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.
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.
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)
@heriethpaul and @gracebol have a moment on the @victoriassecret fashion show 2017. See every look from the runway on WWD.com. Link in bio. (📷: @giovanni_giannoni_photo) #wwdfashion #victoriassecret #VSFashionShow
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia