Movado Group (MOV) Tops Q4 EPS by 17c, Sales Miss; Guides Below the Street

Movado Group (NYSE: MOV) reported Q4 EPS of $0.40, $0.17 better than the analyst estimate of $0.23. Revenue for the quarter came in at $130.8 million versus the consensus estimate of $137.11 million.

GUIDANCE:

Movado Group sees FY2018 EPS of $1.40-$1.55, versus the consensus of $1.74. Movado Group sees FY2018 revenue of $515-530 million, versus the consensus of $581.5 million.

Efraim Grinberg, Chairman and Chief Executive Officer, stated, “In a challenging holiday selling season, we were pleased to see our brands outperform the overall watch category in key markets around the world and to have delivered on our annual revenue and earnings targets. Our global teams executed well against our strategies that are centered on delivering innovative and beautifully designed watches. Notably, our Ultra Slim collections across our portfolio and the relaunch of our iconic Movado Esperanza during the holidays resonated well with consumers. We also managed our expenses very well during the quarter while continuing to invest in our global brand building initiatives.”

Mr. Grinberg continued, “Looking at fiscal 2018, we anticipate the retail environment will remain difficult. We are seeing a significant shift from brick and mortar to e-commerce and a continuing challenged fashion watch market in the United States. As a result, we are taking a more conservative view for fiscal 2018 compared to fiscal 2017 and are implementing certain cost savings initiatives. Given the evolution of the retail market place, we are consolidating certain operations and shifting a greater portion of our investment into the continued development and growth of our digital footprint, including allocating a larger percentage of our marketing budget to online venues. While we believe in the continued growth potential of the traditional watch category, we are also excited about our recently announced partnership with Google to launch a new smartwatch collection, Movado Connect. We remain committed to our strategy which we believe positions us to deliver sustained profitable long-term growth and increase shareholder value through our strong balance sheet.”

For earnings history and earnings-related data on Movado Group (MOV) click here.

You May Also Be Interested In

• Nanometrics (NANO) Issues Business Update, Reports FY23 Results
• First Bancorp. (FBNC) Misses Q1 EPS by 2c
• Northrim BanCorp (NRIM) Tops Q1 EPS by 54c