Movado Group, Inc. Announces Fourth Quarter and Fiscal Year 2024 Results
- Strong fiscal 2024 net sales of $672.6 million.
- Fiscal 2024 EPS of $2.06 and adjusted EPS of $2.13.
- Fourth quarter net sales of $179.6 million.
- Fourth quarter EPS of $0.53 and adjusted EPS of $0.55.
- Successful holiday marketing initiatives and new product introductions.
- Significant progress in evolving strategy with investments in marketing and product innovation.
- Focus on making investments for long-term growth.
- Expected fiscal 2025 net sales in the range of $700 million to $710 million.
- Anticipated fiscal 2025 earnings in the range of $1.20 to $1.30 per diluted share.
- Quarterly dividend of $0.35 per share announced.
- Share repurchase program ongoing with $17.9 million remaining available.
- Decrease in net sales for fiscal 2024 compared to fiscal 2023.
- Operating income decrease in fiscal 2024 compared to fiscal 2023.
- Lower gross margin percentage in fiscal 2024.
- Decline in U.S. and international net sales in the fourth quarter of fiscal 2024.
- Decrease in gross margin percentage due to various factors.
- Increase in adjusted operating expenses as a percentage of sales.
Insights
The Movado Group's announcement detailing its fiscal 2024 performance presents a mixed picture of the company's financial health. The reported decrease in net sales by 10.5% and a significant drop in operating income from $120.4 million to $54.7 million year-over-year are indicative of the challenges faced in the retail sector, particularly in the context of the U.S. and European markets.
Investors should note the strategic decision to increase marketing investments, which Movado anticipates will constrain earnings in the short term. While this may raise concerns about immediate profitability, such investments could be a positive sign for long-term brand growth and market share expansion. The company's strong balance sheet, with $262.1 million in cash and no debt, provides the financial flexibility to support this strategy.
The dividend declaration is a testament to the company's commitment to shareholder returns, despite the downturn in profits. However, the decline in EPS from $4.12 to $2.06 year-over-year should be closely evaluated against industry performance and future earnings projections to assess the sustainability of such shareholder payouts.
From a market perspective, the Movado Group's performance reflects broader trends in the luxury goods sector, where brick-and-mortar retail struggles are increasingly evident. The decline in gross margin is attributed to a mix of channel and product shifts, currency exchange rates and fixed cost deleverage over lower sales volumes.
The company's commitment to a $25 million marketing spend for fiscal 2025 may be a strategic move to bolster sales in a competitive market. However, it's important to scrutinize whether these investments align with consumer behavior trends, especially as e-commerce continues to grow.
The anticipated flat sales in the first half of fiscal 2025 suggest a cautious outlook, likely influenced by the current economic climate and the lag effect of marketing investments. Stakeholders should monitor the effectiveness of these marketing initiatives in driving revenue growth, particularly in the second half of the fiscal year.
Examining Movado Group's strategy, the shift toward increased marketing spend signals an attempt to adapt to the evolving retail landscape. The company's performance, particularly the decline in sales across both U.S. and international markets, underscores the need for a robust strategy to navigate the challenges of reduced foot traffic and the shift towards online shopping.
The inventory reduction by 20.5% could be a strategic move to align with current demand and avoid overstocking, which can be a critical issue in the fashion and accessories market. A leaner inventory can also lead to improved cash flow management and reduced storage costs.
Investors should consider the potential impact of the planned growth strategy on the company's market position. While the short-term earnings pressure is clear, the long-term benefits hinge on the company's ability to execute its strategy effectively and adapt to market trends, such as digital transformation and consumer preferences for sustainable and ethically sourced products.
