Market Overview

Movado Group Announces Agreement to Acquire MVMT

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~ Expands Movado Group's Brand Portfolio by Adding a Millennial
Focused Brand with Global Growth Potential ~

~Accelerates Movado Group's Digital Strategy ~

~ Expected to be Accretive to Fiscal Year 2019 Results ~

Movado Group, Inc. (NYSE:MOV) (the "Company") today announced that it
has entered into a definitive agreement to acquire MVMT Watches Inc.,
the owner of MVMT ("MVMT"), a global aspirational lifestyle brand. The
purchase price is comprised of an initial payment of approximately $100
million, or approximately $85 million net of tax benefits that are
anticipated to be generated from the acquisition, and two future
contingent payments that combined could total up to an additional $100
million before tax benefits. The exact amount of the future payments
will be determined by MVMT's future financial performance with no
minimum required future payment. The acquisition will be funded through
cash and borrowings under the Company's revolving credit facility. The
purchase price will be subject to working capital and other closing
adjustments. The closing of the acquisition is subject to customary
closing conditions, including clearance under the Hart-Scott-Rodino
Antitrust Improvements Act, and is expected to close on or about October
1, 2018.

MVMT was founded by Jacob Kassan, 27, and Kramer LaPlante, 26, in Los
Angeles in 2013, initially selling watches and later adding sunglasses
and accessories in 2017. Since inception, MVMT has experienced
significant growth with expansion into 160+ countries largely through a
leading direct-to-consumer business model. MVMT products are designed
for the millennial consumer with the goal of changing the way the
customer thinks about fashion by delivering high quality watches and
accessories at an affordable price. MVMT's world-class digital strategy
has driven high brand awareness across social media with an active
community of 4.5 million followers, in addition to strong customer
acquisition, and category leading site traffic. MVMT products are
primarily sold through its global e-commerce site and also a few select
retailers in the United States such as Nordstrom and Bloomingdales. MVMT
has approximately 40 employees, all based in its head office in Los
Angeles. Kassan and LaPlante have been recognized as leaders in the
field of ecommerce having been named to Forbes 30 under 30.

The benefits of the proposed transaction include:

  • Adds a category leading millennial brand created though world-class
    digital execution that has driven a strong track record of growth,
    category-leading site traffic and growing customer relationships that
    will position Movado Group to accelerate its digital strategy.
  • Provides a significant global growth opportunity to Movado Group's
    portfolio as MVMT continues to cross-sell products within its existing
    portfolio, expand product offerings within its core categories of
    watches, sunglasses and accessories, and grow its presence in new
    markets through its direct-to-consumer and wholesale business.
  • Allows MVMT to benefit from Movado Group's global infrastructure and
    distribution network to help accelerate MVMT's expansion in untapped
    categories, channels and geographies.
  • Increases Movado Group's exposure to both aspirational and millennial
    consumers through MVMT's differentiated and affordable watches,
    sunglasses and accessories.
  • Strengthens Movado Group's digital and direct-to-consumer capabilities.

In its last fiscal year ended December 31, 2017, MVMT achieved revenue
of approximately $71 million. Upon closing, Movado Group expects the
transaction to be accretive to its fiscal 2019 results, exclusive of
transaction-related charges and the amortization of anticipated purchase
accounting adjustments. Movado Group will discuss the transaction in
more detail when it reports its second quarter fiscal 2019 results.

MVMT will continue to operate under the leadership of founders Jake
Kassan and Kramer LaPlante, who are expected to retain MVMT's talented
team in Los Angeles.

Efraim Grinberg, Movado Group's Chairman and Chief Executive Officer,
stated, "Jake and Kramer have built an incredible brand and business in
just five years and we are excited to have MVMT join Movado Group.
Today's announcement marks an important milestone for Movado Group. The
acquisition of MVMT will provide us greater access to millennials and
advances our Digital Center of Excellence initiative with the addition
of a powerful brand managed by a successful team of highly creative,
passionate and talented individuals. This announcement comes on the
heels of last year's successful acquisition of our millennial focused
brand, Olivia Burton. We believe significant growth opportunity lies
ahead for MVMT through category, channel and geographic expansion by
leveraging our scale and infrastructure. I am looking forward to
welcoming Jake and Kramer, along with their 40 employees, to our
Company."

