Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Apr. 30, 2015 | 21-May-15 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Entity Filer Category | Large Accelerated Filer | |
Document Period End Date | 30-Apr-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | MOVADO GROUP INC | |
Entity Central Index Key | 72573 | |
Current Fiscal Year End Date | -30 | |
Common Stock Class Undefined | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 17,114,255 | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 6,644,105 |
CONSOLIDATED_BALANCE_SHEETS_Un
CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Apr. 30, 2015 | Jan. 31, 2015 | Apr. 30, 2014 | |||
In Thousands, unless otherwise specified | ||||||
Current assets: | ||||||
Cash and cash equivalents | $185,828 | $199,852 | $137,827 | |||
Short-term investments | 34,063 | |||||
Trade receivables | 73,472 | 74,106 | 77,395 | |||
Inventories | 183,904 | 170,788 | 184,443 | |||
Other current assets | 43,960 | 40,532 | 47,228 | |||
Total current assets | 487,164 | 485,278 | 480,956 | |||
Property, plant and equipment, net | 44,354 | 46,673 | 46,806 | |||
Deferred income taxes | 13,536 | 13,550 | 15,058 | |||
Other non-current assets | 39,483 | 37,522 | 32,064 | |||
Total assets | 584,537 | 583,023 | 574,884 | |||
Current liabilities: | ||||||
Loans payable to bank | 25,000 | |||||
Accounts payable | 25,647 | 27,767 | 25,644 | |||
Accrued liabilities | 37,899 | 30,933 | 36,854 | |||
Deferred and current income taxes payable | 1,352 | 7,372 | 5,777 | |||
Total current liabilities | 89,898 | 66,072 | 68,275 | |||
Deferred and non-current income taxes payable | 3,505 | 3,470 | 3,792 | |||
Other non-current liabilities | 30,484 | 29,196 | 27,244 | |||
Total liabilities | 123,887 | 98,738 | 99,311 | |||
Commitments and contingencies (Note 8) | ||||||
Equity: | ||||||
Preferred Stock, $0.01 par value, 5,000,000 shares authorized; no shares issued | ||||||
Capital in excess of par value | 176,524 | 174,826 | 168,067 | |||
Retained earnings | 358,992 | 358,006 | 321,176 | |||
Accumulated other comprehensive income | 95,221 | 98,854 | 111,832 | |||
Treasury Stock, 9,662,176, 8,784,497 and 8,081,423 shares, respectively, at cost | -172,515 | -149,811 | -128,657 | |||
Total Movado Group, Inc. shareholders' equity | 458,557 | 482,209 | 472,752 | |||
Noncontrolling interests | 2,093 | 2,076 | 2,821 | |||
Total equity | 460,650 | 484,285 | 475,573 | |||
Total liabilities and equity | 584,537 | 583,023 | 574,884 | |||
Common Stock Class Undefined | ||||||
Equity: | ||||||
Common Stock | 269 | 268 | 268 | |||
Class A Common Stock | ||||||
Equity: | ||||||
Common Stock | 66 | 66 | 66 | |||
Total equity | $66 | [1] | $66 | [1] | $66 | [1] |
[1] | Each share of class A common stock is entitled to 10 votes per share on all matters submitted to a vote of the shareholders. Each holder of class A common stock is entitled to convert, at any time, any and all of such shares into the same number of shares of common stock. Each share of class A common stock is converted automatically into common stock in the event that the beneficial or record ownership of such shares of class A common stock is transferred to any person, except to certain family members or affiliated persons deemed “permitted transferees†pursuant to the Company’s Restated Certificate of Incorporation as amended. The class A common stock is not publicly traded and consequently, there is currently no established public trading market for these shares. |
CONSOLIDATED_BALANCE_SHEETS_Un1
CONSOLIDATED BALANCE SHEETS (Unaudited) (PARENTHETICAL) (USD $) | Apr. 30, 2015 | Jan. 31, 2015 | Apr. 30, 2014 |
Preferred Stock, par value | $0.01 | $0.01 | $0.01 |
Preferred Stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 |
Preferred Stock, shares issued | 0 | 0 | 0 |
Treasury Stock, shares | 9,662,176 | 8,784,497 | 8,081,423 |
Common Stock Class Undefined | |||
Common Stock, par value | $0.01 | $0.01 | $0.01 |
Common Stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 |
Common Stock, shares issued | 26,926,331 | 26,849,080 | 26,753,324 |
Class A Common Stock | |||
Common Stock, par value | $0.01 | $0.01 | $0.01 |
Common Stock, shares authorized | 30,000,000 | 30,000,000 | 30,000,000 |
Common Stock, shares issued | 6,644,105 | 6,642,184 | 6,638,262 |
Common Stock, shares outstanding | 6,644,105 | 6,642,184 | 6,638,262 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 |
Income Statement [Abstract] | ||
Net sales | $120,461 | $120,921 |
Cost of sales | 58,012 | 55,770 |
Gross profit | 62,449 | 65,151 |
Selling, general, and administrative | 55,574 | 54,230 |
Operating income | 6,875 | 10,921 |
Interest expense | -152 | -94 |
Interest income | 53 | 35 |
Income before income taxes | 6,776 | 10,862 |
Provision for income taxes (Note 9) | 3,135 | 3,433 |
Net income | 3,641 | 7,429 |
Less: Net income attributed to noncontrolling interests | 19 | 64 |
Net income attributed to Movado Group, Inc. | $3,622 | $7,365 |