~ Fiscal 2024 Net Sales of
~ Fiscal 2024 EPS of
~ Fourth Quarter Net Sales of
~ Fourth Quarter EPS of
~ Board Declares Quarterly Dividend ~
~ Launches Investment Growth Strategy ~
Fiscal Year 2024 Highlights (See attached table for GAAP and Non-GAAP measures)
-
Delivered net sales of
vs.$672.6 million in fiscal 2023;$751.9 million -
Generated operating income of
as compared to$54.7 million in the prior year period; Adjusted operating income of$120.4 million as compared to$56.8 million ;$123.2 million -
Achieved diluted earnings per share of
as compared to$2.06 in the prior year period; Adjusted diluted earnings per share of$4.12 as compared to$2.13 ;$4.22 -
Strong operating cashflow of
, up$76.8 million 41.3% from fiscal 2023; -
Inventories declined
20.5% to ; and$148.0 million -
Ended the year with cash of
and no debt.$262.1 million
Efraim Grinberg, Chairman and Chief Executive Officer, stated, “We ended the year with revenue and diluted earnings per share at the high end and above our revised outlook, respectively. Our holiday marketing initiatives and new product introductions in both watches and jewelry were favorably received despite a challenging retail backdrop in the
Mr. Grinberg continued, “The year included significant progress in evolving our strategy with important investments made in marketing and product innovation that we believe position us to leverage the strength of our compelling brand portfolio. As we begin fiscal 2025, we are focused on making the investments necessary to grow our business and build our brands for the long-term. As such, we will strategically increase our marketing investments, particularly in the
Fiscal Fourth Quarter Highlights (See attached table for GAAP and Non-GAAP measures)
-
Delivered net sales of
versus$179.6 million in the prior year period;$194.3 million -
Generated gross margin of
53.9% as compared to56.2% in the fourth quarter of fiscal 2023; -
Generated operating income of
as compared to$13.5 million in the prior year period. Adjusted operating income was$26.1 million as compared to adjusted operating income of$13.8 million in the fourth quarter of fiscal 2023; and$26.8 million -
Achieved diluted earnings per share of
as compared to$0.53 in the prior year period. Adjusted diluted earnings per share was$1.00 as compared to$0.55 in the fourth quarter of fiscal 2023.$1.03
Non-GAAP Items (See attached table for GAAP and Non-GAAP measures)
Fourth quarter fiscal 2024 results of operations included the following charges:
-
a
pre-tax charge, or$0.4 million after tax, representing$0.3 million per diluted share, associated with the amortization of acquired intangible assets related to the acquisitions of Olivia Burton and MVMT.$0.02
Fourth quarter fiscal 2023 results of operations included the following charges:
-
a
pre-tax charge, or$0.7 million after tax, representing$0.6 million per diluted share, associated with the amortization of acquired intangible assets related to the acquisition of Olivia Burton and MVMT.$0.03
In this press release, references to “adjusted” results exclude the impact of the above charges, as well as the items described in the Non-GAAP Items section of the Company’s earnings releases for the first, second and third quarter of fiscal year 2024, in deriving the adjusted results for the twelve months ended January 31, 2024 and January 31, 2023. Please refer to the attached GAAP and Non-GAAP measures table for a detailed reconciliation of the Company’s reported results to its adjusted, Non-GAAP results.
Beginning with the first quarter of fiscal 2025, the Company will no longer provide adjusted results that omit the amortization of acquired intangible assets for its Olivia Burton and MVMT acquisitions. The omission of this amortization was the only adjustment made to reported results to derive the Company’s Non-GAAP measures in fiscal 2024. The Company has provided a recast of its GAAP and Non-GAAP measures for the fourth quarter of 2024 and fiscal year 2024 to be consistent with the ongoing definition.
