Movado Group (MOV) has reported 6.12 percent fall in profit for the quarter ended Oct. 31, 2016. The company has earned $20.22 million, or $0.87 a share in the quarter, compared with $21.53 million, or $0.92 a share for the same period last year. On an adjusted basis, the company has earned $21.10 million, or $0.91 a share for the quarter.
Revenue during the quarter dropped 3.13 percent to $179.82 million from $185.63 million in the previous year period. Gross margin for the quarter expanded 88 basis points over the previous year period to 54.81 percent. Total expenses were 82.72 percent of quarterly revenues, up from 81.98 percent for the same period last year. That has resulted in a contraction of 74 basis points in operating margin to 17.28 percent.
Operating income for the quarter was $31.07 million, compared with $33.45 million in the previous year period.
However, the adjusted operating profit for the quarter stood at $31.07 million.
Efraim Grinberg, chairman and chief executive officer, stated, "We are pleased to report third quarter financial results at the high end of our internal expectations driven by the disciplined execution of our strategy. In a challenging retail environment which pressured sales growth, we delivered a 90 basis point expansion in gross margin, demonstrating the ongoing power of our portfolio of brands and the strength of our innovation. We believe we are well positioned for the holiday season with a strong product pipeline of traditional and connected watches. We are also excited to announce a new collaboration with Rebecca Minkoff, the renowned millennial fashion brand, with plans to launch both men’s and women’s timepieces in Spring 2017."
For fiscal year 2017, Movado Group expects revenue to be in the range of $550 million to $560 million. It forecasts net income to be in the range of $33 million to $36.50 million, the company expects operating income to be in the range of $50 million to $55 million. The company projects diluted earnings per share to be in the range of $1.40 to $1.55.
Operating cash flow turns negativeMovado Group has spent $10.67 million cash to meet operating activities during the nine month period as against cash inflow of $10.24 million in the last year period. The company has spent $5.45 million cash to meet investing activities during the nine month period as against cash outgo of $6.02 million in the last year period.
The company has spent $16.96 million cash to carry out financing activities during the nine month period as against cash outgo of $14.30 million in the last year period.
Cash and cash equivalents stood at $199.76 million as on Oct. 31, 2016, up 10.25 percent or $18.58 million from $181.18 million on Oct. 31, 2015.
Debt comes down marginallyMovado Group has recorded a decline in total debt over the last one year. It stood at $38 million as on Oct. 31, 2016, down 5 percent or $2 million from $40 million on Oct. 31, 2015. Short-term debt stood at $3 million as on Oct. 31, 2016. Total debt was 6.09 percent of total assets as on Oct. 31, 2016, compared with 6.52 percent on Oct. 31, 2015. Debt to equity ratio was almost stable at 0.08 as on Oct. 31, 2016, when compared with the last year. Interest coverage ratio deteriorated to 93.31 for the quarter from 104.87 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