Basic income per share: | ||
Weighted basic average shares outstanding | 24,279 | 25,325 |
Net income per share attributed to Movado Group, Inc. | $0.15 | $0.29 |
Diluted income per share: | ||
Weighted diluted average shares outstanding | 24,569 | 25,696 |
Net income per share attributed to Movado Group, Inc. | $0.15 | $0.29 |
Dividends declared per share | $0.11 | $0.10 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) \ INCOME (Unaudited) (USD $) | 3 Months Ended | |||
Apr. 30, 2015 | Apr. 30, 2014 | |||
Comprehensive (loss) \ income, net of taxes: | ||||
Net income including noncontrolling interests | $3,641,000 | $7,429,000 | ||
Net unrealized gain on investments, net of tax of $4 and $39, respectively | 10,000 | 70,000 | ||
Net change in effective portion of hedging contracts, net of tax benefit of $100 and $0, respectively | -508,000 | 0 | ||
Foreign currency translation adjustments | -3,137,000 | [1] | 8,131,000 | [1] |
Comprehensive income including noncontrolling interests | 6,000 | 15,630,000 | ||
Less: Comprehensive income attributable to noncontrolling interests | 17,000 | 135,000 | ||
Total comprehensive (loss) \ income attributable to Movado Group, Inc. | ($11,000) | $15,495,000 | ||
[1] | The currency translation adjustment is not adjusted for income taxes to the extent that it relates to permanent investments of earnings in international subsidiaries. |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (PARENTHETICAL) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net unrealized gain on investments, tax | $4 | $39 |
Net change in effective portion of hedging contracts, tax | $100 | $0 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 |
Cash flows from operating activities: | ||
Net income including noncontrolling interests | $3,641 | $7,429 |
Adjustments to reconcile net income to net cash (used in) operating activities: | ||
Depreciation and amortization | 2,981 | 3,022 |
Transactional (gains) \ losses | -774 | 1,097 |
Write-down of inventories | 330 | 302 |
Deferred income taxes | 283 | 155 |
Stock-based compensation | 1,520 | 1,180 |
Excess tax benefit from stock-based compensation | -42 | -858 |
Operating efficiency initiatives and other items | 2,670 | |
Changes in assets and liabilities: | ||
Trade receivables | 685 | -8,092 |
Inventories | -14,205 | -1,034 |
Other current assets | -3,959 | -2,775 |
Accounts payable | -2,079 | -8,228 |
Accrued liabilities | 4,044 | -5,950 |
Income taxes payable | -5,914 | 1,473 |
Other non-current assets | -1,641 | -1,477 |
Other non-current liabilities | 1,286 | 1,703 |
Net cash (used in) operating activities | -11,174 | -12,053 |
Cash flows from investing activities: | ||
Capital expenditures | -1,461 | -1,523 |
Trademarks | -94 | -20 |
Net cash (used in) investing activities | -1,555 | -1,543 |
Cash flows from financing activities: | ||
Stock options exercised and other changes | -513 | -1,324 |
Excess tax benefit from stock-based compensation | 42 | 858 |
Proceeds from bank borrowings | 25,000 | |
Dividends paid | -2,636 | -2,523 |
Stock repurchase | -22,154 | -5,312 |
Net cash (used in) financing activities | -261 | -8,301 |
Effect of exchange rate changes on cash and cash equivalents | -1,034 | 2,065 |
Net (decrease) in cash and cash equivalents | -14,024 | -19,832 |
Cash and cash equivalents at beginning of period | 199,852 | 157,659 |
Cash and cash equivalents at end of period | $185,828 | $137,827 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Apr. 30, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION |
The accompanying interim unaudited consolidated financial statements have been prepared by Movado Group, Inc. (the “Company”), in a manner consistent with that used in the preparation of the annual audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2015 (the “2015 Annual Report on Form 10-K”). In the opinion of management, the accompanying unaudited consolidated financial statements reflect all adjustments, consisting of only normal and recurring adjustments, necessary for a fair statement of the financial position and results of operations for the periods presented. The consolidated balance sheet data at January 31, 2015 is derived from the audited annual financial statements, which are included in the Company’s 2015 Annual Report on Form 10-K and should be read in connection with these interim unaudited financial statements. Operating results for the interim periods presented are not necessarily indicative of the results that may be expected for the full year. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||||
Apr. 30, 2015 | |||||||||||||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | |||||||||||||||||||
Fair Value Measurements | NOTE 1 – FAIR VALUE MEASUREMENTS | ||||||||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Accounting guidance establishes a fair value hierarchy which prioritizes the inputs used in measuring fair value into three broad levels as follows: | |||||||||||||||||||
