0000950142-23-000769.txt : 20230323
0000950142-23-000769.hdr.sgml : 20230323
20230323072047
ACCESSION NUMBER: 0000950142-23-000769
CONFORMED SUBMISSION TYPE: 8-K
PUBLIC DOCUMENT COUNT: 14
CONFORMED PERIOD OF REPORT: 20230323
ITEM INFORMATION: Results of Operations and Financial Condition
ITEM INFORMATION: Financial Statements and Exhibits
FILED AS OF DATE: 20230323
DATE AS OF CHANGE: 20230323
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: MOVADO GROUP INC
CENTRAL INDEX KEY: 0000072573
STANDARD INDUSTRIAL CLASSIFICATION: WATCHES, CLOCKS, CLOCKWORK OPERATED DEVICES/PARTS [3873]
IRS NUMBER: 132595932
STATE OF INCORPORATION: NY
FISCAL YEAR END: 0131
FILING VALUES:
FORM TYPE: 8-K
SEC ACT: 1934 Act
SEC FILE NUMBER: 001-16497
FILM NUMBER: 23754459
BUSINESS ADDRESS:
STREET 1: 650 FROM ROAD
STREET 2: SUITE 375
CITY: PARAMUS
STATE: NJ
ZIP: 07652
BUSINESS PHONE: 201-267-8000
MAIL ADDRESS:
STREET 1: 650 FROM ROAD
STREET 2: SUITE 375
CITY: PARAMUS
STATE: NJ
ZIP: 07652
FORMER COMPANY:
FORMER CONFORMED NAME: NORTH AMERICAN WATCH CORP
DATE OF NAME CHANGE: 19930916
8-K
1
eh230342117_8k.htm
FORM 8-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
March 23, 2023
MOVADO GROUP, INC.
(Exact name of registrant as specified in its charter)
New York
1-16497
13-2595932
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(I.R.S. Employer
Identification No.)
650 FROM ROAD, SUITE 375
PARAMUS, NJ07652-3556
(Address of principal executive offices) (Zip Code)
(201) 267-8000
(Registrant’s Telephone Number, Including Area Code)
NOT APPLICABLE
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction
A.2. below):
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b)
of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange
on which registered
Common stock, par value $0.01 per share
MOV
New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth
company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange
Act of 1934 (§240.12b-2 of this chapter).
Emerging
growth company ☐
If an emerging
growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any
new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On March 23, 2023, Movado Group, Inc. (the “Company”) issued
a press release announcing results for the fourth quarter and fiscal year 2023 results for the periods ended January 31, 2023. The press
release is attached hereto as Exhibit 99.1.
Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURES
Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused this report on Form 8-K to be signed on its behalf by the undersigned
hereunto duly authorized.
Dated: March 23, 2023
MOVADO GROUP, INC.
By:
/s/ Mitchell
Sussis
Name:
Mitchell Sussis
Title:
Senior Vice President, General Counsel and Secretary
EX-99.1
2
eh230342117_ex9901.htm
EXHIBIT 99.1
EXHIBIT 99.1
CONTACT:
ICR, Inc.
Rachel Schacter/Allison Malkin
203-682-8200
FINAL
MOVADO GROUP, INC. ANNOUNCES FOURTH QUARTER
AND FISCAL YEAR 2023 RESULTS
~ Fiscal 2023 Net Sales of $751.9 million
~
~ Fiscal 2023 EPS of $4.12 and Fiscal 2023
Adjusted EPS of $4.22 ~
~ Fourth Quarter Net Sales of $194.3 million
~
~ Fourth Quarter EPS of $1.00 and Fourth Quarter
Adjusted EPS of $1.03 ~
~ Board Declares Special Dividend in Addition
to Regular Quarterly Dividend ~
Paramus, NJ – March 23, 2023
-- Movado Group, Inc. (NYSE: MOV) today announced fourth quarter and fiscal year 2023 results for the periods ended January 31, 2023.