Fourth Quarter Fiscal 2024 Results (See attached table for GAAP and Non-GAAP measures)
-
Net sales decreased
7.5% to , or decreased$179.6 million 9.0% on a constant dollar basis, compared to in the fourth quarter of fiscal 2023. The decrease in net sales reflected declines in wholesale customers’ brick and mortar stores, online retail and Movado Company Stores.$194.3 million U.S. net sales decreased12.4% as compared to the fourth quarter of last year. International net sales decreased2.9% (a decrease of5.8% on a constant dollar basis) as compared to the fourth quarter of last year. -
Gross profit was
, or$96.8 million 53.9% of net sales, compared to , or$109.3 million 56.2% of net sales in the fourth quarter of fiscal 2023. The decrease in gross margin percentage was primarily the result of the decreased leverage of higher fixed costs over lower sales, the unfavorable impact of foreign currency exchange rates and unfavorable changes in channel and product mix. -
Operating expenses were
in the fourth quarter of fiscal 2024 compared to$83.3 million in the fourth quarter of fiscal 2023. Adjusted operating expenses were$83.1 million compared to$82.9 million in the prior year period. The change in operating expenses was primarily due to higher marketing and payroll-related expenses, nearly fully offset by lower performance-based compensation. As a percent of sales, adjusted operating expenses increased to$82.4 million 46.2% of sales from42.4% in the prior year period due to lower sales. -
Operating income was
compared to$13.5 million in the fourth quarter of fiscal 2023. Adjusted operating income was$26.1 million for the fourth quarter of fiscal 2024 and$13.8 million for the prior year period.$26.8 million -
The Company recorded a tax provision of
, as compared to a tax provision of$2.7 million in the fourth quarter of fiscal 2023. Based on adjusted pre-tax income, the adjusted tax provision was$4.0 million , or an adjusted tax rate of$2.8 million 18.1% , as compared to an adjusted tax provision of , or an adjusted tax rate of$4.2 million 14.8% , in the fourth quarter of fiscal 2023. -
Net income for the fourth quarter of fiscal 2024 was
, or$12.1 million per diluted share, compared to net income of$0.53 , or$22.7 million per diluted share, in the fourth quarter of fiscal 2023. Adjusted net income for the fiscal 2024 period was$1.00 , or$12.4 million per diluted share, compared to adjusted net income of$0.55 , or$23.3 million per diluted share, for the fourth quarter of fiscal 2023.$1.03
Full Year Fiscal 2024 Results (See attached table for GAAP and Non-GAAP measures)
-
Net sales decreased
10.5% to , or decreased$672.6 million 11.7% on a constant dollar basis, compared to net sales of in fiscal 2023. The decrease in net sales reflected declines in wholesale customers’ brick and mortar stores, online retail and Movado Company Stores.$751.9 million U.S. net sales decreased13.1% as compared to fiscal 2023. International net sales decreased8.5% (a decrease of10.6% on a constant dollar basis) as compared to fiscal 2023. -
Gross profit was
, or$370.4 million 55.1% of net sales, compared to gross profit of , or$433.9 million 57.7% of net sales in fiscal 2023. The year over year decrease in gross margin percentage was primarily the result of unfavorable changes in channel and product mix, the decreased leverage of higher fixed costs over lower sales and the unfavorable impact of foreign currency exchange rates, partially offset by reduced shipping costs. -
Operating expenses were
in fiscal 2024 compared to$315.7 million in fiscal 2023. For fiscal 2024, adjusted operating expenses were$313.5 million versus$313.6 million in fiscal 2023. This increase was primarily due to higher payroll-related costs, higher marketing expenses and higher travel and entertainment costs, partially offset by lower performance-based compensation.$310.7 million -
Operating income was
in fiscal 2024 as compared to operating income of$54.7 million in fiscal 2023. Adjusted operating income for fiscal 2024 was$120.4 million compared to adjusted operating income for fiscal 2023 of$56.8 million .$123.2 million -
The Company recorded a tax provision of
in fiscal 2024 compared to a tax provision of$12.7 million in fiscal 2023. Based on adjusted pre-tax income, the adjusted tax provision was$24.9 million , or an adjusted tax rate of$13.2 million 21.1% , as compared to an adjusted tax provision of , or an adjusted tax rate of$25.4 million 20.4% , in fiscal 2023. -
Net income was
, or$46.7 million per diluted share, for fiscal 2024, compared to net income of$2.06 , or$94.5 million per diluted share, for fiscal 2023. Adjusted net income in fiscal 2024 was$4.12 or$48.3 million per diluted share. This compares to adjusted net income for fiscal 2023 of$2.13 or$96.8 million per diluted share.$4.22
Fiscal 2025 Outlook
The Company expects fiscal 2025 net sales to be in a range of approximately
Operating expenses for the fiscal 2025 outlook include an incremental
Quarterly Dividend and Share Repurchase Program
The Company also announced today that on March 26, 2024, the Board of Directors approved the payment on April 23, 2024 of a cash dividend in the amount of
During the fourth quarter of fiscal 2024, the Company repurchased approximately 26,000 shares under its November 23, 2021 share repurchase program. As of January 31, 2024, the Company had
Conference Call
The Company’s management will host a conference call and audio webcast to discuss its results today, March 26, 2024 at 9:00 a.m. Eastern Time. The conference call may be accessed by dialing (877) 407-0784. Additionally, a live webcast of the call can be accessed at www.movadogroup.com. The webcast will be archived on the Company’s website approximately one hour after the conclusion of the call. Additionally, a telephonic re-play of the call will be available from 12:00 p.m. ET on March 26, 2024 until 11:59 p.m. ET on April 9, 2024 and can be accessed by dialing 844-512-2921 and entering replay pin number 13744755.
