The Sale Of Watches In Latin America, Europe And Asia Is Fierce.

According to world clothing shoes and hats net, American watch manufacturer Movado Group Inc. (NYSE:MOV)

Tuesday's share price jumped 19.5% on Tuesday after announcing that it was far ahead of the market's expected profit and raised its annual target, which almost smoothed the decline since 2017 and also increased to a 7 month high of $28.5.

Core data analysis:

As of the two quarter of July 31st, the net sales of Movado Group Inc. Inc. were increased by 0.5% to 128 million 800 thousand US dollars, up by 119 million US dollars and fixed exchange rate increased by 1.2%.

Excluding the $4 million 515 thousand in expenses and restructuring costs related to the Olivia Burton paction in July, the adjusted operating profit increased by 28% to $12 million 920 thousand.

Net profit recorded a 30.4% decline, down from $6 million 306 thousand in the same period last year to $4 million 391 thousand, and EPS declined from $0.27 to $0.19.

Adjusted net profit rose by 57.6% to 9 million 939 thousand dollars, adjusted EPS to $0.47, far exceeding the market expectations of $0.23.

Management comments:

Movado Group Inc. president and CEO Efraim Grinberg said in the earnings report that the positive quarterly results show the group's progress in strategic growth and cost reduction.

He pointed out that although retail challenges remain, retail sales in Latin America, Europe and Asia are strong.

He also believes that the operation of Rebecca Minkoff brand agents, the listing of smart watches Movado Connect, the expansion of direct consumer business plans, and the promotion of brand portfolio products through traditional and digital advertising will lay the foundation for the holiday season.

Expectation:

The group's annual net sales are expected to rise to $5.30-5.45 billion from the previous 5.15-5.30 billion, and EPS is expected to rise from 1.40-1.55 to US $two. The outlook for these 518 million 200 thousand indicators is higher than the US $518 million 200 thousand and $1.37 forecast respectively.

Developments in the period:

Movado Group Inc. Inc. made the first acquisition in the history of the group in early July, and bought the JLB Brands Ltd., the parent of the fashion watch and jewelry brand Olivia Burton, founded in 2012.

The group points out that Olivia Burton, based on the core British market and watches and jewellery categories, is expanding its existing distribution network, and the penetration of global e-commerce is also strengthening. The brand has great potential for growth. Moreover, the brand has both the leading consumer and the millennial generation.

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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.

Olivia Burton is the fourth self owned brand of Movado Group Inc., which also owns 6 proxy brands such as Hugo Boss, Coach, Juicy Couture, and Efraim Grinberg previously pointed out that this is a good brand combination.

In 1881, it was founded in La Chaux-de-Fonds, Switzerland. So far, nearly more than 100 patents have been registered, as well as more than 200 international awards in timing technology and watch design: from the early revolutionary Chaux-de-Fonds design to the three plane of the Polyplan movement, and to the legendary Museum collection dial design, it has won the international recognition with its unique eternal beauty and infinite creativity.

Over the years, MOVADO has created many classic masterpieces, especially the museum collection: the single dot is located at 12, representing the sun at noon. The museum's digital word dial design is praised as a model of modernism.

This design was published in 1947, and was written by the famous American artist Nathan George Horwitt. It fully embodies the essence of the 20s Design School of Bauhaus and was treasured by the New York Museum of modern art in 1960. It is the first watch to receive this honor and the reputation of the museum collection.

Today, the watch has become a collection of museums around the world, and the museum's collection of dial plates has become a unique design element of the brand.

He has established his position as a continuous innovator and is legendary.

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