— | Level 1 – Quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||||
— | Level 2 – Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly. | ||||||||||||||||||
— | Level 3 – Unobservable inputs based on the Company’s assumptions. | ||||||||||||||||||
The following tables present the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis (in thousands) as of April 30, 2015 and 2014 and January 31, 2015: | |||||||||||||||||||
Fair Value at April 30, 2015 | |||||||||||||||||||
Balance Sheet Location | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Assets: | |||||||||||||||||||
Available-for-sale securities | Other current assets | $ | 327 | $ | — | $ | — | $ | 327 | ||||||||||
Long-term investment | Other non-current assets | — | — | 1,264 | 1,264 | ||||||||||||||
SERP assets - employer | Other non-current assets | 1,520 | — | — | 1,520 | ||||||||||||||
SERP assets - employee | Other non-current assets | 26,047 | — | — | 26,047 | ||||||||||||||
Hedge derivatives | Other current assets | — | 866 | — | 866 | ||||||||||||||
Total | $ | 27,894 | $ | 866 | $ | 1,264 | $ | 30,024 | |||||||||||
Liabilities: | |||||||||||||||||||
SERP liabilities - employee | Other non-current liabilities | $ | 26,047 | $ | — | $ | — | $ | 26,047 | ||||||||||
Hedge derivatives | Accrued liabilities | — | 690 | — | 690 | ||||||||||||||
Total | $ | 26,047 | $ | 690 | $ | — | $ | 26,737 | |||||||||||
Fair Value at January 31, 2015 | |||||||||||||||||||
Balance Sheet Location | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Assets: | |||||||||||||||||||
Available-for-sale securities | Other current assets | $ | 314 | $ | — | $ | — | $ | 314 | ||||||||||
Long-term investment | Other non-current assets | — | — | 1,240 | 1,240 | ||||||||||||||
SERP assets - employer | Other non-current assets | 1,351 | — | — | 1,351 | ||||||||||||||
SERP assets - employee | Other non-current assets | 24,811 | — | — | 24,811 | ||||||||||||||
Hedge derivatives | Other current assets | — | 1,298 | — | 1,298 | ||||||||||||||
Total | $ | 26,476 | $ | 1,298 | $ | 1,240 | $ | 29,014 | |||||||||||
Liabilities: | |||||||||||||||||||
SERP liabilities - employee | Other non-current liabilities | $ | 24,811 | $ | — | $ | — | $ | 24,811 | ||||||||||
Hedge derivatives | Accrued liabilities | — | 71 | — | 71 | ||||||||||||||
Total | $ | 24,811 | $ | 71 | $ | — | $ | 24,882 | |||||||||||
Fair Value at April 30, 2014 | |||||||||||||||||||
Balance Sheet Location | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Assets: | |||||||||||||||||||
Available-for-sale securities | Other current assets | $ | 687 | $ | — | $ | — | $ | 687 | ||||||||||
Time deposits | Short-term investments | 34,063 | — | — | 34,063 | ||||||||||||||
SERP assets - employer | Other non-current assets | 1,273 | — | — | 1,273 | ||||||||||||||
SERP assets - employee | Other non-current assets | 22,478 | — | — | 22,478 | ||||||||||||||
Hedge derivatives | Other current assets | — | 772 | — | 772 | ||||||||||||||
Total | $ | 58,501 | $ | 772 | $ | — | $ | 59,273 | |||||||||||
Liabilities: | |||||||||||||||||||
SERP liabilities - employee | Other non-current liabilities | $ | 22,478 | $ | — | $ | — | $ | 22,478 | ||||||||||
Hedge derivatives | Accrued liabilities | — | 10 | — | 10 | ||||||||||||||
Total | $ | 22,478 | $ | 10 | $ | — | $ | 22,488 | |||||||||||
The fair values of the Company’s available-for-sale securities are based on quoted prices. The fair value of the long-term investment is based on the purchase price plus eight percent calculated annually. Time deposits are classified as short-term investments and held to original maturity. The assets related to the Company’s defined contribution supplemental executive retirement plan (“SERP”) consist of both employer (employee unvested) and employee assets which are invested in investment funds with fair values calculated based on quoted market prices. The SERP liability represents the Company’s liability to the employees in the plan for their vested balances. The hedge derivatives are entered into by the Company principally to reduce its exposure to Swiss franc and Euro currency exchange rate risk. Fair values of the Company’s hedge derivatives are calculated based on quoted foreign exchange rates, quoted interest rates and market volatility factors. | |||||||||||||||||||
The following table presents a reconciliation of the assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as of April 30, 2015 and 2014 and January 31, 2015. Level 3 consists of a long-term investment. | |||||||||||||||||||
April 30, | January 31, | April 30, | |||||||||||||||||
2015 | 2015 | 2014 | |||||||||||||||||
Balance, beginning of fiscal year | $ | 1,240 | $ | — | $ | — | |||||||||||||
Purchase of long-term investment | — | 1,200 | — | ||||||||||||||||
Interest income | 24 | 40 | — | ||||||||||||||||
Balance, end of period | $ | 1,264 | $ | 1,240 | $ | — | |||||||||||||
