PARAMUS, N.J. (AP) — Movado Group Inc.'s second-quarter net income surged 55 percent, thanks in part to increased watch sales and a tax benefit.
The company boosted its full-year earnings and revenue forecasts and announced a 60 percent hike in its quarterly dividend.
Shares shot up 11 percent, reaching a new all-time high in morning trading on Tuesday.
For the period ended July 31, Movado earned $12.5 million, or 48 cents per share. That's up from $8.1 million, or 32 cents per share, in last year's second quarter.
Excluding a tax benefit of 4 cents per share, earnings were 44 cents per share.
Analysts, on average, expected earnings of 32 cents per share, according to FactSet.
Revenue climbed 17 percent to $138.3 million from $118 million, bolstered by sales of its namesake watches and Scuderia Ferrari. Movado said the results were also helped by the later timing of the Swiss international watch and jewelry fair held annually in Basel, called Baselworld.
The Paramus, N.J., company now foresees fiscal 2014 earnings of $1.90 per share on revenue between $575 million and $580 million. Its prior guidance called for earnings of $1.80 per share on revenue in a range of $570 million to $575 million.
Analysts predict full-year earnings of $1.82 per share, on revenue of $570 million.
Movado also raised its quarterly dividend by 60 percent, to 8 cents per share from 5 cents per share. The dividend will be paid on Sept. 20 to shareholders of record on Sept. 6.
The company's stock added $4.25 to $42.25 in morning trading. It touched $42.50 earlier in the session, a fresh all-time high.
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