Movado 4Q profit falls on charge, revenue rises
PARAMUS, N.J. (AP) — Movado Group Inc.'s fiscal fourth-quarter net income fell 26 percent as it took a charge related to the repositioning of the Coach watch brand.
The watch maker earned $7.9 million, or 31 cents per share, for the three months ended Jan. 31. That's down from $10.7 million, or 42 cents per share, a year ago.
Removing the Coach-related charge and other items, earnings were 41 cents per share. That compares with 24 cents per share in the prior-year period.
Revenue edged up 1 percent to $123.6 million from $122.4 million.
For the year, Movado earned $57.1 million, or $2.22 per share. In the previous year the company earned $32 million, or $1.27 per share. Annual revenue climbed 8 percent to $505.5 million from $468.1 million.
Movado said Thursday that it expects fiscal 2014 earnings of about $1.80 per share. It foresees revenue in a range of $570 million to $575 million.
The company also said that it anticipates revenue will rise about 10 percent per year over the next four years. Movado said this would give it fiscal 2017 revenue of approximately $750 million. It predicts earnings will slightly top $3 per share.
In addition, Movado's board approved a quarterly dividend of 5 cents per share. The dividend will be paid on April 16 to shareholders of record on April 2.
The Paramus, N.J.-based company's board also approved the repurchase of up to $50 million shares of its common stock. The buyback is expected to expire on Jan. 31, 2016.
Its shares finished at $37.12 on Wednesday. They are near the high end of their 52-week range of $21.45 to $39.12.