Revenue Growth
Net sales increased 8.1% year-over-year to $142.4 million (4.5% growth on a constant currency basis).
Profitability Improvement
Adjusted operating profit rose to $7.5 million from $0.9 million a year ago. Adjusted diluted EPS increased to $0.32 from $0.08.
Gross Margin Expansion
Gross margin as a percent of sales reported at 57.3% versus 54.1% in the prior-year quarter (management attributed expansion to favorable channel/product mix and higher full-price selling).
Direct-to-Consumer and Retail Momentum
movado.com sales grew 12.8%, company stores sales increased 10.2%, and direct / digital channels were cited as major contributors to margin and sales performance.
Strong Balance Sheet and Capital Actions
Ended the quarter with $225.3 million in cash, no debt, positive operating cash flow of $7 million for the quarter, repurchased ~61,000 shares, and the board approved a $0.05 (5%) quarterly dividend increase to $0.40 per share.
Brand and Product Momentum
Multiple owned and licensed brands showed strength (licensed brand sales up 6.5% overall and +9.2% ex-Middle East on a constant currency basis). Several new/small-sized product launches sold out or showed strong early demand (e.g., Bangle collection, Heritage 1.92k, Mini Bold Evolution, 23mm baby face drop).