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Movado Group   Net sales on a constant dollar basis decreased 11.2%

Movado Group Q2 net sales $128.1 million

MovadoMovado Group announced second quarter and six month results for the period ended July 31, 2016.

Net sales were $128.1 million compared to $145.6 million in the second quarter of fiscal 2016, a decrease of 12%.

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READ MORE Movado Group profit rises 58% in Q2

Net sales on a constant dollar basis decreased 11.2% compared to net sales in the second quarter of fiscal 2016.

Gross profit was $70.3 million, or 54.9% of sales, compared to $79.0 million, or 54.3% of sales, in the second quarter last year.

The increase in gross margin percentage was primarily the result of the favorable impact of channel and product mix, and certain sourcing improvements, as well as changes in foreign currency exchange rates, partially offset by the reduced leverage of certain fixed costs as a result of lower net sales.

Operating expenses decreased $0.6 million, or 1.0%, to $60.2 million. This decrease was primarily the result of a decrease in marketing expenses, performance-based compensation and selling-related expenses, partially offset by the unfavorable impact of foreign currency exchange rates and an increase in allowances on accounts receivable.

Operating income was $10.1 million compared to operating income of $18.2 million in the second quarter of fiscal 2016.

The Company recorded a tax provision of $3.4 million which equates to an effective tax rate of 35.1% compared to a tax provision of $6.1 million or an effective tax rate of 33.8% in the second quarter of fiscal 2016.

Net income was $6.3 million, or $0.27 per diluted share, compared to $12.1 million, or $0.50 per diluted share, in the second quarter of fiscal 2016.




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