Movado Group UK Ltd sales rose by 13% to £28.1 million in the financial year ended January 31, 2018.
The result includes six months of UK sales for Olivia Burton watches, which was acquired in July 2017 for £65 million.
Accounts filed at Companies House show a loss for the financial year of £68 million because Movado’s UK office was made responsible for the Olivia Burton acquisitions, although it was lent £35 million in an inter-company loan from its parent organisation in the United States.
A statement accompanying the accounts also says there were significant costs associated with the acquisition, logistics and subsequent marketing of the brand.
Underlying profitability was broadly in line with recent years, using gross profits as an indicator.
Company director Xavier Gauderlot says that the company will invest more in its new brands while maintaining profitability of its more mature portfolio of owned and licensed watchmakers.
Along with Olivia Burton, Movado Group UK distributes Hugo Boss, Tommy Hilfiger and Movado watches.