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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
November 30, 2023
MOVADO GROUP, INC. |
(Exact name of registrant as specified in its charter) |
New York |
1-16497 |
13-2595932 |
(State or other jurisdiction
of incorporation) |
(Commission
File Number) |
(I.R.S. Employer
Identification No.) |
650 FROM ROAD, SUITE 375
PARAMUS, NJ 07652-3556 |
(Address of principal executive offices) (Zip Code) |
|
(201) 267-8000 |
(Registrant’s Telephone Number, Including Area Code) |
|
NOT APPLICABLE |
(Former Name or Former Address, if Changed Since Last Report) |
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction
A.2. below):
|
☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
|
|
|
☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|
|
|
|
☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|
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|
☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b)
of the Act:
Title of each class |
|
Trading Symbol(s) |
|
Name of each exchange
on which registered |
Common stock, par value $0.01 per share |
|
MOV |
|
New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth
company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange
Act of 1934 (§240.12b-2 of this chapter).
Emerging
growth company ☐
If an emerging
growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any
new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On November 30, 2023, Movado Group, Inc. (the “Company”)
issued a press release announcing third quarter results for the period ended October 31, 2023. The press release is attached hereto as
Exhibit 99.1.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
SIGNATURES
Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused this report on Form 8-K to be signed on its behalf by the undersigned
hereunto duly authorized.
Dated: November 30, 2023
|
MOVADO GROUP, INC. |
|
|
|
|
|
|
By: |
/s/ Mitchell
Sussis |
|
|
Name: |
Mitchell Sussis |
|
|
Title: |
Senior Vice President, General Counsel and Secretary |
|
EXHIBIT 99.1
CONTACT: |
|
ICR, Inc. |
|
|
Rachel Schacter/Allison Malkin |
|
|
203-682-8200 |
FINAL
MOVADO GROUP, INC. ANNOUNCES THIRD QUARTER RESULTS
~ Net Sales of $187.7 million ~
~ Operating Income of $20.7 million; Adjusted
Operating Income of $21.1 million ~
~ EPS of $0.77 and Adjusted EPS of $0.78 ~
~ Company Updates Fiscal 2024 Outlook ~
~ Board Declares Quarterly Dividend ~
Paramus, NJ – November 30,
2023 -- Movado Group, Inc. (NYSE: MOV) today announced third quarter and nine-month results for the periods ended October 31, 2023.
Fiscal 2024 Third Quarter Highlights (See table
below for GAAP and Non-GAAP measures)
| · | Reported net sales of $187.7 million versus $211.4 million in the third quarter of fiscal 2023; |
| · | Generated gross margin of 54.5% compared to 57.3% in the prior year period; |
| · | Generated operating income of $20.7 million as compared to $38.3 million in the prior year period; Adjusted
operating income of $21.1 million as compared to $38.9 million; |
| · | Delivered diluted earnings per share of $0.77 as compared to $1.28 in the prior year period; Adjusted
diluted earnings per share of $0.78 as compared to $1.31; and |
| · | Ended the quarter with cash of $201.0 million and no debt. |
Efraim Grinberg, Chairman and Chief Executive Officer,
stated, “For the third quarter, our results were impacted by the challenging retail environment in our largest markets, the United
States and Europe. Notwithstanding this, the quarter saw us continue to advance our strategic priorities and invest in our brands while
preparing for the all-important holiday selling season. Importantly, the strength of our balance sheet, with $201.0 million of cash at
quarter-end and no debt, allowed us to remain flexible as we continued to navigate the difficult backdrop.”
Mr. Grinberg continued, “As we look to the final quarter of the year,
we believe it is appropriate to moderate our annual outlook to incorporate our expectation for a continuation of the current operating
environment
across the U.S. and Europe. That said, we believe
we are well positioned to capitalize on the holiday season with compelling newness across our watch and jewelry brands. We are particularly
enthusiastic about the refreshed branding and advertising campaign in support of the Movado brand. Overall, we see significant opportunity
ahead for Movado Group as we update our strategies to address the evolving landscape in the fashion watch category. We remain committed
to continuing to drive long-term profitable growth.”
