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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.
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