Movado Group said that fourth-quarter revenues gained by double digits with the U.S. watch group narrowing its losses during the holiday period.
The Paramus, New Jersey-based Movado Group said revenue for the fourth quarter ended January 31, 2019 totaled $199.4 million, up from $149.2 million in the prior-year period. Discounting MVMT’s contribution, net sales increased 10.3%.
Quarterly net income was $17.4 million, or $0.74 per diluted share, compared to net loss of $33.9 million, or ($1.47) per diluted share, for the same period in the prior year.
“During the year, we acquired MVMT, which together with Olivia Burton, which we acquired last year, allows us to increase our presence in the global fashion watch market and will help to fuel our ecommerce expansion as well as leverage our global distribution capabilities,” said Efraim Grinberg, CEO, Movado Group.
For fiscal 2019, net sales increased 19.7% to $679.6 million compared to net sales of $568.0 million in fiscal 2018. Net income was $61.6 million, or $2.61 per diluted share, for fiscal 2019 compared to net loss of $15.2 million, or ($0.66) per diluted share, for the prior year, said Movado.
“Fiscal 2019 marked another year of progress on our strategies – to deliver innovation across our portfolio of powerful brands in an omni-channel market, capitalize on our strong balance sheet and cash flow to acquire new brands and develop our digital presence,”he added.
Looking ahead, Grinberg said the company expects to “continue to deliver growth on both the top line and bottom line in fiscal 2020 through continued product innovation, effective marketing and disciplined execution of our strategies and growth priorities” and will be concentrating its efforts on the ongoing integration of MVMT.
As such, for fiscal 2020, the company anticipates that net sales will be in a range of $750 million to $765 million and net income to be in a range of $64 million to $66.4 million, or $2.70 to $2.80 per diluted share.