PARAMUS, N.J.--(BUSINESS WIRE)--Mar. 31, 2016--
Movado Group, Inc. (NYSE:MOV) today announced that its Board of
Directors has approved a new share buyback program under which the
Company may purchase up to $50 million of its outstanding common shares
from time to time, depending upon a variety of factors, including market
and industry conditions, share price, regulatory requirements and other
corporate considerations, as determined by the Company from time to
time. The authorization expires on September 30, 2017, subject to
extension or earlier termination by the Board of Directors. The Company
may purchase shares of its common stock in open-market and/or privately
negotiated transactions in accordance with applicable securities laws
and regulations, including Rule 10b-18 of the Securities Exchange Act of
1934, and repurchases may be executed pursuant to Rule 10b5-1 under the
Securities Exchange Act of 1934. The authorization may be suspended or
discontinued at any time without notice.
Movado Group’s Board of Directors had previously authorized a $100
million share buyback program which expired on January 31, 2016. The
Company repurchased approximately 2,965,000 shares or $85.6 million
under that program.
The Board of Directors also approved an approximately 18% increase in
the Company’s quarterly cash dividend to $0.13 for each share of the
Company’s outstanding common stock and class A common stock. This
dividend will be paid on April 26, 2016 to all shareholders of record as
of the close of business on April 12, 2016.
Efraim Grinberg, Chairman and Chief Executive Officer, stated, “We are
pleased that our strong balance sheet and cash flow afford us the
opportunity to continue to return value to our shareholders through both
share buyback and increased quarterly dividends. Both strategies remain
an important part of our capital allocation plan as evidenced by the
Board’s approval of a new $50 million share buyback program as well as
an 18% increase in our quarterly dividend, while allowing us to continue
to invest in our brands.”
Movado Group, Inc. designs, sources, and distributes MOVADO®, EBEL®,
CONCORD®, ESQ® Movado, COACH®, TOMMY HILFIGER®, HUGO BOSS®, JUICY
COUTURE®, LACOSTE® and SCUDERIA FERRARI® watches worldwide, and operates
Movado 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,” “may,” “will,” “should” and variations of such words 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 general economic and business conditions which may impact
disposable income of consumers in the United States and the other
significant markets (including Europe) where the Company’s products are
sold, uncertainty regarding such economic and business conditions,
trends in consumer debt levels and bad debt write-offs, general
uncertainty related to possible terrorist attacks, natural disasters,
the stability of the European Union and defaults on or downgrades of
sovereign debt and the impact of any of those events on consumer
spending, changes in consumer preferences and popularity of particular
designs, new product development and introduction, the ability of the
Company to successfully implement its business strategies, competitive
products and pricing, the impact of “smart” watches and other wearable
tech products on the traditional watch market, seasonality, availability
of alternative sources of supply in the case of the loss of any
significant supplier or any supplier’s inability to fulfill the
Company’s orders, the loss of or curtailed sales to significant
customers, the Company’s dependence on key employees and officers, the
ability to successfully integrate the operations of acquired businesses
without disruption to other business activities, the continuation of the
company’s major warehouse and distribution centers, the continuation of
licensing arrangements with third parties, losses possible from pending
or future litigation, the ability to secure and protect trademarks,
patents and other intellectual property rights, the ability to lease new
stores on suitable terms in desired markets and to complete construction
on a timely basis, the ability of the Company to successfully manage its
expenses on a continuing basis, information systems failure or breaches
of network security, the continued availability to the Company of
financing and credit on favorable terms, business disruptions, disease,
general risks associated with doing business outside the United States
including, without limitation, import duties, tariffs, quotas, political
and economic stability, changes to existing laws or regulations, and
success of hedging strategies with respect to currency exchange rate
fluctuations, 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. The Company
assumes no duty to update its forward looking statements and this
release shall not be construed to indicate the assumption by the Company
of any duty to update its guidance in the future.
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Source: Movado Group, Inc.
ICR, Inc.
Rachel Schacter/Allison Malkin, 203-682-8200