SCHEDULE 13G/A: Royce & Associates LP Amends Stake in Movado Group, Inc., Holding Over 10% of Common Stock

Royce & Associates LP, an investment adviser, has filed an amendment to its Schedule 13G, disclosing a 10.47% beneficial ownership stake in Movado Group, Inc. as of February 28, 2025.

Summary

• Royce & Associates LP, an investment adviser based in New York, reported beneficial ownership of 1,642,698 shares of Movado Group, Inc. common stock.
• This ownership represents 10.47% of Movado Group, Inc.'s total outstanding common stock.
• Royce & Associates LP holds sole voting power and sole dispositive power over all 1,642,698 shares.
• The filing is an Amendment No. 15 to Schedule 13G, indicating an update to a previously reported ownership position.
• One specific account managed by Royce & Associates LP, the Royce Small-Cap Special Equity Fund (a registered investment company), holds 1,049,500 shares, which constitutes 6.69% of Movado Group, Inc.'s total shares outstanding.
• Royce & Associates LP certifies that the securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing the control of Movado Group, Inc.

Sentiment

Score: 6

Explanation: Neutral to slightly positive. The filing is a routine disclosure of a significant, passive institutional stake, which is generally a positive signal of investor confidence. It contains no negative news about the issuer's operations or financials.

Positives

• A significant institutional investor, Royce & Associates LP, maintains a substantial stake (10.47%) in Movado Group, Inc., which can be interpreted as a sign of continued confidence in the company.
• The investment is explicitly stated to be held in the ordinary course of business and not for the purpose of influencing control, suggesting a passive, long-term investment strategy by a reputable asset manager.

Risks

• Royce & Associates LP disclaims any pecuniary interest in the reported securities.
• Royce & Associates LP disclaims that the filing should be construed as an admission of beneficial ownership as defined in Rule 13d-3.
• Royce & Associates LP asserts that it is not a 'group' with Franklin Resources, Inc. affiliates or its principal shareholders, and that beneficial ownership is not attributed among them, which addresses potential regulatory interpretations of control or coordinated action.

Future Outlook

The document is a Schedule 13G filing, which reports beneficial ownership and does not typically contain forward-looking statements or guidance regarding the issuer's business operations or financial performance. It primarily reflects an investment position.

Management Comments

• "The securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect." (Certification by Daniel A. O'Byrne, Vice President of Royce & Associates LP)
• "RALP disclaims any pecuniary interest in any of the securities reported in this Schedule 13G."
• "The filing of this Schedule 13G on behalf of RALP should not be construed as an admission that it is, and it disclaims that it is, the beneficial owner, as defined in Rule 13d 3, of any of such securities."
• "RALP believes that it is not a 'group' with FRI affiliates, the Principal Shareholders, or their respective affiliates within the meaning of Rule 13d 5 under the Act and that none of them is otherwise required to attribute to any other the beneficial ownership of the securities held by such person or by any persons or entities for whom or for which RALP or the FRI affiliates provide investment management services."

Industry Context

This filing is a routine disclosure of institutional ownership in the consumer discretionary sector, specifically related to a company known for watches and accessories. It reflects an investment adviser's portfolio allocation and does not provide specific insights into broader industry trends or competitive dynamics beyond the fact that Movado Group, Inc. is a publicly traded company attracting institutional investment.

Comparison to Industry Standards

• This document is a Schedule 13G filing, which reports beneficial ownership and does not contain information suitable for direct comparison to industry-specific operational or financial benchmarks.
• It details an investment position rather than company performance against peers like Fossil Group, Inc. or Swatch Group AG.

Stakeholder Impact

• Shareholders: Existing shareholders may view the continued significant stake by a reputable investment adviser as a positive signal of long-term value and stability.
• Management: Management of Movado Group, Inc. is aware of a large, passive institutional holder, which can influence strategic considerations, though the filing explicitly states no intent to influence control.

Next Steps

• The document does not outline future actions or milestones for Movado Group, Inc. It is a regulatory filing detailing current ownership.

Key Dates

Keywords

Movado Group Inc., Royce & Associates LP, Schedule 13G, Beneficial Ownership, Institutional Investor, Common Stock, SEC Filing, Investment Adviser, Shareholding, Passive Investment