Movado Group has released its second quarter and six-month results for the period ended July 31.
For the three months to July 31, the financial report showed a net sales increase of 9.5% to $157.8m, equivalent to 11% on a constant dollar basis.
Operating income was down to £7.2m ($8.8m) from £10.5m ($12.9m) in the same period last year, adjusted to £8.4m ($10.3m) from £11.9m ($14.6m).
Reflecting on the results the brand the brand felt positive after what it described as an “increasingle challenging environment.”
Efraim Grinberg, chairman and CEO, said: “Overall, we delivered sales growth of 9.5% and adjusted operating income of $10.3 million in the second quarter, despite an increasingly challenging environment for our category, planned incremental investments and currency headwinds.
“We are pleased with the market share gains of our licensed brand portfolio both internationally and domestically and saw strong digital sales growth on our movado.com site during the quarter.
Gross profit was £69.5m ($85.3m), or 54.1% of sales, compared to £63.4m ($77.8m), or 54.0% of sales, in the second quarter last year.
The slight increase in gross margin percentage was primarily the result of increased leverage on fixed costs due to increased sales and favourable changes in channel and product mix mostly offset by unfavourable changes in foreign currency exchange rates.
Looking ahead, Mr Brinberg commented: “As we begin the second half of the year, we believe the innovation in our offerings and our strategic initiatives strengthen our position. Importantly, our product pipeline, including Movado Connect 2.0 and Movado Bold Evolution, will give us the opportunity to expand market share during the fall and holiday seasons. That said, we believe it is prudent to update our outlook given unfavorable currency rates, ongoing challenges in our category, the impact of tariffs and the increasingly volatile global environment.”
