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May 23, 2012 /PRNewswire/ -- Movado Group, Inc. (NYSE: MOV) today announced preliminary results for the first quarter of fiscal 2013 and increased its prior guidance for the full fiscal year in advance of its participation at the Citi 2012 Global Consumer Conference on
Thursday, May 24, 2012. Investors and interested parties may access a copy of the presentation in the Investor Center section of Movado Group, Inc.'s website by visiting
www.movadogroup.com/investor/events/index.cfm and clicking on Webcasts and Presentations.
Preliminary First Quarter Fiscal 2013 Results
On a preliminary basis, net sales in the first quarter of fiscal 2013 are expected to increase approximately 15% to an estimated
$103 million, driven primarily by growth in the accessible luxury and licensed brand categories. Operating income for the first quarter of fiscal 2013 is expected to increase over
$6 million to approximately
$7.8 million to $8.4 million. Net income in the first quarter of fiscal 2013 is expected to increase to a range of
$6.1 million to $6.6 million, or approximately
$0.24 to $0.26 per diluted share, reflecting a 19% anticipated effective tax rate as compared to a 58% effective tax rate for the first quarter of the prior year. The effective tax rate for both periods includes the effects of the application of guidelines related to accounting for income taxes in interim periods.
Efraim Grinberg, Chairman and Chief Executive Officer, stated, "We are pleased that the momentum we have built in the business over the past two years has continued into the first quarter of fiscal 2013. These results are reflective of the effectiveness of the strategic initiatives we have implemented, including the refinement of our product lines and introduction of more frequent and focused innovation. We are particularly pleased with the consistency of results we have achieved over the past nine quarters."
Fiscal 2013 Guidance
The Company also increased its prior guidance for fiscal 2013 and now anticipates that net sales will increase approximately 9% to
$505 million to $510 million, operating income will increase over 25% to
$43.5 million to $44.5 million and EBITDA will increase approximately 20% to
$55.0 million to $56.0 million. The Company now anticipates net income in fiscal 2013 to increase over 25% to a range of
$29.0 million to $29.7 million, or approximately
$1.15 per diluted share. The Company's guidance is on a comparable basis to non-GAAP adjusted fiscal 2012 results adjusted for unusual items and reflects a 30% effective tax rate. Prior guidance was for fiscal 2013 net income of
$27.0 to $28.0 million, or approximately
$1.10 per diluted share, which was based on sales of
$500 million to $505 million, operating income of
$41.0 million to $42.0 million and EBITDA of
$52.5 million to $53.5 million. (EBITDA is calculated as the sum of the Company's GAAP operating income plus the amount of the Company's depreciation and amortization.) The Company's guidance continues to reflect a 30% anticipated effective tax rate and assumes no unusual charges for fiscal 2013. Additionally, guidance continues to include anticipated startup infrastructure investment for the Ferrari branded watch license with no corresponding sales expected in this fiscal year.