RAPAPORT... Movado Group, Inc. said revenue in the second quarter increased 1.4% to $145.6 million compared to $143.6 million in the second quarter of fiscal 2015. Net sales on a constant dollar basis increased 6.1% compared to net sales in the second quarter of fiscal 2015, according to a company announcement.
Gross profit was $79.0 million, or 54.3% of sales, compared to $77.6 million, or 54.0% of sales, in the second quarter last year. The increase in gross margin percentage was due to channel and product mix, selective price increases and certain sourcing improvements, partially offset by the unfavorable impact of changes in foreign currency exchange rates.
“We are pleased with our second quarter results which included increased sales, expansion in gross margin and operating income above last year, despite a challenging retail environment and significant currency headwinds” said Efraim Grinberg, chairman and chief executive officer. Our Movado and licensed brands continue to outperform the overall watch category.”
“We believe we are well positioned for the second half of the year,” he said. “We are expecting to deliver our first connected Movado timepiece during the fourth quarter and believe wearable technology represents a great opportunity.”
The company is maintaining its guidance for fiscal 2016. In fiscal 2016, the Movado expects net sales to be in the range of $590 million to $600 million, gross margin percent to be approximately 53.5%, and operating income to increase to approximately $72.0 million to $75.0 million.
Movado designs, sources, and distributes its own brand-name watches along with licensed brands including Coach, Tommy Hilfiger, Hugo Boss.
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