Q2 sales climb 17 percent for Movado
August 28, 2013
Paramus, N.J.--Watch design and distribution company Movado Group Inc. reported strong increases in both sales and income in the second quarter.
The company announced Tuesday that sales for the second quarter ended July 31 totaled $138.3 million, a 17 percent year-over-year increase from $118 million in the prior-year period.
Gross profit was $74.8 million, or 54 percent of sales, compared with $65.8 million, or 56 percent of sales, in the second quarter of last year. A shift in channel and product mix caused the drop in gross margin percentage, Movado said.
Operating income increased to $17 million, or 12 percent of net sales, from $10.7 million, or 9 percent of sales, in the prior-year period. Net income rose from $8.2 million to $12.7 million.
Movado Chairman and CEO Efraim Grinberg said the company continued its positive momentum from the first quarter.
“Our topline strength was fueled by strong innovation across our Movado and licensed brands and included the continued successful introduction of our Scuderia Ferrari watch brand and our newly repositioned Coach watch brand into the fashion watch category,” he said.
Grinberg added that the later dates for Baselworld, which took place near the end of April this year, helped to boost second quarter year-over-year results.
Year-to-date, net sales increased 12 percent to $248.3 million compared with $221.7 million in the first six months of the prior fiscal year.
Gross profit fell from 56 percent of sales to 54 percent of sales due to changes in channel and product mix.
Operating income increased from 9 percent to 11 percent of net sales. Net income rose from $14.7 million to $20.7 million.
The company increased its guidance for the year, now expecting net sales to increase 13 percent, up from an earlier estimate of 12 percent.
Movado Group 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 stores in the United States.