NYSE$MOV

Movado Group Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Announced record second quarter results and increased annual outlook.

Movado Group reported a strong second quarter with significant increases in net sales, operating income, and earnings per share compared to the previous year. Net sales increased by 96.4% from fiscal 2021 and 10.2% from fiscal 2020. The company ended the quarter with a strong cash position and declared a quarterly dividend.

  • Net sales increased by 96.4% compared to fiscal 2021 and 10.2% compared to fiscal 2020, reaching $173.9 million.
  • Operating income increased to $24.6 million, a significant improvement from ($8.9) million in fiscal 2021 and $8.8 million in fiscal 2020.
  • Earnings per share reached $0.82.
  • The company ended the second quarter with $199.7 million in cash and no debt.

Headline financials

Total Revenue

$174M

Previous: $88.5M+96.4%
EPS (adj)

$0.85

Previous: -$0.07+1314.3%
Capital Expenditures

-$1.79M

Previous: -$1.89M+5.6%
Free Cash Flow

$17.6M

Previous: -$8.51M+307.2%
Net Income

$19.4M

Previous: -$6.62M+393.4%
Operating Income

$24.6M

Previous: -$8.92M+376.3%
Gross Profit

$98.5M

Previous: $45.4M+117.1%
Cash & Equivalents

$200M

Previous: $170M+17.3%
Total Assets

$711M

Previous: $680M+4.6%
Stock-Based Comp

$1.23M

Previous: $1.16M+6.5%

Revenue & EPS history

Movado · Revenue · Quarterly

$174M

Q2 2022+96.4%vs Q2 2021
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Forward guidance

The Company is increasing its outlook and currently expects fiscal 2022 net sales in a range of approximately $680 million to $695 million, gross profit of approximately 55.5% to 56.0% of net sales, operating profit in a range of 13.0% to 13.5% of net sales and diluted earnings per share of approximately $2.75 to $2.90.

Tailwinds

  • Net sales are expected to be in the range of $680 million to $695 million.
  • Gross profit is projected to be approximately 55.5% to 56.0% of net sales.
  • Operating profit is anticipated to be in the range of 13.0% to 13.5% of net sales.
  • Diluted earnings per share are expected to be approximately $2.75 to $2.90.
  • The Company anticipates a 25% effective tax rate for the fiscal year.

Headwinds

  • Outlook does not contemplate significant additional COVID-19 related retail closures which can adversely impact results.
  • The outlook excludes approximately $3.0 million of amortization of acquired intangible assets and deferred compensation for fiscal 2022 related to the Olivia Burton and MVMT brands.
  • The Company's outlook assumes no further significant fluctuations from prevailing foreign currency exchange rates.
  • Uncertainty stemming from COVID-19 variants.
  • General economic and business conditions which may impact disposable income of consumers

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+2.6%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+0.1%

Avg return

30 days after

60%

39 / 65 earnings

Positive

+30.8%

Q4 2021

Best reaction

-20.8%

Q3 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027
Q4 2026-1.6%+3.3%+23.3%
Q3 2026+6.4%+7.7%+6.5%
Q2 2026+1.9%+7.6%+7.8%
Q1 2026-7.2%-6.8%-11.2%
Q4 2025+4.3%-1.3%+10.2%
Q3 2025+0.0%+0.4%-4.4%
Q2 2025-16.3%-17.9%-13.6%
Q1 2025-1.0%-2.8%-7.1%
Q4 2024+4.2%+5.3%-0.8%
Q3 2024-10.0%-6.7%+4.0%
Q2 2024-1.0%+2.9%-0.2%
Q1 2024+0.5%-0.1%+2.9%
Q4 2023-15.9%-11.9%-19.0%
Q3 2023-8.5%-8.2%-10.0%
Q2 2023-1.5%-2.5%-14.3%
Q1 2023+14.0%+5.9%+2.2%
Q4 2022+10.1%+15.9%+9.5%
Q3 2022+19.4%+13.8%+1.5%
Q2 2022+10.0%+5.3%-2.0%
Q1 2022-9.0%-2.9%+3.3%
Q4 2021+30.8%+30.5%+44.3%
Q3 2021+8.2%+6.9%+4.2%
Q2 2021+2.4%+0.9%-5.8%
Q1 2021-9.7%-11.0%-32.4%
Q4 2020+11.4%+17.3%-8.8%
Q3 2020-20.8%-22.4%-14.4%
Q2 2020-15.2%-13.8%+0.9%
Q1 2020-16.1%-13.2%-12.1%
Q4 2019+11.5%+3.8%+6.1%
Q3 2019+4.6%-10.0%-13.5%
Q2 2019-14.4%-13.8%-15.2%
Q1 2019+16.4%+23.9%+14.5%
Q4 2018+16.0%+13.1%+20.2%
Q3 2018+2.2%-1.4%+10.7%
Q2 2018+14.5%+14.9%+17.6%
Q1 2018-4.5%-4.5%+6.2%
Q4 2017+3.2%-0.8%-1.1%
Q3 2017+10.3%+14.0%+11.8%
Q2 2017-3.9%-4.7%-5.8%
Q1 2017-6.4%-13.6%-13.8%
Q4 2016-4.9%
Q3 2016+11.9%
Q2 2016+27.6%
Q1 2016-5.0%
Q4 2015+20.6%
Q3 2015+3.8%
Q2 2015-11.9%
Q1 2015+1.2%
Q4 2014+9.3%
Q3 2014-2.7%
Q2 2014+12.8%
Q1 2014+1.8%
Q2 2011+1.1%
Q4 2013-13.8%
Q3 2013+8.2%
Q2 2013+16.9%
Q1 2013-8.0%
Q1 2012-8.0%
Q4 2012+5.8%
Q2 2012+5.8%
Q4 2010+5.8%
Q3 2012+18.5%
Q3 2011+18.5%
Q4 2011+2.8%
Q1 2011+10.8%

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