Movado annual earnings up on international wholesale, own stores sales growth
Movado Group, Inc. announced on Thursday net sales increased 2.7% to $751.9 million for the fiscal 2023 year, on growth in the watchmaker's international wholesale business and own stores.
The Paramus, New Jersey-based company said for the fiscal year ending January 31 U.S. net sales decreased 3.5% compared to last year, while international sales increased 8.2%.
For the fourth quarter, sales decreased 5.7% to $194.3 million, compared to $206 million in the fourth quarter of fiscal 2022. The decrease in net sales reflected a decline in wholesale sales, partially offset by an increase in Movado company stores, said the U.S. firm.
Net income for the fourth quarter fell to $22.7 million, or $1.00 per diluted share, compared to net income of $31.4 million, or $1.33 per diluted share, in the prior-year period.
For the year, net income grew to $94.5 million, or $4.12 per diluted share, for fiscal 2023, compared to $91.6 million, or $3.87 per diluted share, for fiscal 2022.
“We managed our business well throughout the year, driving Movado Group to a record year for net sales and operating income with expansion in gross profit margin, as compared to fiscal 2022," said Efraim Grinberg, chairman and chief executive officer.
"We achieved this while generating fourth quarter results that, as expected, moderated from the fourth quarter of the prior year. These results follow a record performance in fiscal 2022 and reflect the power of our global portfolio of brands and the disciplined execution of our strategy by our organization. I am extremely proud of our teams for their contributions in the current operating environment.”
Looking ahead, Grinberg said his company is expect to face a difficult retail market in the company's largest regions, the U.S. and Europe.
"We have a strong portfolio of brands that we will continue to support with strong product innovation and marketing programs. While we continue to maintain a disciplined approach to managing expenses and inventory levels, we will make the marketing investments behind our biggest brands to ensure that we emerge from the current environment in the strongest position and lay a solid foundation for future growth," he concluded.
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