Watch manufacturer Movado Group, Inc., announced its year-end and fourth-quarter results, with year-end net sales rising 12.4 percent and same-store sales up 8.5 percent for the fiscal year.

For the company's fiscal year ended Jan. 31, net sales reached $470.9 million versus $419 million the previous year. Same-store sales at the company's Movado boutiques increased 8.5 percent for the period, versus the 11.2 percent growth seen in the previous fiscal year.

Reported net income for the company in the year ending Jan. 31 was $26.6 million, on par with the $26.3 million Movado saw in net income in last fiscal year. For the 2006 period, earnings per diluted share were $1.02, versus $1.03 the year before. Benefiting from a one-time $500,000 benefit derived from a reversal of a previously recorded liability, the company said in a release issued Thursday that its fiscal 2006 operating profit reached $48 million, up from $35.1 million the year prior.

“As demonstrated brand builders, we continue to support our portfolio—Movado, Ebel, Concord, ESQ, Coach and Tommy Hilfiger—with strongly differentiated and innovative products, bold advertising and marketing campaigns, and a commitment to our retail partners,” Movado President and CEO Efraim Grinberg said in the company's statement. “We have built a strong presence at retail with our growing Movado boutique business, which continues to post strong results and adds immeasurable brand equity.”

In its fourth fiscal quarter of 2006, also ended Jan. 31, Movado posted $126.1 million in net sales, compared to $120 million the year before. Same-store sales in its Movado boutiques surged 14.4 percent in the fiscal fourth quarter of 2006, compared to growth of 2.9 percent in the same period of 2005. For its fiscal fourth quarter, Movado reported net income of $3 million, down from $7.2 million in fiscal fourth-quarter 2005.

Looking forward, Movado said in its release that it expects net sales to grow between 9 percent and 11 percent in its fiscal year 2007, over this year. On tap for the company are the fall launch of its new line of Juicy Couture watches, through a partnership with the popular clothing brand, as well as an anticipated spring 2007 launch of Lacoste watches, through Movado's alliance with the venerable sportswear label. In addition to operating Movado retail outlets in the United States, the company designs, manufactures and distributes Movado, Ebel, Concord, ESQ, Coach, Tommy Hilfiger and Hugo Boss watches around the world.


Source : nationaljeweler.com

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