Movado Group, Inc. designs, sources, and distributes MOVADO®, MVMT®, OLIVIA BURTON®, EBEL®, CONCORD®, CALVIN KLEIN®, COACH®, TOMMY HILFIGER®, HUGO BOSS®, and LACOSTE®, watches, and, to a lesser extent jewelry and other accessories, and operates Movado Company Stores in
In this release, the Company presents certain financial measures that are not calculated according to generally accepted accounting principles in
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company has tried, whenever possible, to identify these forward-looking statements using words such as “expects,” “anticipates,” “believes,” “targets,” “goals,” “projects,” “intends,” “plans,” “seeks,” “estimates,” “may,” “will,” “should” and variations of such words and similar expressions. Similarly, statements in this press release that describe the Company's business strategy, outlook, objectives, plans, intentions or goals are also forward-looking statements. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the Company's actual results, performance or achievements and levels of future dividends to differ materially from those expressed in, or implied by, these statements. These risks and uncertainties may include, but are not limited to general economic and business conditions which may impact disposable income of consumers in
(Tables to follow)
MOVADO GROUP, INC. | ||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||
January 31, | January 31, | |||||||||||||||||
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|||||||
Net sales | $ |
179,620 |
|
$ |
194,273 |
|
$ |
672,601 |
|
$ |
751,898 |
|
||||||
Cost of sales |
|
82,843 |
|
|
85,017 |
|
|
302,207 |
|
|
318,003 |
|
||||||
Gross profit |
|
96,777 |
|
|
109,256 |
|
|
370,394 |
|
|
433,895 |
|
||||||
Total operating expenses |
|
83,311 |
|
|
83,124 |
|
|
315,689 |
|
|
313,541 |
|
||||||
Operating income |
|
13,466 |
|
|
26,132 |
|
|
54,705 |
|
|
120,354 |
|
||||||
Non-operating income/(expense): | ||||||||||||||||||
Other income, net |
|
1,800 |
|
|
1,365 |
|
|
5,994 |
|
|
2,069 |
|
||||||
Interest expense |
|
(136 |
) |
|
(162 |
) |
|
(497 |
) |
|
(518 |
) |
||||||
Income before income taxes |
|
15,130 |
|
|
27,335 |
|
|
60,202 |
|
|
121,905 |
|
||||||
Provision for income taxes |
|
2,723 |
|
|
4,014 |
|
|
12,661 |
|
|
24,882 |
|
||||||
Net income |
|
12,407 |
|
|
23,321 |
|
|
47,541 |
|
|
97,023 |
|
||||||
Less: Net income attributable to noncontrolling interests |
|
262 |
|
|
595 |
|
|
830 |
|
|
2,495 |
|
||||||
Net income attributable to Movado Group, Inc. | $ |
12,145 |
|
$ |
22,726 |
|
$ |
46,711 |
|
$ |
94,528 |
|
||||||
Diluted Income Per Share Information | ||||||||||||||||||
Net income per share attributable to Movado Group, Inc. | $ |
0.53 |
|
$ |
1.00 |
|
$ |
2.06 |
|
$ |
4.12 |
|
||||||
Weighted diluted average shares outstanding |
|
22,708 |
|
|
22,708 |
|