Equity
Equity | 3 Months Ended | ||||||||||||||||||||||||||||||||
Apr. 30, 2015 | |||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||
Equity | NOTE 2 – EQUITY | ||||||||||||||||||||||||||||||||
The components of equity for the three months ended April 30, 2015 and 2014 are as follows (in thousands): | |||||||||||||||||||||||||||||||||
Movado Group, Inc. Shareholders' Equity | |||||||||||||||||||||||||||||||||
Common Stock (1) | Class A Common Stock (2) | Capital in Excess of Par Value | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income | Noncontrolling Interests | Total | ||||||||||||||||||||||||||
Balance, January 31, 2015 | $ | 268 | $ | 66 | $ | 174,826 | $ | 358,006 | $ | (149,811 | ) | $ | 98,854 | $ | 2,076 | $ | 484,285 | ||||||||||||||||
Net income | 3,622 | 19 | 3,641 | ||||||||||||||||||||||||||||||
Dividends | (2,636 | ) | (2,636 | ) | |||||||||||||||||||||||||||||
Stock repurchase | (22,154 | ) | (22,154 | ) | |||||||||||||||||||||||||||||
Stock options exercised, net of | 1 | 78 | (550 | ) | (471 | ) | |||||||||||||||||||||||||||
tax benefit of $42 | |||||||||||||||||||||||||||||||||
Supplemental executive | 100 | 100 | |||||||||||||||||||||||||||||||
retirement plan | |||||||||||||||||||||||||||||||||
Stock-based compensation | 1,520 | 1,520 | |||||||||||||||||||||||||||||||
expense | |||||||||||||||||||||||||||||||||
Net unrealized gain on | 10 | 10 | |||||||||||||||||||||||||||||||
investments, net of tax of $4 | |||||||||||||||||||||||||||||||||
Net change in effective portion | (508 | ) | (508 | ) | |||||||||||||||||||||||||||||
of hedging contracts, net of | |||||||||||||||||||||||||||||||||
tax benefit of $100 | |||||||||||||||||||||||||||||||||
Foreign currency translation | (3,135 | ) | (2 | ) | (3,137 | ) | |||||||||||||||||||||||||||
adjustment (3) | |||||||||||||||||||||||||||||||||
Balance, April 30, 2015 | $ | 269 | $ | 66 | $ | 176,524 | $ | 358,992 | $ | (172,515 | ) | $ | 95,221 | $ | 2,093 | $ | 460,650 | ||||||||||||||||
Common Stock (1) | Class A Common Stock (2) | Capital in Excess of Par Value | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income | Noncontrolling Interests | Total | ||||||||||||||||||||||||||
Balance, January 31, 2014 | $ | 266 | $ | 66 | $ | 165,342 | $ | 316,334 | $ | (122,406 | ) | $ | 103,702 | $ | 2,686 | $ | 465,990 | ||||||||||||||||
Net income | 7,365 | 64 | 7,429 | ||||||||||||||||||||||||||||||
Dividends | (2,523 | ) | (2,523 | ) | |||||||||||||||||||||||||||||
Stock repurchase | (5,312 | ) | (5,312 | ) | |||||||||||||||||||||||||||||
Stock options exercised, net of | 2 | 856 | (1,324 | ) | (466 | ) | |||||||||||||||||||||||||||
tax benefit of $858 | |||||||||||||||||||||||||||||||||
Supplemental executive | 18 | 18 | |||||||||||||||||||||||||||||||
retirement plan | |||||||||||||||||||||||||||||||||
Stock-based compensation | 1,180 | 1,180 | |||||||||||||||||||||||||||||||
expense | |||||||||||||||||||||||||||||||||
Net unrealized gain on | 70 | 70 | |||||||||||||||||||||||||||||||
investments, net of tax of $39 | |||||||||||||||||||||||||||||||||
Stock donation | 671 | 385 | 1,056 | ||||||||||||||||||||||||||||||
Foreign currency translation | 8,060 | 71 | 8,131 | ||||||||||||||||||||||||||||||
adjustment (3) | |||||||||||||||||||||||||||||||||
Balance, April 30, 2014 | $ | 268 | $ | 66 | $ | 168,067 | $ | 321,176 | $ | (128,657 | ) | $ | 111,832 | $ | 2,821 | $ | 475,573 | ||||||||||||||||
(1) Each share of common stock is entitled to one vote per share. | |||||||||||||||||||||||||||||||||
(2) Each share of class A common stock is entitled to 10 votes per share on all matters submitted to a vote of the shareholders. Each holder of class A common stock is entitled to convert, at any time, any and all of such shares into the same number of shares of common stock. Each share of class A common stock is converted automatically into common stock in the event that the beneficial or record ownership of such shares of class A common stock is transferred to any person, except to certain family members or affiliated persons deemed “permitted transferees” pursuant to the Company’s Restated Certificate of Incorporation as amended. The class A common stock is not publicly traded and consequently, there is currently no established public trading market for these shares. | |||||||||||||||||||||||||||||||||
(3) The currency translation adjustment is not adjusted for income taxes to the extent that it relates to permanent investments of earnings in international subsidiaries. | |||||||||||||||||||||||||||||||||
Segment_Information
Segment Information | 3 Months Ended | |||||||||||||||
Apr. 30, 2015 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Segment Information | NOTE 3 – SEGMENT INFORMATION | |||||||||||||||
The Company follows accounting guidance related to disclosures about segments of an enterprise and related information. This guidance requires disclosure of segment data based on how management makes decisions about allocating resources to segments and measuring their performance. | ||||||||||||||||
