Movado sees double-digit sales growth in second quarter, raises outlook
Following a strong first quarter, Paramus, New Jersey-based watch company Movado Group announced on Wednesday a net income rise to $9.1 million in its second quarter.
The company’s net sales for the quarter, ended July 31, 2018, were up 11.9 percent to $144.1 million, compared to $128.8 million in the second quarter of 2017.
Operating income was $12.9 million compared to operating income of $8.3 million in the corresponding 2017 quarter.
“We are pleased to report another strong quarter with double-digit increases in both sales and operating income combined with significant progress against the priorities we set at the start of the year,” said Movado Chairman and CEO Efraim Grinberg, in a news statement.
“Sales growth had notable strength internationally in Europe and Latin America, as our uniquely designed timepieces and sought-after brands continue to resonate with consumers around the world.”
The company’s Olivia Burton acquisition in July 2017 again made a positive contribution to second-quarter results, while the company is excited about the upcoming addition of MVMT, another direct-to-consumer brand.
“We have an exciting product pipeline for the second half of the year and believe we are well positioned to capitalize on the upcoming holiday season. Our balance sheet remains strong with $175.6 million of cash and no debt before the MVMT acquisition, which is expected to close on or about October 1, 2018.”
Following its strong performance in the second quarter, Movado Group again raised its outlook for fiscal 2019 and now expects net sales to total between $660.0 million and $675.0 million compared to $615.0 million and $625.0 million.
Meanwhile, net income is anticipated to be in the range of $58.0 million to $59.7 million, compared to $54.9 million to $56.4 million.
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