|
22,641 |
|
|
22,955 |
|
MOVADO GROUP, INC. | |||||||
GAAP AND NON-GAAP MEASURES | |||||||
(In thousands, except for percentage data) | |||||||
(Unaudited) | |||||||
Three Months Ended | |||||||
January 31, | % Change | ||||||
|
2024 |
|
2023 |
||||
Total net sales, as reported | $ |
179,620 |
$ |
194,273 |
-7.5 |
% |
|
Total net sales, constant dollar basis | $ |
176,765 |
$ |
194,273 |
-9.0 |
% |
|
Twelve Months Ended | |||||||
January 31, | % Change | ||||||
|
2024 |
|
2023 |
||||
Total net sales, as reported | $ |
672,601 |
$ |
751,898 |
-10.5 |
% |
|
Total net sales, constant dollar basis | $ |
664,002 |
$ |
751,898 |
-11.7 |
% |
MOVADO GROUP, INC. | |||||||||||||||||||||||||||
GAAP AND NON-GAAP MEASURES | |||||||||||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||
Net Sales | Gross Profit | Total Operating Expenses | Operating Income | Pre-tax Income | Provision for Income Taxes | Net Income Attributable to Movado Group, Inc. | Diluted EPS | ||||||||||||||||||||
Three Months Ended January 31, 2024 | |||||||||||||||||||||||||||
As Reported (GAAP) | $ |
179,620 |
$ |
96,777 |
$ |
83,311 |
|
$ |
13,466 |
$ |
15,130 |
$ |
2,723 |
$ |
12,145 |
$ |
0.53 |
||||||||||
Olivia Burton and MVMT Costs (1) |
|
- |
|
- |
|
(379 |
) |
|
379 |
|
379 |
|
91 |
|
288 |
|
0.02 |
||||||||||
Adjusted Results (Non-GAAP) | $ |
179,620 |
$ |
96,777 |
$ |
82,932 |
|
$ |
13,845 |
$ |
15,509 |
$ |
2,814 |
$ |
12,433 |
$ |
0.55 |
||||||||||
Three Months Ended January 31, 2023 | |||||||||||||||||||||||||||
As Reported (GAAP) | $ |
194,273 |
$ |
109,256 |
$ |
83,124 |
|
$ |
26,132 |
$ |
27,335 |
$ |
4,014 |
$ |
22,726 |
$ |
1.00 |
||||||||||
Olivia Burton and MVMT Costs (1) |
|
- |
|
- |
|
(698 |
) |
|
698 |
|
698 |
|
136 |
|
562 |
|
0.03 |
||||||||||
Adjusted Results (Non-GAAP) | $ |
194,273 |
$ |
109,256 |
$ |
82,426 |
|
$ |
26,830 |
$ |
28,033 |
$ |
4,150 |
$ |
23,288 |
$ |
1.03 |
||||||||||
Net Sales | Gross Profit | Total Operating Expenses | Operating Income | Pre-tax Income | Provision for Income Taxes | Net Income Attributable to Movado Group, Inc. | Diluted EPS | ||||||||||||||||||||
Twelve Months Ended January 31, 2024 | |||||||||||||||||||||||||||
As Reported (GAAP) | $ |
672,601 |
$ |
370,394 |
$ |
315,689 |
|
$ |
54,705 |
$ |
60,202 |
$ |
12,661 |
$ |
46,711 |
$ |
2.06 |
||||||||||
Olivia Burton and MVMT Costs (1) |
|
- |
|
- |
|
(2,074 |
) |
|
2,074 |
|
2,074 |
|
498 |
|
1,576 |
|
0.07 |
||||||||||
Adjusted Results (Non-GAAP) | $ |
672,601 |
$ |
370,394 |
$ |
313,615 |
|
$ |
56,779 |
$ |
62,276 |
$ |
13,159 |
$ |
48,287 |
$ |
2.13 |
||||||||||
Twelve Months Ended January 31, 2023 | |||||||||||||||||||||||||||
As Reported (GAAP) | $ |
751,898 |
$ |
433,895 |
$ |
313,541 |
|
$ |
120,354 |
$ |
121,905 |
$ |
24,882 |
$ |
94,528 |
$ |
4.12 |
||||||||||
Olivia Burton and MVMT Costs (1) |
|
- |
|
- |
|
(2,850 |