The Company conducts its business in two operating segments: Wholesale and Retail. The Company’s Wholesale segment includes the designing, manufacturing and distribution of watches of quality luxury brands or licensed brands, in addition to revenue generated from after-sales service activities and shipping. The Retail segment includes the Company’s outlet stores. | ||||||||||||||||
The Company divides its business into two major geographic locations: United States operations, and International, which includes the results of all other Company operations. The allocation of geographic revenue is based upon the location of the customer. The Company’s International operations in Europe, the Americas (excluding the United States), the Middle East and Asia accounted for 18.6%, 11.0%, 8.7% and 8.1%, respectively, of the Company’s total net sales for the three months ended April 30, 2015. For the three months ended April 30, 2014, the Company’s International operations in Europe, the Americas (excluding the United States), the Middle East and Asia accounted for 20.3%, 12.8%, 8.1% and 7.4%, respectively, of the Company’s total net sales. Substantially all of the Company’s International assets are located in Switzerland and Hong Kong. | ||||||||||||||||
Operating Segment Data for the Three Months Ended April 30, 2015 and 2014 (in thousands): | ||||||||||||||||
Net Sales | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Wholesale: | ||||||||||||||||
Luxury brands category | $ | 44,903 | $ | 44,220 | ||||||||||||
Licensed brands category | 60,842 | 61,729 | ||||||||||||||
After-sales service and all other | 3,852 | 3,736 | ||||||||||||||
Total Wholesale | 109,597 | 109,685 | ||||||||||||||
Retail | 10,864 | 11,236 | ||||||||||||||
Consolidated total | $ | 120,461 | $ | 120,921 | ||||||||||||
Operating Income | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Wholesale | $ | 5,925 | $ | 9,375 | ||||||||||||
Retail | 950 | 1,546 | ||||||||||||||
Consolidated total | $ | 6,875 | $ | 10,921 | ||||||||||||
Total Assets | ||||||||||||||||
April 30, | January 31, | April 30, | ||||||||||||||
2015 | 2015 | 2014 | ||||||||||||||
Wholesale | $ | 563,947 | $ | 562,462 | $ | 553,833 | ||||||||||
Retail | 20,590 | 20,561 | 21,051 | |||||||||||||
Consolidated total | $ | 584,537 | $ | 583,023 | $ | 574,884 | ||||||||||
Geographic Location Data for the Three Months Ended April 30, 2015 and 2014 (in thousands): | ||||||||||||||||
Net Sales | Operating Income / (Loss) | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
United States (1) | $ | 64,584 | $ | 62,279 | $ | 2,429 | $ | (843 | ) | |||||||
International (2) | 55,877 | 58,642 | 4,446 | 11,764 | ||||||||||||
Consolidated total | $ | 120,461 | $ | 120,921 | $ | 6,875 | $ | 10,921 | ||||||||
United States and International net sales are net of intercompany sales of $81.5 million and $64.8 million for the three months ended April 30, 2015 and 2014, respectively. | ||||||||||||||||
(1) The United States operating income included $7.1 million and $7.0 million of unallocated corporate expenses for the three months ended April 30, 2015 and 2014. | ||||||||||||||||
(2) The International operating income included $8.8 million and $9.6 million of certain intercompany profits related to the Company’s supply chain operations for the three months ended April 30, 2015 and 2014. | ||||||||||||||||
Total Assets | ||||||||||||||||
April 30, | January 31, | April 30, | ||||||||||||||
2015 | 2015 | 2014 | ||||||||||||||
United States | $ | 214,062 | $ | 209,660 | $ | 218,760 | ||||||||||
International | 370,475 | 373,363 | 356,124 | |||||||||||||
Consolidated total | $ | 584,537 | $ | 583,023 | $ | 574,884 | ||||||||||
Long-Lived Assets | ||||||||||||||||
April 30, | January 31, | April 30, | ||||||||||||||
2015 | 2015 | 2014 | ||||||||||||||
United States | $ | 25,072 | $ | 25,950 | $ | 24,969 | ||||||||||
International | 19,282 | 20,723 | 21,837 | |||||||||||||
Consolidated total | $ | 44,354 | $ | 46,673 | $ | 46,806 | ||||||||||
Inventories
Inventories | 3 Months Ended | |||||||||||
Apr. 30, 2015 | ||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||
Inventories | NOTE 4 – INVENTORIES | |||||||||||
Inventories consisted of the following (in thousands): | ||||||||||||
April 30, | January 31, | April 30, | ||||||||||
2015 | 2015 | 2014 | ||||||||||
Finished goods | $ | 128,451 | $ | 115,435 | $ | 121,150 | ||||||
Component parts | 50,100 | 49,790 | 55,272 | |||||||||
Work-in-process | 5,353 | 5,563 | 8,021 | |||||||||
$ | 183,904 | $ | 170,788 | $ | 184,443 | |||||||
Debt_and_Lines_of_Credit
Debt and Lines of Credit | 3 Months Ended |
Apr. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt and Lines of Credit | NOTE 5 – DEBT AND LINES OF CREDIT |
