Movado Group(MOV) - 2025 Q3 - Quarterly Results

Financial Performance - Net sales for Q3 fiscal 2025 were $182.7 million, a decrease of 2.6% from $187.7 million in Q3 fiscal 2024[4]. - Operating income for Q3 fiscal 2025 was $6.6 million, down from $20.7 million in the prior year, with adjusted operating income at $9.3 million[4][8]. - Diluted earnings per share (EPS) for Q3 fiscal 2025 were $0.22, compared to $0.77 in Q3 fiscal 2024; adjusted EPS was $0.37[4][8]. - Total net sales for the three months ended October 31, 2024, were $182.727 million, a decrease of 2.6% compared to $187.686 million in the same period of 2023[22]. - Gross profit for the three months ended October 31, 2024, was $98.396 million, down from $102.328 million in the prior year, reflecting a gross margin of 53.9%[22]. - Operating income for the three months ended October 31, 2024, was $6.550 million, significantly lower than $20.692 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 $5.050 million, compared to $17.389 million in the same period last year, resulting in diluted earnings per share of $0.22[22][28]. - For the nine months ended October 31, 2024, total net sales were $478.709 million, a decrease of 2.9% from $492.981 million in the same period of 2023[25]. - The adjusted net income for the three months ended October 31, 2024, was $8.315 million, with an adjusted diluted EPS of $0.37[28]. Financial Position - The company ended Q3 fiscal 2025 with $181.5 million in cash and no debt, maintaining a strong financial position[4][3]. - Total current assets decreased to $520,187 thousand from $538,445 thousand year-over-year, a decline of 3.5%[32]. - Cash and cash equivalents at the end of the period were $181,548 thousand, down 9.7% from $200,965 thousand a year ago[34]. - Shareholders' equity decreased to $503,583 thousand from $500,439 thousand year-over-year, reflecting a slight increase of 0.2%[32]. - Total liabilities increased slightly to $259,424 thousand from $258,000 thousand year-over-year[32]. - Total assets remained relatively stable at $765,876 thousand compared to $763,397 thousand a year ago[32]. Cost Management and Initiatives - The company plans to implement a cost-savings initiative expected to generate approximately $6.5 million in annualized savings[3][13]. - The company is focusing on improving profitability and streamlining expenses in preparation for fiscal 2026[3][13]. Tax and Other Financial Metrics - The effective tax rate for Q3 fiscal 2025 was 31.5%, compared to 20.4% in the prior year[8]. - The provision for income taxes for the three months ended October 31, 2024, was $2.495 million, compared to $4.519 million in the same period of 2023[22]. Shareholder Actions - The board approved a new share repurchase program allowing for the purchase of up to $50 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, a significant decrease from $7,368 thousand provided in the same period last year[34]. - Capital expenditures for the period were $(6,368) thousand, a minor decrease from $(6,627) thousand in the previous year[34]. - The company paid dividends of $(23,319) thousand, down from $(45,399) thousand in the same period last year[34]. - The effect of exchange rate changes on cash was $(917) thousand, compared to $(377) thousand in the previous year[34].