The CEO of Movado Group has said that it expects the company’s “positive momentum” to continue into fiscal 2019 after rounding off its latest financial year with a 14% rise in quarterly sales.
Sales at the business soared to £149m for the three months to January 31 2018, with the company citing the strength of its owned and licensed brands for the performance. It also hailed the contribution made by Olivia Burton, the British watch firm that it acquired for $85m last year.
Efraim Grinberg, chairman and CEO, told investors that they could expect its rich vein of form to continue, especially as it builds on a plan to ramp up its digital capabilities.
“Looking to fiscal 2019, we expect the positive momentum in our business to continue, which is reflected in our outlook,” he said following the recent publication of the Q4 results. “We are excited about the innovative products we are launching this year and remain focused on executing against our strategic initiatives, including digital, while also investing in our brands ahead of the long-term sustainable growth we see for our business.”
Movado recently established a ‘Digital Centre of Excellence’ and hired two senior executives to head up a strategy that is based on growing its global digital footprint. It has described connecting with consumers digitally as one of its top priorities moving forward.
The Movado Group represents 11 owned and licensed watch organisations, including Movado, Ebel, Concord and Hugo Boss.
As well as growing sales, fourth quarter adjusted operating income doubled to $14.4m versus the same period last year.
Mr Grinberg said: “The strength of our owned and licensed brands continued to drive our performance in the fourth quarter, buoyed by accelerated growth in our subsidiaries in the UK, France and Germany, and the contribution from Olivia Burton.
“We were also very pleased to record a 6.4% increase in comparable sales for our Movado Company Stores for the quarter. Our fourth quarter performance continues to demonstrate the power of our brands around the world and the strength of our organization. As we focus on expanding our online presence given an evolving retail landscape, we are encouraged by the progress made in the quarter with our digital initiatives in support of our global portfolio.”