Movado posts another quarter of strong sales and earnings improvements
Paramus, New Jersey-based watch company Movado Group, Inc. announced on Tuesday that it continued its streak of strong sales and earnings gains in the third quarter, reporting total net income of $26.9 million for the period, compared to $17.4 million in Q3 2017.
This progress was driven by rising net sales, which increased 9.6% (10% in constant currencies) to $208.9 million, compared to $190.7 million in the prior-year period.
“Our double digit constant dollar topline growth in the quarter was led by strong performance in both the U.S. and international markets,” explained Movado chairman and CEO Efraim Grinberg in a release. “The period saw good progress on our strategic growth priorities. We grew our powerful portfolio of owned and licensed brands as we prepared for the important holiday season ahead.”
The company completed its purchase of watch startup MVMT in October, a strategic acquisition through which Movado is planning to tap into the millennial market. A number of charges incurred due to the conclusion of the deal negatively impacted the group’s quarterly results, along with costs related to Movado’s acquisition of Olivia Burton In July 2017. Excluding these charges, the company's net income for Q3 2018 totaled $27.9 million.
Year to date, Movado reported that sales increased 14.7% (13.1% in constant currencies) to $480.2 million, compared to $418.7 million in the equivalent nine-month period in the previous year.
Net income totaled $44.2 million, compared to $18.7 million in the prior-year period.
In the light of its results, Movado has reiterated its outlook for fiscal 2019, which predicts net sales of between $660.0 million and $675.0 million. Net income is expected to be in the range of approximately $58.0 million to $59.7 million.
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