Movado Group, Inc. (NYSE:MOV) Q2 2021 Earnings Conference Call - Final Transcript
Aug 27, 2020 • 09:00 am ET
Good day, everyone, and welcome to the Movado Group, Inc Second Quarter 2021 Earnings Conference 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.
Thank you. Good morning, everyone. With me on the call is Efraim Grinberg, 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 may be 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 risks 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, a 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'd like to turn the call over to Efraim Grinberg, Chairman and Chief Executive Officer of Movado Group.
Thank you, Rachel. Good morning, and welcome to Movado Group's second quarter conference call. This morning, I will share some highlights for the quarter and the strategic initiatives that we are focused on as we begin the second half of the year. Sallie will then review our financial results in detail. We would then be glad to take questions.
For the last two quarters, we have been operating amid a global pandemic, which has greatly curtailed consumer discretionary retail businesses, led to significant business closures around the world and caused dramatic economic dislocations globally. We remain focused on ensuring the safety and health of our employees, customers and the communities where we operate. Within that context, I am proud of how our teams have reacted and the results that we have delivered for the second quarter.
In the challenging environment that we continue to operate in, our teams delivered sales better than our internal expectations, strong gross margin and close to breakeven results on an adjusted basis. We cut expenses by almost $30 million, reduced our inventories by more than $27 million year-on-year and finished the quarter with over $170 million of cash while paying back $37 million of debt. During the quarter, we took a number of actions that will enable us to weather the climate that we are operating in and position the company to emerge strongly as we have done during previous crises.
While very painful to do, we have reduced the size of our corporate headcount by 24% and lowered our estimated current year operating expenses by $90 million as we evolve into a more consumer-facing company. We currently are running