MOV - Movado Group stock moves lower on lackluster guidance

2023-03-23 07:06:22 ET

Movado Group ( NYSE: MOV ) stock slid in premarket trading after topping Q4 expectations, but offering a dim view of the year ahead.

For the fourth quarter of fiscal 2023, the company notched $1.03 in earnings per share on $194.3M in revenue. Analysts had anticipated $0.86 in earnings per share on $184.4M in revenue. Gross margins contracted 250 basis points from the prior year amid higher payroll and shopping costs.

“We managed our business well throughout the year, driving Movado Group to a record year for net sales and operating income with expansion in gross profit margin, as compared to fiscal 2022. We achieved this while generating fourth quarter results that, as expected, moderated from the fourth quarter of the prior year,” CEO Efraim Grinberg commented. “As we look ahead, we believe we will continue to face a difficult retail market in our largest regions, the U.S. and Europe.

For fiscal year 2024, the company expects net sales between $725M and $750M, disappointing against the $814M consensus. Management expects earnings of $2.70 to $2.90 per diluted share for the year ahead, well below the $4.61 expectation.

“While we continue to maintain a disciplined approach to managing expenses and inventory levels, we will make the marketing investments behind our biggest brands to ensure that we emerge from the current environment in the strongest position and lay a solid foundation for future growth,” Grinberg said.

Shares of Movado ( MOV ) slipped just over 3% on light volume before the bell on Thursday.

The company also announced a special $1.00 per share cash dividend in addition to the regular quarterly cash dividend of $0.35 per share to be paid on April 19 .

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