Luxury watchmaker Movado Group, Inc. (MOV: Quote) on Thursday reported a turnaround to profit in the fourth quarter. The results reflect higher sales driven by growth across every brand category, and one-time gains.
Looking ahead, the New Jersey-based company forecasts higher earnings and sales in fiscal 2013. The company also hiked its quarterly dividend by 67 percent and declared a special dividend. Shares of the company are currently gaining more than 8 percent.
Movado's board of directors approved a special cash dividend of $0.50 for each share of the company's outstanding common stock and class A common stock. This dividend will be paid on May 15 to all shareholders of record as of the close of business on April 30.
The board also approved a 67 percent increase in the quarterly cash dividend to $0.05 for each share of the company's outstanding common stock and class A common stock. The dividend will be paid on April 24 to all shareholders of record as of the close of business on April 10.
Movado said that effective March 22, it entered into a multi-year, worldwide license deal with Ferrari S.p.A. to design, produce and market a collection of watches under the Ferrari and Scuderia Ferrari brand names.
This collection of Ferrari watches will be priced up to 1,500 euros and will be sold globally through select wholesale distribution outlets as well as Ferrari stores and the Ferrari online store. The collection will be launched at the Annual Watch & Jewelry Fair held in Basel, Switzerland in the spring of 2013.
Movado's fourth-quarter net income was $10.69 million or $0.42 per share, compared to net loss of $30.99 million or $1.25 per share in the year-ago period.
The latest quarter's results include a non-recurring pre-tax benefit of $0.07 per share, related to a sale of mechanical movements. The results also include a tax benefit of $3.1 million that was impacted by the release of a $10.3 million Swiss valuation allowance, partially offset by a $4.3 million Swiss tax settlement.
The prior-year results include pre-tax charges of $0.90 per share.
Adjusted earnings from continuing operations rose to $0.24 per share from $0.06 per share in the same period last year.
Net sales grew 21.2 percent to $122.41 million from $101.00 million in the prior-year quarter. On a constant dollar basis and excluding the sale of mechanical movements in the quarter, adjusted net sales increased 17.3 percent from last year.
For fiscal 2013, Movado provided guidance that is on a comparable basis to fiscal 2012 results adjusted for unusual items and reflecting a 30 percent tax rate.
The company projects net income for the year to increase about 20 percent, to a range of $27 million to $28 million, or about $1.10 per share. This compares to adjusted earnings of $1.08 per share in the prior year.
Movado forecasts net sales for the year to increase about 8 percent to a range of $500 million to $505 million.
MOV is currently trading at $24.18, up $1.91 or 8.58 percent on a volume of 139,631 shares.
 | | To receive FREE breaking news email alerts for Movado Group and others in your portfolio |
|
by RTT Staff Writer
For comments and feedback: editorial@rttnews.com
Business News