Fiscal Year 2023 Highlights (See attached table
for GAAP and Non-GAAP measures)
·
Delivered topline growth of 2.7% or 7.0% on a constant dollar basis year over year;
·
Generated gross margin of 57.7% as compared to 57.2% last year;
·
Generated operating income of $120.4 million as compared to $117.5 million in the prior year. Adjusted
operating income was $123.2 million as compared to adjusted operating income of $119.7 million in fiscal 2022;
·
Achieved diluted earnings per share of $4.12 as compared to $3.87 in the prior year. Adjusted diluted
earnings per share was $4.22 as compared to $3.94 in fiscal 2022; and
·
Ended the year with cash of $251.6 million and no debt.
Efraim Grinberg, Chairman and Chief Executive Officer,
stated, “We managed our business well throughout the year, driving Movado Group to a record year for net sales and operating income
with expansion in gross profit margin, as compared to fiscal 2022. We achieved this while generating fourth quarter results that, as expected,
moderated from the fourth quarter of the prior year. These results follow a record performance in fiscal 2022 and reflect the power of
our global portfolio of brands and the disciplined execution of our strategy by our organization. I am extremely proud of our teams for
their contributions in the current operating environment.”
Mr. Grinberg continued, “As we look ahead, we
believe we will continue to face a difficult retail market in our largest regions, the U.S. and Europe. We have a strong portfolio of
brands that we will continue to support with strong product innovation and marketing programs. While we continue to maintain a disciplined
approach to managing expenses and inventory levels, we will make the marketing investments behind our biggest brands to ensure that we
emerge from the current environment in the strongest position and lay a solid foundation for future growth. Our strong balance sheet,
with over $251 million in cash and no debt, allows us to navigate through this period of uncertainty while continuing to invest behind
our brands, our teams and our customers. We are pleased that our Board of Directors approved a special dividend of $1.00 per share, in
addition to our regular quarterly dividend of $0.35 per share, demonstrating confidence in the future performance of our business and
returning value to our shareholders.”
Fiscal Fourth Quarter Highlights (See attached
table for GAAP and Non-GAAP measures)
·
Delivered net sales of $194.3 million versus $206.0 million in the prior year period;
·
Generated gross margin of 56.2% as compared to 58.7% in the fourth quarter of fiscal 2022;
·
Generated operating income of $26.1 million as compared to $38.2 million in the prior year period. Adjusted
operating income was $26.8 million as compared to adjusted operating income of $37.9 million in the fourth quarter of fiscal 2022; and
·
Achieved diluted earnings per share of $1.00 as compared to $1.33 in the prior year period. Adjusted diluted
earnings per share was $1.03 as compared to $1.32 in the fourth quarter of fiscal 2022.
Non-GAAP Items (See attached table for GAAP
and Non-GAAP measures)
Fourth quarter fiscal 2023 results of operations included
the following charges:
·
a $0.6 million pre-tax charge, or $0.5 million after tax, representing $0.02 per diluted share, associated
with the amortization of acquired intangible assets related to the acquisition of Olivia Burton; and
·
a $0.1 million pre-tax and after-tax charge, representing $0.00 per diluted share, associated with the
amortization of acquired intangible assets and deferred compensation related to the acquisition of MVMT.
Fourth quarter fiscal 2022 results of operations included
the following charges and benefits:
·
a $0.7 million pre-tax charge, or $0.6 million after tax, representing $0.03 per diluted share, associated
with the amortization of acquired intangible assets related to the acquisition of Olivia Burton;
·
a $0.1 million pre-tax and after-tax charge, representing $0.00 per diluted share, associated with the
amortization of acquired intangible assets and deferred compensation related to the acquisition of MVMT; and
·
a $1.1 million pre-tax benefit, or $0.8 million after tax, representing $0.04 per diluted share, due to
a change in estimate related to corporate initiative charges recorded primarily in response to the COVID-19 pandemic.
In this press release, references
to “adjusted” results exclude the impact of the above charges and benefits, as well as the items described in the Non-GAAP
Items section of the Company’s earnings releases for the first, second and third quarter of fiscal year 2023, in deriving the adjusted
results for the twelve months ended January 31, 2023 and January 31, 2022. Please refer to the attached GAAP and Non-GAAP measures table
for a detailed reconciliation of the Company’s reported results to its adjusted, non-GAAP results.
