Movado Group announced first quarter 2016 results for the period ended April 30, 2015. Net sales were $120.5 million compared to $120.9 million in the first quarter of fiscal 2015.
Article continues below
Net sales on a constant dollar basis increased 5% compared to net sales for the fiscal 2015 first quarter.
Gross profit was $62.4 million, or 51.8% of sales, compared to $65.2 million, or 53.9% of sales, in the first quarter last year. Adjusted gross profit for the first quarter of fiscal 2016, which excludes $0.7 million in charges related to operating efficiency initiatives and other items, was $63.1 million, or 52.4% of sales.
The decline in adjusted gross margin percentage was primarily the result of the unfavorable impact of changes in foreign currency exchange rates partially offset by channel and product mix.
Operating expenses were $55.6 million as compared to $54.2 million in the first quarter of last year. For the first quarter of fiscal 2016, adjusted operating expenses were $53.6 million, excluding $2.0 million of expenses related to operating efficiency initiatives and other items.
The decrease in adjusted operating expenses was primarily the result of the impact of foreign currency exchange rates partially offset by an increase in compensation and benefits expense.
Operating income was $6.9 million compared to $10.9 million in the same period last year. Adjusted operating income for the first quarter of fiscal 2016, excluding $2.7 million of expenses related to operating efficiency initiatives and other items, was $9.5 million.
The Company recorded a tax provision of $3.1 million, which equates to an effective tax rate of 46.3%, as compared to a tax provision of $3.4 million, which equates to an effective tax rate of 31.6% in the first quarter last year. The adjusted effective tax rate for first quarter of fiscal 2016 was 34.6%.
The increase in the adjusted effective tax rate in the first quarter of fiscal 2016 as compared to the prior year is primarily due to the tax impact of fluctuations in losses incurred by certain foreign operations.
Net income was $3.6 million, or $0.15 per diluted share, compared to net income of $7.4 million, or $0.29 per diluted share in the same quarter last year.
For the first quarter of fiscal 2016, adjusted net income was $6.2 million, or $0.25 per diluted share, excluding $2.5 million in expenses, net of tax, related to operating efficiency initiatives and other items. ■