Non-GAAP Items (See attached table for GAAP
and Non-GAAP measures)
Third quarter fiscal 2024 results
of operations included the following items:
| · | a $0.4 million pre-tax charge, or $0.3 million after tax, representing $0.01 per diluted share, associated
with the amortization of acquired intangible assets related to the acquisitions of Olivia Burton and MVMT. |
Third quarter fiscal 2023 results
of operations included the following items:
| · | a $0.7 million pre-tax charge, or $0.5 million after tax, representing $0.03 per diluted share, associated
with the amortization of acquired intangible assets related to the acquisitions of Olivia Burton and MVMT. |
In this press release, references
to “adjusted” results exclude the impact of the above charges and the charges described in the Non-GAAP Items section of the
Company’s earnings releases for the first and second quarters of fiscal year 2024 in deriving the adjusted results for the nine
months ended October 31, 2023 and October 31, 2022. Please refer to the attached GAAP and Non-GAAP measures table for a detailed reconciliation
of the Company’s reported results to its adjusted, non-GAAP results.
Third Quarter Fiscal 2024
(See attached table for GAAP and Non-GAAP measures)
| · | Net sales decreased 11.2% to $187.7 million, or decreased 13.5% on a constant dollar basis, compared to
$211.4 million in the third quarter of fiscal 2023. The decrease in net sales reflected declines in wholesale customers’ brick and
mortar stores, online retail and Movado Company Stores. U.S. net sales decreased 12.3% as compared to the third quarter of last year.
International net sales decreased 10.4% (14.4% on a constant dollar basis) as compared to the third quarter of last year. |
| · | Gross profit was $102.3 million, or 54.5% of sales, compared to $121.0 million, or 57.3% of sales, in
the third quarter of fiscal 2023. The decrease in gross margin percentage was primarily the result of unfavorable changes in channel and
product mix and the decreased leverage of certain fixed costs on lower sales, partially offset by decreased shipping costs and the favorable
impact of foreign currency exchange rates. |
| · | Operating expenses were $81.6 million compared to $82.8 million in the
third quarter of fiscal 2023. Adjusted operating expenses were $81.3 million for the third quarter of fiscal 2024 and $82.1 million in
the third quarter of fiscal 2023. This decrease was primarily due to lower performance-based compensation, partially offset by higher
payroll related expenses and marketing expenses. As a percent |
| | of sales, adjusted operating expenses increased to 43.3% of sales from 38.8% in the prior year period
due to lower sales. |
| · | Operating income was $20.7 million compared to $38.3 million in the third quarter of fiscal 2023. Adjusted
operating income for the third quarter of fiscal 2024 was $21.1 million compared to adjusted operating income of $38.9 million in the
third quarter of fiscal 2023. |
| · | The Company recorded a tax provision of $4.5 million compared to a tax provision of $8.4 million in the
third quarter of fiscal 2023. The Company recorded an adjusted tax provision in the third quarter of fiscal 2024 of $4.6 million compared
to an adjusted tax provision of $8.6 million in the third quarter of fiscal 2023. |
| · | Net income was $17.4 million, or $0.77 per diluted share, compared to net income of $29.3 million, or
$1.28 per diluted share, in the third quarter of fiscal 2023. Adjusted net income for the fiscal 2024 period was $17.7 million, or $0.78
per diluted share. This compares to adjusted net income in the third quarter of fiscal 2023 of $29.8 million, or $1.31 per diluted share. |
Nine Month Results Fiscal 2024 (See attached
table for GAAP and Non-GAAP measures)
| · | Net sales decreased 11.6% to $493.0 million, or decreased 12.6% on a constant dollar basis, compared to
$557.6 million in the first nine months of fiscal 2023. The decrease in net sales reflected declines in wholesale customers’ brick
and mortar stores, online retail and Movado Company Stores. U.S. net sales decreased 13.4% as compared to the first nine months of last
year. International net sales decreased 10.3% (12.1% on a constant dollar basis) as compared to the first nine months of last year. |
| · | Gross profit was $273.6 million, or 55.5% of sales, compared to $324.6 million, or 58.2% of sales in the
same period last year. The decrease in gross margin percentage was primarily the result of unfavorable changes in channel and product
