Movado Group, Inc. (NYSE:MOV) Q3 2024 Earnings Conference Call November 30, 2023 9:00 AM ET

Company Participants

Rachel Schacter - ICR

Efraim Grinberg - Chairman & CEO

Sallie DeMarsilis - EVP, COO & CFO

Conference Call Participants

Michael Legg - The Benchmark Company

Operator

Good day, everyone, and welcome to the Movado Group, Inc. Third Quarter Fiscal 2024 Earnings Conference Call. As a reminder, today's call is being recorded and may not be reproduced in full or in part without permission from the company.

At this time, I would like to turn the conference over to Rachel Schacter of ICR. Please go ahead.

Rachel Schacter

Thank you. Good morning, everyone. With me on the call is Efraim Grinberg, Chairman and Chief Executive Officer; and Sallie DeMarsilis, Executive Vice President and Chief Operating Officer and Chief Financial Officer.

Before we get started, I would like to remind you of the company's safe harbor language, which I'm sure you're all familiar with. The statements contained in this conference call, which are not historical facts, may be deemed to constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual future results may differ materially from those suggested in such statements due to a number of risks and uncertainties, all of which are described in the company's filings with the SEC, which includes today's press release. If any non-GAAP financial measure is used on this call, our presentation of the most directly comparable GAAP financial measure to this non-GAAP financial measure will be provided as supplemental financial information in our press release.

Now I'd like to turn the call over to Efraim Grinberg, Chairman and Chief Executive Officer of Movado Group.

Efraim Grinberg

Thank you, Rachel. Good morning, and welcome to Movado Group's third quarter conference call. This morning, I will review the highlights of the quarter, current operating environment and progress on our strategic initiatives, and then Sallie DeMarsilis, our COO and CFO, will review our financial results in greater detail as well as our outlook.

In an ongoing challenging environment for discretionary products in our largest markets in Europe and the United States, our company continued to report strong profitability, maintain a durable balance sheet and generate strong cash flow while investing behind our brands, people and product innovation to position the company to accelerate growth in the future.

For the third quarter, our sales declined 11.2% to $187.7 million or 13.5% on a constant dollar basis. Our operating profit was $20.7 million versus $38.3 million last year. Our adjusted earnings per share were $0.78 against $1.31 in the third quarter last year.