Movado Group Inc. (MOV, Financial) filed Quarterly Report for the period ended 2012-07-31.
Movado Group, Inc has a market cap of $532.1 million; its shares were traded at around $35.33 with a P/E ratio of 21.62 and P/S ratio of 1.14. The dividend yield of Movado Group, Inc stocks is 0.7%.
Wholesale Operating Income. Operating income of $7.8 million and $2.7 million was recorded in the wholesale segment for the three months ended July 31, 2012 and 2011, respectively. The $5.1 million increase in operating income was the result of an increase in gross profit of $4.4 million and by a decrease in SG&A expenses of $0.7 million. The increase in gross profit of $4.4 million was primarily due to higher net sales and, to a lesser extent, the higher gross margin percentage achieved. The decrease in SG&A expenses included the effect of fluctuations in foreign currency exchange rates which favorably impacted SG&A expenses for the three months ended July 31, 2012 by $2.4 million, of which $1.2 million was the result of decreases from the
Net sales for the six months ended July 31, 2012 in the International location of the wholesale segment were $110.9 million, above the prior year period by $7.9 million or 7.7%, driven by sales increases in the licensed brand category, partially offset by a sales decrease in the luxury and accessible luxury brand categories. Net sales in the licensed brand category were above the prior year period by $14.9 million, or 23.4%, primarily due to continued growth in existing markets resulting from higher demand, as well as new market expansion. Net sales in the luxury category were below the prior year period by $5.2 million, or 30.7% primarily due to the category being less promotional when compared to the prior year and a planned reduction in sales ahead of the fall re-launch. Net sales in the accessible luxury category were below the prior year period by $0.9 million, or 5.0%, primarily driven by lower sales in the ESQ by Movado brand pursuant to the Companys new strategy to minimize non-go forward inventory and maximize go-forward inventory at the retail level. The Company has
Selling, General and Administrative (SG&A). SG&A expenses for the six months ended July 31, 2012 were $105.5 million, representing an increase of $2.6 million or 2.5%. The increase in SG&A expense included higher compensation and benefit expense of $4.8 million recorded during the current year resulting from higher performance-based compensation, headcount and salary increases. Higher marketing expenses of $0.4 million were recorded during the current year resulting from the Companys decision to continue investment in this area to drive sales growth. Additionally, higher travel and entertainment expenses of $0.4 million were recorded in the current year. These increases in SG&A expenses were offset by the effect of fluctuations in foreign currency exchange rates which favorably impacted SG&A expenses for the six months ended July 31, 2012 by $3.0 million, of which $1.7 million was the result of lower transactional losses recorded year-over-year and $1.3 million was the result of decreases from the translation of foreign subsidiary results.
Wholesale Operating Income. Operating income of $14.9 million and $3.7 million was recorded in the wholesale segment for the six months ended July 31, 2012 and 2011, respectively. The $11.2 million increase in operating income was the net result of an increase in gross profit of $14.1 million, partially offset by an increase in SG&A expenses of $2.9 million. The increase in gross profit of $14.1 million was primarily due to higher net sales and, to a lesser extent, the higher gross margin percentage achieved. The increase in SG&A expenses included higher compensation and benefit expense of $4.8 million recorded during the current year resulting from higher performance-based compensation, headcount and salary increases. Higher marketing expenses of $0.4 million were recorded during the current year resulting from the Companys decision to continue investment in this area to drive sales growth. Additionally, higher travel and entertainment expenses of $0.4 million were recorded in the current year. These increases in SG&A expenses were offset by the effect of fluctuations in foreign currency exchange rates which favorably impacted SG&A expenses for the six months ended July 31, 2012 by $3.0 million, of which $1.7 million was the result of lower transactional losses recorded year-over-year and $1.3 million was the result of decreases from the translation of foreign subsidiary results.
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Movado Group, Inc has a market cap of $532.1 million; its shares were traded at around $35.33 with a P/E ratio of 21.62 and P/S ratio of 1.14. The dividend yield of Movado Group, Inc stocks is 0.7%.