mix, the decreased leverage of higher fixed costs on lower sales and the unfavorable impact of foreign currency exchange rates, partially
offset by reduced shipping costs. |
| · | Operating expenses were $232.4 million as compared to $230.4 million in the same period last year. Adjusted
operating expenses were $230.7 million compared to $228.3 million in the prior year period. This increase was primarily due to higher
payroll-related costs, partially offset by lower performance-based compensation and marketing expenses. As a percent of sales, adjusted
operating expenses increased to 46.8% of sales from 40.9% in the prior year period primarily due to lower sales. |
| · | Operating income was $41.2 million compared to operating income of $94.2 million in the same period last
year. Adjusted operating income was $42.9 million compared to $96.4 million in the prior year period. |
| · | The Company recorded a tax provision in the first nine months of fiscal 2024 of $9.9 million as compared
to a provision of $20.9 million in the first nine months of fiscal 2023. The Company recorded an adjusted tax provision of $10.3 million
compared to an adjusted tax provision of $21.3 million for the first nine months of fiscal 2023. |
| · | Net income was $34.6 million, or $1.53 per diluted share, compared to net income of $71.8 million, or
$3.12 per diluted share, in the first nine months of last year. In the first nine months of fiscal 2024, adjusted net income was $35.9
million, or $1.58 per diluted share, compared to adjusted net income of $73.5 million, or $3.19 per diluted share, in the first nine months
of fiscal 2023. |
Fiscal 2024 Outlook
The Company is revising its previously
provided outlook to reflect third quarter results and the expected continuing impact of a challenging environment.
For Fiscal Year 2024, the Company
currently expects:
| · | Net sales in a range of approximately $665.0 million to $675.0 million, as compared to its previous expectation
for net sales in the range of $690.0 million to $700.0 million; |
| · | Gross profit of approximately 55% of net sales, unchanged from its previous expectation; |
| · | Operating income in a range of $51.0 million to $55.0 million, as compared to its previous expectation
for operating income in a range of $62.5 million to $65.0 million; |
| · | An effective tax rate of approximately 23%, unchanged from its previous expectation; and |
| · | Earnings of $1.85 to $2.00 per diluted share, as compared to its previous expectation of $2.15 to $2.25
per diluted share. |
The Company noted that its fiscal 2024 outlook continues
to exclude approximately $2.1 million of amortization of acquired intangible assets related to the Olivia Burton and MVMT brands. This
outlook does not contemplate further deterioration in the economic environment and assumes no further significant fluctuations from prevailing
foreign currency exchange rates.
Quarterly Dividend and Share
Repurchase Program
The Company also announced today
that on November 30, 2023, the Board of Directors approved the payment on December 26, 2023 of a cash dividend in the amount of $0.35
for each share of the Company’s outstanding common stock and class A common stock held by shareholders of record as of the close
of business on December 12, 2023.
During the third quarter of fiscal
2024, the Company repurchased approximately 69,700 shares under its November 23, 2021 share repurchase program. As of October 31, 2023,
the Company had $18.6 million remaining available under the share repurchase program.
Conference Call
The Company’s management will host a conference call and audio webcast
to discuss its results today, November 30, 2023, at 9:00 a.m. Eastern Time. The conference call may be accessed by dialing (877) 407-0784.
Additionally, a live webcast of the call can be accessed at www.movadogroup.com. The webcast will be archived on the Company’s
website approximately one hour after the conclusion of the call.
Additionally, a telephonic re-play of the call will
be available from 12:00 p.m. ET on November 30, 2023 until 11:59 p.m. ET on December 14, 2023 and can be accessed by dialing (844) 512-2921
and entering replay pin number 13742649.
Movado Group, Inc. designs, sources,
and distributes MOVADO®, MVMT®, OLIVIA BURTON®, EBEL®, CONCORD®, CALVIN KLEIN®, COACH®, HUGO BOSS®, LACOSTE®,
and TOMMY HILFIGER® watches, and, to a lesser extent, jewelry and other accessories, and operates Movado Company Stores in the United
States and Canada.
