Movado Group Inc. posted lower first-quarter profits due to a year-ago gain in connection with the sale of its company-owned building in Switzerland.
For the three months ended April 30, net income fell 10.3 percent to $7.4 million, or 29 cents a diluted share, from $8.2 million, or 32 cents, a year ago. Excluding the $1.5 million pretax gain from the real estate sale a year ago, operating income rose 9.2 percent to $10.9 million from $10 million. Net sales rose 9.9 percent in the quarter to $120.9 million from $110 million.
Efraim Grinberg, chairman and chief executive officer, said the company’s “ESQ reallocation strategy that we announced in March will favorably impact Movado starting in the second quarter.”
Rick Coté, president and chief operating officer, said, “Our growth initiatives, along with the investments we are making in Asia and Latin America, position us to continue our consistent performance well into the future.”
The company reiterated guidance for fiscal-year 2015, with net income projected at $63.5 million, or $2.44 a diluted share, on a net sales estimate of $640 million.