Atlanta, GA 5/23/12 (StreetBeat) -- Shares of Movado Group Inc. (NYSE: MOV) climbed Wednesday after the luxury watch seller said that results in the three months ended in April were strong and raised its forecast for the year.
The stock gained $2.08, or 8 percent, to $28.02 in late morning trading.
Movado said that for its February-April quarter, it expects to report net income of $6.1 million to $6.6 million, or 24 to 26 cents per share, in the first quarter. A year ago, Movado reported a profit of $491,000, or 2 cents per share, because of a higher tax rate.
The company predicts that revenue grew about 15 percent to $103 million on higher demand for its products, especially its licensed brands. Movado designs and sells watches under its own name and under brand names including Coach, Tommy Hilfiger and Hugo Boss.
For all of its fiscal year, which ends in January 2013, Movado expects to earn $29 million to $29.7 million, or $1.15 per share. Its previous forecast was for annual profit of $27 million to $28 million, or $1.10 per share.
The company maintained its revenue forecast for the year of $505 million to $510 million.
That's up from its previous year's adjusted profit of $27.2 million, or $1.08 per share, on revenue of $468.1 million.
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