On April 30, 2013, Donald Oresman and Leonard L. Silverstein, members of the board of directors of Movado Group, Inc., each notified the company of his intention not to stand for re-election as a director at the company’s 2013 annual meeting of shareholders.  Mr. Oresman served on the Audit Committee and the Compensation Committee.  Mr. Silverstein served on the Compensation Committee and the Nominating/Corporate Governance Committee. New members of such committees to replace Messrs. Oresman and Silverstein will be drawn from amongst the company’s existing directors.

Movado Group, Inc. reported unaudited consolidated earnings results for the fourth quarter and year ended January 31, 2013. For the quarter, the company reported net sales of $123,594,000 against $122,410,000 a year ago. Operating income was $5,119,000 against $7,841,000 a year ago. Income before income taxes was $5,032,000 against $7,684,000 a year ago. Net income attributed to the company was $7,919,000 or $0.31 per diluted share against $10,692,000 or $0.42 per diluted share a year ago. Adjusted operating income (non-GAAP) was $10,019,000 against $8,552,000 a year ago. Adjusted EBITDA (non-GAAP) was $12,591,000 against $11,169,000 a year ago. Adjusted income attributed to the company (non-GAAP) was $10,520,000 or $0.41 per diluted share against $5,934,000 or $0.24 per diluted share a year ago. Adjusted net sales increased 7.6% to $128.5 million compared to the prior year period. Adjusted net sales exclude the impact of the $4.9 million charge related to the Coach repositioning initiative in the fourth quarter of fiscal 2013, as well as the sale of mechanical movements in the fourth quarter of fiscal 2012. Adjusted net sales on a constant dollar basis also increased 7.6% compared to the prior year period. EBITDA was $7.7 million as compared to EBITDA of $10.5 million in the fourth quarter of fiscal 2012. Net sales increase led by growth in both the accessible luxury and licensed brand categories. For the year, the company reported net sales of $505,478,000 against $468,117,000 a year ago. Operating income was $49,346,000 against $33,563,000 a year ago. Income before income taxes was $49,056,000 against $33,232,000 a year ago. Net income attributed to the company was $57,083,000 or $2.22 per diluted share against $31,995,000 or $1.27 per diluted share a year ago. Adjusted operating income (non-GAAP) was $57,246,000 against $34,274,000 a year ago. Adjusted EBITDA (non-GAAP) was $67,854,000 against $45,682,000 a year ago. Adjusted income attributed to the company (non-GAAP) was $42,135,000 or $1.64 per diluted share against $27,237,000 or $1.08 per diluted share a year ago. Net cash provided by operating activities was $38,781,000 against $86,062,000 a year ago. Capital expenditures were $15,978,000 against $8,170,000 a year ago. Adjusted net sales increased by 9.7% to $510.4 million compared to fiscal 2012. Adjusted net sales exclude the $4.9 million charge related to the Coach repositioning initiative in the fourth quarter of fiscal 2013 and the sale of mechanical movements in the fourth quarter of fiscal 2012. Adjusted net sales on a constant dollar basis increased 11.4%. EBITDA was $60.0 million in fiscal 2013 compared to $45.0 million in the prior year. The company provided guidance for fiscal 2014 which is on a comparable basis to non-GAAP fiscal 2013 results adjusted for the unusual items and reflecting a 28% tax rate. In fiscal 2014, the company anticipates that net sales will increase approximately 12% to a range of $570 million to $575 million, gross margin will be approximately 54%, operating income will increase approximately 20% to $68 million and EBITDA will be approximately $80 million. The company anticipates net income in fiscal 2014 to increase to approximately $48 million or $1.80 per diluted share, reflecting a 28% anticipated effective tax rate. The company's guidance also assumes no unusual charges for fiscal 2014. Capital expenditures for fiscal 2014 are estimated to be approximately $19 million and includes the final costs related to the production of the new Basel Fair booths and Swiss corporate offices. The company announced that the Board of Directors approved a quarterly cash dividend of $0.05 for each share of the company's outstanding common stock and class A common stock. This dividend will be paid on April 16, 2013 to all shareholders of record as of the close of business on April 2, 2013. As for the expectation for the first quarter of fiscal 2014, the company expects operating income to be slightly lower than last year, primarily due to a reduction in the gross margin rate as a result of the channel and product mix.

Movado Group, Inc., Q4 2013 Earnings Call, Mar 21, 2013