Movado Reports Better-Than-Expected Profit
27 August 2015 - 11:10PM
Dow Jones News
Movado Group Inc. reported better-than-expected profit and
revenue for its latest quarter Thursday, as sales edged up despite
currency headwinds.
The luxury watchmaker said it expected to deliver its first
connected Movado timepiece in its fourth fiscal quarter. No further
details on any potential new products were given.
"We believe we are well positioned for the second half of the
year," Chief Executive Efraim Grinberg said. "We have a number of
exciting new product introductions planned for the holiday season
as we continue to drive innovation across our brand portfolio."
Watchmakers have been pressured by a lackluster economy in
Europe and slowing sales in Asia. The industry also has faced
increased competition from smartwatches. In March, Movado said it
would raise prices and undertake "operating efficiency initiatives"
in response.
"The quarter saw the initial benefit of our selective price
increases, operating efficiencies and sourcing improvements across
our supply chain, which combined, drove our gross margin
expansion," said Rick Cote, chief operating officer.
Overall, for the period ended July 31, Movado reported a profit
of $12 million, or 50 cents a share, down slightly from $12.1
million, or 47 cents a share, during the same period a year
earlier.
The latest quarter's earnings were divided among fewer shares,
leading to the increase in per-share earnings despite the sag in
profit.
Revenue increased 1.4% to $145.6 million. The watchmaker said
that excluding currency volatility, sales grew 6.1%.
Analysts surveyed by Thomson Reuters had expected per-share
earnings of 42 cents on sales of $142 million.
Movado said it was maintaining its guidance for the fiscal year,
expecting net sales to be in the range of $590 million to $600
million. The company anticipates net income in the range of about
$48.5 million to $51.0 million, or $2.00 to $2.10 per share.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
August 27, 2015 08:55 ET (12:55 GMT)
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