) |
|
2,850 |
|
2,850 |
|
557 |
|
2,293 |
|
0.10 |
||||||||||
Adjusted Results (Non-GAAP) | $ |
751,898 |
$ |
433,895 |
$ |
310,691 |
|
$ |
123,204 |
$ |
124,755 |
$ |
25,439 |
$ |
96,821 |
$ |
4.22 |
||||||||||
(1) |
Related to the amortization of acquired intangible assets for Olivia Burton and MVMT and MVMT's deferred compensation, where applicable. |
MOVADO GROUP, INC. | ||||||||||||||||||||||||||||||||
GAAP AND NON-GAAP MEASURES | ||||||||||||||||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
Net Sales | Gross Profit | Total Operating Expenses | Operating Income/(Loss) | Pre-tax Income/(Loss) | Provision/(Benefit) for Income Taxes | Net Income/(Loss) Attributable to Movado Group, Inc. | Diluted EPS | |||||||||||||||||||||||||
Three Months Ended January 31, 2024 | ||||||||||||||||||||||||||||||||
As Reported (GAAP) | $ |
179,620 |
$ |
96,777 |
$ |
83,311 |
|
$ |
13,466 |
|
$ |
15,130 |
|
$ |
2,723 |
|
$ |
12,145 |
|
$ |
0.53 |
|
||||||||||
Olivia Burton and MVMT Costs (1) |
|
- |
|
- |
|
(379 |
) |
|
379 |
|
|
379 |
|
|
91 |
|
|
288 |
|
|
0.02 |
|
||||||||||
Adjusted Results (Non-GAAP) - Fiscal 2024 Definition | $ |
179,620 |
$ |
96,777 |
$ |
82,932 |
|
$ |
13,845 |
|
$ |
15,509 |
|
$ |
2,814 |
|
$ |
12,433 |
|
$ |
0.55 |
|
||||||||||
Ongoing Definition: | ||||||||||||||||||||||||||||||||
Olivia Burton and MVMT Costs (1) | $ |
- |
$ |
- |
$ |
379 |
|
$ |
(379 |
) |
$ |
(379 |
) |
$ |
(91 |
) |
$ |
(288 |
) |
$ |
(0.02 |
) |
||||||||||
Adjusted Results (Non-GAAP) - Fiscal 2025 Definition | $ |
179,620 |
$ |
96,777 |
$ |
83,311 |
|
$ |
13,466 |
|
$ |
15,130 |
|
$ |
2,723 |
|
$ |
12,145 |
|
$ |
0.53 |
|
||||||||||
Three Months Ended October 31, 2023 | ||||||||||||||||||||||||||||||||
As Reported (GAAP) | $ |
187,686 |
$ |
102,328 |
$ |
81,636 |
|
$ |
20,692 |
|
$ |
22,189 |
|
$ |
4,519 |
|
$ |
17,389 |
|
$ |
0.77 |
|
||||||||||
Olivia Burton and MVMT Costs (1) |
|
- |
|
- |
|
(376 |
) |
|
376 |
|
|
376 |
|
|
90 |
|
|
286 |
|
|
0.01 |
|
||||||||||
Adjusted Results (Non-GAAP) - Fiscal 2024 Definition | $ |
187,686 |
$ |
102,328 |
$ |
81,260 |
|
$ |
21,068 |
|
$ |
22,565 |
|
$ |
4,609 |
|
$ |
17,675 |
|
$ |
0.78 |
|
||||||||||
Ongoing Definition: | ||||||||||||||||||||||||||||||||
Olivia Burton and MVMT Costs (1) | $ |
- |
$ |
- |
$ |
376 |
|
$ |
(376 |
) |
$ |
(376 |
) |
$ |
(90 |
) |
$ |
(286 |
) |
$ |
(0.01 |
) |
||||||||||
Adjusted Results (Non-GAAP) - Fiscal 2025 Definition | $ |
187,686 |
$ |
102,328 |
$ |
81,636 |
|
$ |
20,692 |
|
$ |
22,189 |
|
$ |
4,519 |
|
$ |
17,389 |
|
$ |
0.77 |
|
||||||||||
Three Months Ended July 31, 2023 | ||||||||||||||||||||||||||||||||
As Reported (GAAP) | $ |
160,390 |
$ |
89,286 |
$ |
79,638 |
|
$ |
9,648 |
|
$ |
11,072 |
|
$ |
2,885 |
|
$ |
8,049 |
|
$ |
0.36 |
|
||||||||||
Olivia Burton and MVMT Costs (1) |
|
- |
|
- |
|
(612 |
) |
|
612 |
|
|
612 |
|
