Movado posts higher net; shares up

NEW YORK (Reuters) - Watch maker Movado Group Inc (MOV.N: Quote, Profile, Research, Stock Buzz) reported a higher-than-expected quarterly profit on Thursday and stood by its forecast for the current fiscal year, sending its shares up as much as 17 percent.

Movado, which designs and distributes watch brands like Concord, Tommy Hilfiger, Lacoste and Hugo Boss, said its outlook reflected a more cautious outlook on the U.S. economy, but that could be offset by favorable tax rates.

"With our powerful brands and strong balance sheet, we are well positioned to weather these challenging times," Chief Executive Efraim Grinberg said in a statement.

Movado also named Sallie DeMarsilis as chief financial officer, starting March 31. DeMarsilis, who joined the company in January as senior vice president, succeeds Eugene Karpovich, who will remain as a senior manager focusing on global initiatives.

Net income rose to $19.6 million, or 72 cents a share, in the fourth quarter ended January 31 from $14 million, or 52 cents a share, a year earlier.

Adjusting for items such as excess discontinued product sales, Movado said it earned 40 cents a share, topping three analysts' average forecast of 35 cents as compiled by Reuters Estimates.

Sales fell 2.6 percent to $138.6 million, but the decline was offset by an income tax benefit.

Movado said it still expected earnings of $1.65 to $1.72 a share in the current fiscal year on sales of $555 million to $565 million.

Analysts expect profit of $1.69 a share on sales of $557.95 million.