While Movado Group Inc.’s fourth quarter was impacted by a charge in connection with the repositioning of the Coach watch brand, the company said it expects annual sales growth of 10 percent through 2017 along with a 20 percent annual gain in operating profits for the same period.
Net income for the three months ended Jan. 31 fell 25.9 percent to $7.9 million, or 31 cents a diluted share, from $10.7 million, or 42 cents, last year. The quarter was impacted in part by a $4.9 million charge to reposition the Coach watch brand as it better aligns with Coach’s lifestyle strategy. Adjusting for one-time charges and tax benefits in both the current and year-ago quarters, net income would have been $10.5 million, or 41 cents a diluted share, compared with $5.9 million, or 24 cents, a year ago. Net sales for the quarter rose 1 percent to $123.6 million from $122.4 million. On an adjusted basis for the Coach repositioning, sales rose 7.6 percent to $128.5 million.
A Stella McCartney sketch of a custom dress made from protein-based silk in partnership with biotech lab Bolt Threads. The dress will be displayed at The Museum of Modern Art's upcoming design exhibition, "Items: Is Fashion Modern?"