|
147 |
|
|
465 |
|
|
0.02 |
|
||||||||||
Adjusted Results (Non-GAAP) - Fiscal 2024 Definition | $ |
160,390 |
$ |
89,286 |
$ |
79,026 |
|
$ |
10,260 |
|
$ |
11,684 |
|
$ |
3,032 |
|
$ |
8,514 |
|
$ |
0.38 |
|
||||||||||
Ongoing Definition: | ||||||||||||||||||||||||||||||||
Olivia Burton and MVMT Costs (1) | $ |
- |
$ |
- |
$ |
612 |
|
$ |
(612 |
) |
$ |
(612 |
) |
$ |
(147 |
) |
$ |
(465 |
) |
$ |
(0.02 |
) |
||||||||||
Adjusted Results (Non-GAAP) - Fiscal 2025 Definition | $ |
160,390 |
$ |
89,286 |
$ |
79,638 |
|
$ |
9,648 |
|
$ |
11,072 |
|
$ |
2,885 |
|
$ |
8,049 |
|
$ |
0.36 |
|
||||||||||
Three Months Ended April 30, 2023 | ||||||||||||||||||||||||||||||||
As Reported (GAAP) | $ |
144,905 |
$ |
82,003 |
$ |
71,104 |
|
$ |
10,899 |
|
$ |
11,811 |
|
$ |
2,534 |
|
$ |
9,128 |
|
$ |
0.40 |
|
||||||||||
Olivia Burton and MVMT Costs (1) |
|
- |
|
- |
|
(707 |
) |
|
707 |
|
|
707 |
|
|
170 |
|
|
537 |
|
|
0.03 |
|
||||||||||
Adjusted Results (Non-GAAP) - Fiscal 2024 Definition | $ |
144,905 |
$ |
82,003 |
$ |
70,397 |
|
$ |
11,606 |
|
$ |
12,518 |
|
$ |
2,704 |
|
$ |
9,665 |
|
$ |
0.43 |
|
||||||||||
Ongoing Definition: | ||||||||||||||||||||||||||||||||
Olivia Burton and MVMT Costs (1) | $ |
- |
$ |
- |
$ |
707 |
|
$ |
(707 |
) |
$ |
(707 |
) |
$ |
(170 |
) |
$ |
(537 |
) |
$ |
(0.03 |
) |
||||||||||
Adjusted Results (Non-GAAP) - Fiscal 2025 Definition | $ |
144,905 |
$ |
82,003 |
$ |
71,104 |
|
$ |
10,899 |
|
$ |
11,811 |
|
$ |
2,534 |
|
$ |
9,128 |
|
$ |
0.40 |
|
||||||||||
(1) |
Related to the amortization of acquired intangible assets for Olivia Burton and MVMT and MVMT's deferred compensation, where applicable. |
MOVADO GROUP, INC. | ||||||
CONSOLIDATED BALANCE SHEETS | ||||||
(In thousands) | ||||||
(Unaudited) | ||||||
January 31, | January 31, | |||||
|
2024 |
|
2023 |
|||
ASSETS | ||||||
Cash and cash equivalents | $ |
262,059 |
$ |
251,584 |
||
Trade receivables, net |
|
104,472 |
|
94,282 |
||
Inventories |
|
148,031 |
|
186,203 |
||
Other current assets |
|
17,962 |
|
24,212 |
||
Income taxes receivable |
|
11,354 |
|
10,908 |
||
Total current assets |
|
543,878 |
|
567,189 |
||
Property, plant and equipment, net |
|
19,436 |
|
18,699 |
||
Operating lease right-of-use assets |
|
82,661 |
|
80,897 |
||
Deferred and non-current income taxes |
|
43,016 |
|
44,490 |
||
Other intangibles, net |
|
7,493 |
|
9,642 |
||
Other non-current assets |
|
72,598 |
|
66,788 |
||
Total assets | $ |
769,082 |
$ |
787,705 |
||
LIABILITIES AND EQUITY | ||||||
Accounts payable | $ |
32,775 |
$ |
32,085 |
||
Accrued liabilities |
|
38,695 |
|
46,720 |
||
Accrued payroll and benefits |
|
7,591 |
|
17,343 |
||
Current operating lease liabilities |
|
15,696 |
|
17,681 |
||
Income taxes payable |
|
18,318 |
|
28,591 |
||
Total current liabilities |
|
113,075 |
|
142,420 |
||
Deferred and non-current income taxes payable |