Fourth Quarter Fiscal 2023 Results (See attached
table for GAAP and Non-GAAP measures)
·
Net sales decreased 5.7% to $194.3 million, or decreased 2.8% on a constant dollar basis, compared to
$206.0 million in the fourth quarter of fiscal 2022. The decrease in net sales reflected a decline in wholesale sales, partially offset
by an increase in Movado Company stores. U.S. net sales decreased 6.3% as compared to the fourth quarter of last year. International net
sales decreased 5.0% as compared to the fourth quarter of last year and increased 0.6% on a constant dollar basis as compared to the prior
year period.
·
Gross profit was $109.3 million, or 56.2% of net sales, compared to $120.8 million, or 58.7% of net sales
in the fourth quarter of fiscal 2022. The decrease in gross margin percentage was primarily the result of the unfavorable changes in channel
and product mix and unfavorable impact of foreign currency exchange rates.
·
Operating expenses increased to $83.1 million in the fourth quarter of fiscal 2023 from $82.6 million
in the fourth quarter of fiscal 2022. Adjusted operating expenses were $82.4 million compared to $82.9 million in the prior year period.
This decrease was primarily due to lower performance-based compensation, partially offset by higher payroll-related expenses and higher
marketing expenses. As a percent of sales, adjusted operating expenses increased to 42.4% of sales from 40.3% in the prior year period
due to lower sales.
·
Operating income was $26.1 million compared to $38.2 million in the fourth quarter of fiscal 2022. Adjusted
operating income was $26.8 million for the fourth quarter of fiscal 2023 and $37.9 million for the prior year period.
·
The Company recorded a tax provision of $4.0 million, as compared to a tax provision of $6.6 million in
the fourth quarter of fiscal 2022. Based upon adjusted pre-tax income, the adjusted tax provision was $4.2 million, or an adjusted tax
rate of 14.8%, as compared to an adjusted tax provision of $6.5 million, or an adjusted tax rate of 17.1%, in the fourth quarter of fiscal
2022.
·
Net income for the fourth quarter of fiscal 2023 was $22.7 million, or
$1.00 per diluted share, compared to net income of $31.4 million, or $1.33 per diluted share, in the fourth quarter of fiscal 2022. Adjusted
net income for the fiscal 2023 period was $23.3 million, or $1.03 per diluted share, compared to adjusted
net income of $31.2 million, or $1.32 per diluted share, for the fourth quarter of fiscal 2022.
Full Year Fiscal 2023 Results
(See attached table for GAAP and Non-GAAP measures)
·
Net sales increased 2.7% to $751.9 million, or increased 7.0% on a constant dollar basis, compared to
net sales of $732.4 million in fiscal 2022. The increase in net sales reflected growth in the International wholesale business and Movado
Company Stores. U.S. net sales decreased 3.5% compared to last year. International net sales increased 8.2% as compared to last year and
increased 16.4% on a constant currency basis.
·
Gross profit was $433.9 million, or 57.7% of net sales, compared to gross profit of $419.1 million, or
57.2% of net sales, in fiscal 2022. The year over year increase in gross margin percentage was primarily the result of favorable changes
in channel and product mix, partially offset by unfavorable impact of foreign currency exchange rates and increased shipping costs.
·
Operating expenses were $313.5 million in fiscal 2023 compared to $301.6 million in fiscal 2022. For fiscal
2023, adjusted operating expenses were $310.7 million versus $299.4 million in fiscal 2022. This increase was primarily due to higher
payroll-related costs, higher marketing expenses and certain other operating expenses to support the increase in net sales, partially
offset by lower performance-based compensation.
·
Operating income was $120.4 million in fiscal 2023 as compared to operating income of $117.5 million in
fiscal 2022. Adjusted operating income for fiscal 2023 was $123.2 million compared to adjusted operating income for fiscal 2022 of $119.7
million.
·
The tax provision was $24.9 million in fiscal 2023 compared to a tax provision of $24.8 million in fiscal
2022. Based upon adjusted pre-tax income, the adjusted tax provision was $25.4 million, or an adjusted effective tax rate of 20.4% in
fiscal 2023, as compared to an adjusted tax provision of $25.2 million, or an adjusted effective tax rate of 21.1% in fiscal 2022.
