Movado' Q4 Earnings Smashes Estimates, Hikes Dividend

• Movado Group (NYSE:MOV) reported fourth-quarter FY22 sales growth of 15.5% year-on-year, to $205.98 million, beating the consensus of $191 million.
• The gross margin expanded 220 basis points to 58.7%, and the gross profit rose 19.8% Y/Y to $120.8 million.
• The operating margin was 18.5%, and operating income for the quarter rose 47.5% to $38.2 million.
• Adjusted EPS of $1.32 beat the analyst consensus of $0.80.
• The company’s board approved a 40% hike in the quarterly dividend to $0.35 from $0.25 per share, payable on April 20, 2022, to shareholders of record on April 6, 2022.
• The company held $277.1 million in cash and equivalents as of January 31, 2022.
• Outlook: Movado sees FY23 sales of $780 million - $800 million, above the consensus of $774 million.
• It expects FY23 operating income of $125 million - $130 million.
• Price Action: MOV shares closed lower by 4.13% at $34.50 on Wednesday.