Movado Q3 Profit Dips, But Beats Estimates; Revises FY14 Sales View

(RTTNews) - Luxury watchmaker Movado Group, Inc. (MOV), Tuesday reported a decline in the third-quarter net income, as the company recorded a tax provision of $10.6 million, compared with a tax benefit of $9.9 million last year. The company also updated its fiscal 2014 sales view, and backed earnings guidance.

Net income was $23 million or $0.89 per share, compared with $34.5 million or $1.34 per share last year. Excluding items, adjusted earnings were $23 million or $0.89 per share for the quarter.

On average, five analysts polled by Thomson Reuters expected the company to report earnings per share of $0.87 for the quarter. Analysts' estimates typically exclude one-time items.

However, net sales for the three-month period rose 18.4 percent to $189.7 million, from prior year's $160.2 million, led by growth in the accessible luxury and licensed brand categories. Analysts expect the company to generate revenues of $184.35 million for the quarter.

For the fiscal 2014, the company revised its sales guidance to $580 million, compared with prior expectations of $575 million to $580 million. Further, the company said it still expects net income to be in the range of $49 million or $1.90 per share. The Street expects the company to report earnings of $1.95, on revenues of $579.61 million.