·
Net income was $94.5 million, or $4.12 per diluted share, for fiscal 2023, compared to net income of $91.6
million, or $3.87 per diluted share, for fiscal 2022. Adjusted net income in fiscal 2023 was $96.8 million or $4.22 per diluted share.
This compares to adjusted net income for fiscal 2022 of $93.4 million or $3.94 per diluted share.
Fiscal 2024 Outlook
The Company expects fiscal 2024 net sales to be in a range of approximately
$725.0 million to $750.0 million, gross profit of approximately 56.0% of net sales, and operating income in a range of $80.0 million to
$85.0 million. Assuming no changes to the current tax regulations, the Company anticipates an effective tax rate of approximately 22%
for the fiscal year and earnings of $2.70 to $2.90 per diluted share. The outlook excludes approximately $2.1 million of amortization
of acquired intangible assets for fiscal 2024 related to the Olivia Burton and MVMT brands. For the first half of fiscal 2024, the Company
expects sales to decline in a range of 9% to 12% relative to the prior-year period as it anniversaries the record first half results of
fiscal 2023. This outlook does not contemplate further deterioration due to the impact of economic
uncertainty, and assumes no further
significant fluctuations from prevailing foreign currency exchange rates.
Special Dividend, Quarterly Dividend and Share
Repurchase Program
The Company also announced today
that on March 23, 2023, the Board of Directors approved the payment on April 19, 2023 of a special cash dividend in the amount of $1.00
per share as well as the regular quarterly cash dividend in the amount of $0.35 per share. Both dividends are payable on each share of
the Company’s outstanding common stock and class A common stock held by shareholders of record as of the close of business on April
5, 2023.
During the fourth quarter of fiscal
2023, the Company repurchased approximately 103,500 shares under its November 23, 2021 share repurchase program. As of January 31, 2023,
the Company had $21.0 million remaining available under the share repurchase program.
Conference Call
The Company’s management will host a conference
call and audio webcast to discuss its results today, March 23, 2023 at 9:00 a.m. Eastern Time. The conference call may be accessed by
dialing (877) 407-0784. Additionally, a live webcast of the call can be accessed at www.movadogroup.com. The webcast will be archived
on the Company’s website approximately one hour after the conclusion of the call. Additionally, a telephonic re-play of the call
will be available from 12:00 p.m. ET on March 23, 2023 until 11:59 p.m. ET on April 6, 2023 and can be accessed by dialing 844-512-2921
and entering replay pin number 13736686.
Movado Group, Inc. designs, sources,
and distributes MOVADO®, MVMT®, OLIVIA BURTON®, EBEL®, CONCORD®, CALVIN KLEIN®, COACH®, TOMMY HILFIGER®,
HUGO BOSS®, and LACOSTE®, watches, and, to a lesser extent jewelry and other accessories, and operates Movado Company Stores in
the United States and Canada.
In this release, the Company presents
certain financial measures that are not calculated according to generally accepted accounting principles in the United States (“GAAP”).
Specifically, the Company is presenting adjusted gross profit, adjusted gross margin, adjusted operating expenses, adjusted operating
income, adjusted pre-tax income, adjusted tax provision and adjusted net income, which are gross profit, gross margin, operating expenses,
operating income, pre-tax income, tax provision and net income, respectively, under GAAP, adjusted to eliminate the amortization of acquisition
accounting adjustments related to the Olivia Burton and MVMT acquisitions and corporate initiatives. The Company is also presenting adjusted
tax provision, which is the tax provision under GAAP, adjusted to eliminate the impact of charges for the Olivia Burton and MVMT acquisitions
and corporate initiatives. The Company believes these adjusted measures are useful because they give investors information about the
Company’s financial performance without the effect of certain items that the Company believes are not characteristic of its usual
operations. The Company is also presenting adjusted net income, adjusted earnings per share and adjusted effective tax rate, which are
net income, earnings per share and effective tax rate, respectively, under GAAP, adjusted to eliminate the after-tax impact of amortization
of acquisition accounting adjustments related to the Olivia Burton and MVMT acquisitions and corporate initiatives. The Company
believes that adjusted
net income, adjusted earnings per share and adjusted effective tax rate are useful measures of performance because they give investors
information about the Company’s financial performance without the effect of certain items that the Company believes are not characteristic
of its usual operations. Additionally, the Company is presenting constant currency information to provide a framework to assess how its
business performed excluding the effects of foreign currency exchange rate fluctuations in the current period. Comparisons of financial
results on a constant dollar basis are calculated by translating each foreign currency at the same U.S. dollar exchange rate as in effect
for the prior-year period for both periods being compared. The Company believes this information is useful to investors to facilitate
comparisons of operating results. These non-GAAP financial measures are designed to complement the GAAP financial information presented
in this release. The non-GAAP financial measures presented should not be considered in isolation from or as a substitute for the comparable
GAAP financial measures, and the methods of their calculation may differ substantially from similarly titled measures used by other companies.
