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Movado
🇺🇸 NYSE:MOV
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•
Jul 31, 2021

Movado Q2 2022 Earnings Report

Announced record second quarter results and increased annual outlook.

Key Takeaways

Movado Group reported a strong second quarter with significant increases in net sales, operating income, and earnings per share compared to the previous year. Net sales increased by 96.4% from fiscal 2021 and 10.2% from fiscal 2020. The company ended the quarter with a strong cash position and declared a quarterly dividend.

Net sales increased by 96.4% compared to fiscal 2021 and 10.2% compared to fiscal 2020, reaching $173.9 million.

Operating income increased to $24.6 million, a significant improvement from ($8.9) million in fiscal 2021 and $8.8 million in fiscal 2020.

Earnings per share reached $0.82.

The company ended the second quarter with $199.7 million in cash and no debt.

Total Revenue
$174M
Previous year: $88.5M
+96.4%
EPS
$0.85
Previous year: -$0.07
-1314.3%
Gross Profit
$98.5M
Previous year: $45.4M
+117.1%
Cash and Equivalents
$200M
Previous year: $170M
+17.3%
Free Cash Flow
$36.7M
Previous year: $13.2M
+177.0%
Total Assets
$711M
Previous year: $680M
+4.6%

Movado

Movado

Forward Guidance

The Company is increasing its outlook and currently expects fiscal 2022 net sales in a range of approximately $680 million to $695 million, gross profit of approximately 55.5% to 56.0% of net sales, operating profit in a range of 13.0% to 13.5% of net sales and diluted earnings per share of approximately $2.75 to $2.90.

Positive Outlook

  • Net sales are expected to be in the range of $680 million to $695 million.
  • Gross profit is projected to be approximately 55.5% to 56.0% of net sales.
  • Operating profit is anticipated to be in the range of 13.0% to 13.5% of net sales.
  • Diluted earnings per share are expected to be approximately $2.75 to $2.90.
  • The Company anticipates a 25% effective tax rate for the fiscal year.

Challenges Ahead

  • Outlook does not contemplate significant additional COVID-19 related retail closures which can adversely impact results.
  • The outlook excludes approximately $3.0 million of amortization of acquired intangible assets and deferred compensation for fiscal 2022 related to the Olivia Burton and MVMT brands.
  • The Company's outlook assumes no further significant fluctuations from prevailing foreign currency exchange rates.
  • Uncertainty stemming from COVID-19 variants.
  • General economic and business conditions which may impact disposable income of consumers

Company Overview

Full financial data and analysis

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