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Movado Group, Inc. announces net sales of $144.1m.

PARAMUS, N.J: Movado Group, Inc. announced net sales increased 11.9% to $144.1 million, or 10.5% on a constant dollar basis and operating income of $12.9 million versus $8.3 million in the prior year period; Adjusted operating income of $14.6 million versus $12.9 million in the prior year.

Chairman and Chief Executive Officer Efraim Grinberg said, "We are pleased to report another strong quarter with double-digit increases in both sales and operating income combined with significant progress against the priorities we set at the start of the year. Sales growth had notable strength internationally in Europe and Latin America, as our uniquely designed timepieces and sought-after brands continue to resonate with consumers around the world. Olivia Burton, which we acquired last July, continues to perform very well, and we are extremely excited about the upcoming addition of another brand that connects with millennials, the direct-to-consumer brand, MVMT. We have an exciting product pipeline for the second half of the year and believe we are well positioned to capitalize on the upcoming holiday season. Our balance sheet remains strong with $175.6 million of cash and no debt before the MVMT acquisition, which is expected to close on or about October 1, 2018. Given the strong results we've seen year-to-date and the pending acquisition of MVMT, we are raising our annual outlook."

In the first quarter of fiscal 2019, it recorded a $0.8 million pre-tax expense, with a related tax benefit of $0.1 million, or $0.02 per diluted share, in association with the amortization of acquired intangible assets related to the Olivia Burton brand. During the second quarter of fiscal 2018, the Company recorded a $4.5 million pre-tax charge, with a related tax benefit of $0.1 million, or $0.19 per diluted share, in conjunction with the acquisition of the Olivia Burton brand and a $0.1 million pre-tax charge, related to cost savings initiatives. In the first quarter of fiscal 2018, the Company recorded a $6.3 million pre-tax charge, with a related tax benefit of $1.9 million, or $0.19 per diluted share, related to its cost savings initiatives.

Net sales increased 11.9% to $144.1 million compared to $128.8 million in the second quarter of fiscal 2018. Net sales in the second quarter of fiscal 2019 were unfavorably impacted by $1.1 million due to the adoption of ASC 606, which increased the markdown and return allowances that would have historically been recorded this period. Net sales on a constant dollar basis increased 10.5% compared to net sales in the second quarter of fiscal 2018. During the second quarter fiscal 2019, the Company recorded a $0.7 million pre-tax charge, with a related tax benefit of $0.1 million, or $0.02 per diluted share, in association with the previously-announced amortization of acquired intangible assets related to the Olivia Burton brand. The Company also recorded a $1.0 million pre-tax charge, with a related tax benefit of $0.2 million, or $0.04 per diluted share, associated with professional fees in conjunction with the previously announced MVMT acquisition.

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Publication:Daily the Pak Banker (Lahore, Pakistan)
Article Type:Financial report
Date:Sep 6, 2018
Words:526
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