At the current share price, an investment in watch maker Movado (NYSE:MOV) in 2000 would have netted Fools almost eight times their original investment. And judging by today's second-quarter results, it could soon turn into a coveted 10-bagger.

Second-quarter sales and earnings came in ahead of analyst expectations, and the stock is up 4% on another down day for the market. Management attributed the results to "the continued customer appeal of our diverse portfolio of brands," which spans mass-market brands such as Estee Lauder's (NYSE:EL) Tommy Hilfiger; higher-end offerings including Coach (NYSE:COH); Liz Claiborne's (NYSE:LIZ) Juicy Couture; and a luxury focus with Ebel, Concord, and Movado watches.

If you noticed the outside names, Movado also licenses brands in what it considers its wholesale business and recently introduced a new Lacoste line of watches. Archrival Fossil (NASDAQ:FOSL) pursues a similar strategy but doesn't push much into the premium-watch business. Movado happens to own most of its higher-end offerings, which it showcases in about 30 Movado Boutiques. The stores posted a 2.3% decrease in quarterly comps after a strong 9.3% jump during last year's quarter.

Customers welcomed the product mix, and the company sold merchandise at a higher margin. As a result, the gross margin increased, excluding liquidations. Additionally, operating profits improved and net income grew 4.7% from the same quarter last year.

The company is continuing to develop in China, and the international business overall grew 24%, excluding discontinued product sales. Overseas strength is nothing new, and many companies are benefiting from expanding around the globe. Current shareholders definitely aren't complaining, and management is sticking to its earnings goals for the full year, implying Movado is set for another year of bottom-line gains.                                       

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