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Movado Group Inc. said Tuesday that stronger watch sales and a tax benefit bolstered its second-quarter profit 55.6 percent. The Paramus, NJ-based watch vendor raised its full-year guidance above Wall Street’s expectations, sending shares up 4 percent to $41.99 Tuesday.
This story first appeared in the August 28, 2013 issue of WWD. Subscribe Today.
For the quarter ended July 31, Movado posted earnings of $12.5 million, or 48 cents a diluted share, versus year-ago income of $8.2 million, or 32 cents a share.
Excluding a tax benefit of 4 cents a share, earnings per share totaled 44 cents.
Quarterly net sales rose 17.2 percent to $138.3 million from $118 million a year earlier.
Analysts expected EPS of 32 cents on sales of $135.9 million.
“Our top-line strength was fueled by strong innovation across our Movado and licensed brands, and included the continued successful introduction of our Scuderia Ferrari watch brand and our newly repositioned Coach watch brand into the fashion watch category,” said Efraim Grinberg, chairman and chief executive officer. “As expected, the quarter also benefited from the later timing of Baselworld, the international watch and jewelry fair held annually in Basel, Switzerland. This, combined with the disciplined execution of our growth strategies, enabled us to leverage our infrastructure and produced operating income growth more than triple the rate of our sales increase.”
Movado now expects annual earnings of $1.90 a share on sales of between $575 million and $580 million, up from its prior guidance of earnings of $1.80 a share on revenues of between $570 million and $575 million.
Analysts were looking for EPS of $1.82 a share, on revenues of $570.6 million.