Movado Third-Quarter Sales Rose 17 percent

By JCK Online Staff -- JCK Online, 12/7/2006 1:50:00 PM

Movado Group said Thursday that net sales for the third quarter rose 17.3 percent to $24.5 million, which includes $12.1 million of excess discontinued product. Same-store sales for the same period, ended Oct. 31, increased 0.5 percent at the company's Movado boutiques, from 10.6 percent percent last year.

Gross profit for the third quarter was $97.9 million, or 58.9 percent of sales, compared to $86.2 million, or 60.8 percent of sales last year. Excluding excess discontinued product sales, adjusted gross profit was $97.9 million, or 63.5 percent of sales.

Operating profit for the third quarter was $19.8 million versus $19 million last year.

For the nine months ending Oct. 31, Movado Inc.’s net sales increased 13.3 percent to $390.6 million. Comp store sales rose 5 percent at its Movado boutiques.

Gross profit for the nine-month period was $236 million, or 60.4 percent of sales, compared to $209 million, or 60.6 percent of sales in a year ago. Excluding the excess discontinued product sales, adjusted gross profit was $236.0 million, or 62.4 percent of sales.

Operating profit for the nine-month period was $37.3 million, while adjusted operating profit, was $41.1 million, a 22.9 increase.

For the nine months ending Oct. 31, Movado’s net sales increased 13.3 percent to $390.6 million. Same-store sales increased 5 percent at the company's Movado boutique matching a 5 percent gain achieved last year.

Gross profit was $236 million, or 60.4 percent of sales, compared to $209 million, or 60.6 percent of sales in the year-ago period. Operating profit was $37.3 million versus $33.4 million last year. Adjusted operating profit was $41.1 million, a 22.9 percent increase.

"We are very pleased with our performance in the third quarter, reflecting the strength of our brands and the consistent execution of our strategies," said Efraim Grinberg, Movado president and chief executive officer. "We continue to see solid momentum across our portfolio, from luxury timepieces to fashion watches, driven by product innovation, dynamic marketing programs and advertising campaigns, and strong marketplace execution."

Movado Group, Inc. designs, manufactures, and distributes Movado, Ebel, Concord, ESQ, Coach, Tommy Hilfiger, Hugo Boss and Juicy Couture watches worldwide, and operates Movado boutiques and company stores in the United States. It plans to launch Lacoste watches in the spring of 2007.