UPDATE 2-Movado profit up, raises 2008 outlook; shares jump
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NEW YORK, Dec 6 (Reuters) - Watch maker Movado Group Inc (MOV.N) reported a higher quarterly profit on Thursday, helped by wholesale revenue from its international business, and raised its 2008 profit forecast, sending shares up more than 14 percent.
Net profit was $26.5 million, or 97 cents a share, in the third quarter ended Oct. 31, compared with $21.9 million, or 82 cents a share, a year ago.
Adjusting for foreign currency benefits, a non-cash charge and tax adjustments, the company earned 78 cents a share.
On that basis, three analysts on average expected it to earn 70 cents a share, according to Reuters Estimates.
Net sales rose 8.3 percent to $180.2 million. Same-store sales rose 8.8 percent in the quarter at Movado stores.
The company warned that full-year results would depend on the strength of the holiday season and inventory replenishment by retailers in January.
But assuming U.S. economic conditions, which have squeezed consumer spending, don't deteriorate further, Movado raised its fiscal 2008 earnings forecast to $1.74 to $1.78 per share from a previous forecast of $1.72 per share.
The company still expects $560 million in 2008 sales.
Analysts are expecting $1.74 per share on sales of $566.8 million.
Movado shares were up $3.92, or 14.2 percent, to $31.48 in midday trading after rising to a session high of $32 on the New York Stock Exchange. (Reporting by Aarthi Sivaraman; editing by Mark Porter/Derek Caney)
