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Jan 31, 2021
Movado Q4 2021 Earnings Report
Announced strong fourth quarter and fiscal year 2021 results, with net sales of $178.3 million.
Key Takeaways
Movado Group reported strong Q4 results with a sequential improvement in sales, a 220 basis point expansion in gross profit margin, and an $18.1 million decline in operating expenses, driving operating income to $23.9 million.
Fourth quarter net sales reached $178.3 million.
Operating income was reported at $25.9 million, with adjusted operating income at $23.9 million.
Ended fiscal year 2021 with cash of $223.8 million, compared to $185.9 million in fiscal 2020.
Board approved a new share repurchase program for $25 million and declared a quarterly dividend of $0.20 per share.
Movado
Movado
Forward Guidance
The Company is not providing annual fiscal 2022 outlook at this time, but expects first quarter fiscal 2022 net sales in a range of approximately $110 million to $115 million and to be slightly profitable on an operating basis.
Positive Outlook
- Brands are experiencing favorable momentum driven by compelling watch and jewelry offerings.
- Growth opportunities across geographies.
- Growth opportunities across channels.
- Growth opportunities across categories.
- Excited about the upcoming launch of Calvin Klein watches and jewelry in January 2022.
Challenges Ahead
- The environment still remains uncertain.
- General economic and business conditions which may impact disposable income of consumers in the United States and the other significant markets (including Europe) where the Company’s products are sold.
- Uncertainty regarding such economic and business conditions.
- Trends in consumer debt levels and bad debt write-offs.
- General uncertainty related to possible terrorist attacks, natural disasters, pandemics, including the effect of the COVID-19 pandemic and other diseases on travel and traffic in the Company’s retail stores and the stores of its wholesale customers.