Jake Kassan, Co-founder and Chief Executive Officer of MVMT, stated, "As
we looked at the future for MVMT, we felt Movado Group was the perfect
fit to continue our growth. We share many of the same strategies as
Movado Group including a focus on unique design, product innovation, and
providing compelling value for the consumer, which aligns us on future
plans for our brand and will create a smooth transition. Movado Group
has the expertise and resources to help expand MVMT to many untapped
markets around the world."

Kramer LaPlante, Co-founder and Chief Operating Officer of MVMT, added,
"We are thrilled to join the Movado Group family. We are eager to
capitalize on the operating platform that Movado Group provides to allow
MVMT to reach its full potential. We've long admired Movado Group's
beautiful and innovative watches and the MVMT team is very excited to
become part of their powerful portfolio."

Movado Group's financial advisor for this transaction is Centerview
Partners LLC and its legal advisor is Paul, Weiss, Rifkind, Wharton &
Garrison LLP. MVMT's financial advisor is Rothschild & Co and its legal
advisor is Cooley LLP.

Safe Harbor

This press release contains certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995. The
Company has tried, whenever possible, to identify these forward-looking
statements using words such as "expects," "anticipates," "believes,"
"targets," "goals," "projects," "intends," "plans," "seeks,"
"estimates," "may," "will," "should" and variations of such words and
similar expressions. Similarly, statements in this press release that
describe the Company's business strategy, outlook, objectives, plans,
intentions or goals are also forward-looking statements. Accordingly,
such forward-looking statements involve known and unknown risks,
uncertainties and other factors that could cause the Company's actual
results, performance or achievements and levels of future dividends to
differ materially from those expressed in, or implied by, these
statements. These risks and uncertainties may include, but are not
limited to satisfaction of the conditions to closing set forth in the
acquisition agreement, including clearance under the Hart-Scott-Rodino
Antitrust Improvements Act, general economic and business conditions
which may impact disposable income of consumers in the United States and
the other significant markets (including Europe) where the Company's
products are sold, uncertainty regarding such economic and business
conditions, trends in consumer debt levels and bad debt write-offs,
general uncertainty related to possible terrorist attacks, natural
disasters, the stability of the European Union (including the impact of
the June 23, 2016 referendum advising that the United Kingdom exit from
the European Union) and defaults on or downgrades of sovereign debt and
the impact of any of those events on consumer spending, changes in
consumer preferences and popularity of particular designs, new product
development and introduction, the ability of the Company to successfully
implement its business strategies, competitive products and pricing, the
impact of "smart" watches and other wearable tech products on the
traditional watch market, seasonality, availability of alternative
sources of supply in the case of the loss of any significant supplier or
any supplier's inability to fulfill the Company's orders, the loss of or
curtailed sales to significant customers, the Company's dependence on
key employees and officers, the ability to successfully integrate the
operations of acquired businesses without disruption to other business
activities, the continuation of the company's major warehouse and
distribution centers, the continuation of licensing arrangements with
third parties, losses possible from pending or future litigation, the
ability to secure and protect trademarks, patents and other intellectual
property rights, the ability to lease new stores on suitable terms in
desired markets and to complete construction on a timely basis, the
ability of the Company to successfully manage its expenses on a
continuing basis, information systems failure or breaches of network
security, the continued availability to the Company of financing and
credit on favorable terms, business disruptions, disease, general risks
associated with doing business outside the United States including,
without limitation, import duties, tariffs, quotas, political and
economic stability, changes to existing laws or regulations, and success
of hedging strategies with respect to currency exchange rate
fluctuations, and the other factors discussed in the Company's Annual
Report on Form 10-K and other filings with the Securities and Exchange
Commission. These statements reflect the Company's current beliefs and
are based upon information currently available to it. Be advised that
developments subsequent to this press release are likely to cause these
statements to become outdated with the passage of time. The Company
assumes no duty to update its forward looking statements and this
release shall not be construed to indicate the assumption by the Company
of any duty to update its outlook in the future.

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