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Jul 31, 2020
Movado Q2 2021 Earnings Report
Movado Group reported a decrease in net sales due to the impact of the COVID-19 pandemic and announced a licensing partnership with Calvin Klein.
Key Takeaways
Movado Group's second quarter results were significantly impacted by the COVID-19 pandemic, with net sales decreasing by 43.9% to $88.5 million. The company reported a net loss of $6.6 million, or $0.28 per diluted share. However, the company took aggressive actions to mitigate the impact, generating $90 million in cost savings and ending the quarter with a cash balance of $170 million.
Net sales decreased 43.9% to $88.5 million due to the COVID-19 pandemic.
The company's Movado brand generated a 130% increase in own and third party ecommerce sales.
The company implemented initiatives expected to generate $90 million in cost savings this fiscal year.
Movado Group announced a new licensing partnership with Calvin Klein for timepieces and jewelry.
Movado
Movado
Forward Guidance
While Movado Group is not providing fiscal 2021 guidance due to the uncertainty surrounding the COVID-19 crisis, they anticipate improving sales trends and profitability in the second half of the year compared to the first half.
Positive Outlook
- Improving sales trends expected in the second half.
- Improved profitability anticipated in the second half.
- Disciplined and agile management of the business.
- Strong liquidity position.
- Powerful portfolio of brands.
Challenges Ahead
- Dynamic nature of the COVID-19 crisis.
- Lack of visibility on potential financial impact.
- Continued uncertainty in the environment.
- Potential impact on consumer spending.
- Risks associated with economic and business conditions.