Movado Group’s Q2 sales up 4 percent
August 26, 2014
Paramus, N.J.--Movado Group reported Tuesday that net sales rose 4 percent year-over-year in its fiscal second quarter, from $138.3 million to $143.6 million.
The company said that the performance was driven by growth in the Movado brands and the licensed brand and retail categories, and a strong performance for the company’s outlet retail stores.
Additionally, Movado Group said that retail sell-through continues to outpace shipments and the overall market.
Operating income in the quarter increased to $17.2 million, or 12 percent of net sales, compared with an operating income of $17 million in the same period last year, or 12.3 percent of net sales.
Net sales in the first six months of the fiscal year rose by 7 percent to $264.5 million, driven again by growth for the Movado brand as well as the licensed brand and retail categories. Operating income increased to $28.1 million, or nearly 11 percent of net sales.
Last month, the company announced the hiring of Ricardo Quintero as president, effective July 14, to build the company in terms of long-term growth. Movado Group Chairman and CEO Efraim Grinberg said in the earnings release that the move is expected to help the company achieve greater expansion around the world.
“We are pleased to deliver a solid second quarter highlighted by increased sales, a strong gross margin performance and operating profit growth despite a more challenging retail climate and as we invested in support of our future expansion,” Grinberg said. “With the second quarter, we have achieved 18 consecutive quarters of increased operating performance, attributed to the disciplined execution of our growth strategies and supported by powerful innovation and compelling owned and licensed brands.”
In fiscal 2015, the company anticipates that net sales will increase approximately 11 percent to $640 million, and that operating income will increase 19 percent to $90 million.