This press release
contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company has
tried, whenever possible, to identify these forward-looking statements using words such as “expects,” “anticipates,”
“believes,” “targets,” “goals,” “projects,” “intends,” “plans,”
“seeks,” “estimates,” “may,” “will,” “should” and variations of such words
and similar expressions. Similarly, statements in this press release that describe the Company's business strategy, outlook, objectives,
plans, intentions or goals are also forward-looking statements. Accordingly, such forward-looking statements involve known and unknown
risks, uncertainties and other factors that could cause the Company's actual results, performance or achievements and levels of future
dividends to differ materially from those expressed in, or implied by, these statements. These risks and uncertainties may include, but
are not limited to general economic and business conditions which may impact disposable income of consumers in the United States and
the other significant markets (including Europe) where the Company’s products are sold, uncertainty regarding such economic and
business conditions, including inflation, increased commodity prices and tightness in the labor market, trends in consumer debt levels
and bad debt write-offs, general uncertainty related to possible terrorist attacks, natural disasters and pandemics, including the effect
of the COVID-19 pandemic and other diseases on travel and traffic in the Company’s retail stores and the stores of its wholesale
customers, supply disruptions, delivery delays and increased shipping costs, adverse impact on the Company’s wholesale customers
and customer traffic in the Company’s stores as a result of increased uncertainty and economic disruption caused by the COVID-19
pandemic, the impact of international hostilities, including the Russian invasion of Ukraine, on global markets, economies and consumer
spending, on energy and shipping costs and on the Company’s supply chain and suppliers, defaults on or downgrades of sovereign
debt and the impact of any of those events on consumer spending, changes in consumer preferences and popularity of particular designs,
new product development and introduction, decrease in mall traffic and increase in e-commerce, the ability of the Company to successfully
implement its business strategies, competitive products and pricing, including price increases to offset increased costs, the impact
of “smart” watches and other wearable tech products on the traditional watch market, seasonality, availability of alternative
sources of supply in the case of the loss of any significant supplier or any supplier’s inability to fulfill the Company’s
orders, the loss of or curtailed sales to significant customers, the Company’s dependence on key employees and officers, the ability
to successfully integrate the operations of acquired businesses without disruption to other business activities, the possible impairment
of acquired intangible assets, risks associated with the Company’s minority investments in early-stage growth companies and venture
capital funds that invest in such companies; the continuation of the Company’s major warehouse and distribution centers, the continuation
of licensing arrangements with third parties, losses possible from pending or future litigation and administrative proceedings, the ability
to secure and protect trademarks, patents and other intellectual property rights, the ability to lease new stores on suitable terms in
desired markets and to complete construction on a timely basis, the ability of the Company to successfully manage its expenses on a continuing
basis, information systems failure or breaches of network security, complex and quickly-evolving regulations regarding privacy and data
protection, the continued availability to the Company of financing and credit on favorable terms, business disruptions, and general risks
associated with doing business outside the United States including, without limitation, import duties, tariffs (including retaliatory
tariffs), quotas, political and economic stability, changes to existing laws or regulations, and success of hedging strategies with respect
to currency exchange rate fluctuations, and the other factors discussed in the Company’s Annual Report on Form 10-K and other filings
with the Securities and Exchange Commission. These statements reflect the Company's current beliefs and are based upon information currently
available to it. Be advised that developments subsequent to this press release are likely to cause these statements to become outdated
with the passage of time. The Company assumes no duty to update its forward looking statements and this release shall not be construed
to indicate the assumption by the Company of any duty to update its outlook in the future.