On January 30, 2015, the Company, together with Movado Group Delaware Holdings Corporation, Movado Retail Group, Inc. and Movado LLC (together with the Company, the “Borrowers”), each a wholly-owned domestic subsidiary of the Company, entered into a Credit Agreement (the “Credit Agreement”) with the lenders party thereto and Bank of America, N.A. as administrative agent (in such capacity, the “Agent”). The Credit Agreement provides for a $100.0 million senior secured revolving credit facility (the “Facility”) including a $15.0 million letter of credit sub-facility that matures on January 30, 2020, with provisions for uncommitted increases of up to $50.0 million in the aggregate subject to customary terms and conditions. In connection with the Credit Agreement, the Borrowers also entered into a Security and Pledge Agreement dated as of January 30, 2015 in favor of the Agent (“Security Agreement”). | |
As of April 30, 2015, $25.0 million in loans were drawn under the Facility. Additionally, approximately $3.5 million in letters of credit which were outstanding under the Borrower’s pre-existing asset-based revolving credit facility that was concurrently terminated as described below, were deemed to be issued and outstanding under the Facility. As of April 30, 2015, availability under the Facility was approximately $71.5 million. | |
Borrowings under the Facility bear interest at rates selected periodically by the Company at LIBOR plus 1.25% per annum (subject to increases up to a maximum of 1.75% per annum based on the Company’s consolidated leverage ratio) or a base rate plus 0.25% (subject to increases up to a maximum of 0.75% per annum based on the Company’s consolidated leverage ratio). The Company has also agreed to pay certain fees and expenses and provide certain indemnities, all of which are customary for such financings. | |
The borrowings under the Facility are joint and several obligations of the Borrowers and are also cross-guaranteed by each Borrower. In addition, pursuant to the Security Agreement, the Borrowers’ obligations under the Facility are secured by first priority liens, subject to permitted liens, on substantially all of the Borrowers’ assets other than certain excluded assets. The Security Agreement contains representations and warranties and covenants, which are customary for pledge and security agreements of this type, relating to the creation and perfection of security interests in favor of the Agent over various categories of the Company’s assets. | |
The Credit Agreement contains affirmative and negative covenants binding on the Borrowers and their subsidiaries that are customary for credit facilities of this type, including, but not limited to, restrictions and limitations on the incurrence of debt and liens, dispositions of assets, capital expenditures, dividends and other payments in respect of equity interests, the making of loans and equity investments, mergers, consolidations, liquidations and dissolutions, and transactions with affiliates (in each case, subject to various exceptions). As of April 30, 2015, the Company was in compliance with its covenants under the Credit Agreement. | |
The Borrowers are also subject to a minimum consolidated EBITDA test of $50.0 million, measured at the end of each fiscal quarter based on the four most recent fiscal quarters and a consolidated leverage ratio covenant not to exceed 2.50 to 1.00, measured as of the last day of each fiscal quarter. | |
The Credit Agreement contains events of default that are customary for facilities of this type, including, but not limited to, nonpayment of principal, interest, fees and other amounts when due, failure of any representation or warranty to be true in any material respect when made or deemed made, violation of covenants, cross default with material indebtedness, material judgments, material ERISA liability, bankruptcy events, asserted or actual revocation or invalidity of the loan documents, and change of control. | |
On January 30, 2015, in connection with the Company’s entry into the Credit Agreement, the Company terminated its Amended and Restated Loan and Security Agreement, dated as of July 17, 2009, as amended, by and between the Borrowers, the lenders party thereto and Bank of America, N.A., as agent for the lenders. There were no borrowings outstanding under that agreement as of April 30, 2014 or January 31, 2015, and there were no material early termination penalties incurred as a result of the termination of that agreement. Additionally, the Company used cash on-hand to pay accrued fees and expenses in conjunction with the termination of that agreement and the rollover of certain outstanding letters of credit into the Facility. | |
