Revenue during the quarter dropped 12.97 percent to $99.26 million from $114.06 million in the previous year period. Gross margin for the quarter contracted 426 basis points over the previous year period to 49.50 percent. Operating margin for the quarter stood at negative 3.68 percent as compared to a positive 4.71 percent for the previous year period.

Operating loss for the quarter was $3.65 million, compared with an operating income of $5.38 million in the previous year period.

However, the adjusted operating income for the quarter stood at $2.69 million compared to $7.18 million in the prior year period. At the same time, adjusted operating margin contracted 359 basis points in the quarter to 2.71 percent from 6.30 percent in the last year period.

Efraim Grinberg, chairman and chief executive officer, stated, “For the first quarter, we reported sales and operating earnings consistent with our expectations reflecting a very challenging store traffic environment in the United States which has retailers focused on reducing their inventory. We recognized this trend early in our planning cycle and mitigated this impact through decisive actions to significantly reduce our planned operating expenses for the year. As we look to the balance of the year, we continue to anticipate a challenging U.S. retail marketplace and expect modest growth in our international markets. We are excited about our upcoming launches including our expansion of the Movado Heritage collection, the introduction of Movado Connect, our smart watch powered by Google’s Android Wear, and the launch of our Rebecca Minkoff watch collection. Our strategy is to focus on designing unique and compelling products across our brands while investing in our digital marketing and eCommerce initiatives to enable us to navigate the evolving retail landscape.”

Movado Group projects revenue to be in the range of $515 million to $530 million for financial year 2018. For fiscal year 2018, Movado Group expects net income to be in the range of $33 million to $36.30 million. For fiscal year 2018, the company projects operating income to be in the range of $50 million to $55 million. For financial year 2018, the company forecasts diluted earnings per share to be in the range of $1.40 to $1.55.

The company has spent $0.44 million cash to meet investing activities during the quarter as against cash outgo of $1.99 million in the last year period.

The company has spent $4.70 million cash to carry out financing activities during the quarter as against cash outgo of $10.13 million in the last year period.

Cash and cash equivalents stood at $233.59 million as on Apr. 30, 2017, up 14.56 percent or $29.69 million from $203.91 million on Apr. 30, 2016.

Debt comes down
Movado Group Inc has recorded a decline in total debt over the last one year. It stood at $30 million as on Apr. 30, 2017, down 14.29 percent or $5 million from $35 million on Apr. 30, 2016. Short-term debt stood at $5 million as on Apr. 30, 2017.