In this release,
the Company presents certain financial measures that are not calculated according to generally accepted accounting principles in the
United States (“GAAP”). Specifically, the Company is presenting adjusted gross profit, adjusted gross margin, adjusted operating
expenses and adjusted operating income, which are gross profit, gross margin, operating expenses and operating income, respectively,
under GAAP, adjusted to eliminate the amortization of acquisition accounting adjustments related to the Olivia Burton and MVMT acquisitions.
The Company is also presenting adjusted tax provision, which is the tax provision under GAAP, adjusted to eliminate the impact of charges
for the Olivia Burton and MVMT acquisitions. The Company believes these adjusted measures are useful because they give investors information
about the Company’s financial performance without the effect of certain items that the Company believes are not characteristic
of its usual operations. The Company is also presenting adjusted net income, adjusted earnings per share and adjusted effective tax rate,
which are net income, earnings per share and effective tax rate, respectively, under GAAP, adjusted to eliminate the after-tax impact
of amortization of acquisition accounting adjustments related to the Olivia Burton and MVMT acquisitions. The Company believes that adjusted
net income, adjusted earnings per share and adjusted effective tax rate are useful measures of performance because they give investors
information about the Company’s financial performance without the effect of certain items that the Company believes are not characteristic
of its usual operations. Additionally, the Company is presenting constant currency information to provide a framework to assess how its
business performed excluding the effects of foreign currency exchange rate fluctuations in the current period. Comparisons of financial
results on a constant dollar basis are calculated by translating each foreign currency at the same U.S. dollar exchange rate as in effect
for the prior-year period for both periods being compared. The Company believes this information is useful to investors to facilitate
comparisons of operating results. These non-GAAP financial measures are designed to complement the GAAP financial information presented
in this release. The non-GAAP financial measures presented should not be considered in isolation from or as a substitute for the comparable
GAAP financial measures, and the methods of their calculation may differ substantially from similarly titled measures used by other companies.
This press release contains certain forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company has tried, whenever possible, to identify
these forward-looking statements using words such as “expects,” “anticipates,” “believes,” “targets,”
“goals,” “projects,” “intends,” “plans,” “seeks,” “estimates,”
“may,” “will,” “should” and variations of such words and similar expressions. Similarly, statements
in this press release that describe the Company's business strategy, outlook, objectives, plans, intentions or goals are also forward-looking
statements. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors that could
cause the Company's actual results, performance or achievements and levels of future dividends to differ materially from those expressed
in, or implied by, these statements. These risks and uncertainties may include, but are not limited to 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, including inflation, increased
commodity prices and tightness in the labor market, trends in consumer debt levels and bad debt write-offs, general uncertainty related
to possible terrorist attacks, natural disasters and 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, supply disruptions, delivery delays and increased
shipping costs, adverse impact on the Company’s wholesale customers and customer traffic in the Company’s stores as a result
of increased uncertainty and economic disruption caused by the COVID-19 pandemic, the impact of international hostilities, including
the Russian invasion of Ukraine, on global markets, economies and consumer spending, on energy and shipping costs and on the Company’s
supply chain and suppliers, defaults on or downgrades of sovereign debt and the impact of any of those events on consumer spending, changes
in consumer preferences and popularity of particular designs, new product development and introduction, decrease in mall traffic and
increase in e-commerce, the ability of the Company to successfully implement its business strategies, competitive products and pricing,
including price increases to offset increased costs, the impact of “smart” watches and other wearable tech products on the
traditional watch market, seasonality, availability of alternative sources of supply in the case of the loss of any significant supplier
or any supplier’s inability to fulfill the Company’s orders, the loss of or curtailed sales to significant customers, the
Company’s dependence on key employees and officers, the ability to successfully integrate the operations of acquired businesses
without disruption to other business activities, the possible impairment of acquired intangible assets, risks associated with the Company’s
minority investments in early-stage growth companies and venture capital funds that invest in such companies; the continuation of the
Company’s major warehouse and distribution centers,
the continuation
of licensing arrangements with third parties, losses possible from pending or future litigation and administrative proceedings, the ability
to secure and protect trademarks, patents and other intellectual property rights, the ability to lease new stores on suitable terms in
desired markets and to complete construction on a timely basis, the ability of the Company to successfully manage its expenses on a continuing
basis, information systems failure or breaches of network security, complex and quickly-evolving regulations regarding privacy and data
protection, the continued availability to the Company of financing and credit on favorable terms, business disruptions, and general risks
associated with doing business outside the United States including, without limitation, import duties, tariffs (including retaliatory
tariffs), quotas, political and economic stability, changes to existing laws or regulations, and success of hedging strategies with respect
to currency exchange rate fluctuations, and the other factors discussed in the Company’s Annual Report on Form 10-K and other filings
with the Securities and Exchange Commission. These statements reflect the Company's current beliefs and are based upon information currently
available to it. Be advised that developments subsequent to this press release are likely to cause these statements to become outdated
with the passage of time. The Company assumes no duty to update its forward looking statements and this release shall not be construed
to indicate the assumption by the Company of any duty to update its outlook in the future.
