Movado Group Inc (MOV) Adjusts Fiscal 2024 Outlook Amid Challenging Retail Environment
Movado Group Inc (NYSE:MOV) reports net sales of $187.7 million in the third quarter.
Operating income stands at $20.7 million with adjusted operating income at $21.1 million.
EPS recorded at $0.77 and adjusted EPS at $0.78, as the company updates its fiscal 2024 outlook.
The Board declares a quarterly dividend of $0.35 per share.
On November 30, 2023, Movado Group Inc (NYSE:MOV) released its 8-K filing, announcing its financial results for the third quarter and the first nine months of fiscal year 2024. The report highlights the company's performance in a challenging retail landscape, particularly in its largest markets, the United States and Europe.
Financial Performance Overview
Movado Group Inc (NYSE:MOV) reported net sales of $187.7 million for the third quarter, a decrease from the $211.4 million reported in the same period last year. Operating income was reported at $20.7 million, compared to $38.3 million in the third quarter of fiscal 2023. Adjusted operating income, which excludes certain charges, was $21.1 million, down from $38.9 million in the prior year. The company's earnings per share (EPS) stood at $0.77, with an adjusted EPS of $0.78.
Strategic Initiatives and Balance Sheet Strength
Despite the downturn, Movado Group's Chairman and Chief Executive Officer, Efraim Grinberg, emphasized the company's strategic initiatives and the strength of its balance sheet.
The strength of our balance sheet, with $201.0 million of cash at quarter-end and no debt, allowed us to remain flexible as we continued to navigate the difficult backdrop,
Grinberg stated. He also highlighted the company's readiness for the holiday season with new offerings across its watch and jewelry brands.
Revised Fiscal 2024 Outlook
Given the current operating environment, Movado Group Inc (NYSE:MOV) has moderated its annual outlook. The revised forecast does not include approximately $2.1 million of amortization of acquired intangible assets related to the Olivia Burton and MVMT brands and assumes no further significant fluctuations from prevailing foreign currency exchange rates.
Capital Return to Shareholders
The Board of Directors declared a quarterly dividend of $0.35 per share, payable on December 26, 2023, to shareholders of record as of December 12, 2023. Additionally, under its share repurchase program, the company repurchased approximately 69,700 shares during the third quarter of fiscal 2024, with $18.6 million remaining available for future repurchases.
Income Statement and Balance Sheet Highlights
The income statement reveals a gross profit of $102.3 million for the third quarter, with total operating expenses at $81.6 million. The balance sheet remains robust with significant cash reserves and no debt, positioning the company well for future investments and shareholder returns.
The company's management will further discuss these results in a conference call and audio webcast scheduled for today at 9:00 a.m. Eastern Time.
Movado Group Inc (NYSE:MOV) continues to navigate through a challenging retail environment with a focus on strategic brand investments and maintaining a strong balance sheet. While the revised outlook reflects the current market conditions, the company remains committed to driving long-term profitable growth.
For a detailed reconciliation of GAAP to non-GAAP financial measures, and to view the full financial tables, please refer to the attached documents in the earnings release.
Explore the complete 8-K earnings release (here) from Movado Group Inc for further details.
This article first appeared on GuruFocus.
