PARAMUS, New Jersey — Shares of Movado Group surged 21 percent Thursday after the luxury watchmaker's second-quarter results surpassed Wall Street expectations.
The seller of Movado, Ebel, Hugo Boss and Lacoste watches said it gained market share in the U.S. and sales in Europe were strong as residents of the U.S. and China traveled overseas and shopped more to take advantage of the weak euro. Sales in the Middle East also grew, while the slowing Chinese economy and the MERS outbreak in Korea hurt its business in Asia.
Movado said price increases continue to help it deal with the strong dollar, which makes its products relatively more expensive when they are sold overseas.
The stock climbed $4.75 Thursday to close at $27.07. Movado shares had fallen 45 percent over the last 12 months and reached a three-year low Tuesday.
Movado Group Inc. said its profit fell 1 percent to $12.1 million, or 50 cents per share, in the fiscal second quarter. Its revenue grew 1 percent to $145.6 million over the three months that ended on July 31.
Analysts expected net income of 42 cents per share and $142.1 million in revenue, according to FactSet.
The Paramus, New Jersey-based company maintained its estimates for the fiscal year, forecasting net income of $2 to $2.10 per share, with revenue in the range of $590 million to $600 million.
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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