(Tables to follow)
MOVADO GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended
Twelve Months Ended
January 31,
January 31,
2023
2022
2023
2022
Net sales
$
194,273
$
205,975
$
751,898
$
732,393
Cost of sales
85,017
85,139
318,003
313,328
Gross profit
109,256
120,836
433,895
419,065
Total operating expenses
83,124
82,637
313,541
301,574
Operating income
26,132
38,199
120,354
117,491
Non-operating income/(expense):
Other income
1,365
87
2,069
530
Interest expense
(162
)
(106
)
(518
)
(688
)
Income before income taxes
27,335
38,180
121,905
117,333
Provision for income taxes
4,014
6,568
24,882
24,774
Net income
23,321
31,612
97,023
92,559
Less: Net income attributable to noncontrolling interests
595
237
2,495
960
Net income attributable to Movado Group, Inc.
$
22,726
$
31,375
$
94,528
$
91,599
Diluted Income Per Share Information
Net income attributable to Movado Group, Inc.
$
1.00
$
1.33
$
4.12
$
3.87
Weighted diluted average shares outstanding
22,708
23,629
22,955
23,679
MOVADO GROUP, INC.
GAAP AND NON-GAAP MEASURES
(In thousands, except for percentage data)
(Unaudited)
As Reported
Three Months Ended
January 31,
% Change
2023
2022
Total net sales, as reported
$
194,273
$
205,975
-5.7
%
Total net sales, constant dollar basis
$
200,116
$
205,975
-2.8
%
As Reported
Twelve Months Ended
January 31,
% Change
2023
2022
Total net sales, as reported
$
751,898
$
732,393
2.7
%
Total net sales, constant dollar basis
$
783,680
$
732,393
7.0
%
MOVADO GROUP, INC.
GAAP AND NON-GAAP MEASURES
(In thousands, except per share data)
(Unaudited)
Net Sales
Gross Profit
Total Operating Expenses
Operating Income/(Loss)
Pre-tax Income/(Loss)
Provision/(Benefit) for Income Taxes
Net Income/(Loss) Attributable to Movado Group, Inc.
Diluted EPS
Three Months Ended January 31, 2023
As Reported (GAAP)
$
194,273
$
109,256
$
83,124
$
26,132
$
27,335
$
4,014
$
22,726
$
1.00
Olivia Burton Costs (1)
–
–
(627
)
627
627
119
508
0.02
MVMT Costs (2)
–
–
(71
)
71
71
17
54
0.00
Adjusted Results (Non-GAAP)
$
194,273
$
109,256
$
82,426
$
26,830
$
28,033
$
4,150
$
23,288
$
1.03
Three Months Ended January 31, 2022
As Reported (GAAP)
$
205,975
$
120,836
$
82,637
$
38,199
$
38,180
$
6,568
$
31,375
$
1.33
Olivia Burton Costs (1)
–
–
(699
)
699
699
133
566
0.03
MVMT Costs (2)
–
–
(89
)
89
89
22
67
0.00
Corporate Initiatives (3)
–
–
1,064
(1,064
)
(1,064
)
(231
)
(833
)
(0.04
)
Adjusted Results (Non-GAAP)
$
205,975
$
120,836
$
82,913
$
37,923
$
37,904
$
6,492
$
31,175
$
1.32
Net Sales
Gross Profit
Total Operating Expenses
Operating Income/(Loss)
Pre-tax Income/(Loss)
Provision/(Benefit) for Income Taxes
Net Income/(Loss) Attributable to Movado Group, Inc.
