Movado expects second-half topline growth in the mid-single-digit range.
The company sees second-half gross margin between 55% and 56%, excluding IEEPA duty refunds.
Movado has discontinued providing an annual outlook, citing focus on long-term strategy.
Drivers of the quarter
IEEPA duty refunds — $3.2 million in duty refunds boosted gross margin and net income.
Broad-based sales growth — The company said sales rose across owned and licensed brands, direct and wholesale channels, and geographies led by the U.S. and Europe.
Channel and product mix — Gross margin benefited from favorable channel and product mix, partly offset by higher shipping costs.
Quarterly results and dividend
Watch and jewelry maker Movado Group's fiscal Q2 sales rose 4.9% year over year to $169.8 million.
Adjusted EPS for fiscal Q2 increased to $0.54, including from IEEPA duty refunds.
The company declared a quarterly dividend of $0.40 per share and repurchased 61,000 shares.
Key financial details and analyst coverage
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$169.75 mln
$164.17 mln (2 Analysts)
Q2 Adjusted EPS
Beat
$0.54
$0.35 (2 Analysts)
Q2 Net Income
$12.49 mln
Q2 Gross Profit
$100.83 mln
Q2 Operating Income
$14.88 mln
Q2 Pretax Profit
$16.03 mln
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell".
The average consensus recommendation for the apparel & accessories peer group is "buy".
Wall Street's median 12-month price target for Movado Group Inc is $47.50, about 35.8% above its August 25 closing price of $34.97.
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 17 three months ago.
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