Movado Group sees sales jump 28%, raises outlook
Paramus, New Jersey-based watch company Movado Group, Inc.’s net income rose to $8.1 million in Q1 2019, a leap forward from the loss of $4.2 million reported in the prior year period, pushed by strong sales and expanding margins.
The company’s net sales for the first quarter ended April 30, 2018 increased 28.1% (or 22.2% in constant currencies) to $127.1 million, compared to $99.3 million in Q1 2018. This net sales growth included $2.2 million related to Movado’s adoption of new revenue recognition standard ASC 606, which led to a shift in timing between quarters.
Operating income for the period came to $8.1 million, compared to a loss of $3.6 million in Q1 2018.
“Our first quarter results reflect the team’s consistent ability to bring innovation to market that resonates with consumers around the world, which was further enhanced by the execution of our strategic growth priorities,” said Movado Chairman and CEO Efraim Grinberg in a release. “We saw sales strength across regions and channels, generating strong results in our international markets as well as our outlet stores and e-commerce business.”
The company acquired women’s watch brand Olivia Burton in July 2017 and also Grinberg indicated that the recent acquisition made a positive contribution to Q1’s results, along with the rest of the group’s portfolio, which includes Movado, and licenses for labels such as Coach, Tommy Hilfiger and Hugo Boss.
Following its strong performance in the first quarter, Movado Group has raised its outlook for fiscal 2019 and now expects net sales to total between $615.0 million and $625.0 million, while net income is anticipated to be in the range of $54.9 million to $56.4 million.
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