Movado Group Inc. (MOV) reported revenues that beat market estimates for the second quarter of 2019 while earnings came in line with expectations. Net sales totaled $144.1 million for the second quarter of 2019, up 11.9% from the same period last year.
Net income was $9.1 million or $0.39 per share compared to $5.5 million or $0.24 per share for the prior-year period. Adjusted net income was $10.6 million or $0.45 per share.
Sales benefited from strength seen particularly in the Europe and Latin America regions, along with the good performance from the Olivia Burton brand. The company expects to see momentum from its product pipeline for the remainder of the year and is well-positioned to take advantage of the upcoming holiday season.
Earlier this month, Movado announced the acquisition of MVMT Watches Inc. for an initial payment of $100 million and additional payments that in total could amount to another $100 million. The acquisition is expected to be completed by October 1 and is anticipated to be accretive to fiscal 2019 results. The integration is expected to be complete by fiscal 2020 with synergies expected mainly from supply chain and logistics.
Movado is updating its guidance for the full year of 2019 based on the performance of the first six months and reflecting the impact of the MVMT acquisition.
The company now expects fiscal 2019 net sales to be $660 million to $675 million and operating income to be $75 million to $77 million. Net income is expected to be $58 million to $59.7 million or $2.45 to $2.55 per share.
Movado declared a dividend of $0.20 per share payable on September 25, 2018 to shareholders of record on September 11, 2018.
Movado’s stock has climbed more than 50% thus far this year and over 21% over the past three months.
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