The company reported $0.29 and a miss of $0.03 on diluted per share earnings compared to consensus estimates. Additionally, Movado missed on revenues, which were $120.9 million versus consensus estimates of $122.28 million.
Movado CEO Efraim Grinberg commented,"We began the year with solid first quarter results, highlighted by a nearly 10 percent increase in sales and a 9.2 percent increase in operating income in our smallest quarter of the year.
"We remain excited about the year ahead and believe the first quarter positions us for a strong fiscal 2015. This is further evidenced by the reiteration of our annual guidance and we believe we remain on track to achieve our multi-year strategic plan."
- Gross Margin was $65.2 million (53.9 percent of sales) a 0.06 percent decline year-over-year. This decline was planned and is attributed to currency exchange and channel and product mix.
- Operating income increased 9.2 percent year-over year to $10.9.
- Net income was $7.4 million.
- Net sales increased 9.9 percent year-over-year to $120.
- Movado reiterated fiscal year 2015 guidance on a comparable basis to non-GAAP fiscal 2014.
- Net sales expected to increase 10.7 percent to $640 million.
- Gross margin expected to be "approximately flat"
- Operating income expected to increase 19 percent to 90 million.
- Expected net income of $63.5 million or $2.44 per diluted share.
- Effective tax rate anticipated to be 28 percent.
In addition to its earnings results, Movado announced a cash dividend of $0.10 per share for its common stock and class A common stock holders on record at the close of business on June 2nd, 2014 to be paid June 16, 2014.
The company will be hosting a live webcast of the first quarter FY2015 earnings conference call at 9:00am (ET) on its Investor relations page.
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