Movado Group Inc. saw sales for the second quarter increase slightly and investors jolted the company’s stock.
Shares of the Swiss watch company rose 19.5 percent to $28.50, a seven-month high, after it posted net sales of $128.8 million for the second quarter, a 0.5 percent increase over the same time last year and in line with the company’s internal expectations.
Net income came in at $5.5 million, compared to $6.4 million last year, but the company said it spent $4.5 million during the quarter acquiring the Olivia Burton brand.
Chairman and chief executive officer Efraim Grinberg said the positive quarter reflects Movado’s progress “on our strategic growth and cost-saving initiatives.”
Grinberg said retail in the U.S. is still challenging, but that Movado saw strong sales in Latin America, Europe and Asia. He added that the remainder of 2017 will see the company execute brand deals with Rebecca Minkoff and the rollout of its Movado Connect smartwatches and a plan to increase its direct-to-consumer business.
“This, combined with our unique and compelling product offerings across the entire portfolio, supported by our traditional and digital advertising campaigns, positions us well for the upcoming holiday season,” Grinberg said.
With several months of sales from the Olivia Burton brand to account for, the company has also increased its full-year guidance and expects net sales between $530 million and $545 million and operating income of between $53 million to $58 million.
For More, See: