MOV - Movado gains on strong Q3 results raises guidance and dividend

Movado (MOV +9.5%) shares gain after Q3 beat and increase in quarterly dividend by 25%. The company saw double digit growth in revenue and profit. Sales grew 28%, gross margin expanded 330 bps to 57.7% and a nearly 80% growth in operating income. The company reported 41.7% Y/Y increase in U.S. net sales and a 19.7% Y/Y increase in International net sales. The company approved a new $50M share buyback program, which will expire on November 23, 2024. FY2022 Guidance: Net sales: approximately $715M to $720M vs. consensus of $716M; Gross profit: approximately 56.5% to 57.0%; Operating profit: 15.0% to 15.5%; Diluted EPS: approximately $3.35 to $3.45 vs. consensus of $2.95; Tax rate: approximately 25%. CEO comment: "Our strong balance sheet, including net cash of nearly $202 million, affords us the opportunity to invest in the support of our future growth, while also returning value to shareholders through an increased dividend and new

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Movado gains on strong Q3 results, raises guidance and dividend