Movado Q2 EPS Soars to $0.53 from $0.13, Sales Up 4.9%
MOV has more than doubled off its 52-week low of $16.75.
Summary
Movado delivered a blowout Q2: net sales rose 4.9% to $169.8M, operating income nearly quadrupled to $14.9M, and diluted EPS jumped to $0.53 from $0.13 a year ago. Gross margin expanded 530 basis points to 59.4%, helped by a $3.2M IEEPA duty refund, but even excluding that, adjusted EPS of $0.54 more than doubled the prior-year $0.23. The company ended the quarter with $211.6M in cash and no debt, and declared a $0.40 quarterly dividend. Management discontinued annual guidance but said it expects mid-single-digit topline growth and 55-56% gross margin for the second half. This follows a strong Q1 and extends a clear earnings inflection; the stock is likely to re-rate on the magnitude of the beat and the balance sheet strength.
At the time of this announcement, MOV was trading at $34.95 on NYSE in the Trade & Services sector, with a market capitalization of approximately $551.5M. The 52-week trading range was $16.75 to $40.50. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: BusinessWire.