Movado posted a surprisingly strong fourth quarter and said it would raise prices and streamline the operations of the luxury watchmaker to offset slow growth and the strong dollar.
Shares rose 11 percent before the opening bell.
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Movado reported $10.1 million, or 40 cents per share, in fourth-quarter profit, topping expectations. It also reported $133.9 million in revenue. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of 20 cents per share.
"As we look towards fiscal 2016 we expect currency headwinds to continue and that we will continue to see a slow growth retail environment," said Chairman and CEO Efraim Grinberg, in a printed statement. "We are taking a number of actions intended to improve our results in this coming year including selective price increases and continued focus on operating expenses while continuing to invest in product innovation and global growth initiative."
The Paramus, New Jersey, company has already been weighed down to the dollar and it has been trimming its costs.
Movado said that operating expenses decreased 4.3 percent to $57.3 million in the fourth quarter.
For the year, the company reported profit of $51.8 million, or $2.02 per share. Revenue was reported as $587 million.
Movado expects full-year earnings to come in between $2 and $2.10 per share, with revenue in the range of $590 million to $600 million.
The company also approved a 10 percent increase its quarterly cash dividend to 11 cents.
Shares of Movado Group Inc. have declined nearly 10 percent since the beginning of the year. The stock has dropped 45 percent in the last 12 months. Shares rose $2.85 to $28.48 in premarket trading.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on MOV at http://www.zacks.com/ap/MOV
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