(Tables to follow)
MOVADO GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
| |
Three Months Ended | |
Nine Months Ended |
| |
October 31, | |
October 31, |
| |
| |
| |
| |
|
| |
2023 | | |
2022 | | |
2023 | | |
2022 | |
| |
| | | |
| | | |
| | | |
| | |
Net sales | |
$ | 187,686 | | |
$ | 211,397 | | |
$ | 492,981 | | |
$ | 557,625 | |
| |
| | | |
| | | |
| | | |
| | |
Cost of sales | |
| 85,358 | | |
| 90,370 | | |
| 219,364 | | |
| 232,986 | |
| |
| | | |
| | | |
| | | |
| | |
Gross profit | |
| 102,328 | | |
| 121,027 | | |
| 273,617 | | |
| 324,639 | |
| |
| | | |
| | | |
| | | |
| | |
Total operating expenses | |
| 81,636 | | |
| 82,756 | | |
| 232,378 | | |
| 230,417 | |
| |
| | | |
| | | |
| | | |
| | |
Operating income | |
| 20,692 | | |
| 38,271 | | |
| 41,239 | | |
| 94,222 | |
| |
| | | |
| | | |
| | | |
| | |
Non-operating income/(expense): | |
| | | |
| | | |
| | | |
| | |
Other income, net | |
| 1,632 | | |
| 422 | | |
| 4,194 | | |
| 704 | |
Interest expense | |
| (135 | ) | |
| (143 | ) | |
| (361 | ) | |
| (356 | ) |
| |
| | | |
| | | |
| | | |
| | |
Income before income taxes | |
| 22,189 | | |
| 38,550 | | |
| 45,072 | | |
| 94,570 | |
| |
| | | |
| | | |
| | | |
| | |
Provision for income taxes | |
| 4,519 | | |
| 8,439 | | |
| 9,938 | | |
| 20,868 | |
| |
| | | |
| | | |
| | | |
| | |
Net income | |
| 17,670 | | |
| 30,111 | | |
| 35,134 | | |
| 73,702 | |
| |
| | | |
| | | |
| | | |
| | |
Less: Net income attributable to noncontrolling interests | |
| 281 | | |
| 825 | | |
| 568 | | |
| 1,900 | |
| |
| | | |
| | | |
| | | |
| | |
Net income attributable to Movado Group, Inc. | |
$ | 17,389 | | |
$ | 29,286 | | |
$ | 34,566 | | |
$ | 71,802 | |
| |
| | | |
| | | |
| | | |
| | |
Diluted Income Per Share Information | |
| | | |
| | | |
| | | |
| | |
Net income per share attributable to Movado Group, Inc. | |
$ | 0.77 | | |
$ | 1.28 | | |
$ | 1.53 | | |
$ | 3.12 | |
| |
| | | |
| | | |
| | | |
| | |
Weighted diluted average shares outstanding | |
| 22,677 | | |
| 22,794 | | |
| 22,641 | | |
| 23,044 | |
MOVADO GROUP, INC.
