結果。請參閱我們今日稍早發布的新聞稿，其中說明了 2027 會計年度第一季結果所包含的特殊項目，並附有 GAAP 與非 GAAP 指標的調節表。

Overall, we were very pleased with our first quarter fiscal 2027 performance. Our results included top line growth of 8.1% versus the first quarter of fiscal 2026 and marked our fourth quarter of sequential improvements. We continued to make good progress on our strategic initiatives and maintained an extremely strong balance sheet.

整體而言，我們對 2027 會計年度第一季的表現非常滿意。相較於 2026 會計年度第一季，我們的營收（top line）成長 8.1%，並且是連續第四個季度呈現逐季改善。我們持續在策略性舉措上取得良好進展，並維持極為強健的資產負債表。

Turning to a review of the quarter. Sales were $142.4 million as compared to $131.8 million last year, reflecting growth in our owned brands, licensed brands and in our company stores. In constant dollars, the increase in net sales was 4.5%. Strong overall sales more than compensated for our weak performance in the Middle East due to the ongoing conflict. By geography, US net sales increased 8.7% as compared to the first quarter of last year. International net sales increased 7.6%.

接著回顧本季表現。銷售額為 1.424 億美元，去年同期為 1.318 億美元，反映自有品牌、授權品牌以及公司門市的成長。以固定美元計算，淨銷售額增加 4.5%。整體強勁的銷售表現，已足以彌補因持續衝突導致我們在中東地區的疲弱表現。按地區來看，美國淨銷售額較去年第一季增加 8.7%。國際淨銷售額增加 7.6%。

On a constant currency basis, international net sales increased 1.6%. Gross profit as a percent of sales was 57.3% compared to 54.1% in the first quarter of last year. The year over year increase in gross margin rate was primarily driven by favorable channel and product mix and increased leverage of certain costs over higher sales, partially offset by a negative impact of the fluctuation in foreign currency -- foreign exchange rates.

以固定匯率基礎計算，國際淨銷售額增加 1.6%。毛利率（占銷售額百分比）為 57.3%，去年第一季為 54.1%。毛利率年增主要由有利的通路與產品組合，以及在較高銷售額下部分成本的規模效益所帶動；但部分被外幣匯率波動（外匯匯率）帶來的負面影響所抵銷。

We experienced temporary favorability in gross margin during the first quarter of fiscal 2027 due to the elimination of the IEEPA tariffs to the extent that we had residual inventory in our US warehouse. As for the potential recovery of the $10 million of IEEPA tariffs we had previously paid, we have elected not to recognize the gain until the cash refund is received. Operating expenses were $74.1 million as compared to $70.5 million for the same period of last year. The increase was driven by higher marketing expenses and performance-based compensation.

由於在美國倉庫仍有剩餘庫存，且 IEEPA 關稅已被取消，我們在 2027 會計年度第一季的毛利率出現暫時性的有利影響。至於先前已支付的 1,000 萬美元 IEEPA 關稅可能的追回款項，我們選擇在收到現金退還之前，不認列該項收益。營業費用為 7,410 萬美元，去年同期為 7,050 萬美元。增加主要由較高的行銷費用與績效型薪酬所致。

Higher sales and gross margin dollars more than offset the increase in operating expenses, resulting in operating income increasing $6.6 million to $7.5 million as compared to $900,000 in the first quarter of fiscal 2026. We recorded approximately $2 million of other non-operating income in the first quarter of fiscal, which was primarily comprised of interest earned on our global cash position and distributions received from a venture capital fund in which we hold a limited partnership interest.

較高的銷售額與毛利金額足以抵銷營業費用的增加，使營業利益增加 660 萬美元至 750 萬美元，相較於 2026 會計年度第一季的 90 萬美元。我們在本會計年度第一季認列約 200 萬美元的其他非營業收入，主要包括全球現金部位所賺取的利息，以及我們持有有限合夥權益之創投基金所分配的收益。

This compared to $1.8 million recorded during the same period of last year, which was primarily interest earned on our global cash. We recorded income tax expense of $2.1 million in the first quarter of fiscal 2027 as compared to $800,000 in the first quarter of fiscal 2026. Net income in the first quarter was $7.3 million or $0.32 per diluted share as compared to $1.9 million or $0.08 per diluted share in the year ago period.

相較之下，去年同期認列 180 萬美元，主要為全球現金所賺取的利息。我們在 2027 會計年度第一季認列所得稅費用 210 萬美元，去年同期為 80 萬美元。第一季淨利為 730 萬美元，或稀釋後每股盈餘 0.32 美元；相較於去年同期的 190 萬美元，或稀釋後每股盈餘 0.08 美元。

Now turning to our balance sheet. Cash at the end of the first quarter was $225.3 million as compared to $203.1 million at the same period of last year, and we reported positive cash flow from operations in the first quarter of fiscal 2027 of $7 million.

