Movado Group, Inc. Announces First Quarter Results
PARAMUS, N.J.,
Net sales in the first quarter of fiscal 2010 were
$67.6 million compared to$101.4 million . Net sales for the quarter included$4.3 million of sales of excess discontinued product.Gross profit was
$37.0 million , or 54.8% of sales, compared to$65.0 million , or 64.2% of sales last year. Excluding excess discontinued product sales, adjusted gross margin in the first quarter was 59.7% of sales.Operating expenses decreased
$15.3 million , or 24.1%, to$48.1 million versus$63.4 million last year.A net loss of
$9.0 million , or$0.37 per fully diluted share, was recorded in the first quarter of fiscal 2010 versus net income of$1.2 million , or$0.05 per fully diluted share, last year.
Fiscal 2010 Guidance
While the economic environment remains uncertain,
The Company's management will host a conference call today,
In this release, the Company presents certain adjusted financial measures
that are not calculated according to generally accepted accounting principles
in the
The Company is presenting net sales and gross margin excluding sales of excess discontinued product because the Company believes that it is useful to investors to eliminate the effect of these unusual items in order to improve the comparability of the Company's results for the periods presented.
This press release contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. The Company
has tried, whenever possible, to identify these forward-looking statements
using words such as "expects," "anticipates," "believes," "targets," "goals,"
"projects," "intends," "plans," "seeks," "estimates," "may," "will," "should"
and similar expressions. Similarly, statements in this press release that
describe the Company's business strategy, outlook, objectives, plans,
intentions or goals are also forward-looking statements. Accordingly, such
forward-looking statements involve known and unknown risks, uncertainties and
other factors that could cause the Company's actual results, performance or
achievements and levels of future dividends to differ materially from those
expressed in, or implied by, these statements. These risks and uncertainties
may include, but are not limited to: actual or perceived weakness in the U.S.
and global economy and fluctuations in consumer spending and disposable
income, the Company's ability to successfully implement the new Movado brand
strategy, the ability of the new Movado brand strategy to improve the
Company's net sales, profitability and other results of operations, the
Company's ability to successfully introduce and sell new products, the
Company's ability to successfully integrate the operations of newly acquired
and/or licensed brands without disruption to its other business activities,
changes in consumer demand for the Company's products, risks relating to the
fashion and retail industry, import restrictions, competition, seasonality,
commodity price and exchange rate fluctuations, changes in local or global
economic conditions, and the other factors discussed in the Company's Annual
Report on Form 10-K and other filings with the
MOVADO GROUP, INC.
Consolidated Statements of Income
(in thousands, except per share data)
(Unaudited)
Three Months Ended
April 30,
------------------
2009 2008
---- ----
Net sales $67,575 $101,353
Cost of sales 30,552 36,333
------ ------
Gross profit 37,023 65,020
Selling, general and administrative expenses 48,142 63,407
------ ------
Operating (loss) / income (11,119) 1,613
Interest expense (545) (706)
Interest income 51 957
-- ---
(Loss) / income before income taxes
and noncontrolling interests (11,613) 1,864
(Benefit) / provision for income taxes (2,703) 567
Net income attributed to noncontrolling interest 50 48
-- --
Net (loss) / income $(8,960) $1,249
======= ======
Net (loss) / income per diluted share $(0.37) $0.05
Number of shares outstanding 24,464 26,565
MOVADO GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
April 30, January 31, April 30,
2009 2009 2008
---- ---- ----
ASSETS
------
Cash and cash equivalents $74,568 $86,621 $127,475
Trade receivables, net 66,110 76,710 89,510
Inventories 241,603 228,884 231,402
Other current assets 55,185 47,863 51,417
------ ------ ------
Total current assets 437,466 440,078 499,804
------- ------- -------
Property, plant and equipment, net 62,903 66,749 71,115
Deferred income taxes 23,215 23,449 19,908
Other non-current assets 31,357 33,714 38,825
------ ------ ------
Total assets $554,941 $563,990 $629,652
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LIABILITIES AND EQUITY
----------------------
Loans payable to banks $40,000 $40,000 $-
Current portion of long-term debt 25,000 25,000 10,000
Accounts payable 19,408 20,794 27,651
Accrued liabilities 46,092 47,686 44,698
Deferred and current income taxes
payable 433 430 7
--- --- ---
Total current liabilities 130,933 133,910 82,356
------- ------- ------
Long-term debt - - 61,435
Deferred and non-current income taxes
payable 6,527 6,856 7,078
Other non-current liabilities 19,975 22,459 25,121
Noncontrolling interest 1,855 1,805 1,913
Shareholders' equity 395,651 398,960 451,749
------- ------- -------
Total liabilities and equity $554,941 $563,990 $629,652
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SOURCE for
Web Site: http://www.movadogroup.com
(MOV)