Movado Group, Inc. Announces First Quarter Results
- EPS Increases to $0.04 from $0.03 LY -
PARAMUS, N.J., June 2 /PRNewswire-FirstCall/ -- Movado Group, Inc. (NYSE: MOV), today announced first quarter results for the period ended April 30, 2005. These results include the Ebel business, which was acquired on March 1, 2004.
First Quarter Fiscal 2006
Efraim Grinberg, President and Chief Executive Officer, commented, "We are pleased with our first quarter results which were achieved on top of a very strong first quarter delivered in the comparable period last year. Double digit gains in sales and profits reflect the power of our portfolio of brands and businesses, innovative new product offerings and consistent integrated marketing support. Our brands continue to perform extremely well at retail and we are especially pleased with our performance in our international markets."
Rick Cote, Executive Vice President and Chief Operating Officer, stated, "In addition to our strong sales results, we are pleased with the improvement in our gross margin due to the full integration of Ebel into our supply chain and improved margins in our Movado boutiques. We believe this represents a level commensurate with where we expect gross margin to be for the fiscal year. Our balance sheet also remains strong with a cash position of approximately $50 million."
Mr. Grinberg concluded, "We are encouraged by the strong reception that our brands received at the recently held annual watch and jewelry show in Basel, Switzerland. Looking ahead, we have comprehensive marketing and merchandising initiatives in place to support our brands and drive sell through at retail throughout fiscal 2006."
Movado Group noted that due to the delay in the adoption of FASB 123R, the Company has increased its fiscal year 2006 guidance for diluted earnings per share to now range between $1.18 and $1.24. Included in this guidance is an expected $0.04 per diluted share expense related to equity compensation of restricted stock. The Company projects fiscal year 2006 sales to grow approximately 12% from last year.
The Company's management will host a conference call today, June 2, 2005 at 10:00 a.m. Eastern Time. A live broadcast of the call will be available on the Company's website: http://www.movadogroup.com. This call will be archived online within one hour of the completion of the conference call.
Movado Group, Inc. designs, manufactures, and distributes Movado, Ebel, Concord, ESQ, Coach, Tommy Hilfiger and Hugo Boss watches worldwide, and operates Movado boutiques and company stores in the United States.
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," "projects," "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: the Company's ability to successfully introduce and sell new products, the Company's ability to successfully integrate the operations of Ebel without disruption to its other business activities, changes in consumer demand for the Company's products, risks relating to the retail industry, import restrictions, competition, seasonality and the other factors discussed in the Company's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. These statements reflect the Company's current beliefs and are based upon information currently available to it. Be advised that developments subsequent to this press release are likely to cause these statements to become outdated with the passage of time.
MOVADO GROUP, INC.
Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)
Three Months Ended
April 30,
2005 2004
Net sales $ 87,756 $ 74,187
Cost of sales 34,918 30,802
Gross profit 52,838 43,385
Selling, general and
administrative expenses 50,699 41,678
Operating profit 2,139 1,707
Interest expense 809 725
Income before taxes 1,330 982
Income tax 333 246
Net income $ 997 $ 736
Net income per diluted share $ 0.04 $ 0.03
Shares used in per share
computation 26,020 25,508
MOVADO GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(Unaudited)
April 30, January 31, April 30,
2005 2005 2004
ASSETS
Cash and cash equivalents $ 49,641 $ 63,782 $ 35,948
Trade receivables, net 99,925 102,622 99,546
Inventories 204,896 187,890 176,001
Other 37,701 32,864 31,585
Total current assets 392,163 387,158 343,080
Property, plant and equipment,
net 50,944 50,283 45,713
Other assets 37,139 39,509 36,149
$480,246 $476,950 $424,942
LIABILITIES AND SHAREHOLDERS' EQUITY
Loans payable to banks $ 18,000 $ 0 $ 32,539
Current portion of long-term
debt 0 0 5,000
Accounts payable 35,289 38,488 26,281
Accrued liabilities 35,830 39,618 42,041
Deferred and current taxes
payable 5,131 5,250 5,798
Total current liabilities 94,250 83,356 111,659
Long-term debt 45,000 45,000 25,000
Deferred and non-current
income taxes 12,046 14,827 10,435
Other liabilities 16,425 17,209 11,820
Shareholders' equity 312,525 316,558 266,028
$480,246 $476,950 $424,942
SOURCE Movado Group, Inc. -0- 06/02/2005 /CONTACT: Suzanne Michalek of Movado Group, Inc., Investor Relations, Director of Corporate Communications, +1-201-267-8000; Melissa Myron or Rachel Albert of Financial Dynamics for Movado Group, Inc., +1-212-850-5600 / /Web site: http://www.movadogroupinc.com / (MOV)