接著看資產負債表。第一季末現金為 2.253 億美元，去年同期為 2.031 億美元；我們在 2027 會計年度第一季的營運活動現金流為正，為 700 萬美元。

In recognition of our strong cash flow generation and solid financial position, this morning, we are pleased to have announced a $0.05 increase in our quarterly dividend to $0.40 per share. Accounts receivable was $80 million as compared to $87.3 million for the same period of last year. The reduction was due to timing and mix of business.

為表彰我們強勁的現金流創造能力與穩健的財務狀況，我們很高興在今天上午宣布，將季度股利提高 0.05 美元至每股 0.40 美元。應收帳款為 8,000 萬美元，去年同期為 8,730 萬美元。下降主要由於時點因素與業務組合所致。

Inventory at the end of the quarter decreased $7.3 million from the same period of last year due to the timing of receipts. In the first three months of fiscal 2027, capital expenditures were $1.2 million. As it relates to share repurchases, we repurchased approximately 61,000 shares in the first quarter of fiscal 2027. As of April 30, 2026, we had $44.6 million of availability remaining under our December 5, 2024, share repurchase program.

本季季末存貨因收貨時點因素，較去年同期減少730萬美元。2027會計年度前三個月的資本支出為120萬美元。就庫藏股回購而言，我們在2027會計年度第一季回購約61,000股。截至2026年4月30日，我們在2024年12月5日的股票回購計畫下仍有4,460萬美元的可用額度。

Given the current economic and geopolitical uncertainty, including the unpredictable impact of the current Middle East conflict, the company has elected to not provide fiscal 2027 outlook at this time.

鑑於目前經濟與地緣政治的不確定性，包括當前中東衝突帶來的不可預測影響，公司目前決定不提供2027會計年度展望。

I would now like to open the call up for questions.

我現在想開放電話會議進行提問。

(Operator Instructions) Owen Rickert, Northland Securities.

(接線員指示) Owen Rickert，Northland Securities。

Congrats on a great quarter. First for me, how much of the strong gross margin expansion is structural versus one-time? And what's the right baseline to think about for the rest of the year?

恭喜本季表現非常出色。我第一個問題是，強勁的毛利率擴張有多少是結構性的、又有多少是一次性的？另外，今年剩餘期間應該以什麼樣的基準來看待？

We would expect based on the balance of the year to generate higher gross margin than last year, but not at this level that we did in Q1. So it's probably somewhere between halfway across both of those, Sallie, would you say that's true? And so, we are looking for an improvement in gross profit, and we think that the actions that we're taking will have long-term benefits in our gross margin improvement, especially as we reduce SKU counts across our brands and rationalize our suppliers.

根據今年剩餘期間的情況，我們預期毛利率會高於去年，但不會達到第一季這樣的水準。所以大概會落在兩者之間的某個位置，Sallie，你會說這樣是對的嗎？因此，我們正在尋求毛利的改善，並且我們認為正在採取的行動將對毛利率改善帶來長期效益，尤其是當我們在各品牌降低SKU數量並精簡供應商時。

Got it. Super helpful. And then building off of that, you cited channel and product mix as key drivers of that expansion for the quarter. Which brands or channels are really moving the needle here?

了解。非常有幫助。接著延伸這點，你提到通路與產品組合是本季擴張的關鍵驅動因素。哪些品牌或通路真正帶來了顯著貢獻？

So our direct channels did very well, obviously, in Q1, our movado.com website, our oliviaburton.com website and our retail channel. We're also seeing strength across our digital partners across the world with the exception of the Middle East. So I think all those things contributed to improved gross margin. Improved Movado wholesale business also drives our margins as well.

我們的直營通路在第一季表現非常好，顯然包括movado.com網站、oliviaburton.com網站以及我們的零售通路。此外，除中東地區外，我們也看到全球各地的數位合作夥伴表現強勁。我認為這些因素都促成了毛利率的提升。Movado批發業務的改善也同樣推升了我們的毛利率。

Got it. Got it. And next for me, we keep hearing smaller case sizes in distinctive shapes. So that seems to be a key theme here. How are you repositioning inventory in the product road map to lean into that? And are retailers ordering ahead on it?

了解。了解。接下來，我們一直聽到更小的錶殼尺寸與更具特色的造型。這似乎是這裡的一個關鍵主題。你們如何在產品路線圖中重新配置存貨以順勢而為？零售商是否有提前下單？

So one of our focuses has really for the last 18 months has been driving innovation. Obviously, there's a lead time to do that. And there are places where we've advanced -- brands where we've advanced the needle better than in other brands. So we still have a lot of opportunities in that area. But what's been really rewarding, particularly, has been to see younger consumers into the traditional watch space, and we think they're here to stay.

