Movado Issues FY17 Guidance; Q4 Profit Tops Estimates; Hikes Dividend

(RTTNews) - Movado Group, Inc. (MOV) announced, in fiscal 2017, the company anticipates its net sales will be in a range of $585.0 million to $600.0 million. The company expects net income in fiscal 2017 to be approximately $43.3 million to $46.7 million, or $1.85 to $2.00 per share. Analysts polled by Thomson Reuters expect the company to report profit per share of $2.27. Analysts' estimates typically exclude special items. Analysts expectd revenue of $615.28 million for fiscal 2017.

For the fourth-quarter, net income was $7.9 million, or $0.34 per share, compared to $10.1 million, or $0.40 per share, prior year. Adjusted net income was $9.2 million, or $0.40 per share, for the quarter. On average, six analysts polled by Thomson Reuters expected the company to report profit per share of $0.39 for the quarter.

Fourth-quarter net sales increased 7.0% to $143.3 million compared to $133.9 million in the fourth quarter of prior year. Net sales on a constant dollar basis increased 10.1%. Analysts expected revenue of $140.70 million for the quarter.

Movado announced that its Board has approved a new share buyback program under which the company may purchase up to $50 million of its outstanding common shares from time to time. The authorization expires on September 30, 2017. The Board also approved an approximately 18% increase in the company's quarterly cash dividend to $0.13 for each share.

Movado also announced that Rick Coté, Vice Chairman and Chief Operating Officer, will retire in June 2016. Following his retirement, Coté will serve as a non-management member of the Board. The company said it does not plan to replace the COO role and has plans for a smooth transition of Coté's responsibilities.