Movado Group to Sell EBEL Brand Interest for $66.5 Million to Montres Journe Consortium

Key numbers

Deal value	$66M
Share of market cap	9.3%
Share of annual revenue	9.9%

Key highlights

• Sale of 95% equity interest in EBEL for approximately $66.5 million in cash
• Buyer group led by Montres Journe SA with participation from Chanel and Pierre Jacques
• Divestiture includes all EBEL trademarks, inventory, and the historic Villa Turque
• Movado retains a 5% interest and will provide transition services post-closing
• Closing anticipated in the fourth quarter of fiscal 2026 pending reorganization

What Is Being Divested?

The divestiture involves a 95% interest in the EBEL brand, a premium Swiss watchmaker founded in 1911. Movado Group, Inc. reached an agreement with a strategic consortium including Montres Journe SA, Chanel, and industry executive Pierre Jacques for approximately $66.5 million. The deal, which is expected to close during the fourth quarter of fiscal 2026, includes the transfer of trademarks, existing inventory, and intellectual property. Furthermore, the transaction includes the historic Villa Turque in La Chaux-de-Fonds, a modernist residence designed by Le Corbusier. Movado will retain a 5% minority equity stake and provide transition services to the new entity.

Why This Divestiture

Management indicated that the strategic rationale for the sale is to prioritize the expansion of Movado's core accessible luxury and fashion jewelry portfolio. By divesting EBEL, the company aims to reallocate resources toward brands with higher growth potential within its existing infrastructure. The transaction follows recent financial updates where the company projected mid-single-digit topline sales growth and gross margins between 55% and 56% for the second half of fiscal 2027. This move places EBEL under the stewardship of specialized luxury houses like Montres Journe and Chanel, which possess the specific technical expertise required to manage high-end Swiss horology assets.

Financial Impact

• Expected proceeds of $66.5 million to be used for strategic resource allocation
• Retention of a 5% minority equity interest in the newly formed EBEL subsidiary
• Transaction remains subject to customary post-closing adjustments and reorganization
• Movado will provide ongoing transition services to the buyer group post-closing
• Shift in capital focus toward high-volume brands targeting accessible luxury segments

Financial Context

Movado Group reported annual revenue of $671.3 million and carries a market capitalization of approximately $713.8 million. The company's recent guidance for the second half of fiscal 2027 anticipates mid-single-digit sales growth and gross margins between 55% and 56%, excluding certain duty refunds. The divestiture of EBEL, which includes an order backlog of $56.8 million as of April 2025 across the wider portfolio, simplifies the company's financial profile. With an RSI of 34.7 and a P/E ratio of 17.7, the company maintains a stable valuation as it pivots its capital toward high-volume brands like Coach, Tommy Hilfiger, and Hugo Boss.

Up 1.0% since our story on 8 Oct: $31.99 when we broke it → $32.31 at the close on 13 Oct. Daily closing prices. Source: Yahoo Finance.

Show the prices

14 Sep	$33.28
15 Sep	$32.84
16 Sep	$32.94
17 Sep	$33.38
18 Sep	$33.02
21 Sep	$32.97
22 Sep	$33.28
23 Sep	$33.24
24 Sep	$33.42
25 Sep	$34.12
28 Sep	$33.48
29 Sep	$33.59
30 Sep	$33.28
1 Oct	$33.95
2 Oct	$33.66
5 Oct	$33.45
6 Oct	$32.85
7 Oct	$32.56
8 Oct	$31.99
9 Oct	$31.57
12 Oct	$32.06
13 Oct	$32.31

Industry Landscape

The transaction highlights a broader trend in the watch industry where high-end heritage brands are being consolidated into specialized luxury groups. EBEL joins a prestigious lineup under the influence of Montres Journe SA and Chanel, which focus on artisanal craftsmanship and long-term brand development. This specialized ownership model contrasts with the diversified retail strategies of larger groups that manage extensive fashion license portfolios. By transferring EBEL to owners with specific horological expertise, the brand gains access to the capital and technical resources necessary for a revival. This move reflects the increasing division between mass-market fashion accessories and the ultra-premium Swiss luxury watch sector.

Management commentary

“This transaction reflects the continued strategic discipline with which we are managing our portfolio and allocating our resources.”

“EBEL has always stood for exceptional product, and I am delighted to contribute to its next chapter alongside my friends and partners.”

MOVADO GROUP INC · financial snapshot

Share price	$31.99
Market cap	$714M
Revenue (annual)	$671M
P/E (TTM)	17.7×
1-month price change	-3.21%
Sector	Consumer CyclicalLuxury Goods

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.