Two models of Movado's Edge watch.

Movado is proving that fashionable watches are back, a feat in an era when consumers are shifting to smartwatches and mobile devices to tell time.

The American watchmaker’s stock surged more than 12.5 percent in trading on Tuesday. The company released third-quarter earnings, beating expectations on both top and bottom lines.

Sales for the three months ending Oct. 31 increased 9.6 percent to $208.9 million, up from $190.7 million during the same period last year. Income also rose, from $17.3 million last year to $26.9 million this year.

Efraim Grinberg, chairman and chief executive officer of Movado, however, said the company’s one weak spot was sales at mall-based retailers, which he said during Tuesday’s conference call, “are not performing at the same level” that they once were.

“But we believe that the digital opportunities are significant,” he said.

In fact, Movado’s plan to shift focus to its digital channels, including social media, in an effort to reach digital-savvy Millennial shoppers, has been in place for some time. In the last two years, Movado has acquired two private watch and accessory companies, MVMT and London-based Olivia Burton.

Most recently, the acquisition of MVMT, the Los Angeles-based watch and accessories company founded and run by Millennials Jake Kassan and Kramer LaPlante, was completed on Oct. 1. Movado execs say the purchase will deliver big returns. 

“MVMT has demonstrated a proven ability to reach younger consumers through the e-commerce channel,” Grinberg said.

He went on to describe MVMT, pronounced “movement,” as a “crease,” or “a key strategic acquisition for the company intended to drive long-term growth and profitability.”

Movado Group also owns watch licenses for fashion brands Tommy Hilfiger, Lacoste, Hugo Boss and Coach, all of which performed well during the most recent quarter. Grinberg expects the momentum to continue.

“We believe in the category,” he said. “And we believe that to engage with younger consumers is really important to the future.”