Movado announces 1Q results

Movado Group, Inc. announced first quarter results for the period ended April 30, 2008.

Net sales in the first quarter of fiscal 2009 were $101.4 million. Fiscal 2008 first quarter net sales of $101.4 million included $2.7 million of sales of excess discontinued product. Excluding the sales of discontinued product, net sales increased 2.7% from last year.

On a constant-exchange-rate basis, which excludes the effect of translating foreign-currency-denominated sales into U.S. dollars, and excluding the previously mentioned discontinued product sales recorded in fiscal 2008, net sales decreased 2.6%.

Gross profit was $65.0 million, or 64.2% of sales, compared to $61.7 million, or 60.8% of sales last year. Excluding excess discontinued product sales, adjusted gross profit in the first quarter of fiscal 2008 was $62.0 million, or 62.9% of sales.

Operating expenses were $63.4 million versus $58.9 million last year. On a constant-exchange-rate basis, operating expenses were $61.2 million.
Operating profit was $1.6 million this year compared to $2.8 million in the year-ago period.

Income tax expense of $0.6 million reflects a 30.4% tax rate in the first quarter compared to income tax expense of $0.6 million, or a 20.6% tax rate, recorded last year. Income tax expense this year included a charge of $0.2 million versus a net benefit of $0.2 million included in last year’s income tax expense resulting from adjustments recorded in the respective quarters.

Net income was $1.2 million, or $0.05 per fully diluted share, versus $2.4 million, or $0.09 per fully diluted share last year.

Efraim Grinberg, President and Chief Executive Officer, said, in our seasonally smallest quarter, the strength of our international business — which generates approximately half of our wholesale watch revenue — offset the continued effects of a challenging retail and economic environment in the United States. New product introductions remain an important driver to our business, particularly in the current U.S. consumer spending environment, and we continue to support each of our brands with compelling advertising campaigns.

Source : http://www.movadogroupinc.com/

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