Movado Group, Inc. has announced its first quarter fiscal 2025 results, revealing a few notable changes in its financial metrics compared to the prior year period.
Net sales for the first quarter of fiscal 2025 were reported at $136.7 million, showing a decrease from the $144.9 million in the prior year period. This represents a 5.7% decline in net sales, or a 6.1% decrease on a constant dollar basis. The decline was attributed to decreases in wholesale customers' brick and mortar stores and Movado company stores, with U.S. net sales decreasing by 6.2% and international net sales declining by 5.4% (6.1% on a constant dollar basis).
The company's gross margin for the quarter was 55.3% of net sales, down from 56.6% in the first quarter of fiscal 2024. This decrease was primarily due to unfavorable changes in channel and product mix, along with the decreased leverage of certain fixed costs resulting from lower sales.
Operating income for the first quarter of fiscal 2025 was $3.3 million, a notable decrease from the $10.9 million reported in the prior year period.
The company also reported a decrease in diluted earnings per share, with $0.13 for the first quarter of fiscal 2025 compared to $0.40 in the prior year period.
Despite these declines, Movado Group, Inc. ended the quarter with a strong financial position, holding cash and cash equivalents of $225.4 million and no debt.
Looking ahead, the company expects fiscal 2025 net sales to be in the range of approximately $700 million to $710 million, with gross profit representing approximately 55% of net sales and operating income in the range of approximately $32 million to $35 million. Additionally, assuming no changes to current tax regulations, the company anticipates an effective tax rate of approximately 22% for the fiscal year and earnings in the range of approximately $1.20 to $1.30 per diluted share.
The company's board of directors also approved a quarterly dividend of $0.35 per share, and during the first quarter of fiscal 2025, Movado Group, Inc. repurchased approximately 39,000 shares under its share repurchase program, leaving $16.8 million remaining available under the program as of April 30, 2024.
Movado Group, Inc. remains committed to executing its growth strategy, with a focus on marketing investments to drive brand awareness and deliver a return to sales growth in the second half of the year. Following these announcements, the company's shares moved -1.1%, and are now trading at a price of $26.47. For more information, read the company's full 8-K submission here.