A Swiss subsidiary of the Company maintains unsecured lines of credit with an unspecified length of time with a Swiss bank. As of April 30, 2015 and 2014, these lines of credit totaled 5.0 million Swiss francs with a dollar equivalent of $5.4 million and $5.7 million. As of April 30, 2015 and 2014, there were no borrowings against these lines. As of April 30, 2015, two European banks have guaranteed obligations to third parties on behalf of two of the Company’s foreign subsidiaries in the dollar equivalent of $1.2 million in various foreign currencies. | |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended |
Apr. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 6 – EARNINGS PER SHARE |
The Company presents net income per share on a basic and diluted basis. Basic earnings per share are computed using weighted-average shares outstanding during the period. Diluted earnings per share are computed using the weighted-average number of shares outstanding adjusted for dilutive common stock equivalents. | |
The weighted-average number of shares outstanding for basic earnings per share was approximately 24,279,000 and 25,325,000 for the three months ended April 30, 2015 and 2014, respectively. For the three months ended April 30, 2015 and 2014, the number of shares outstanding for diluted earnings per share increased by approximately 290,000 and 371,000, respectively, due to potentially dilutive common stock equivalents issuable under the Company’s stock compensation plans and SERP. | |
For the three months ended April 30, 2015 and 2014, approximately 371,000 and 36,000, respectively, of potentially dilutive common stock equivalents were excluded from the computation of dilutive earnings per share because their effect would have been antidilutive. | |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 7 – COMMITMENTS AND CONTINGENCIES |
As of April 30, 2015, one bank in the domestic bank group had issued four irrevocable standby letters of credit in connection with a trademark license agreement, retail and operating facility leases to various landlords and for Canadian payroll to the Royal Bank of Canada. As of April 30, 2015, the Company had outstanding letters of credit totaling $3.5 million with expiration dates through April 30, 2016. | |
As of April 30, 2015, two European banks had guaranteed obligations to third parties on behalf of two of the Company’s foreign subsidiaries in the dollar equivalent of $1.2 million in various foreign currencies. | |
The Company is involved in various legal proceedings and claims from time to time in the ordinary course of its business. | |
On February 4, 2015, an individual plaintiff filed a complaint against the Company and several of its officers in the United States District Court for the District of New Jersey (the “Complaint”) as a purported class action, alleging that between March 26, 2014 and November 13, 2014, the Company made false and misleading statements about the Company’s financial performance. The Complaint also claims that these alleged false and misleading statements resulted in the Company’s stock trading at an artificially high price until November 14, 2014, when the Company issued a press release preliminarily announcing financial results and reducing its previous projections, after which the Company’s stock price fell. The Company believes that the Complaint is meritless and it intends to vigorously defend this matter. | |
The Company believes that it has valid legal defenses to all of the matters currently pending against it. These matters are inherently unpredictable and the resolutions of these matters are subject to many uncertainties and the outcomes are not predictable with assurance. Consequently, management is unable to estimate the ultimate aggregate amount of monetary loss, amounts covered by insurance or the financial impact that will result from such matters. |
Income_Taxes
Income Taxes | 3 Months Ended |
Apr. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 8 – INCOME TAXES |
The Company recorded an income tax provision of $3.1 million and $3.4 million for the three months ended April 30, 2015 and 2014, respectively. | |
The effective tax rate was 46.3% and 31.6% for the three months ended April 30, 2015 and 2014, respectively. The increase in the effective tax rate was primarily due to certain costs related to the operating efficiency initiatives and other items (see note 13) resulting in deferred tax benefits that were valued and recording a valuation allowance against certain foreign deferred tax assets. | |
The effective tax rate for the three months ended April 30, 2015 differs from the U.S. statutory tax rate of 35.0% primarily due to no tax benefit being recognized on losses incurred by certain foreign operations, recording a valuation allowance against certain foreign deferred tax assets, and certain costs related to the operating efficiency initiatives and other items (see note 13) resulting in deferred tax benefits that were valued, partially offset by foreign earnings being taxed at rates lower than the U.S. statutory tax rate. The effective tax rate for the three months ended April 30, 2014 differs from the U.S. statutory tax rate of 35.0%, primarily due to foreign earnings being taxed at rates lower than the U.S. statutory tax rate, partially offset by no tax benefit being recognized on losses incurred by certain foreign operations. | |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 3 Months Ended | ||||||||||||||||||||||||||||||
