Movado Group (MOV) Reports In-Line Q2 EPS, Revenues Beat; Offers FY19 EPS/Revenue Outlook Above Consensus

Movado Group (NYSE: MOV) reported Q2 EPS of $0.45, in-line with the analyst estimate of $0.45. Revenue for the quarter came in at $144.1 million versus the consensus estimate of $137.5 million.

• Net sales increased 11.9% to $144.1 million, or 10.5% on a constant dollar basis
• Operating income of $12.9 million versus $8.3 million in the prior year period; Adjusted operating income of $14.6 million versus $12.9 million in the prior year
• Diluted EPS of $0.39; Adjusted diluted EPS of $0.45 compared to $0.43 in prior year period

Efraim Grinberg, Chairman and Chief Executive Officer, stated, “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. 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. Olivia Burton, which we acquired last July, continues to perform very well, and we are extremely excited about the upcoming addition of another brand that connects with millennials, the direct-to-consumer brand, MVMT. 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. Given the strong results we’ve seen year-to-date and the pending acquisition of MVMT, we are raising our annual outlook.”

GUIDANCE:

Movado Group sees FY2019 EPS of $2.45-$2.55, versus the consensus of $2.44. Movado Group sees FY2019 revenue of $660-675 million, versus the consensus of $637.45 million.

For earnings history and earnings-related data on Movado Group (MOV) click here.

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