NYSE$MOV

Movado Group Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Movado Group Announced Q4 2020 Results

Movado Group reported a decrease in net sales by 4.2% to $191.0 million compared to the fourth quarter of fiscal 2019, with net income decreasing to $3.5 million, or $0.15 per diluted share. The company is discontinuing its quarterly dividend due to COVID-19 uncertainty but maintains a strong cash position.

  • Net sales decreased by 4.2% to $191.0 million compared to Q4 2019.
  • Gross profit was $100.6 million, representing 52.7% of net sales, compared to $110.6 million, or 55.5% of net sales in the same period last year.
  • Operating income was $6.6 million, down from $17.1 million in the prior year period.
  • Net income was $3.5 million, or $0.15 per diluted share, compared to $17.4 million, or $0.74, for the same period in the prior year.

Headline financials

Total Revenue

$191M

Previous: $199M-4.2%
EPS (adj)

$0.15

Previous: $0.67-77.6%
Capital Expenditures

$2.69M

Previous: $2.43M+10.7%
Free Cash Flow

$74M

Previous: $56.9M+30.0%
Net Income

$3.53M

Previous: $17.4M-79.8%
Operating Income

$6.6M

Previous: $17.1M-61.4%
Gross Profit

$101M

Previous: $111M-9.1%
Cash & Equivalents

$186M

Previous: $190M-2.1%
Total Assets

$847M

Previous: $760M+11.5%
Stock-Based Comp

$1.72M

Previous: $1.76M-2.3%

Revenue & EPS history

Movado · Revenue · Quarterly

$191M

Q4 2020-4.2%vs Q4 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

Given the rapidly changing environment with COVID-19, the company is refraining from providing fiscal 2021 guidance. The Company expects the COVID-19 pandemic to negatively impact its business, results of operations, and financial position; however, the related financial impact cannot be reasonably estimated at this time.

Tailwinds

  • Taking proactive measures to increase financial flexibility.
  • Implementing strategic cost reductions across all functional areas.
  • Borrowed an additional $30 million on its revolving credit facility in March 2020.
  • Company’s strong balance sheet, with approximately $190 million of cash as of March 25, 2020, will help it navigate the current unprecedented situation.
  • Maintains strong, long-term relationships with its vendors, landlords and banking partners.

Headwinds

  • Refraining from providing fiscal 2021 guidance.
  • Expects the COVID-19 pandemic to negatively impact its business.
  • Expects the COVID-19 pandemic to negatively impact its results of operations.
  • Expects the COVID-19 pandemic to negatively impact its financial position.
  • Discontinued the regular quarterly dividend until further notice.

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 Q4 2020

Historical avgQ4 2020

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro