Shares of the New Jersey-based luxury goods company Movado Group Inc. (NYSE:MOV), who designs and distributes popular brands such as Tommy Hilfiger, Hugo Boss and Rebecca Minkoff, jumped by over 15% after the company reported it’s first-quarter financial results of fiscal 2019, on Wednesday.
The company reported that it had seen an increase of 28.1% in the net sales for the quarter and had reached $127.1 million USD, compared to the $99.3 million that Movado saw in the first quarter of the previous year.
Gross profit also increased to $67.5 million, up by approximately $18.1 million from last year’s gross profit value of $49.1 million.
Net income for Movado Group during this quarter was also able to reach $8.1 million, compared with the net loss of $4.2 million that the company saw during the first quarter of 2018.
Movado has also announced that it will be increasing its full-year outlook for fiscal 2019. The company now predicts that the net sales for the full-year will reach anywhere between $615.0 million to $625.0 million.
Net income is expected to reach approximately $54.9 million to $56.4 million for fiscal 2019.
Chairman and CEO of Movado, Efraim Grinberg, has said that the company is “very pleased to report a strong start to the year with sales and earnings surpassing [their] expectations.”
Grinberg added that Movado Group “saw sales strength across regions and channels, generating strong results in [their] international markets as well as [the company’s] outlet stores and e-commerce business.”
According to Grinberg, the company had decided to raise the outlook for the year “given [their] strong first quarter performance.”
After the results had been released on Wednesday, the share value of Movado increased by more than 15%. As of approximately 3:30 pm EDT, the share value of the company hovered around $49.20, after opening at $46.05. The company has been able to reach a high share value of $49.85 and a low of $45.90.
Comparatively, Movado closed at a share value of $42.20 on Tuesday after opening at $40.40.
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