UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported): JUNE 3, 2005
MOVADO GROUP, INC.
(Exact Name of Registrant as Specified in Charter)
NEW YORK
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(State or Other Jurisdiction of Incorporation)
1-16497 13-2595932
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(Commission File Number) (IRS Employer Identification Number)
650 FROM ROAD
PARAMUS, NEW JERSEY 07652
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (201) 267-8000
NOT APPLICABLE
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(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (SEE General Instruction A.2. below):
|_| Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On June 2, 2005, Movado Group, Inc. issued a press release
announcing its results for the first quarter ended April 30, 2005. The press
release is attached hereto as Exhibit 99.1 and is incorporated by reference into
this item. The information in this Current Report is being furnished and shall
not be deemed "filed" for the purposes of Section 18 of the Securities Exchange
Act of 1934 or otherwise subject to the liabilities of that Section. The
information in this Current Report shall not be incorporated by reference into
any registration statement or other document pursuant to the Securities Act of
1933, except as shall be expressly set forth by specific reference in any such
filing.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
EXHIBIT DESCRIPTION
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99.1 Press release of Movado Group, Inc. dated June 2, 2005.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report on Form 8-K to be signed on its
behalf by the undersigned, hereunto duly authorized.
Dated: June 2, 2005
MOVADO GROUP, INC.
By: /s/ Frank V. Kimick
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Name: Frank V. Kimick
Title: Vice President and Treasurer
EXHIBIT 99.1
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[GRAPHIC OMITTED]
M O V A D O G R O U P I N C. Movado
Ebel
Concord
ESQ SWISS
Coach Watches
Tommy Hilfiger Watches
Hugo Boss Watches
APPROVED BY: Rick Cote
Executive Vice President and
Chief Operating Officer
201-267-8000
CONTACT: Investor Relations:
Suzanne Michalek
Director of Corporate Communications
201-267-8000
Financial Dynamics
Melissa Myron/Rachel Albert
212-850-5600
FOR IMMEDIATE RELEASE
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MOVADO GROUP, INC. ANNOUNCES FIRST QUARTER RESULTS
~ EPS INCREASES TO $0.04 FROM $0.03 LY ~
PARAMUS, NJ - JUNE 2, 2005 -- 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
o Net sales increased 18.3% to $87.8 million from $74.2 million last year.
Ebel accounted for net sales of $6.6 million in the first quarter of
fiscal 2006 compared to net sales of $2.3 million in the year-ago period.
Excluding Ebel, first quarter fiscal 2006 net sales grew 13.0% from last
year.
o Comparable store sales at the Company's Movado boutiques increased 3.2% on
top of an 18.2% gain in the year-ago period.
o Gross margin improved to 60.2% compared to 58.5% last year.
o Operating profit increased 25.3% to $2.1 million versus $1.7 million in
the year-ago period.
o Net income grew 35.5% to $997,000, or $0.04 per diluted share, compared to
net income of $736,000, or $0.03 per diluted share, in the prior year
period.
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: 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.
(TABLES TO FOLLOW)
MOVADO GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
THREE MONTHS ENDED
APRIL 30,
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2005 2004
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Net sales $87,756 $74,187
Cost of sales 34,918 30,802
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Gross profit 52,838 43,385
Selling, general and administrative expenses 50,699 41,678
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Operating profit 2,139 1,707
Interest expense 809 725
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Income before taxes 1,330 982
Income tax 333 246
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Net income $ 997 $ 736
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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
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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
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Total current assets 392,163 387,158 343,080
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Property, plant and equipment, net 50,944 50,283 45,713
Other assets 37,139 39,509 36,149
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$480,246 $476,950 $424,942
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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
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Total current liabilities 94,250 83,356 111,659
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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
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$480,246 $476,950 $424,942
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