Us Watch Maker Maker Olivia First Acquired Burton

According to the world clothing shoes and hats net, American Watch Manufacturers

Group Inc. (NYSE:MOV) made the first acquisition in the history of the group.

The group disclosed on Wednesday that it had spent 60 million pounds on the acquisition of the UK.

Wrist watch and jewelry brand Olivia Burton's parent company JLB Brands Ltd., and is expected to make an immediate contribution to the current 2018 fiscal year's performance.

Movado Group Inc. (NYSE:MOV) has surged up to 6.5% to 26.35 dollars in its intraday trading on Wednesday, narrowing its cumulative decline to 10% below 2017.

Movado Group Inc. Inc. announced in the announcement that with the Olivia Burton, the existing distribution network continues to expand, based on the core UK market and watches and jewellery categories.

The penetration is also strengthening. The brand has great potential for growth. Moreover, the brand is attractive to the leading consumers and the Millennials.

JLB Brands Ltd. was founded in 2011 by Lesa Bennett and Jemma Fennings. In 2012, they launched Olivia Burton brand, and distributed rapidly through the John, Lewis, and other department stores, such as John, Lewis, and so on, and quickly captured consumers by the romantic feminization design, the approachable selling price and the freshness of new (15-25 styles) every two months. It became one of the fastest growing watches brands in Britain in recent years.

At present, there are more than 110 thousand fans in Olivia Burton's Instagram account, and the number of fans in Daniel Daniel Wellington, which is popular in Scandinavia, has attracted more than 3 million fans.

It can be seen that the more diverse Olivia Burton grows in style.

The brand increased its jewelry products in 2016, and entered the US market. As of the end of January this year, retailers at Nordstrom Inc. (NYSE:JWN) Nodes Tron department store and Urban Outfitters Inc.'s (NASDAQ:URBN) had 117 outlets, and recently began to set up counters in Lord Lord & Taylor.

The global distribution network of Olivia Burton covers 21 markets besides the United States and the United Kingdom. In China, there is also official authorization for a florist to sell it at a price of 880-1080 yuan.

In the fiscal year ending March 31st, Olivia Burton realized revenue of 15 million pounds, up 64% from the same period last year. It is estimated that the same growth rate will increase to 25 million in the current fiscal year.

The entry price of the watch is 60 pounds, the average price is about 82 pounds, which means that it sold more than 180 thousand last year.

The brand has just launched a high-end series with a price of 200 pounds, which is testing the market reaction; jewelry sells at a price of 35-150 pounds.

Lesa Bennett and Jemma Fennings, who graduated from the London Fashion Institute, will continue to take charge of their own Olivia Burton Burton brand. They also need to report to Efraim Group, chairman and chief executive officer of Movado Group Inc..

Efraim Grinberg revealed that the pursuit of Lesa Bennett and Jemma Fennings, which was only 30 years old, has been going on for over a year, when the group began to understand Olivia Burton.

He said that the sales volume of Olivia Burton was impressed by him, especially the ability of customers to go back to buy second or third watches. He also pointed out that the way in which the brand contacts with consumers in point of sale and digital channels is worth learning from Movado Group Inc..

He also believes that the addition of Lesa Bennett and Jemma Fennings can increase the female perspective for the group, and do not help the group operate Movado, Concord and other private brands and services such as Hugo Boss, Coach, Juicy Couture and other agent customers.

For the first time that the group has stepped into the M&A field, Efraim Grinberg said they did not have a definite M & a plan, but revealed many opportunities, but they were not like Olivia Burton to combine art and business. This is a great opportunity for the group.

When receiving TheStreet phone calls, when asked whether he plans to build a brand portfolio like Coach Inc. (NYSE:COH), he points out that Olivia Burton is the fourth private brand of the group and six of its proxy brands, which is already a good combination of brands.

For Olivia Burton, the biggest opportunity for the next development phase of the brand is to set up an independent store without accident.

Efraim Grinberg, Lesa Bennett and Jemma Fennings also mentioned the possibility of category expansion. Efraim Grinberg said that expanding into lifestyle brands is one of the directions.

On the other hand, the Movado brand is also likely to learn from Olivia Burton's jewelry experience to introduce jewelry products.

He told TheStreet that the current watch market is constantly challenged by many retail categories. Of course, the electronic commerce business of "watch" is gaining "very high speed growth", but it is not enough to offset the overall decline of the physical passenger flow.

Against this background, the performance of Movado Group Inc., GMO, has gradually declined.

Data showed that in the first quarter of April 30th, the Group recorded a net loss of $4 million 155 thousand from profit to loss, compared with a net profit of $3 million 337 thousand in the same period last year. After adjustment, the Group recorded a slight profit of $258 thousand, or a profit of $0.01 per share.

The quarterly income of $99 million 265 thousand was 13% lower than the US $114 million 100 thousand in the same period last fiscal year, and the fixed exchange rate dropped by 11%.

The group now expects earnings per share of US $1.40-1.55 per year to be US $5.15-5.30 billion, which is expected to remain unchanged in the fourth quarter of last year.

Movado Group Inc. (NYSE:MOV) reported a $25.95 increase on Wednesday, rising 4.85% over the whole day, and the stock has risen 16.3% in the past 12 months.

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