Movado Blows Away Estimates, Tanks on Guidance

Movado Group (NYSE: MOV) posted strong fourth quarter and FY 2013 earnings on Thursday. The Paramus, New Jersey-based firm reported fourth quarter EPS of $0.41 - a 71 percent gain year-over-year. This figure also blew away analysts' expectations of $0.26 per share. Fourth quarter revenue finished up 7.6 percent at $128.5 million, edging the Wall Street consensus of $128.3 million. Full-year EPS rose 52 percent to $1.64, easily topping expectations of $1.51. Total FY 2013 revenue climbed 9.7 percent to $510.4 million, narrowly surpassing the $510.1 million analysts hoped for. Interesting Times On February 4, Movado announced an increase in its ownership of UK-based MGS Distribution Limited from 51 to 90 percent. Meanwhile, MGS acquired the company's 100 percent ownership interest in MGI Luxury Group UK Limited. Buying TimeThe company's board of directors has approved the repurchase of up to $50 million of common stock. This authorization will expire on January 31, 2016. According to Movado, it is primarily intended to “mitigate the dilutive impact of equity grants during the course of the next few years.”Timely DividendMovado's board of directors has approved a $0.05 per share quarterly dividend on the company's common stock and class A common stock. It will be paid on April 16 to all shareholders of record as of the close of business on April 2. Time for a Multi-Year PlanMovado anticipates 10 percent sales growth per year over the next four years. As a result, it expects to generate approximately $750 million in revenue in fiscal 2017. Meanwhile, the company expects fiscal 2017 EPS of over $3. Watch Out for GuidanceMovado anticipates FY 2014 revenue to finish in the $570 to $575 million range. If this pans out, the company will easily surpass the Wall Street consensus of around $540 million. However, the watch designer believes EPS will finish at approximately $1.80, which would fall short of the $1.83 per share analysts expect. Untimely DeclineMovado hovered in the $36 to $38 range through most of March as of Wednesday. However, on word of its weak guidance, it is down to around $35. The stock is at its lowest point since late February.Movado is down approximately 5.5 percent on Thursday.