我們其中一個重點其實在過去18個月一直是推動創新。顯然，這需要一定的前置時間。而在某些方面，我們在部分品牌推進得比其他品牌更快、更有成效。因此在這個領域我們仍有很多機會。但特別令人欣慰的是，我們看到更年輕的消費者進入傳統手錶市場，我們認為他們會持續留在這個市場。

And they've been out of the market for a long period of time. And so that's really exciting to see. And getting them into the fashion watch market means that ultimately, they'll be moving up the channel and price points as well. And that phenomenon have really been on a global basis. So I think it portends well for the future of the watch category.

而且他們已經有很長一段時間沒有在這個市場消費了。因此看到這點真的令人振奮。讓他們進入時尚手錶市場，意味著最終他們也會往更高階的通路與價格帶升級。而這種現象其實是全球性的。所以我認為這對手錶品類的未來是個很好的預兆。

Hamed Khorsand, BWS Financial.

Hamed Khorsand，BWS Financial。

So the commentary about the retailer's replenishment, was that a one-time event in the quarter and you think it was just borrowed from Q2? Or is that really just a matter of timing as far as that replenishment selling through? I'm just a little confused with why you're talking about Q2.

關於你提到零售商補貨的評論，這是本季一次性的事件、你認為只是從第二季提前借來的需求嗎？還是說，這其實只是補貨銷售穿透（sell-through）在時點上的問題？我有點不太理解你們為什麼在談第二季。

Sure. So really, it has to do with -- and as you remember, Q4 was better than we expected and better than our retailers expected. So they needed to replenish more inventory than usual or than certainly the last number of years. And that occurred in Q1.

當然。這主要與——如你所記得的，第四季表現比我們預期的更好，也比零售商預期的更好。因此他們需要補充比平常更多的存貨，或至少比過去幾年更多。而這發生在第一季。

And what it's also done is deplete us of certain inventory, which, as I said, will be hopefully solved by summer, which will enable us, I think, to get on a more balanced schedule through the second half of the year and the important holiday selling season. I think we're in good -- we have shortages today of inventory, particularly in our Movado brand. And they were unanticipated prior to Q1 of this year.

同時，這也使我們某些存貨被消耗掉；正如我所說，希望能在夏季前後解決，這將使我們能在下半年以及重要的假期銷售季，回到更均衡的供貨節奏。我認為我們目前狀況良好——但今天確實存在存貨短缺，特別是在Movado品牌。而在今年第一季之前，這些短缺是未曾預期的。

Okay. And then what are your thoughts about the current ongoing interest in Swatch's new release? And is that a good thing for you, a bad thing for the industry? What are your thoughts?

好的。那你對Swatch最新發表持續引發的關注有什麼看法？這對你們來說是好事、壞事，或對整個產業而言如何？你怎麼看？

I think I'm fairly neutral on it, but I think any interest in the watch category is a good interest. And especially in -- although this is somewhat of a hybrid, but of traditional watches that celebrate craftsmanship and watchmaking and mechanical movements. All those things are certainly a good note for the watch business.

我對此相當中性，但我認為任何對手錶品類的關注都是正面的。尤其是——雖然這在某種程度上是混合型產品——但它關注的是傳統手錶，並讚頌工藝、製錶以及機械機芯。這些對手錶業務而言無疑都是正向訊號。

And I think we make a lot of really beautiful fashion watches, and you've seen that our innovation is driving demand among young consumers. We know that our penetration of Gen Z consumers, for example, in our Coach brand, is extremely high. And so, we think that bringing interest to the category is a great thing. And I think -- so that's probably my point of view on that situation.

而且我認為我們製作了許多非常漂亮的時尚手錶，你也看到我們的創新正在推動年輕消費者的需求。例如，我們知道在Coach品牌中，Z世代消費者的滲透率非常高。因此，我們認為提升對這個品類的興趣是一件很棒的事。我想——這大概就是我對那個情況的看法。

With no further questions, I would like to turn the floor back over to Efraim for closing remarks.

若沒有進一步的問題，我想把時間交回給Efraim作結語。

Okay. Thank you. Thank you very much, all of you, for participating and great questions today. As you can tell, we have a big belief in our business and the long-term prospects of both the category and our company and think that there are a lot of opportunities ahead, and we look forward to talking to you at the end of our second quarter. Thank you.

好的。謝謝。非常感謝各位今天的參與以及精彩的提問。如各位所見，我們對自身業務以及該品類與公司長期前景都抱持高度信心，並認為未來仍有許多機會；我們期待在第二季結束時再與各位交流。謝謝。

Thank you. This will conclude today's conference. You may disconnect at this time and thank you for your participation.

謝謝。今天的電話會議到此結束。您現在可以掛線，感謝您的參與。