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Movado shares pop after watchmaker's fiscal 3Q revenue and profit beat Street's estimates

Movado CEO Efraim Grinberg is bullish on Movado's acquisition last October of MVMT, the maker of affordable watches and sunglasses
a watch
Movado expects full-year earnings to fall between $2.45 to $2.55 per share

Shares of Movado Group Inc (NYSE:MOV) popped in Tuesday’s pre-market session after the watchmaker’s fiscal third-quarter revenue and profit zipped past Wall Street’s estimates.

In its latest quarter, which finished on October 31, the company, which owns Movado and an array of additional watch brands, reported net income of $26.9 million, or $1.14 per share, up from the $17.4 million, or $0.75 per share, posted in the year-ago quarter. Stripping out items, its adjusted earnings came in at $1.18 per share on revenue of $209 million.

The results trounced Wall Street’s consensus estimates, which called for per-share earnings of $1.12 per share on sales of $205.4 million.

Movado shares edged up 5.75% to $39 before the opening bell on Tuesday.

READ: Movado shares tick higher as watchmaker smashes forecasts with Q4 earnings

Movado CEO Efraim Grinberg attributed the results to robust performance in the US as well as international markets. He also remains quite bullish on the company's acquisition last October of MVMT, the maker of affordable watches and sunglasses.

“Our double-digit constant dollar topline growth in the quarter was led by strong performance in both the US and international markets,” Grinberg said. “We are very excited about the significant growth opportunities we see for the MVMT brand, … and we remain on track to begin the integration of MVMT into our operating platform during the second quarter of fiscal 2020.”

Movado now expects full-year earnings to fall between $2.45 to $2.55 per share and its revenue to come in at $660 million to $675 million.

The company also announced a cash dividend of $0.20 per share, which is payable on December 28 to shareholders of record on December 14.

With manufacturing facilities in Switzerland and its corporate headquarters in Paramus, New Jersey, Movado offers watches under an array of brands including Coach, Olivia Burton, Scuderia Ferrari, HUGO BOSS, Juicy Couture, Lacoste and Tommy Hilfiger.

Contact Ellen Kelleher at [email protected]

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