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Movado Group Recovers a Profit of $4M in 2Q

Company anticipates net income for full fiscal 2012 in the range of $15 to $16.5 million.
Sep 2, 2011 11:43 AM   By Jeff Miller
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RAPAPORT... The Movado Group reported a 33 percent year on year increase in second-quarter revenue for fiscal-year 2012 at $113.2 million and the cost of sales rose 28 percent to $52.3 million for the three months that ended on July 31. On a constant exchange rate basis, net sales increased 26 percent year on year.  Movado posted profit of $4.4 million compared with a loss of nearly $21 million one year ago.

Efraim Grinberg, the chairman of Movado, said that the company's strategic initiatives helped to drive a prolonged period of double-digit sales growth while increasing profitability. ''While we experienced broad-based sales growth across all of our brand categories, our results continue to be driven by particularly strong performances in Movado and licensed brands both domestically and internationally. We believe that the global recognition and acceptance of our brands further validates that we have the right strategy, products and team in place.''

Gross profit rose to 53.8 percent of sales, compared with  52 percent one year ago.  The increase was primarily the result of leverage on certain fixed costs as well as a favorable shift in channel and product mix.

Based upon second-quarter results, Movado  reiterated its prior guidance for the full fiscal 2012 to anticipate  net income in the range of $15 million to $16.5 million. Movado Group shares (NYSE: MOV) were trading about 50 percent higher from this point in 2010, but as of noon on September 2, shares were down 25-cents to $14.94.


 

Tags: fiscal year, Jeff Miller, loss, Movado, profits, revenue
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