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Movado Group Inc. (MOV) has submitted its 10-Q filing for the quarterly period ended October 31, 2024.
The filing details a decrease in net sales to $182.7 million from $187.7 million in the same quarter the previous year. The decline was primarily attributed to lower demand in the company's wholesale customers, especially in the United States.
Gross profit for the quarter was $98.4 million, compared to $102.3 million in the previous year, with the decrease due to lower sales and a reduced gross margin percentage.
Selling, general, and administrative expenses increased to $91.8 million from $81.6 million, primarily due to higher marketing expenses and costs related to a cost-savings initiative.
Operating income for the quarter was $6.6 million, down from $20.7 million in the previous year. The decrease was driven by lower gross profit and higher operating expenses.
Net income attributable to Movado Group Inc. was $5.1 million, compared to $17.4 million in the previous year. The decline was influenced by higher costs and lower sales.
The company reported cash used in operating activities of $40.6 million for the nine months ended October 31, 2024, compared to cash provided by operating activities of $7.4 million in the previous year.
Movado Group Inc. announced a new share repurchase program, authorizing the purchase of up to $50 million of its common stock through December 5, 2027.
The filing also notes the impact of foreign currency exchange rates on the company's financial results, with a positive impact of $1.7 million on net sales for the quarter.
Movado Group Inc. continues to focus on reducing operating expenses and aligning them with sales, as evidenced by the recent cost-savings initiative.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Movado Group Inc. quarterly 10-Q report dated December 5, 2024. To report an error, please email earnings@qz.com.