Movado reaches Q2 and six-month outlook, updates full-year outlook

By

Obi Anyanwu

Published
Aug 26, 2016

Movado Group, Inc. released its second quarter and six month´s results on Thursday, which were consistent with its outlook.

 
Second quarter net sales decreased 12% to $128.1 million from $145.6 million in the previous second quarter and gross profit was $70.3 million, or 54.9% of sales, compared to $79.0 million, or 54.3% of sales, in the prior year. Net income decreased to $6.3 million, or $0.27 per diluted share, from $12.1 million, or $0.50 per diluted share.
 
Efraim Grinberg, Chairman and Chief Executive Officer, stated, “During the quarter, our Movado and licensed brands continued to outperform the watch category at retail. Given the challenging marketplace, we still see a number of headwinds and feel it is prudent to lower our full year outlook.”

Net sales for the first six months were $242.1 million compared to $266.0 million in the prior period, gross profit was $131.6 million, or 54.3% of net sales, versus $141.5 million, or 53.2% of net sales, in the same period from last year, and net income was $9.6 million, or $0.41 per diluted share, compared to $15.7 million, or $0.65 per diluted share.
 
Following the results, Movado updated its fiscal 2017 outlook. The company now expects net sales to be in range of $550.0 million and $560.0 million and net income to be approximately $33.0 million to $36.5 million, or $1.40 to $1.55 per diluted share, reflecting a 32% anticipated effective tax rate.