LONDON, UK / ACCESSWIRE / April 9, 2018 / Active-Investors has a free review on Movado Group, Inc. (NYSE: MOV) following the Company's announcement that it will begin trading ex-dividend on April 10, 2018. To capture the dividend payout, investors must purchase the stock a day prior to the ex-dividend date that is by latest at the end of the trading session on April 09, 2018. Active-Investors has initiated due-diligence on this dividend stock. Register with us for more free research including the one on MOV:
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Dividend Declared
On March 29, 2018, the Company's Board of Directors approved an increase in Movado's quarterly cash dividend to $0.20 from $0.13 for each share of outstanding common stock and class A common stock. The first such dividend will be paid on April 25, 2018, to all shareholders of record as of the close of business on April 11, 2018.
Efraim Grinberg, Chairman and Chief Executive Officer, stated:
'Given our strong balance sheet, including $214.8 million of cash, combined with the expected benefit from tax reform, we are pleased that today our Board approved an increase in our regular quarterly dividend to $0.20 per share.'
Movado's indicated dividend represents a yield of 2.11%, which is considerably higher than the average dividend yield of 1.85% for the Consumer Goods sector.
Dividend Insight
Movado has a dividend payout ratio of 35.9%, which denotes that the Company spends approximately $0.36 for dividend distribution out of every $1.00 earned. The dividend payout ratio reflects how much amount a company is returning to shareholders versus how much money it is keeping on hand to reinvest in growth, to pay off debt, and/or to add to its cash reserves.
According to analysts' estimates, Movado is forecasted to report earnings of $2.15 for the next year, which is more than double compared to the Company's annualized dividend of $0.80 per share.
As of January 31, 2018, Movado's cash and cash equivalents totaled $214.81 million compared to $256.28 million as on January 31, 2017. For the twelve months ended January 31, 2018, the Company's net cash provided by operating activities were $54.72 million compared to $58.15 million for the year ago corresponding period. The Company's financial position indicates its ability to absorb any fluctuations in earnings and cash flow and to sustain the dividend distribution for a long period.
Recent Development for Movado
On March 29, 2018, Movado announced results for the fourth quarter fiscal year 2018 for the period ended January 31, 2018.
Movado's net sales increased 14.1% to $149.2 million in Q4 FY18 compared to $130.8 million in Q4 FY17.
The Company's operating income increased 79.4% to $13.3 million in Q4 FY18 compared to operating income of $7.4 million in Q4 FY17. Movado's adjusted operating income for the reported quarter, excluding $0.9 million of expenses and amortization related to the acquisition of the Olivia Burton brand and a $0.2 million charge related to the Company's cost savings initiatives, increased 93.5% to $14.4 million.
Movado's net loss was $33.9 million, or $1.47 per diluted share, for Q4 FY18 compared to net income of $5.2 million, or $0.22 per diluted share, for Q4 FY17. The Company's adjusted net income was $12.0 million, or $0.52 per diluted share, in the reported quarter.
About Movado Group, Inc.
Movado designs, develops, sources, markets, and distributes fine watches in the United States and internationally. Movado offers its watches under the Ebel, Concord, Movado, ESQ Movado, Coach, HUGO BOSS, Juicy Couture, Lacoste, Tommy Hilfiger, and SCUDERIA FERRARI brands. It also provides after-sales and shipping service. As of January 31, 2017, the Company operated 40 retail outlet locations. Its customers include jewelry store chains, department stores, independent regional jewelers, licensors' retail stores, and a network of independent distributors. The Company was formerly known as North American Watch Corporation and changed its name to Movado Group, Inc. in 1996.
Movado was founded in 1961 and is based in Paramus, New Jersey.
Stock Performance Snapshot
April 06, 2018 - At Friday's closing bell, Movado Group's stock dropped 1.41%, ending the trading session at $38.55.
Volume traded for the day: 149.95 thousand shares, which was above the 3-month average volume of 137.16 thousand shares.
Stock performance in the last month - up 21.99%; previous three-month period - up 20.85%; past twelve-month period - up 65.10%; and year-to-date - up 19.72%
After last Friday's close, Movado Group's market cap was at $888.65 million.
Price to Earnings (P/E) ratio was at 37.57.
The stock has a dividend yield of 1.35%.
The stock is part of the Consumer Goods sector, categorized under the Recreational Goods, Other industry.
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