By
Reuters
Reuters
Published
Jun 6, 2011
Jun 6, 2011
Movado posts profit, beats estimates
By
Reuters
Reuters
Published
Jun 6, 2011
Jun 6, 2011
June 2 - Watchmaker Movado Group Inc posted a profit for the first quarter beating market estimates as its namesake and licensed brands flew off shelves both in its domestic and international markets.
Movado brand ambassador Amanda Seyfried |
Movado, which distributes licensed brands such as Tommy Hilfiger and Hugo Boss, also backed its full-year outlook, sending its shares up 3 percent in pre-market trade.
The company said its newer Movado Bold brand stayed popular with customers, boosting sales. Movado Bold is priced in the more affordable $300-$500 range to attract young and more trendy consumers.
"Continued excitement behind our Movado Bold product was a strong catalyst for growth of the Movado brand," Chief Executive Efraim Grinberg said in a statement.
Movado, which sells its products through department store chains and jewelry shops, said it expects to earn 60-65 cents a share for fiscal 2012.
Earlier this month, rival Fossil Inc also posted a market-beating first quarter as fashion consciousness among buyers increased.
Movado, whose brands also include Concord, Ebel and the namesake Movado, posted first-quarter net income of $0.5 million, or 2 cents a share, compared with loss of $12.4 million, or 50 cents per share, a year ago.
In the year-ago quarter, the company had a non-cash deferred tax expense provision of $2.5 million, or 10 cents per share.
Revenue for the latest February-April quarter rose 23.4 percent to $89.9 million.
Analysts on average had expected a loss of 3 cents a share, on revenue of $78.93 million, according to Thomson Reuters I/B/E/S.
Shares of the Paramus, New Jersey-based company closed at $16.10 on Wednesday on the New York Stock Exchange.
(Reporting by Arpita Mukherjee in Bangalore; Editing by Gopakumar Warrier)
© Thomson Reuters 2024 All rights reserved.