MOV Movado Group Inc

Movado Group Inc. reported better-than-expected profit and revenue for its latest quarter Thursday, as sales edged up despite currency headwinds.

The luxury watchmaker said it expected to deliver its first connected Movado timepiece in its fourth fiscal quarter. No further details on any potential new products were given.

"We believe we are well positioned for the second half of the year," Chief Executive Efraim Grinberg said. "We have a number of exciting new product introductions planned for the holiday season as we continue to drive innovation across our brand portfolio."

Watchmakers have been pressured by a lackluster economy in Europe and slowing sales in Asia. The industry also has faced increased competition from smartwatches. In March, Movado said it would raise prices and undertake "operating efficiency initiatives" in response.

"The quarter saw the initial benefit of our selective price increases, operating efficiencies and sourcing improvements across our supply chain, which combined, drove our gross margin expansion," said Rick Cote, chief operating officer.

Overall, for the period ended July 31, Movado reported a profit of $12 million, or 50 cents a share, down slightly from $12.1 million, or 47 cents a share, during the same period a year earlier.

The latest quarter's earnings were divided among fewer shares, leading to the increase in per-share earnings despite the sag in profit.

Revenue increased 1.4% to $145.6 million. The watchmaker said that excluding currency volatility, sales grew 6.1%.

Analysts surveyed by Thomson Reuters had expected per-share earnings of 42 cents on sales of $142 million.

Movado said it was maintaining its guidance for the fiscal year, expecting net sales to be in the range of $590 million to $600 million. The company anticipates net income in the range of about $48.5 million to $51.0 million, or $2.00 to $2.10 per share.

Write to Ezequiel Minaya at ezequiel.minaya@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

August 27, 2015 08:55 ET (12:55 GMT)

Movado (NYSE:MOV)
Historical Stock Chart
From Mar 2024 to Apr 2024

Movado (NYSE:MOV)
Historical Stock Chart
From Apr 2023 to Apr 2024