Diluted EPS
Twelve Months Ended January 31, 2023
As Reported (GAAP)
$
751,898
$
433,895
$
313,541
$
120,354
$
121,905
$
24,882
$
94,528
$
4.12
Olivia Burton Costs (1)
–
–
(2,551
)
2,551
2,551
485
2,066
0.09
MVMT Costs (2)
–
–
(299
)
299
299
72
227
0.01
Adjusted Results (Non-GAAP)
$
751,898
$
433,895
$
310,691
$
123,204
$
124,755
$
25,439
$
96,821
$
4.22
Twelve Months Ended January 31, 2022
As Reported (GAAP)
$
732,393
$
419,065
$
301,574
$
117,491
$
117,333
$
24,774
$
91,599
$
3.87
Olivia Burton Costs (1)
–
–
(2,860
)
2,860
2,860
544
2,316
0.10
MVMT Costs (2)
–
–
(424
)
424
424
106
318
0.01
Corporate Initiatives (3)
–
–
1,064
(1,064
)
(1,064
)
(231
)
(833
)
(0.04
)
Adjusted Results (Non-GAAP)
$
732,393
$
419,065
$
299,354
$
119,711
$
119,553
$
25,193
$
93,400
$
3.94
(1)
Related to the amortization of acquired intangible assets for Olivia Burton.
(2)
Related to the amortization of acquired intangible assets and the MVMT brand's deferred compensation,
where applicable.
(3)
Related to a change in estimate related to corporate initiative charges recorded primarily
in response to the COVID-19 pandemic.
MOVADO GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
January 31,
January 31,
2023
2022
ASSETS
Cash and cash equivalents
$
251,584
$
277,128
Trade receivables, net
94,282
91,558
Inventories
186,203
160,283
Other current assets
24,212
16,974
Income taxes receivable
10,908
7,941
Total current assets
567,189
553,884
Property, plant and equipment, net
18,699
19,470
Operating lease right-of-use assets
80,897
68,599
Deferred and non-current income taxes
44,490
42,596
Other intangibles, net
9,642
13,507
Other non-current assets
66,788
63,104
Total assets
$
787,705
$
761,160
LIABILITIES AND EQUITY
Accounts payable
$
32,085
$
46,011
Accrued liabilities
46,720
48,522
Accrued payroll and benefits
17,343
25,117
Current operating lease liabilities
17,681
13,693
Income taxes payable
28,591
18,123
Total current liabilities
142,420
151,466
Deferred and non-current income taxes payable
15,163
19,614
Non-current operating lease liabilities
70,910
62,730
Other non-current liabilities
48,668
50,264
Redeemable noncontrolling interest
—
2,311
Shareholders' equity
507,606
472,808
Noncontrolling interest
2,938
1,967
Total equity
510,544
474,775
Total liabilities, redeemable noncontrolling interest and equity
$
787,705
$
761,160
MOVADO GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Twelve Months Ended January 31,
2023
2022
Cash flows from operating activities:
Net income
$
97,023
$
92,559
Non-cash corporate initiatives
—
(926
)
Depreciation and amortization
10,809
12,463
Other non-cash adjustments
9,540
9,292
Changes in working capital
(58,650
)
13,487
Changes in non-current assets and liabilities
(4,381
)
3,939
Net cash provided by operating activities
54,341
130,814
Cash flows from investing activities:
Capital expenditures
(7,085
)
(5,656
)
Long-term investments
(3,263
)
(1,967
)
Trademarks and other intangibles
(202
)
(291
)
Net cash used in investing activities
(10,550
)
(7,914
)
Cash flows from financing activities:
Repayment of bank borrowings
—
(21,140
)
Dividends paid
(31,363
)
(21,973
)
Stock repurchase
(31,413
)
(22,599
)
Purchase of incremental ownership of joint venture
(1,886
)
—
Distribution of noncontrolling interest earnings
(1,056
)
(1,230
)
Stock awards and options exercised and other changes
489
324
Contributions from noncontrolling interest
—
298
Debt issuance cost
(85
)
(294
)
Net cash used in financing activities
(65,314
)
(66,614
)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash
(4,014
)
(2,993
)
Net change in cash, cash equivalents, and restricted cash
(25,537
)
53,293
Cash, cash equivalents, and restricted cash at beginning of period
277,716
224,423
Cash, cash equivalents, and restricted cash at end of period
$
252,179
$
277,716
Reconciliation of cash, cash equivalents, and restricted cash:
Cash and cash equivalents
$
251,584
$
277,128
Restricted cash included in other non-current assets
595
588
Cash, cash equivalents, and restricted cash
$
252,179
$
277,716
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The type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word 'Other'.
Commission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.
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Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act.
Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act.