Movado Group(MOV) - 2025 Q2 - Quarterly Results

Financial Performance - Net sales for Q2 FY2025 were $159.3 million, a decrease of 0.7% from$ 160.4 million in Q2 FY2024[4] - Gross margin for Q2 FY2025 was 54.2%, down from 55.7% in the prior year period[4] - Operating income for Q2 FY2025 was $3.0 million, compared to$ 9.6 million in Q2 FY2024[4] - Diluted earnings per share (EPS) for Q2 FY2025 were $0.16, down from$ 0.36 in the prior year period[4] - For the first half of FY2025, net sales decreased 3.1% to $296.0 million compared to$ 305.3 million in the first half of FY2024[6] - The company expects FY2025 net sales to be in the range of $665.0 million to$ 675.0 million, revised down from $700.0 million to$ 710.0 million[8] - The gross profit margin for FY2025 is expected to be approximately 54%, down from a previous expectation of 55%[8] - Operating income for FY2025 is projected to be between $23.0 million and$ 26.0 million, revised down from $32.0 million to$ 35.0 million[8] Cash and Assets - The company ended Q2 FY2025 with $198 million in cash and no debt, positioning it well for future strategic plans[4] - Total current assets decreased to$ 523,940 thousand from $543,878 thousand, a decline of approximately 3.4%[16] - Cash and cash equivalents at the end of the period were$ 198,251 thousand, down from $262,059 thousand, representing a decrease of about 24.4%[16] - The total assets as of July 31, 2024, were$ 759,188 thousand, a slight decrease from $769,082 thousand as of January 31, 2024[16] Income and Expenses - Net income for the six months ended July 2024 was$ 6,924 thousand, a significant drop from $17,464 thousand in the same period last year, reflecting a decrease of approximately 60.4%[18] - Net cash used in operating activities was$ (35,910) thousand, compared to a net cash provided of $9,226 thousand in the prior year[18] - Net cash used in investing activities was$ (8,305) thousand, compared to $(6,081) thousand in the prior year, indicating an increase in cash outflow[18] - Dividends paid amounted to$ (15,547) thousand, down from $(37,650) thousand in the previous year, reflecting a decrease of approximately 58.8%[18] Liabilities and Equity - Total liabilities decreased to$ 253,113 thousand from $261,468 thousand, a reduction of about 3.2%[17] - Shareholders' equity decreased to$ 504,116 thousand from $516,798 thousand, a decline of approximately 2.5%[17] Capital Expenditures - Capital expenditures for the period were$ (3,913) thousand, slightly lower than $(4,620) thousand in the previous year[18] Dividends - A quarterly dividend of$ 0.35 per share was declared, payable on September 30, 2024[10]