Movado Group Q1 Profit Down; Reiterates FY16 Guidance - Quick Facts

(RTTNews) - Movado Group Inc. (MOV) reported that its net income first quarter ended April 30, 2015 declined to $3.6 million, or $0.15 per share, from $7.4 million, or $0.29 per share in the same quarter last year.

During the first quarter of fiscal 2016, the Company recorded a $2.7 million pre-tax charge, or $0.10 per share, related to operating efficiency initiatives and other items in fiscal 2016. There were no unusual items recorded in the first quarter of fiscal 2015.

For the first quarter of fiscal 2016, adjusted net income was $6.2 million, or $0.25 per diluted share, excluding $2.5 million in expenses, net of tax, related to operating efficiency initiatives and other items.

Net sales were $120.5 million compared to $120.9 million in the first quarter of fiscal 2015. Net sales on a constant dollar basis increased 5.0% compared to net sales for the fiscal 2015 first quarter.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.26 per share and revenues of $119.55 million for the quarter. Analysts' estimates typically exclude special items.

The Company reiterated guidance for fiscal 2016. In fiscal 2016, the Company anticipates that net sales will increase to a range of $590 million to $600 million, gross margin percent will be approximately 53.5%, and operating income will increase to approximately $72.0 million to $75.0 million. The Company anticipates net income in fiscal 2016 to be approximately $48.5 million to $51.0 million, or $2.00 to $2.10 per diluted share, reflecting a 30.0% anticipated effective tax rate and reduced share count. Wall Street currently is looking for fiscal year 2016 earnings of $2.04 per share on annual revenues of $593.06 million.

The Company also anticipates recording the remainder of the previously announced $3.0 million to $4.0 million pre-tax charge related to operating efficiency initiatives by the end of fiscal 2016, which is excluded from its guidance.

The company announced that on May 27, 2015 the Board of Directors approved the payment on June 22, 2015 of a cash dividend in the amount of $0.11 for each share of the Company's outstanding common stock and class A common stock held by shareholders of record as of the close of business on June 8, 2015.

During the first quarter of fiscal 2016, the Company repurchased approximately 860,000 shares under its share repurchase program. As of April 30, 2015, $59.0 million was utilized of the $100.0 million share repurchase authorization.