In This Article:
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Revenue: $182.7 million for Q3, down 2.6% from $187.7 million last year.
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Gross Margin: 53.8% compared to 54.5% in the previous year.
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Operating Expenses: $89.1 million, up from $81.6 million last year.
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Operating Income: $9.3 million, down from $20.7 million in Q3 fiscal 2024.
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Net Income: $8.3 million or $0.37 per diluted share, compared to $17.4 million or $0.77 per diluted share last year.
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Cash Position: $181.5 million at the end of Q3, compared to $201 million last year.
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Inventory: Down $3 million from the same period last year.
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Share Repurchase: New $50 million share buyback program approved.
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International Sales: Increased 0.4%, with a decline in Europe offset by growth in other regions.
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U.S. Sales: Decreased 7.1% compared to the third quarter of last year.
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Year-to-Date Revenue: $478.7 million, down 2.9% from $493 million last year.
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Year-to-Date Net Income: $14.9 million or $0.66 per diluted share, compared to $34.6 million or $1.53 per diluted share last year.
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Outlook: Expected net sales of approximately $665 million and operating income of approximately $23 million for the year.
Release Date: December 05, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Movado Group Inc (NYSE:MOV) has a strong balance sheet with $182 million in cash and no debt.
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The company announced a new $50 million share repurchase plan, indicating confidence in its financial stability.
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Movado's digital sales on movado.com increased by 16.9% in the third quarter, with September and October sales growing by over 25%.
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International markets showed growth, particularly in India with a 20% increase, and positive performance in Latin America, the Middle East, and Australia.
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The company is seeing strong performance in its licensed brands, with sales growth driven by Coach, Lacoste, Calvin Klein, and HUGO BOSS.
Negative Points
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Net sales decreased by 2.6% in the third quarter and 2.9% for the year-to-date period, reflecting a challenging retail environment.
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U.S. net sales declined by 7.1% in the third quarter, indicating significant challenges in the domestic market.
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Gross profit margin decreased to 53.8% from 54.5% in the previous year, due to unfavorable channel and product mix.
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Operating income dropped significantly to $9.3 million from $20.7 million in the third quarter of the previous year.
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The company is operating in a challenging environment, particularly in the U.S. and Europe, with retailers managing inventories tightly.
Q & A Highlights
Q: On the new stock buyback authorization, is there any change to your usage of it as far as being active in stock buyback versus just offsetting dilution? A: Efraim Grinberg, Chairman and CEO, stated that the current focus is on offsetting dilution. However, as the company generates more cash, they are open to changing this approach.