Movado Group, Inc. Reinstates a Dividend
January 11 2021 - 5:00PM
Business Wire
~ Board of Directors Approves $0.10 per
share Dividend ~
Movado Group, Inc. (NYSE: MOV), today announced that its Board
of Directors has declared a cash dividend of $0.10 per share. The
dividend is payable on February 5, 2021 to shareholders of record
on January 21, 2021.
Commenting on the dividend announcement, Efraim Grinberg,
Chairman and Chief Executive Officer, stated: “We are pleased to
announce a cash dividend. Movado Group is committed to building
long-term shareholder value and we believe this dividend
declaration advances this objective. Since the onset of the
COVID-19 pandemic, our team has intently focused on executing with
discipline to strengthen our balance sheet, and as of third quarter
end, we had accumulated $163.2 million in cash, reduced inventory
and lowered debt. We believe the Board’s reinstatement of a
dividend is a testament to our strong cash flow generation amidst
this ongoing crisis and reflects their confidence in our strategy
and future growth potential.”
Movado Group, Inc. designs, sources, and globally distributes
MOVADO®, MVMT®, OLIVIA BURTON®, EBEL®, CONCORD®, COACH®, TOMMY
HILFIGER®, HUGO BOSS®, LACOSTE®, SCUDERIA FERRARI®, REBECCA
MINKOFF® and URI MINKOFF® watches, and for certain of these brands
jewelry and other accessories, and operates Movado Company Stores
in the United States and Canada.
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, 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, supply disruptions and delivery delays from
the Company’s suppliers as a result of the COVID-19 pandemic,
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, uncertainty relating to the availability of vaccines and
treatments for COVID-19, the impact of the United Kingdom’s exit
from the European Union, 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, 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 including goodwill if the carrying value of any reporting
unit were to exceed its fair value, volatility in reported earnings
resulting from changes in the estimated fair value of contingent
acquisition consideration, 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, 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, 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20210111005998/en/
ICR, Inc. Rachel Schacter / Allison Malkin 203-682-8200
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