Sales at Movado Group UK Limited rose by 13% in the financial year ended January 31, 2017.
The UK group, which is owned by America’s Movado Group Inc., distributes a number of licensed and owned watch brand including Movado and Hugo Boss. The company traded under the name MGS Distribution Limited until 2017.
Operating profit fell sharply from £1.76 million to £200,000 in the financial year.
Inventory, recognised as an expense, rose from £14.4 million in 2016-17 to £17.5 million in 2016-17.
The rise in sales for Movado Group is noteworthy in a period of falling sales for watches priced at under £500 in the UK.
2016 was a difficult year for the sub-£500 market, falling 12.9% from £558 million in 2015 to £486 million in 2016, according to retail analyst GfK.
Movado Group may have been more immune than some to that downturn, which was mostly caused by cooling sales of Michael Kors watches that had been red hot in 2014.
In a statement accompanying the 2016-17 accounts published at Companies House, director Xavier Gauderlot says that the company is operating in a market that is increasingly dominated by a small number of multi-store retailers, making it necessary for the company to leverage its brands and group strengths to ensure strong access to the local retail network.
He adds that FY17 was a year of substantial investment in advertising and infrastructure spending to support the business.
The statement also notes that after the accounting period, in July 2017, the company acquired JLB Brands, the parent company of Olivia Burton, for approximately £60.9 million.