Movado Group, Inc., a renowned watchmaker headquartered in Paramus, New Jersey, faced a decline in earnings during the initial quarter of 2020. The company disclosed earnings of $3.9 million, equivalent to $0.17 per diluted share, marking a decrease from $8.1 million, or $0.35 per diluted share, during the same period in the prior year.
Despite achieving a remarkable 15.3% surge in net sales, amounting to $146.5 million as compared to $127.1 million in the first quarter of 2019, Movado’s overall financial performance was adversely affected by escalating operational expenses. Operating expenses surged to $73.9 million from $59.4 million in the previous year, primarily driven by increased marketing expenditures linked to the integration of the MVMT brand into the company’s portfolio. Additionally, efforts to bolster sales growth and establish a new joint venture in Spain also contributed to the rise in expenses.
CEO Efraim Grinberg conveyed contentment with the company’s progression in sales and gross margin expansion. Nonetheless, he underscored the imperative need for heightened investments in marketing and e-commerce ventures to effectively harness future growth opportunities, especially with regard to the MVMT and Olivia Burton brands.
Movado has retained its full-year fiscal 2020 guidance unaltered subsequent to the first-quarter results. The company foresees net sales ranging from $750.0 million to $765.0 million for the year, with projected net income falling between $64.0 million and $66.4 million, equating to $2.70 to $2.80 per diluted share.
For more information on Movado Group, Inc.’s recent financial performance, click here. To explore the latest watch collections by Movado, visit their official website here.
