Adjusted net income was $9.2 million, or $0.40 per share in the fourth quarter of prior fiscal year. Fourth-quarter net sales decreased 8.7% to $130.8 million compared to $143.3 million, prior year. Net sales on a constant dollar basis decreased 7.5%.
The company also announced that on March 20, 2017, its Board approved the payment on April 14, 2017 of a cash dividend in the amount of $0.13 for each share of the company's outstanding common stock and class A common stock held by shareholders of record as of the close of business on March 31, 2017.
Movado Group announced, in fiscal 2018, the company anticipates net sales will be in a range of $515.0 million to $530.0 million and operating income will be approximately $50.0 million to $55.0 million.
The company anticipates net income to be approximately $33.0 million to $36.3 million, or $1.40 to $1.55 per share.
Following a review of the company's current cost structure, Movado Group is implementing a number of cost savings initiatives by consolidating certain operations and streamlining functions to reduce costs and improve profitability.
The cost savings initiatives include a reduction in the workforce predominantly impacting the North American and Swiss operations.
The company expects to realize approximately $12.0 million of savings in fiscal 2018 and estimates approximately $15.0 million in on-going annual pre-tax savings from these initiatives, with the majority being in general and administrative expenses.
The company expects to record a pre-tax charge in connection with the completion of these initiatives in a range of approximately $7.0 million to $10.0 million, predominantly in the first quarter fiscal 2018 with the balance throughout the remainder of the fiscal year. ■
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