Movado Q3 Net Sales Increased 26%, Helped by Ebel Acquisition

Movado Group Inc reported a 26 percent rise in net sales in the third quarter to $127 million. The watch maker’s recent acquisition, Ebel, accounted for net sales of $15.7 million.

 

Comparable store sales (stores opened at least one year) increased 12.8 percent at the company’s boutiques.

The company was happy with the results, posting an increase of 12.5 percent in net income to $11.3 million, or $0.44 per diluted share.

Nine month results show net sales increased 25.9 percent to $299 million from $237.5 million last year.  The acquisition of Ebel, which was made March 1, accounted for net sales of $28.6 million. Comparable store sales increased 16.7 percent.

Net income during the first nine months of the year rose 14.7 percent to $19.1 million, or $0.75 per diluted share.

Rick Cote, Executive VP and COO, said, “Ebel delivered an attractive sales level driven by the recently launched global advertising campaign featuring Claudia Schiffer”. He added he expects the brand to “modestly” add to the company’s bottom line next year.

The company raised its earnings projection for the full year, to range between $0.98 and $1.02 per diluted share, compared to previously issued financial projections of $0.96 - $1.00.

Movado Group designs, manufactures, and distributes Movado, Ebel, Concord, ESQ, Coach and Tommy Hilfiger watches worldwide, and operates Movado boutiques in the United States.