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Movado Stock Jumps 15% After 1Q Profit Doubles

By Will Feuer

Shares of Movado Group Inc. rose almost 15% after the watchmaker posted first-quarter results that included seeing its profit nearly double from a year earlier.

The company saw sales rise 24.3% on a constant-dollar basis from a year earlier to $163.4 million, driven by 35.3% sales growth in its international segment.

Profit for the three months ended April 30 jumped to $19.3 million, or 79 cents a share, from $9.8 million, or 40 cents a share, a year earlier.

Stripping out one-time items including a pre-tax charge related to the amortization of acquired intangible assets for the Olivia Burton brand, adjusted earnings were 82 cents a share.

The company expanded its gross margin to 59.2%, up from 55%, due to favorable changes in the channel and product mix that was partially offset by higher shipping costs.

“The diversity of our business model continues to serve us well as we successfully capitalized on growth opportunities across our portfolio, channels and geographies, most notably in Europe, the Middle East, India and Latin America,” Chairman and Chief Executive Efraim Grinberg said in a statement.

Shares of Movado rose almost 15% to $36.80 in midday trading. The stock is down 12% so far this year, outperforming the S&P 500’s 15% drop in the same period. Shares of Movado jumped more than 150% last year.

Write to Will Feuer at Will.Feuer@wsj.com


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