Thu, Sep 5, 1:46 PM (131 days ago)
Movado Group, Inc. reported a decline in net sales for Q2 2024, totaling $159.3 million, down 0.7% year-over-year. The Watch and Accessory Brands segment saw a slight decrease, attributed to unfavorable sales mix and currency fluctuations, while the Company Stores segment also experienced a 3.4% drop in sales. Gross profit fell to $86.4 million, with a gross margin of 54.2%, down from 55.7% due to a lower sales mix. SG&A expenses increased by 4.6% to $83.3 million, driven by higher marketing costs. Operating income declined sharply to $3.0 million from $9.6 million, reflecting increased expenses and reduced gross profit. Net income attributable to Movado decreased to $3.7 million, compared to $8.0 million in the prior year. Cash flow from operations was negative at $35.9 million, mainly due to increased inventory and trade receivables. The company maintained liquidity with $198.3 million in cash, down from $218.9 million a year earlier. Movado continues to face uncertainties from economic conditions, currency risks, and evolving consumer preferences, impacting future operations.