Movado Q4 Sales Down 2.6%; Names New CFO

Movado Group Inc. reported that net income for the fourth quarter increased to $19.6 million, from $14 million a year ago. The result included one-time-accrual of $15 million or $8.9 million of excess discontinued product sales. On an adjusted basis, the company’s net income came in at $10.78 million, up from $11.36 million a year ago.

The Paramus, N.J.-based company said net sales for the period fell 2.6 percent to of $138.56 million. Adjusted net sales increased 4.9 percent to $144.6 million. Gross margin after adjusting certain items and unusual items expanded 120 basis points to 64.3 percent of sales compared to 63.1 percent of sales last year. Operating profit plunged to $3.17 million from $15 million in the previous year.

For the fiscal year, net income for the watchmaker came in at $60.8 million compared to $50.1 million a year ago. Adjusted net income was $46.6 million, up 13.1 percent from $41.2 million a year ago.

Net sales for the period climbed to $559.5 million from $532.8 million in the previous year. Operating profit rose to $50.7 million from $52.3 million last year.

Looking ahead to the fiscal 2009, the company said it expects net sales in the range of $555 million to $565 million.

The company also announced the appointment of Sallie DeMarsilis as chief financial officer and principal accounting officer, effective March 31. DeMarsilis will succeed Eugene Karpovich.

DeMarsilis is a senior level financial executive with more than 15 years of financial management experience. Prior to joining Movado Group, she served as senior vice president of Finance with The Warnaco Group, Inc., a publicly traded global wholesaler and retailer of apparel. Prior to Warnaco, DeMarsilis held several senior financial positions with AnnTaylor Stores Corp., including controller and senior vice president of Finance.

DeMarsilis is a certified public accountant and previously served a varied client base for several years working in public accounting with Deloitte & Touche LLP. She is a graduate of the Carroll School of Management at Boston College.

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