GAAP AND NON-GAAP MEASURES
(In thousands, except for percentage data)
(Unaudited)
| |
Three Months Ended | |
|
| |
October 31, | |
% Change |
| |
| |
| |
|
| |
2023 | | |
2022 | | |
| |
| |
| | | |
| | | |
| | |
Total net sales, as reported | |
$ | 187,686 | | |
$ | 211,397 | | |
| -11.2 | % |
| |
| | | |
| | | |
| | |
Total net sales, constant dollar basis | |
$ | 182,797 | | |
$ | 211,397 | | |
| -13.5 | % |
| |
Nine Months Ended | |
|
| |
October 31, | |
% Change |
| |
| |
| |
|
| |
2023 | | |
2022 | | |
| |
| |
| | | |
| | | |
| | |
Total net sales, as reported | |
$ | 492,981 | | |
$ | 557,625 | | |
| -11.6 | % |
| |
| | | |
| | | |
| | |
Total net sales, constant dollar basis | |
$ | 487,237 | | |
$ | 557,625 | | |
| -12.6 | % |
MOVADO GROUP, INC.
GAAP AND NON-GAAP MEASURES
(In thousands, except per share data)
(Unaudited)
| |
Net Sales | |
Gross Profit | |
Total Operating Expenses | |
Operating Income | |
Pre-tax Income | |
Provision for Income Taxes | |
Net Income Attributable to Movado Group, Inc. | |
Diluted EPS |
Three Months Ended October 31, 2023 | |
| |
| |
| |
| |
| |
| |
| |
|
As Reported (GAAP) | |
$ | 187,686 | | |
$ | 102,328 | | |
$ | 81,636 | | |
$ | 20,692 | | |
$ | 22,189 | | |
$ | 4,519 | | |
$ | 17,389 | | |
$ | 0.77 | |
Olivia Burton and MVMT Costs (1) | |
| — | | |
| — | | |
| (376 | ) | |
| 376 | | |
| 376 | | |
| 90 | | |
| 286 | | |
| 0.01 | |
Adjusted Results (Non-GAAP) | |
$ | 187,686 | | |
$ | 102,328 | | |
$ | 81,260 | | |
$ | 21,068 | | |
$ | 22,565 | | |
$ | 4,609 | | |
$ | 17,675 | | |
$ | 0.78 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Three Months Ended October 31, 2022 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
As Reported (GAAP) | |
$ | 211,397 | | |
$ | 121,027 | | |
$ | 82,756 | | |
$ | 38,271 | | |
$ | 38,550 | | |
$ | 8,439 | | |
$ | 29,286 | | |
$ | 1.28 | |
Olivia Burton and MVMT Costs (1) | |
| — | | |
| — | | |
| (671 | ) | |
| 671 | | |
| 671 | | |
| 132 | | |
| 539 | | |
| 0.03 | |
Adjusted Results (Non-GAAP) | |
$ | 211,397 | | |
$ | 121,027 | | |
$ | 82,085 | | |
$ | 38,942 | | |
$ | 39,221 | | |
$ | 8,571 | | |
$ | 29,825 | | |
$ | 1.31 | |
| |
Net Sales | |
Gross Profit | |
Total Operating Expenses | |
Operating Income | |
Pre-tax Income | |
Provision for Income Taxes | |
Net Income Attributable to Movado Group, Inc. | |
Diluted EPS |
Nine Months Ended October 31, 2023 | |
| |
| |
| |
| |
| |
| |
| |
|
As Reported (GAAP) | |
$ | 492,981 | | |
$ | 273,617 | | |
$ | 232,378 | | |
$ | 41,239 | | |
$ | 45,072 | | |
$ | 9,938 | | |
$ | 34,566 | | |
$ | 1.53 | |
Olivia Burton and MVMT Costs (1) | |
| — | | |
| — | | |
| (1,695 | ) | |
| 1,695 | | |
| 1,695 | | |
| 407 | | |
| 1,288 | | |
| 0.05 | |
Adjusted Results (Non-GAAP) | |
$ | 492,981 | | |
$ | 273,617 | | |
$ | 230,683 | | |
$ | 42,934 | | |
$ | 46,767 | | |
$ | 10,345 | | |
$ | 35,854 | | |
$ | 1.58 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Nine Months Ended October 31, 2022 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
As Reported (GAAP) | |
$ | 557,625 | | |
