A substantial increase in sales helped the Movado Group earn $4.4 million in net income in the second quarter—a 121 percent increase over its net loss of $20.9 million a year ago—according to the company’s financial statement. The company’s sales totaled $113.2 million.
“Our strategic initiatives coupled with solid execution have continued to benefit our results as we recorded another period of double-digit sales growth while also increasing our profitability,” said Efraim Grinberg, chairman and CEO, in a statement. “While we experienced broad-based sales growth across all of our brand categories, our results continue to be driven by particularly strong performances in Movado and licensed brands both domestically and internationally.”
Highlights from Movado’s second quarter, as well as the first half of fiscal year 2012 (ended July 31):
- 2Q Net sales: $113.2 million, up 32.6 percent
- 2Q Gross profit: $60.9 million, compared to $44.4 million last year
- 2Q Net income: $4.4 million, compared to a net loss of $20.9 million in 2011
- First Half FY 2012 Net sales: $203.1 million, 28.4 percent
- First Half FY 2012 Gross profit: $109.6 million, compared to $82.9 million last year
- First Half FY 2012 Net income: $6.6 million, compared to a net loss of $73 million in 2011
The company anticipates net income in the range of $15 million to $16.5 million for the fiscal year 2012.
“Our brands continue to experience solid customer and consumer demand,” said Rick Coté, president and COO, in a statement. “Our strong sales growth more than offset the impact of currency and cost increases on gross margin.”