MOVADO GROUP Reports Fourth Quarter FY2023 Earnings Results on March 23 2023.
March 26, 2023
Earnings Overview
MOVADO GROUP ($NYSE:MOV) reported their financial results for the fourth quarter of FY2023 (ending on January 31 2023) on March 23 2023. The total revenue for the quarter was USD 22.7 million, a decrease of 27.6% compared to the same period in the prior year. Meanwhile, net income for the period was USD 194.3 million, a decline of 5.7% from the previous year.
Transcripts Simplified
At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session and instructions will be given at that time. As a reminder, this conference is being recorded. I would now like to turn the conference over to Joel Friedman, President and Chief Executive Officer. Please go ahead. Joel Friedman: Thank you, operator. Good morning, everyone, and thank you for joining us today. With me on the call are Richard Cote, our Chief Financial Officer; and John Harris, our General Counsel. My comments this morning will focus on our first quarter performance and our view of the business for the remainder of the year. Following our prepared remarks, we’ll be happy to take questions from the analyst community.
Before we begin, let me remind everyone that during the course of this conference call, we may make certain forward-looking statements regarding future events or the financial performance of the company that are subject to risks and uncertainties. For further information about factors that could affect the company’s future results, please see the company’s filings with the Securities and Exchange Commission. This exceeded both our internal expectations and the consensus of Wall Street analysts. We are pleased with our results as they reflect ongoing progress toward our long-term strategic objectives of driving sustainable sales growth and expanding our margin structure. Our teams continue to execute initiatives that have enabled us to outpace broader market trends and position us for long-term success. We continue to be confident in our ability to deliver results and returns to shareholders over the long term despite near-term volatility in consumer demand. Before I turn the call over to Richard, I would like to thank all of our employees for their hard work, dedication and commitment to our company during this unprecedented period in retailing history. After Richard’s remarks, we will open up the call for questions.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Movado Group. More…
| Total Revenues | Net Income | Net Margin |
| 751.9 | 94.53 | 12.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Movado Group. More…
| Operations | Investing | Financing |
| 54.34 | -10.55 | -65.31 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Movado Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 787.71 | 277.16 | 22.93 |
Key Ratios Snapshot
Some of the financial key ratios for Movado Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 2.4% | 40.9% | 16.3% |
| FCF Margin | ROE | ROA |
| 6.3% | 15.5% | 9.7% |
Share Price
The stock opened at $29.0, but closed the trading session at $28.2, a plunge of 14.5% from the prior closing price of 33.0. This marks a significant decline in value for MOVADO GROUP’s stock and is likely to cause some concern amongst investors. This decrease in revenue was attributed to a drop in sales across all its segments, with a particularly noticeable decline in jewelry sales.
Analysts are currently evaluating the results to determine what kind of impact this will have on MOVADO GROUP’s stock in the longer term. After such a sharp drop in value, it will be interesting to see if investors remain confident in the company’s future prospects and are willing to buy back into the stock. Live Quote…
Analysis
GoodWhale has conducted a financial analysis of MOVADO GROUP and determined it to be a medium risk investment. Our analysis incorporates both financial and business aspects. We have identified two risk warnings in the income sheet and balance sheet which our registered users can see. We take into consideration several different indicators to assess the risk level of an investment. These include revenue, profits, balance sheet strength, income growth, debt levels, cash flow and more. Through careful evaluation of all these factors, we have determined that MOVADO GROUP is a medium risk investment for potential investors. It is important for potential investors to research the financials of a company thoroughly before investing. Our financial analysis of MOVADO GROUP is a great starting point for potential investors who are considering investing in the company. We encourage all potential investors to register with GoodWhale and view the two risk warnings we have identified in the income sheet and balance sheet. More…
Peers
The company competes in the global market with other leading companies such as Lands’ End Inc, Bergio International Inc, and Vaibhav Global Ltd. Movado Group has a strong portfolio of brands that cater to different segments of the market. The company’s products are known for their unique design and superior quality. Movado Group has a wide distribution network and a strong marketing and advertising capability. The company’s focus on innovation and customer satisfaction has helped it to maintain its leading position in the market.
– Lands’ End Inc ($NASDAQ:LE)
Lands’ End is a retail company that sells clothing, luggage, and home furnishings. The company was founded in 1963 and is headquartered in Dodgeville, Wisconsin. Lands’ End operates through two segments: Direct and Retail. The Direct segment offers products through catalogs, website, and corporate sales. The Retail segment operates Lands’ End Shops at Sears locations and standalone Lands’ End Inlet stores. As of 2022, Lands’ End had a market cap of 314.92 million and a return on equity of 7.35%.
– Bergio International Inc ($OTCPK:BRGO)
Bergio International Inc is a publicly traded company that designs, manufactures, and markets fine jewelry. The company was founded in 1984 and is headquartered in New York, New York. As of 2022, Bergio International Inc had a market capitalization of $675,620.00 and a return on equity of -4.34%. The company’s products are sold through its own website and through independent retailers.
– Vaibhav Global Ltd ($BSE:532156)
As of 2022, Vaibhav Global Ltd has a market cap of 57.39B and a ROE of 10.1%. The company is engaged in the design, manufacture and export of fashion jewelry, watches and accessories. It has a strong presence in the US, Europe and Asia Pacific markets. The company has a wide range of products that are affordable and stylish.
Summary
Movado Group Inc. reported their fourth quarter of fiscal year 2023 earnings on March 23, 2023. Total revenue for the quarter was USD 22.7 million, a 27.6% decrease year over year, and net income for the period was USD 194.3 million, a 5.7% drop from the same period a year prior. In response to these results, stock prices for Movado Group Inc. were down the same day.
Investors may want to keep an eye on Movado Group Inc. as it experiences changing market conditions, as the company’s 27.6% decrease in revenue indicates some difficulty in their ability to generate income. As such, research into the company’s current and upcoming business strategies could be wise before investing.
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