Highlight of Business Operations:
Net sales for the three months ended July 31, 2012 in the International location of the wholesale segment were $58.1 million, below the prior year period by $0.3 million or 0.4%, driven by a sales decrease in the luxury and accessible luxury brand categories, mostly offset by sales increases in the licensed brand category. Net sales in the luxury category were below the prior year period by $4.2 million, or 39.1% primarily due to the category being less promotional when compared to the prior year period and a planned reduction in sales ahead of the fall re-launch. Net sales in the accessible luxury category were below the prior year period by $0.2 million, or 2.4%, primarily driven by lower sales of the ESQ by Movado brand pursuant to the Companys new strategy to minimize non-go forward inventory and maximize go-forward inventory at the retail level. The Company has decided to introduce a newly styled ESQ collection in the fall branded ESQ Movado. Net sales in the licensed brand category were above the prior year period by $5.4 million, or 15.5%, primarily due to continued growth in existing markets resulting from higher demand, as well as new market expansion. For the three months ended July 31, 2012, fluctuations in foreign currency exchange rates unfavorably impacted net sales by $3.8 million when compared to the prior year period.Wholesale Operating Income. Operating income of $7.8 million and $2.7 million was recorded in the wholesale segment for the three months ended July 31, 2012 and 2011, respectively. The $5.1 million increase in operating income was the result of an increase in gross profit of $4.4 million and by a decrease in SG&A expenses of $0.7 million. The increase in gross profit of $4.4 million was primarily due to higher net sales and, to a lesser extent, the higher gross margin percentage achieved. The decrease in SG&A expenses included the effect of fluctuations in foreign currency exchange rates which favorably impacted SG&A expenses for the three months ended July 31, 2012 by $2.4 million, of which $1.2 million was the result of decreases from the
Net sales for the six months ended July 31, 2012 in the International location of the wholesale segment were $110.9 million, above the prior year period by $7.9 million or 7.7%, driven by sales increases in the licensed brand category, partially offset by a sales decrease in the luxury and accessible luxury brand categories. Net sales in the licensed brand category were above the prior year period by $14.9 million, or 23.4%, primarily due to continued growth in existing markets resulting from higher demand, as well as new market expansion. Net sales in the luxury category were below the prior year period by $5.2 million, or 30.7% primarily due to the category being less promotional when compared to the prior year and a planned reduction in sales ahead of the fall re-launch. Net sales in the accessible luxury category were below the prior year period by $0.9 million, or 5.0%, primarily driven by lower sales in the ESQ by Movado brand pursuant to the Companys new strategy to minimize non-go forward inventory and maximize go-forward inventory at the retail level. The Company has
Selling, General and Administrative (SG&A). SG&A expenses for the six months ended July 31, 2012 were $105.5 million, representing an increase of $2.6 million or 2.5%. The increase in SG&A expense included higher compensation and benefit expense of $4.8 million recorded during the current year resulting from higher performance-based compensation, headcount and salary increases. Higher marketing expenses of $0.4 million were recorded during the current year resulting from the Companys decision to continue investment in this area to drive sales growth. Additionally, higher travel and entertainment expenses of $0.4 million were recorded in the current year. These increases in SG&A expenses were offset by the effect of fluctuations in foreign currency exchange rates which favorably impacted SG&A expenses for the six months ended July 31, 2012 by $3.0 million, of which $1.7 million was the result of lower transactional losses recorded year-over-year and $1.3 million was the result of decreases from the translation of foreign subsidiary results.
Wholesale Operating Income. Operating income of $14.9 million and $3.7 million was recorded in the wholesale segment for the six months ended July 31, 2012 and 2011, respectively. The $11.2 million increase in operating income was the net result of an increase in gross profit of $14.1 million, partially offset by an increase in SG&A expenses of $2.9 million. The increase in gross profit of $14.1 million was primarily due to higher net sales and, to a lesser extent, the higher gross margin percentage achieved. The increase in SG&A expenses included higher compensation and benefit expense of $4.8 million recorded during the current year resulting from higher performance-based compensation, headcount and salary increases. Higher marketing expenses of $0.4 million were recorded during the current year resulting from the Companys decision to continue investment in this area to drive sales growth. Additionally, higher travel and entertainment expenses of $0.4 million were recorded in the current year. These increases in SG&A expenses were offset by the effect of fluctuations in foreign currency exchange rates which favorably impacted SG&A expenses for the six months ended July 31, 2012 by $3.0 million, of which $1.7 million was the result of lower transactional losses recorded year-over-year and $1.3 million was the result of decreases from the translation of foreign subsidiary results.
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