|
RAPAPORT... Movado Group reported that revenue increased 6.1 percent year on year to $110 million for the first quarter that ended on April 30. Gross profit margin as a percentage of sales slipped to 54.5 percent compared with 56.9 percent one year ago. Cost of sales jumped 12.2 percent to $50.1 million, nonetheless, net income rose 21 percent to $8.2 million, helped along by a $1.5 million pretax gain from property sale in Switzerland. Inventory levels were flat year on year at $172.3 million and Movado's cash and cash equivalents fell 10.9 percent to $141.5 million. Going forward, Movado reiterated its guidance for the current fiscal year, anticipating sales growth of approximately 12 percent, gross margin of approximately 54 percent and a net income improvement of about 28 percent to $48 million or $1.80 per diluted share. Movado's board authorized a cash dividend of 5 cents per share to be paid on June 21. Efraim Grinberg, the chairman and CEO of Movado, said, “We began the year strong, continuing our positive sales momentum from fiscal 2013 and delivering operating income growth of nearly 18 percent, validating our ability to leverage our infrastructure as we grow. In April, we introduced our new Ferrari watch collection and our repositioned Coach product line at Baselworld in Switzerland, and expect the enthusiastic response to each of our brands to lead to accelerated sales growth in the second quarter and throughout the year. We continue to see broad based strength across our business, with strong consumer demand and sell-through.” Rick Coté, the president of Movado, said, “We are pleased with our first-quarter results, which position us well to achieve our previously issued full-year guidance. In combination with our growth strategies, we continue to focus on our balance sheet which remains exceptionally strong, as evidenced by our accounts receivable and inventory levels increasing only 3 percent on a combined basis, while sales increased over 6 percent.”
|