Movado Group Inc announced third quarter and nine-month results for the period ended October 31, 2006.
Third Quarter Fiscal 2007:
* Net sales increased $24.5 million, or 17.3%, to $166.3 million from $141.7 million last year. Net sales for the quarter included $12.1 million of excess discontinued product.
* Comparable store sales increased 0.5% at the Company's Movado boutiques versus a 10.6% gain achieved last year.
* Gross profit was $97.9 million, or 58.9% of sales, compared to $86.2 million, or 60.8% of sales last year. Excluding excess discontinued product sales, adjusted gross profit was $97.9 million, or 63.5% of sales.
* Operating profit was $19.8 million versus $19.0 million last year and includes two unusual items.
* Adjusted operating profit, which excludes those unusual items, was $23.6 million, a 24.0% increase from adjusted operating profit in the year-ago period. (See attached table for reconciliation of GAAP to non-GAAP measures.)
* Net interest expense was $0.2 million versus $1.2 million last year.
* An income tax benefit of $2.0 million was recorded in the third quarter compared to income tax expense of $4.7 million, or a 25.0% tax rate, recorded last year.
* On a reported basis, net income and earnings per share were $21.9 million and $0.82, respectively, versus net income of $14.1 million and earnings per diluted share of $0.54 in the year-ago period.
Nine-Month Results:
* Net sales increased 13.3% to $390.6 million from $344.8 million last year and included $12.1 million of excess discontinued product sales recorded in the third quarter.
marketing@alchempro.com
