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Movado Group, Inc. (MOV - Free Report) released fourth-quarter fiscal 2022 results, wherein the bottom line improved year over year and beat the Zacks Consensus Estimate. Also, the top line increased on a year-over-year basis.
Results gained from the solid execution of MOV’s strategies, including strength in brands. Sales improved across its owned and licensed brands; in the United States and internationally; and at its wholesale and direct-to-consumer units. Also, digital business was constantly robust.
Shares of Movado have gained 8.9% during the trading session on March 24. In the past six months, this Zacks Rank #3 (Hold) stock has rallied 8.1%, surpassing the industry’s decline of 15.1%.
Q4 in Detail
The company’s adjusted earnings per share surged 56.5% year over year to $1.32, which also came ahead of the Zacks Consensus Estimate of 80 cents.
Movado Group Inc. Price, Consensus and EPS Surprise
Net sales advanced 15.5% to $206 million, while the same increased 17.2% on a constant-currency (cc) basis. This year-over-year growth was on improvement in the wholesale customers’ brick-and-mortar stores, online retail and Movado’s company stores. Also, U.S. net sales grew 18.5% year over year and International net sales rose 12.7%.
Adjusted gross profit came in at $120.8 million, and adjusted gross margin was 54.9%, mainly owing to favorable changes in channel and product mix as well as leveraged certain fixed costs on increased sales. These were partly offset by elevated shipping costs.
Adjusted operating income came in at $37.9 million, up from the adjusted operating income of $23.9 million in the year-ago quarter.
Other Financial Updates
Movado ended the quarter with cash and cash equivalents of $277.1 million, inventories of $160.3 million and shareholders’ equity of nearly $472.8 million.
Further, MOV generated cash from operating activities of $130.8 million during fiscal 2022.
Movado bought back 138,200 shares during the fiscal fourth quarter. MOV had shares worth $2.4 million left as of Jan 31, 2022 under its Mar 25, 2021 share repurchase program and the entire $50 million remaining under the Nov 23, 2021 buyback program.
Also, Movado’s board approved a 40% hike in its quarterly cash dividend, taking the amount to 35 cents a share from 25 cents. The new dividend is payable Apr 20, 2022, to its shareholders of record as of Apr 6.
Outlook
Management issued guidance for fiscal 2023. Net sales are projected in the band of $780-$800 million, gross margin at about 58% and operating income in the $125-$130 million bracket.
This view does not contemplate major impacts of higher inflation, geopolitical unrest or pandemic-led impacts on the supply chain and shipping costs. It assumes no fluctuations from the foreign currency exchange rates.
The Zacks Consensus Estimate for Capri Holdings’ current financial-year EPS suggests growth of 215.8% from the year-ago period’s corresponding figure. CPRI has a trailing four-quarter earnings surprise of 1,018.2%, on average.
Tapestry, a renowned designer of fine accessories, presently carries a Zacks Rank of 2. TPR has a trailing four-quarter earnings surprise of 28.2%, on average.
The Zacks Consensus Estimate for Tapestry’s current-year sales and EPS suggests growth of 17.5% and 22.9%, respectively, from the corresponding year-ago period’s levels. TPR has an expected EPS growth rate of 12.5% for three-five years.
Boot Barn Holdings, a lifestyle retailer of western and work-related footwear, apparel and accessories, presently carries a Zacks Rank #2. BOOT has an expected EPS growth rate of 20% for three-five years.
The Zacks Consensus Estimate for Boot Barn Holdings’ current financial-year sales and EPS suggests growth of 62.6% and 220.8%, respectively, from the year-ago period’s corresponding figures. BOOT has a trailing four-quarter earnings surprise of 47.1%, on average.
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Movado (MOV) Stock Gains on Q4 Earnings Beat & Dividend Hike
Movado Group, Inc. (MOV - Free Report) released fourth-quarter fiscal 2022 results, wherein the bottom line improved year over year and beat the Zacks Consensus Estimate. Also, the top line increased on a year-over-year basis.
