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What: Shares of Movado Group (NYSE:MOV) were ticking higher today, climbing as much as 12% after posting a strong earnings report.
So what: The luxury watch maker said adjusted earnings per share jumped 38% to $0.44, cruising past estimates at $0.32 a share while revenue jumped 17% to $138.3 million on strong growth in both Movado and licensed brands and from the introduction of Scuderia Ferrari brand. The sales figure also topped estimates at $135.9 million. Sweetening the report for investors was management's decision to hike its quarterly dividend 60% from $0.05 to $0.08, giving it a 0.8% yield, and Movado also raised its full-year EPS guidance to $1.90 from $1.80. The analyst consensus had stood at $1.82.
Now what: This was Movado's third straight blowout earnings report as the improving economy has treated the luxury brand kindly. Shares are now up 50% since the beginning of the year in volatile trading, and its P/E has climbed with it, now reaching 22 based on this year's earnings. Still, I'd expect the earnings beats to continue as fellow luxury retailer Tiffany also posted strong results today. The high-end market finally seems to be waking after a long sleep.
Fool contributor Jeremy Bowman has no position in any stocks mentioned. The Motley Fool owns shares of Movado Group. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.