Movado Group, Inc. has released its fourth quarter and fiscal year 2024 result. Looking ahead to fiscal 2025, Movado Group, Inc. expects net sales to be in a range of approximately $700 million to $710 million, with a gross profit of approximately 55% of net sales and operating income in a range of approximately $32 million to $35 million. The company also anticipates an effective tax rate of approximately 22% for the fiscal year and earnings in a range of approximately $1.20 to $1.30 per diluted share.
Additionally, the company announced a quarterly cash dividend and provided details on its share repurchase program.
For fiscal year 2024:
- Net sales decreased to $672.6 million from $751.9 million in fiscal 2023
- Operating income dropped to $54.7 million from $120.4 million in the prior year period
- Diluted earnings per share decreased to $2.06 from $4.12 in the prior year period
- Adjusted diluted earnings per share also declined to $2.13 from $4.22
- Operating cash flow increased by 41.3% to $76.8 million
- Inventories decreased by 20.5% to $148.0 million
- The company ended the year with cash of $262.1 million and no debt
For the fourth quarter of fiscal 2024:
- Net sales decreased to $179.6 million from $194.3 million in the prior year period
- Gross margin was 53.9% compared to 56.2% in the fourth quarter of fiscal 2023
- Operating income dropped to $13.5 million from $26.1 million in the prior year period
- Diluted earnings per share decreased to $0.53 from $1.00 in the prior year period
- Adjusted diluted earnings per share also declined to $0.55 from $1.03
Some additional non-GAAP items were also mentioned, including charges associated with the amortization of acquired intangible assets related to the acquisitions of Olivia Burton and MVMT.
The market has reacted to these announcements by moving the company's shares -0.5% to a price of $26.38. For the full picture, make sure to review Movado's 8-K report.
