Fellow Fool Stephen Simpson has been watching Movado
It seems like the company is hitting on all cylinders, as the 2004 Ebel acquisition is starting to pay off in some fashion. For one thing, the company blew away analyst estimates with $0.11 a share versus expectations of just $0.02. So, what has gotten this company's gears and stock price in motion?
Well, several things. Taxes were a big help this quarter, as the company was able to use some net operating losses from the Ebel deal to offset taxes, which added a penny a share to first-quarter earnings and allowed the company to raise estimates by $0.14 for fiscal 2007. Not only that, but operating margins expanded from 2.4% to 3.5% because of operating discipline, leading to a 60% increase in operating profit, which is some nice operating leverage when you consider that sales only rose by 11%. With top-tier licenses like Juicy Couture being launched in fall 2006 and Lacoste in 2007, future prospects look strong.
But Movado, which holds licensing deals with Tommy Hilfiger
To me, Tiffany
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