$ | 324,639 | | |
$ | 230,417 | | |
$ | 94,222 | | |
$ | 94,570 | | |
$ | 20,868 | | |
$ | 71,802 | | |
$ | 3.12 | |
Olivia Burton and MVMT Costs (1) | |
| — | | |
| — | | |
| (2,152 | ) | |
| 2,152 | | |
| 2,152 | | |
| 421 | | |
| 1,731 | | |
| 0.07 | |
Adjusted Results (Non-GAAP) | |
$ | 557,625 | | |
$ | 324,639 | | |
$ | 228,265 | | |
$ | 96,374 | | |
$ | 96,722 | | |
$ | 21,289 | | |
$ | 73,533 | | |
$ | 3.19 | |
(1) | Related to the amortization of acquired intangible assets for
Olivia Burton and MVMT and MVMT's deferred compensation, where applicable. |
MOVADO GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
| |
October 31, | |
January 31, | |
October 31, |
| |
2023 | |
2023 | |
2022 |
ASSETS | |
| | | |
| | | |
| | |
| |
| | | |
| | | |
| | |
Cash and cash equivalents | |
$ | 200,965 | | |
$ | 251,584 | | |
$ | 186,665 | |
Trade receivables, net | |
| 135,523 | | |
| 94,282 | | |
| 135,566 | |
Inventories | |
| 171,966 | | |
| 186,203 | | |
| 215,006 | |
Other current assets | |
| 18,856 | | |
| 24,212 | | |
| 18,664 | |
Income taxes receivable | |
| 11,135 | | |
| 10,908 | | |
| 7,978 | |
Total current assets | |
| 538,445 | | |
| 567,189 | | |
| 563,879 | |
| |
| | | |
| | | |
| | |
Property, plant and equipment, net | |
| 19,458 | | |
| 18,699 | | |
| 18,207 | |
Operating lease right-of-use assets | |
| 84,212 | | |
| 80,897 | | |
| 74,918 | |
Deferred and non-current income taxes | |
| 44,814 | | |
| 44,490 | | |
| 44,288 | |
Other intangibles, net | |
| 7,688 | | |
| 9,642 | | |
| 9,818 | |
Other non-current assets | |
| 68,780 | | |
| 66,788 | | |
| 64,570 | |
Total assets | |
$ | 763,397 | | |
$ | 787,705 | | |
$ | 775,680 | |
| |
| | | |
| | | |
| | |
LIABILITIES AND EQUITY | |
| | | |
| | | |
| | |
| |
| | | |
| | | |
| | |
Accounts payable | |
$ | 22,998 | | |
$ | 32,085 | | |
$ | 40,884 | |
Accrued liabilities | |
| 57,165 | | |
| 46,720 | | |
| 66,894 | |
Accrued payroll and benefits | |
| 10,317 | | |
| 17,343 | | |
| 15,581 | |
Current operating lease liabilities | |
| 15,885 | | |
| 17,681 | | |
| 16,779 | |
Income taxes payable | |
| 20,024 | | |
| 28,591 | | |
| 25,457 | |
Total current liabilities | |
| 126,389 | | |
| 142,420 | | |
| 165,595 | |
| |
| | | |
| | | |
| | |
Deferred and non-current income taxes payable | |
| 7,966 | | |
| 15,163 | | |
| 15,639 | |
Non-current operating lease liabilities | |
| 76,929 | | |
| 70,910 | | |
| 65,164 | |
Other non-current liabilities | |
| 49,195 | | |
| 48,668 | | |
| 45,735 | |
| |
| | | |
| | | |
| | |
Redeemable noncontrolling interest | |
| — | | |
| — | | |
| 2,433 | |
| |
| | | |
| | | |
| | |
Shareholders' equity | |
| 500,439 | | |
| 507,606 | | |
| 478,021 | |
| |
| | | |
| | | |
| | |
Noncontrolling interest | |
| 2,479 | | |
| 2,938 | | |
| 3,093 | |
Total equity | |
| 502,918 | | |
| 510,544 | | |
| 481,114 | |
| |
| | | |
| | | |
| | |
Total liabilities, redeemable noncontrolling interest and equity | |
$ | 763,397 | | |
$ | 787,705 | | |
$ | 775,680 | |
MOVADO GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
