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Apr 30, 2022

Movado Q1 2023 Earnings Report

Reported a strong start to fiscal year with record sales and profit.

Key Takeaways

Movado Group reported a strong first quarter with a 21.2% increase in net sales to $163.4 million and an 84.7% growth in adjusted operating income to $26.1 million. EPS was $0.79 and adjusted EPS was $0.82. The Board approved a quarterly dividend of $0.35 per share.

Net sales increased 21.2% to $163.4 million.

Gross margin expanded by 420 bps vs. prior year period.

EPS of $0.79 and adjusted EPS of $0.82 were reported.

Board approved a quarterly dividend of $0.35 per share.

Total Revenue
$163M
Previous year: $135M
+21.2%
EPS
$0.82
Previous year: $0.43
+90.7%
Quarterly Dividend
$0.35
Gross Profit
$96.7M
Previous year: $74.2M
+30.3%
Cash and Equivalents
$225M
Previous year: $219M
+2.8%
Free Cash Flow
-$22.1M
Previous year: -$15.8M
+40.3%
Total Assets
$740M
Previous year: $695M
+6.5%

Movado

Movado

Forward Guidance

The Company expects fiscal 2023 net sales to be in a range of approximately $780 million to $800 million, gross profit of approximately 58.0% of net sales, and operating income in a range of $125 million to $130 million.

Positive Outlook

  • Compelling product innovation.
  • Diversified brand portfolio.
  • Continued investment in people and brands.
  • Prudent and fiscally responsible management.
  • Strong balance sheet.

Challenges Ahead

  • Heightened level of economic uncertainty.
  • Geopolitical uncertainty.
  • Currency uncertainty.
  • Increasing inflation.
  • Extended negative impact to supply chain and shipping costs.