Financial Performance - Net sales for Q3 fiscal 2025 were 182.7million,adecreaseof2.6187.7 million in Q3 fiscal 2024[4]. - Operating income for Q3 fiscal 2025 was 6.6million,downfrom20.7 million in the prior year, with adjusted operating income at 9.3million[4][8].−Dilutedearningspershare(EPS)forQ3fiscal2025were0.22, compared to 0.77inQ3fiscal2024;adjustedEPSwas0.37[4][8]. - Total net sales for the three months ended October 31, 2024, were 182.727million,adecreaseof2.6187.686 million in the same period of 2023[22]. - Gross profit for the three months ended October 31, 2024, was 98.396million,downfrom102.328 million in the prior year, reflecting a gross margin of 53.9%[22]. - Operating income for the three months ended October 31, 2024, was 6.550million,significantlylowerthan20.692 million reported in the same quarter of 2023[22]. - Net income attributable to Movado Group, Inc. for the three months ended October 31, 2024, was 5.050million,comparedto17.389 million in the same period last year, resulting in diluted earnings per share of 0.22[22][28].−FortheninemonthsendedOctober31,2024,totalnetsaleswere478.709 million, a decrease of 2.9% from 492.981millioninthesameperiodof2023[25].−TheadjustednetincomeforthethreemonthsendedOctober31,2024,was8.315 million, with an adjusted diluted EPS of 0.37[28].FinancialPosition−ThecompanyendedQ3fiscal2025with181.5 million in cash and no debt, maintaining a strong financial position[4][3]. - Total current assets decreased to 520,187thousandfrom538,445 thousand year-over-year, a decline of 3.5%[32]. - Cash and cash equivalents at the end of the period were 181,548thousand,down9.7200,965 thousand a year ago[34]. - Shareholders' equity decreased to 503,583thousandfrom500,439 thousand year-over-year, reflecting a slight increase of 0.2%[32]. - Total liabilities increased slightly to 259,424thousandfrom258,000 thousand year-over-year[32]. - Total assets remained relatively stable at 765,876thousandcomparedto763,397 thousand a year ago[32]. Cost Management and Initiatives - The company plans to implement a cost-savings initiative expected to generate approximately 6.5millioninannualizedsavings[3][13].−Thecompanyisfocusingonimprovingprofitabilityandstreamliningexpensesinpreparationforfiscal2026[3][13].TaxandOtherFinancialMetrics−TheeffectivetaxrateforQ3fiscal2025was31.52.495 million, compared to 4.519millioninthesameperiodof2023[22].ShareholderActions−Theboardapprovedanewsharerepurchaseprogramallowingforthepurchaseofupto50 million of outstanding common shares[16]. Economic Challenges - Movado Group, Inc. continues to face challenges from economic conditions, including inflation and increased commodity prices, which may impact future performance[20]. - The company experienced a decrease in sales on a constant dollar basis, with a decline of 3.5% for the three months ended October 31, 2024[24]. Cash Flow and Expenditures - Net cash used in operating activities was (40,627)thousand,asignificantdecreasefrom7,368 thousand provided in the same period last year[34]. - Capital expenditures for the period were (6,368)thousand,aminordecreasefrom(6,627) thousand in the previous year[34]. - The company paid dividends of (23,319)thousand,downfrom(45,399) thousand in the same period last year[34]. - The effect of exchange rate changes on cash was (917)thousand,comparedto(377) thousand in the previous year[34].
Movado Group(MOV)2024-12-05 12:25