Movado Group Inc. logged its best day on Wall Street since 2010 Tuesday after posting big second-quarter profit gains and raising its outlook for the year.
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Shares of the company shot up 17.4 percent to $35.36, leading fashion stocks on Wall Street for the day.
Profits attributable to the company increased 83 percent to $8.1 million, or 32 cents, versus $4.4 million, or 18 cents, a year ago. Earnings came in 14 cents ahead of the 18 cents Wall Street expected, according to the consensus estimate by three analysts tracked by Yahoo Finance.
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Movado boosted its earnings projection for the year to $1.40 a share, up from the $1.15 previously projected.
“From a global perspective, the watch category continues to perform well and we continued to experience strong watch sell-through performance across our retail partners,” said Rick Coté, president and chief operating officer, on a conference call with analysts. “We remain cognizant that there is the potential for further deterioration of the world economies. However, our plans continue to anticipate moderate growth in North America, modest growth in Northern Europe, declines in Southern Europe and solid growth in Asia and South America.”
Sales for the second quarter ended July 31 rose 4.2 percent to $118 million from $113.2 million. The growth was driven by the firm’s Movado brand and its licensed portfolio. Those increases were offset by a planned reduction in ESQ and Ebel, which are being relaunched for fall.