|
8,234 |
|
15,163 |
||
Non-current operating lease liabilities |
|
76,396 |
|
70,910 |
||
Other non-current liabilities |
|
52,420 |
|
48,668 |
||
Shareholders' equity |
|
516,798 |
|
507,606 |
||
Noncontrolling interest |
|
2,159 |
|
2,938 |
||
Total equity |
|
518,957 |
|
510,544 |
||
Total liabilities and equity | $ |
769,082 |
$ |
787,705 |
MOVADO GROUP, INC. | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(In thousands) | |||||||
(Unaudited) | |||||||
Twelve Months Ended |
|||||||
January 31, |
|||||||
|
2024 |
|
|
2023 |
|
||
Cash flows from operating activities: | |||||||
Net income | $ |
47,541 |
|
$ |
97,023 |
|
|
Depreciation and amortization |
|
9,644 |
|
|
10,809 |
|
|
Other non-cash adjustments |
|
14,921 |
|
|
9,540 |
|
|
Changes in working capital |
|
3,404 |
|
|
(58,650 |
) |
|
Changes in non-current assets and liabilities |
|
1,268 |
|
|
(4,381 |
) |
|
Net cash provided by operating activities |
|
76,778 |
|
|
54,341 |
|
|
Cash flows from investing activities: | |||||||
Capital expenditures |
|
(8,223 |
) |
|
(7,085 |
) |
|
Long-term investments |
|
(3,107 |
) |
|
(3,263 |
) |
|
Trademarks and other intangibles |
|
(144 |
) |
|
(202 |
) |
|
Net cash used in investing activities |
|
(11,474 |
) |
|
(10,550 |
) |
|
Cash flows from financing activities: | |||||||
Dividends paid |
|
(53,146 |
) |
|
(31,363 |
) |
|
Stock repurchases |
|
(3,116 |
) |
|
(31,413 |
) |
|
Purchase of incremental ownership of joint venture |
|
- |
|
|
(1,886 |
) |
|
Distribution of noncontrolling interest earnings |
|
(1,431 |
) |
|
(1,056 |
) |
|
Stock awards and options exercised and other changes |
|
97 |
|
|
489 |
|
|
Debt issuance cost |
|
- |
|
|
(85 |
) |
|
Net cash used in financing activities |
|
(57,596 |
) |
|
(65,314 |
) |
|
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
2,927 |
|
|
(4,014 |
) |
|
Net change in cash, cash equivalents, and restricted cash |
|
10,635 |
|
|
(25,537 |
) |
|
Cash, cash equivalents, and restricted cash at beginning of period |
|
252,179 |
|
|
277,716 |
|
|
Cash, cash equivalents, and restricted cash at end of period | $ |
262,814 |
|
$ |
252,179 |
|
|
Reconciliation of cash, cash equivalents, and restricted cash: | |||||||
Cash and cash equivalents | $ |
262,059 |
|
$ |
251,584 |
|
|
Restricted cash included in other non-current assets |
|
755 |
|
|
595 |
|
|
Cash, cash equivalents, and restricted cash | $ |
262,814 |
|
$ |
252,179 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240326637645/en/
ICR, Inc.
Cody McAlester/Allison Malkin
203-682-8200
Source: Movado Group, Inc.
FAQ
What were Movado Group's fiscal 2024 net sales?
What was Movado Group's EPS for fiscal 2024?
What was the fourth quarter net sales for Movado Group?
What was the quarterly dividend declared by Movado Group?
What is Movado Group's expected fiscal 2025 net sales range?