Movado Group, Inc. (NYSE:MOV) Q2 2024 Earnings Call Transcript

Oliver Chen: Okay. And on – this was an earlier question, a follow-up to a follow-up. The average unit retail, as you think about your portfolio, should we assume that the overall AUR may go down or will hold and be offset by transactions? How does it sum up for the bottom line on some of these changes you are making? That would helpful as well.

Efraim Grinberg: So, I think what we are doing is we are backfilling some entry-level price points that we have vacated. But I think overall, we will see a flattish AUR over the next year. So, I am not – I think that it’s not – a lot of different – it’s not a big bulk of our offering, but it enables consumers who are more challenged to enter the brand at accessible price points.

Oliver Chen: Thanks. And last question, you have a really strong balance sheet. It’s always been a hallmark of your financial perspective, just thoughts on cash and how you are thinking about free cash flow generation and return to shareholders. Thanks.

Efraim Grinberg: So obviously, our dividend continues to remain very important to us. And so that is part of our balance sheet as well as share repurchases. And – but I think it is that balance sheet that allows us to feel comfortable to focus on medium and long-term initiatives when times become more challenging that yield overall long-term value to shareholders.

Oliver Chen: Okay. Very excited to see both back, best regards. Thanks.

Efraim Grinberg: Okay. Thank you very much.

Operator: Thank you. There are no further questions at this time. I would like to hand the call back over to management for any closing remarks.

Efraim Grinberg: Okay. I would like to thank all of you for participating with us today. And those in the United States, I wish you a very good upcoming holiday weekend and the end of the summer. Thank you very much and we look forward to talking to you in our third quarter conference call.

Operator: Thank you. That does conclude today’s teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.