EmailMovado Group (MOV $34.36 +4.33) reported second quarter earnings of $0.32 per share, $0.14 better than the consensus of $0.18, while revenues rose 4.2% year/year to $118 million versus the $122.65 mln two est average. The company issued guidance for fiscal year 2013 with raised EPS to approximately $1.40 from approximately $1.15 versus the $1.24 consensus and raised fiscal year 2013 revenues to approximately $510 million versus approximately $505 million versus the $508.20 million Capital IQ two est average. The company's guidance is on a comparable basis to non-GAAP adjusted fiscal 2012 results adjusted for unusual items and to now reflect a 25% effective tax rate. The Company's guidance also assumes no unusual items or significant fluctuations in foreign currency exchange rates for the remainder of fiscal 2013, but does include anticipated startup infrastructure investment related to the Ferrari branded watch license with no corresponding sales expected in this fiscal year.
"We are pleased to deliver another strong quarter that included a 7.6% increase in net sales on a constant dollar basis. More reflective of the strength of our business and the growing importance of our brands is our 15.1% increase in constant dollar sales, excluding the planned sales reduction in anticipation of our re-launch of Ebel and ESQ this fall. We expanded gross margin by 190 basis points in the quarter and reduced SG&A as a percent of sales by 280 basis points, which led to expansion of operating margin to 9.1% from 4.4% in the second quarter last year. Our balance sheet remained in excellent shape with increased cash and no debt. We believe we remain well positioned to deliver our fiscal 2013 objectives as we enter the second half of the year."
