MVMT sends Movado sales skyrocketing in Q4
today Mar 28, 2019
Shares in Paramus, New Jersey-based watch company Movado Group, Inc. rose more than 22% on Thursday, as the addition of revenues from the group’s recently acquired MVMT brand helped fourth-quarter sales to soar 33.6% (35.4% in constant currencies).
Revenue for the fourth quarter ended January 31, 2019 totaled $199.4 million, up from $149.2 million in the prior-year period. Discounting MVMT’s contribution, net sales increased 10.3%.
Quarterly net income was $17.4 million, or $0.74 per diluted share, reflecting impressive progress when compared to the net loss of $33.9 million, or $1.47 per diluted share, reported in Q4 2018.
According to CNBC, analysts surveyed by FactSet had expected Movado to post earnings per share of $0.55 on sales of $194 million.
The company’s full-year net sales increased 19.7% (18.9% in constant currencies) to $679.6 million, up from $568.0 million in fiscal 2018.
Annual net income came to $61.6 million, or $2.61 per diluted share, up from a net loss of $15.2 million, or $0.66 per diluted share, in the previous year.
“Fiscal 2019 marked another year of progress on our strategies – to deliver innovation across our portfolio of powerful brands in an omni channel market, capitalize on our strong balance sheet and cash flow to acquire new brands and develop our digital presence,” commented Movado CEO Efraim Grinberg in a release. “These activities fueled topline growth of nearly 20% with strong growth in operating income and net income for the year while we continued to invest for the long term.”
Movado currently expects net sales in fiscal 2020 will total between $750.0 million and $765.0 million, while net income is predicted to be in the range of $64.0 million to $66.4 million, or $2.70 to $2.80 per diluted share.
Over the course of the upcoming year, the company will be concentrating its efforts on the ongoing integration of MVMT and will also make a series of significant brand building investments across its portfolio.
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