Movado Group announced fourth quarter 2015 results for the periods ended January 31, 2015. Net sales were $133.9 million compared to adjusted net sales of $140.1 million in the prior year period.
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Adjusted net sales for the fourth quarter of fiscal 2014 excluded the impact of the $7.8 million charge in the fourth quarter of fiscal 2014 for anticipated sales returns related to the ESQ reallocation strategy described above. Net sales on a constant dollar basis decreased 1.5% compared to adjusted net sales for the fiscal 2014 fourth quarter.
Gross profit was $67.4 million, or 50.3% of sales, compared to adjusted gross profit $74.3 million, or 53% of sales last year. Fourth quarter fiscal 2014 gross profit excludes the charge to gross profit for anticipated sales returns and the write down of excess inventory related to the ESQ reallocation strategy, in addition to the duty refund in the fourth quarter of fiscal 2014.
Operating expenses decreased $2.6 million or 4.3% to $57.3 million in the fourth quarter of fiscal 2015 from an adjusted $59.9 million in the fourth quarter last year.
Adjusted operating expenses in the fourth quarter of fiscal 2014 excluded the $2 million pre-tax charge related to a contribution to the Movado Group Foundation and a $0.8 million write down of excess displays and point of sale materials related to the ESQ reallocation strategy.
Operating income in the fourth quarter was $10.1 million compared to adjusted operating income of $14.4 million in the prior year period. Provision for income tax was $33,000 compared to an adjusted tax provision of $2.2 million in the fiscal 2014 fourth quarter.
Net income was $10.1 million, or $0.40 per diluted share, compared to adjusted net income of $12.0 million, or $0.46 per diluted share, for the same period in the prior year.
Q4 2015 results compared to q4 2014on a GAAP basis
Net sales were $133.9 million compared to $132.3 million in the fourth quarter of fiscal 2014. Net sales on a constant dollar basis increased 4.3% compared to the fiscal 2014 fourth quarter.
Gross profit was $67.4 million, or 50.3% of sales, compared to $69.3 million, or 52.4% of sales, in the fiscal 2014 fourth quarter.
Operating expenses were $57.3 million, or 42.8% of net sales from $62.6 million, or 47.4% of net sales in the fourth quarter last year.
Operating income totaled $10.1 million compared to operating income of $6.6 million in the fiscal 2014 fourth quarter.
Provision for income tax was $33,000 compared to a tax benefit of $793,000 in the fiscal 2014 fourth quarter.
Net income was $10.1 million, or $0.40 per diluted share compared to $7.2 million, or $0.28 per diluted share, in the fiscal 2014 fourth quarter. ■