Results gained from the solid execution of MOV’s strategies, including strength in brands. Sales improved across its owned and licensed brands; in the United States and internationally; and at its wholesale and direct-to-consumer units. Also, digital business was constantly robust.
Shares of Movado have gained 8.9% during the trading session on March 24. In the past six months, this Zacks Rank #3 (Hold) stock has rallied 8.1%, surpassing the industry’s decline of 15.1%.
Q4 in Detail
The company’s adjusted earnings per share surged 56.5% year over year to $1.32, which also came ahead of the Zacks Consensus Estimate of 80 cents.
Movado Group Inc. Price, Consensus and EPS Surprise
Movado Group Inc. price-consensus-eps-surprise-chart | Movado Group Inc. Quote
Net sales advanced 15.5% to $206 million, while the same increased 17.2% on a constant-currency (cc) basis. This year-over-year growth was on improvement in the wholesale customers’ brick-and-mortar stores, online retail and Movado’s company stores. Also, U.S. net sales grew 18.5% year over year and International net sales rose 12.7%.
Adjusted gross profit came in at $120.8 million, and adjusted gross margin was 54.9%, mainly owing to favorable changes in channel and product mix as well as leveraged certain fixed costs on increased sales. These were partly offset by elevated shipping costs.
Adjusted operating income came in at $37.9 million, up from the adjusted operating income of $23.9 million in the year-ago quarter.
Other Financial Updates
Movado ended the quarter with cash and cash equivalents of $277.1 million, inventories of $160.3 million and shareholders’ equity of nearly $472.8 million.
Further, MOV generated cash from operating activities of $130.8 million during fiscal 2022.
Movado bought back 138,200 shares during the fiscal fourth quarter. MOV had shares worth $2.4 million left as of Jan 31, 2022 under its Mar 25, 2021 share repurchase program and the entire $50 million remaining under the Nov 23, 2021 buyback program.
Also, Movado’s board approved a 40% hike in its quarterly cash dividend, taking the amount to 35 cents a share from 25 cents. The new dividend is payable Apr 20, 2022, to its shareholders of record as of Apr 6.
Outlook
Management issued guidance for fiscal 2023. Net sales are projected in the band of $780-$800 million, gross margin at about 58% and operating income in the $125-$130 million bracket.
This view does not contemplate major impacts of higher inflation, geopolitical unrest or pandemic-led impacts on the supply chain and shipping costs. It assumes no fluctuations from the foreign currency exchange rates.
Check These Solid Retail Stocks
Some better-ranked stocks are Capri Holdings (CPRI - Free Report) , Tapestry (TPR - Free Report) and Boot Barn Holdings (BOOT - Free Report) .
Capri Holdings, which offers accessories and footwear, has a Zacks Rank #2 (Buy) at present. CPRI has an expected earnings per share growth rate of 53.9% for three-five years. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Capri Holdings’ current financial-year EPS suggests growth of 215.8% from the year-ago period’s corresponding figure. CPRI has a trailing four-quarter earnings surprise of 1,018.2%, on average.
Tapestry, a renowned designer of fine accessories, presently carries a Zacks Rank of 2. TPR has a trailing four-quarter earnings surprise of 28.2%, on average.
The Zacks Consensus Estimate for Tapestry’s current-year sales and EPS suggests growth of 17.5% and 22.9%, respectively, from the corresponding year-ago period’s levels. TPR has an expected EPS growth rate of 12.5% for three-five years.
Boot Barn Holdings, a lifestyle retailer of western and work-related footwear, apparel and accessories, presently carries a Zacks Rank #2. BOOT has an expected EPS growth rate of 20% for three-five years.
The Zacks Consensus Estimate for Boot Barn Holdings’ current financial-year sales and EPS suggests growth of 62.6% and 220.8%, respectively, from the year-ago period’s corresponding figures. BOOT has a trailing four-quarter earnings surprise of 47.1%, on average.