Movado Group clocked
an 11% gain Tuesday, rising $2.89 to $28.52 after posting
better-than-expected fourth quarter and fiscal 2015 results. Management
also boosted sales and earnings projections for 2016 and announced a
10% stock dividend hike.
The watch maker said fourth quarter sales rose 1.2% to $133.9 million from $132.3 million in the year ago quarter, while net income surged 40% to $10.1 million from $7.2 million. For the full 2015 fiscal year, sales were up 1.6% to $587 million from 2014.
“Our brands and businesses performed above our revised expectations and led to fourth quarter and fiscal year 2015 earnings surpassing our guidance,” said CEO Efraim Grinberg.
The slow retail environment, stronger U.S. dollar and competition from new market players such as the Apple Watch are likely to impact sales and earnings. Still, the company hiked 2016 sales guidance to $590-$600 million.
Paramus, N.J., based Movado sells under its own brand through 35 company stores and a range of department stores and other retailers. It also designs watches for Coach Hugo Boss ESQ, Tommy Hilfiger and other fashion labels.
Despite Tuesday’s gains, Movado is down over 35% from its March 2014, 52-week high.
