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Jul 31, 2022

Movado Q2 2023 Earnings Report

Reported strong second quarter results with sales growth and increased operating income.

Key Takeaways

Movado Group reported a strong second quarter with a 5.1% increase in net sales to $182.8 million and a 10.5% increase on a constant currency basis. Operating income increased to $30.7 million, and EPS reached $1.05, with an adjusted EPS of $1.07.

Net sales increased by 5.1% to $182.8 million.

Net sales increased by 10.5% on a constant currency basis.

Operating income increased to $30.7 million from $24.6 million.

EPS reached $1.05 and adjusted EPS was $1.07.

Total Revenue
$183M
Previous year: $174M
+5.1%
EPS
$1.07
Previous year: $0.85
+25.9%
Gross Profit
$107M
Previous year: $98.5M
+8.6%
Cash and Equivalents
$203M
Previous year: $200M
+1.7%
Free Cash Flow
-$6.25M
Previous year: $36.7M
-117.0%
Total Assets
$766M
Previous year: $711M
+7.8%

Movado

Movado

Forward Guidance

The Company currently expects net sales to be $780 million to $790 million versus its previous outlook range of $780 million to $800 million. Based on the strong results for the first half of fiscal 2023, the Company now expects operating income to be at the high end of its previous outlook of $125 million to $130 million.

Challenges Ahead

  • Prevailing foreign exchange headwinds.
  • Increased level of uncertainty in the second half of the fiscal year.
  • Global inflation.
  • Currency headwinds.
  • Rising interest rates and the elimination of domestic stimulus programs.