Movado Group, Inc. (NYSE:MOV) Q1 2017 Earnings Conference Call Transcript
May 26, 2016 • 09:00 am ET
Good day everyone. And welcome to the Movado Group, Inc., Fiscal First Quarter 2019 Earnings Call. As a reminder, today's call is being recorded and may not be reproduced in whole or in part without permission from the Company.
At this time, I would like to turn the conference over to Rachel Schacter of ICR. Please go ahead, ma'am.
Thank you. Good morning, everyone. With me on the call is Efraim Grinberg, Chairman and Chief Executive Officer; and Sallie DeMarsilis, Chief Financial Officer.
Before we get started, I would like to remind you of the Company's Safe Harbor language, which I'm sure you're all familiar with. The statements contained in this conference call, which are not historical facts, maybe deemed to constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual future results may differ materially from those suggested in such statements due to a number of risk and uncertainties, all of which are described in the Company's filings with the SEC, which includes today's press release.
If any non-GAAP financial measure is used on this call or presentation of the most directly comparable GAAP financial measure to this non-GAAP financial measure will be provided as supplemental financial information in our press release.
Now, I would like to turn the call over to Efraim Grinberg, Chairman and Chief Executive Officer of Movado Group.
Thank you, Rachel, and good morning, everyone. I would like to welcome all of you to Movado Group's first quarter conference call. I will first provide some highlights of the quarter and discuss our strategic initiatives, and then Sallie will review our financial results. We will then open the call up to questions.
We are extremely pleased to report a strong start to the year driven by a double-digit growth in sales and adjusted earnings per share. Sales surpassed our plan growing 28.1% to a $127 million and 22.2% in constant currency. The quarter included $2.2 million of additional revenue from the timing shift based on the new accounting standards for revenue recognition. This shift will continue to impact each quarter for the balance of the year. However, for the year, we expect it will be revenue-neutral. Sallie will review this in greater detail.
Our adjusted operating profit for the quarter was $8.9 million versus $2.7 million last year. Our adjusted earnings per share grew to $0.37 versus $0.01 last year. We also continue to maintain a very strong balance sheet with the cash position of $177 million while repaying all of our bank debt. Our teams did a tremendous job of managing our inventory levels, reducing inventory by $1.3 million from the same period last year despite the strong sales growth.
Now, I'd like to spend a few minutes on our key strategic priorities for fiscal 2019. Coming off a strong finish to last year, our teams around the world have been energized to build on that momentum for our brands and regions. We are continuing to make progress on our