Movado Group Inc. reported fourth-quarter net earnings fell 59 percent, mainly due to higher taxes, while revenues rose 5.1 percent, the company said on Thursday.
In the three months ended Jan. 31, Movado had net earnings of $3 million, or 11 cents a share, compared with net profits of $7.2 million, or 28 cents, a year ago. On an adjusted basis, which excludes taxes related to the repatriation of foreign earnings and the reversal of a previously recorded liability, the company earned $9.9 million, or 38 cents, 2 cents ahead of analysts’ estimates. That compared with adjusted net income of $7.3 million, or 28 cents, last year. On an operating basis, Movado said fourth-quarter earnings jumped 35 percent, to $14.6 million from $8.6 million last year.
Fourth-quarter net sales rose to $126.1 million, from $120 million, while same-store sales were up 14.4 percent at Movado boutiques. Wholesale revenues rose 2.8 percent, to $95.2 million. Domestic wholesale gained 5.7 percent, while international wholesale declined 4.8 percent.
In the year, Movado’s net profits were flat at $26.6 million, or $1.02, versus $26.3 million, or $1.03, a year ago. Net sales totaled $470.9 million, up 12.4 percent.
For complete coverage, see Monday’s WWD.