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Movado's 2Q Revenue +17%, Profit +55%
Aug 27, 2013 8:22 AM
By Deena Taylor
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RAPAPORT... Movado Group reported that revenue increased 17 percent year on year to $138.3 million for the second quarter that ended on July 31. Cost of sales jumped 21 percent to $63.5 million. Gross margin as a percentage of sales slipped to 54.1 percent compared with 55.7 percent one year ago. However, earnings surged 55 percent to $12.5 million.
Efraim Grinberg, the chairman and CEO of Movado noted that the company maintained its positive momentum from the beginning of the year during the quarter with topline strength fueled by strong innovation across the company's Movado and licensed brands, which included the continued introduction of the Scuderia Ferrari watch brand and a newly repositioned Coach watch brand into the fashion watch category.
"As expected, the quarter also benefited from the later timing of Baselworld, the international watch and jewelry fair held annually in Basel, Switzerland. This, combined with the disciplined execution of our growth strategies, enabled us to leverage our infrastructure and produced operating income growth more than triple the rate of our sales increase,” he said.
Going forward, Movado reiterated its guidance for the current fiscal year and expects sales growth of approximately 13 percent, a gross margin of approximately 54 percent and earnings improvement of around 28 percent to $49 million or $1.90 per diluted share. Movado's board authorized a cash dividend of 8 cents per share to be paid on September 20.
For the first half of 2013, the company's revenue grew 12 percent to $248.3 million. Gross profit margin was 54.3 percent of sales compared with 56.3 percent one year ago. The decrease was primarily a result of shift in channel and product mix partially offset by favorable foreign exchange rates. Cost of sales rose 18 percent to $113.5 million, while net income grew 41 percent to $20.7 million.
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Tags:
Deena Taylor, Movado
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