QUARTER PRE-TAX INCOME RISES 20.6% AT NORTH AMERICAN WATCH
LYNDHURST, N.J. — North American Watch Corp. reported income before taxes gained 20.6 percent to $9.3 million in the third quarter, up from $7.7 million a year ago. However, net income comparisons were skewed by a year-ago tax benefit.
After-tax earnings in the most recent quarter ended Oct. 31 came to $6.5 million, or $1.08 a share, including a $2.8 million tax charge. In the year-ago quarter, after a $777,000 tax benefit, net income came to $8.5 million, or $1.41. On a comparably taxed basis, earnings per share a year ago would have been 90 cents, the company said.
Sales grew 21.1 percent to $68.1 million from $56.2 million.
In the nine months, income before taxes rose 24.8 percent to $9.8 million from $7.9 million. After a $3 million tax charge, net income was $6.9 million, or $1.15 a share, in the latest nine months, which also includes a $600,000 accounting charge In 1994, net income came to $8.7 million, or $1.45, after a $819,000 tax benefit. On a comparably taxed basis, per share earnings in the year-ago period would have been 92 cents.
Sales rose 20.7 percent to $140.3 million from $116.2 million.
“We continue to experience strong performance by our domestic business, particularly our Movado and Esquire brands,” noted Efrain Grinberg, president. He said that the company has taken steps to strengthen international business but expects it will be several months before the firm realizes the full benefit of these actions.
North American Watch also makes the Concord brand and is exclusive distributor of Swiss-made Piaget and Corum watches.