| |
Nine Months Ended |
| |
October 31, |
| |
| |
|
| |
2023 | | |
2022 | |
Cash flows from operating activities: | |
| | | |
| | |
Net income | |
$ | 35,134 | | |
$ | 73,702 | |
Depreciation and amortization | |
| 7,278 | | |
| 8,218 | |
Other non-cash adjustments | |
| 8,258 | | |
| 7,413 | |
Changes in working capital | |
| (43,865 | ) | |
| (108,857 | ) |
Changes in non-current assets and liabilities | |
| 563 | | |
| (4,125 | ) |
Net cash provided by/(used in) operating activities | |
| 7,368 | | |
| (23,649 | ) |
| |
| | | |
| | |
Cash flows from investing activities: | |
| | | |
| | |
Capital expenditures | |
| (6,627 | ) | |
| (4,703 | ) |
Long-term investments | |
| (2,040 | ) | |
| (2,716 | ) |
Trademarks and other intangibles | |
| (113 | ) | |
| (175 | ) |
Net cash used in investing activities | |
| (8,780 | ) | |
| (7,594 | ) |
| |
| | | |
| | |
Cash flows from financing activities: | |
| | | |
| | |
Dividends paid | |
| (45,399 | ) | |
| (23,600 | ) |
Stock repurchases | |
| (2,349 | ) | |
| (28,150 | ) |
Distribution of noncontrolling interest earnings | |
| (780 | ) | |
| — | |
Stock awards and options exercised and other changes | |
| (73 | ) | |
| (80 | ) |
Other | |
| — | | |
| (85 | ) |
Net cash used in financing activities | |
| (48,601 | ) | |
| (51,915 | ) |
| |
| | | |
| | |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | |
| (377 | ) | |
| (7,349 | ) |
Net change in cash, cash equivalents, and restricted cash | |
| (50,390 | ) | |
| (90,507 | ) |
Cash, cash equivalents, and restricted cash at beginning of period | |
| 252,179 | | |
| 277,716 | |
| |
| | | |
| | |
Cash, cash equivalents, and restricted cash at end of period | |
$ | 201,789 | | |
$ | 187,209 | |
| |
| | | |
| | |
Reconciliation of cash, cash equivalents, and restricted cash: | |
| | | |
| | |
Cash and cash equivalents | |
$ | 200,965 | | |
$ | 186,665 | |
Restricted cash included in other non-current assets | |
| 824 | | |
| 544 | |
Cash, cash equivalents, and restricted cash | |
$ | 201,789 | | |
$ | 187,209 | |
v3.23.3
Cover
|
Nov. 30, 2023 |
Cover [Abstract] |
|
Document Type |
8-K
|
Amendment Flag |
false
|
Document Period End Date |
Nov. 30, 2023
|
Entity File Number |
1-16497
|
Entity Registrant Name |
MOVADO GROUP, INC.
|
Entity Central Index Key |
0000072573
|
Entity Tax Identification Number |
13-2595932
|
Entity Incorporation, State or Country Code |
NY
|
Entity Address, Address Line One |
650 FROM ROAD
|
Entity Address, Address Line Two |
SUITE 375
|
Entity Address, City or Town |
PARAMUS
|
Entity Address, State or Province |
NJ
|
Entity Address, Postal Zip Code |
07652-3556
|
City Area Code |
201
|
Local Phone Number |
267-8000
|
Written Communications |
false
|
Soliciting Material |
false
|
Pre-commencement Tender Offer |
false
|
Pre-commencement Issuer Tender Offer |
false
|
Title of 12(b) Security |
Common stock, par value $0.01 per share
|
Trading Symbol |
MOV
|
Security Exchange Name |
NYSE
|
Entity Emerging Growth Company |
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