Movado Group(MOV)2025-04-16 11:01Financial Performance - Fiscal 2025 net sales were 664.4 million in fiscal 2024[4] - Fiscal 2025 operating income was 48.5 million in the prior year, with adjusted operating income at 0.81, compared to 1.12[4] - Gross margin for fiscal 2025 was 54.0%, down from 54.8% in fiscal 2024, primarily due to unfavorable changes in channel and product mix[11] - Operating expenses for fiscal 2025 were 315.7 million in fiscal 2024, driven by higher marketing expenses[11] - Net income attributable to Movado Group, Inc. for the twelve months ended January 31, 2025, was 41,345,000 in 2024, reflecting a decrease of 55.7%[20] - Net income for the twelve months ended January 31, 2025, was 42,175 million in 2024[29] - The company reported a diluted income per share of 0.43 in the same period of 2024[20] Sales and Revenue Trends - Fourth quarter net sales increased 3.3% to 175.8 million in the fourth quarter of fiscal 2024[8] - Total net sales for the twelve months ended January 31, 2025, were 664,389,000 in 2024[22] - Net sales for the three months ended January 31, 2025, were 175,753,000 for the same period in 2024[20] Cost Management and Future Plans - The company plans to reduce marketing spend by 20 million in fiscal 2026 to align with sales[5] - The company anticipates continued challenges due to economic conditions, including inflation and elevated interest rates, which may impact consumer spending[17] - Movado Group, Inc. is focusing on cost-saving initiatives and professional fees related to investigations, which may affect future financial performance[25] - The company plans to enhance its product offerings and market presence to counteract declining sales trends[17] Shareholder Returns and Equity - The board declared a quarterly dividend of 50.0 million remaining under its share repurchase program[13] - Dividends paid decreased from 31,069 million in 2025, a reduction of 41.5%[29] - Shareholders' equity decreased from 481,329 million in 2025, a decline of approximately 4.9%[27] Asset and Liability Changes - Total assets decreased from 729,231 million in 2025, a decline of approximately 3.6%[27] - Total current liabilities increased slightly from 112,960 million in 2025, an increase of 1.4%[27] - Cash and cash equivalents at the end of the period decreased to 262,814 million, a reduction of 20.4%[29] - Net cash used in operating activities was 76,778 million provided in 2024[29] - Capital expenditures were 8,223 million in 2024[29] - The company reported a negative change in working capital of 8,770 million in 2024[29] Economic Outlook - Due to economic uncertainty, the company has not provided a fiscal 2026 outlook but plans to implement select price increases to mitigate tariff impacts[10] - The effect of exchange rate changes on cash resulted in a loss of 2,927 million in 2024[29] - Non-operating income for the twelve months ended January 31, 2025, was 5,994,000 in 2024, showing an increase of 18.8%[20]