Movado Group, Inc. (MOV) Up on Strong Fourth Quarter Results
Shares of Paramus, New Jersey, based Movado Group, Inc. (MOV) bucked the down trend of the general market and rose sharply on Tuesday. Movado's stock rose $2.89 per share, up 11.28% to close at 28.52 on volume of 2,540,677 shares. The company reported that it's fiscal fourth quarter net income was up significantly from the same period a year ago.
On Tuesday Movado reported that its net income for the fiscal fourth quarter ended January 31, 2015, came in at $10.1 million, or $0.40 per share. That's well above the net income of $7.2 million, or $0.28 per share, reported for the same period a year ago. Net income matched the consensus expectation of $0.40 per share.
Sales for the quarter come in at $133.91, slightly ahead of the $132.26 million reported for the same period a year ago, and just under the market consensus of $134.7 million.
For all of the 2015 fiscal year, net income came in at $51.78 million, or $2.02 per share, compared to $50.88 million, or $1.97 per share, for fiscal 2014. Total revenue came in at $587 million for all of fiscal 2015, compared to $570.3 million for all of fiscal 2014. This represented an increase in total revenue of 3.3% year-over-year.
Major changes in foreign exchange rates are affecting Movado's operations, particularly in regard to the Euro, the Swiss franc and the US dollar.
Said Rick Coté, Movado's Vice Chairman and Chief Operating Officer, "To deal with these external realities we are taking decisive actions to mitigate their impact. First we will be taking selective price increases. Second, we are streamlining certain aspects of our business to provide greater operating efficiencies and third our supply chain organization is focusing on sourcing improvement opportunities. We expect that these actions will allow us to deliver financial performance improvements and return us to delivering sustainable profitable growth.
The company also announced that the Board of Directors approved a 10% increase in the company's quarterly cash dividend from $0.10 per share to $0.11 for each share of outstanding common stock and class A common stock. The dividend will be paid on April 24, 2015 to all shareholders of record as of the close of business on April 10, 2015.
For fiscal 2016, Movado expects that net sales will increase to a range of $590 million to $600 million. The company also anticipates that net income in fiscal 2016 will be between $48.5 million to $51.0 million, or $2.00 to $2.10 per diluted share. This reflects a 30% anticipated effective tax rate and reduced share count. The Company's guidance also assumes no further significant fluctuations from prevailing foreign currency exchange rates as well as no unusual items for fiscal 2016.
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