LONDON, UK / ACCESSWIRE / June 27, 2018 / If you want access to our free earnings report on Movado Group, Inc. (NYSE: MOV), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=MOV. The Company reported its first quarter fiscal 2019 operating and financial results on May 30, 2018. The watchmaker smashed past revenue and earnings estimates. Additionally, the Company raised its guidance for the full fiscal year 2019. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
For the first quarter of the fiscal year 2019, Movado's net sales increased 28.1% to $127.1 million compared to $99.3 million in Q1 FY18. The Company's net sales increased 22.2% on a constant dollar basis in the reported quarter. Movado's revenue numbers beat analysts' estimates of $109.5 million.
During Q1 FY19, Movado's net sales included $2.2 million from the adoption of the new revenue recognition standard ASC 606, which resulted in a timing shift between quarters related to the recognition of estimates for anticipated returns and markdowns.
For Q1 FY19, Movado's gross profit was $67.5 million, or 53.1% of sales, compared to $49.1 million, or 49.5% of sales, in Q1 FY18. The Company's adjusted gross profit, excluding $1.4 million in charges related to a portion of the Company's cost savings initiatives, was $50.5 million, or 50.9% of sales, in the reported quarter.
During Q1 FY19, Movado's operating expenses were $59.4 million compared to $52.8 million in Q1 FY18. The Company's adjusted operating expenses were $58.6 million in the reported quarter, excluding $0.8 million of expenses associated with the amortization of acquired intangible assets related to the Olivia Burton brand, compared to $47.9 million in Q1 FY18. The increase in adjusted operating expenses was primarily due to higher marketing expenses, fluctuations in foreign currency exchange rates, and higher distribution and selling costs.
Movado reported an operating income of $8.1 million in Q1 FY19 compared to an operating loss of $3.6 million in Q1 FY18. The Company's adjusted operating income was $8.9 million in the reported quarter compared to $2.7 million in the year earlier same quarter.
Movado recorded a tax benefit of $0.1 million in Q1 FY19 compared to a tax provision of $0.3 million in Q1 FY18. The Company's results for the reported quarter included a benefit of $0.1 million associated with the amortization of acquired intangible assets related to the Olivia Burton brand and favorable discrete items including the release of a valuation allowance against certain foreign deferred tax assets.
Movado's net income was $8.1 million, or a $0.35 per diluted share, in Q1 FY19 compared to a net loss of $4.2 million, or $0.18 loss per diluted share, in Q1 FY18. The Company's adjusted net income was $8.7 million, or $0.37 per diluted share, in the reported quarter versus $0.3 million, or $0.01 per diluted share, in the prior year's comparable quarter. Movado's earnings outpaced Wall Street's estimates of $0.11 per share.
Movado's cash was $177 million at the end of Q1 FY19 compared to $233.6 million as on April 30, 2017. The y-o-y difference was attributed to the repayment of the $25 million outstanding on the Company's revolver credit facility and the acquisition of Olivia Burton in Q2 FY18.
During Q1 FY19, Movado repurchased 30,500 shares under its share repurchase program. As of April 30, 2018, the Company had $46.8 million remaining under its $50.0 million share repurchase authorization.
Fiscal 2019 Outlook
Movado raised its outlook for the full fiscal year 2019. The Company is expecting sales to be in the range of $615.0 million to $625.0 million, and operating income to be approximately $71.0 million to $73.0 million. The Company anticipates net income to be in the band of $54.9 million to $56.4 million, or $2.35 to $2.40 per diluted share for FY19.
Stock Performance Snapshot
June 26, 2018 - At Tuesday's closing bell, Movado Group's stock rose 2.38%, ending the trading session at $49.40.
Volume traded for the day: 122.78 thousand shares.
Stock performance in the last month - up 21.23%; previous three-month period - up 51.53%; past twelve-month period - up 105.41%; and year-to-date - up 53.42%
After yesterday's close, Movado Group's market cap was at $820.04 million.
Price to Earnings (P/E) ratio was at 27.31.
The stock has a dividend yield of 1.62%.
The stock is part of the Consumer Goods sector, categorized under the Recreational Goods, Other industry. This sector was up 0.2% at the end of the session.
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