Apr. 30, 2015 | |||||||||||||||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||
Derivative Financial Instruments | NOTE 9– DERIVATIVE FINANCIAL INSTRUMENTS | ||||||||||||||||||||||||||||||
The Company accounts for its derivative financial instruments in accordance with guidance which requires that an entity recognize all derivatives as either assets or liabilities in the statement of financial position and measure those instruments at fair value. A significant portion of the Company’s purchases are denominated in Swiss francs. The Company also sells to third-party customers in a variety of foreign currencies, most notably the Euro. The Company reduces its exposure to the Swiss franc and the Euro exchange rate risks through a hedging program. Under the hedging program, the Company manages most of its foreign currency exposures on a consolidated basis, which allows it to net certain exposures and take advantage of natural offsets. In the event these exposures do not offset, the Company uses various derivative financial instruments to further reduce the net exposures to currency fluctuations, predominately forward contracts. When entered into, the Company designates and documents these derivative instruments as a cash flow hedge of a specific underlying exposure, as well as the risk management objectives and strategies for undertaking the hedge transactions. Changes in the fair value of a derivative that is designated and documented as a cash flow hedge and is highly effective, are recorded in other comprehensive income until the underlying transaction affects earnings, and then are later reclassified into earnings in the same account as the hedged transaction. The earnings impact is partially offset by the effects of currency movements on the underlying hedged transactions. The Company formally assesses, both at the inception and at each financial quarter thereafter, the effectiveness of the derivative instrument hedging the underlying forecasted cash flow transaction. Any ineffectiveness related to the derivative financial instruments’ change in fair value will be recognized as other income in the Consolidated Statements of Operations in the period in which the ineffectiveness was calculated. No ineffectiveness has been recorded in the three months ended April 30, 2015 and 2014. | |||||||||||||||||||||||||||||||
The Company uses forward exchange contracts to offset its exposure to certain foreign currency receivables and liabilities. These forward contracts are not designated as qualified hedges and, therefore, changes in the fair value of these derivatives are recognized into earnings, thereby offsetting the current earnings effect of the related foreign currency receivables and liabilities. | |||||||||||||||||||||||||||||||
All of the Company’s derivative instruments have liquid markets to assess fair value. The Company does not enter into any derivative instruments for trading purposes. | |||||||||||||||||||||||||||||||
As of April 30, 2015, the Company’s entire net forward contracts hedging portfolio consisted of 28.0 million Swiss francs equivalent and 14.0 million Euros equivalent for various expiry dates ranging through December 18, 2015. | |||||||||||||||||||||||||||||||
The following table summarizes the fair value and presentation in the Consolidated Balance Sheets for derivatives (in thousands): | |||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||||||||||||||||
Balance | April 30, | January 31, | April 30, | Balance | April 30, | January 31, | April 30, | ||||||||||||||||||||||||
Sheet | 2015 | 2015 | 2014 | Sheet | 2015 | 2015 | 2014 | ||||||||||||||||||||||||
Location | Fair | Fair | Fair | Location | Fair | Fair | Fair | ||||||||||||||||||||||||
Value | Value | Value | Value | Value | Value | ||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||||
Foreign Exchange Contracts | Other Current | $ | 866 | $ | 1,298 | $ | 772 | Accrued | $ | 87 | $ | 71 | $ | 10 | |||||||||||||||||
Assets | Liabilities | ||||||||||||||||||||||||||||||
Total Derivative Instruments | $ | 866 | $ | 1,298 | $ | 772 | $ | 87 | $ | 71 | $ | 10 | |||||||||||||||||||
Liability Derivatives | |||||||||||||||||||||||||||||||
Balance | April 30, | January 31, | April 30, | ||||||||||||||||||||||||||||
Sheet | 2015 | 2015 | 2014 | ||||||||||||||||||||||||||||
Location | Fair | Fair | Fair | ||||||||||||||||||||||||||||
Value | Value | Value | |||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||||
Foreign Exchange Contracts | Accrued | $ | 603 | $ | - | $ | - | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||
Total Derivative Instruments | $ | 603 | $ | - | $ | - | |||||||||||||||||||||||||
As of April 30, 2015, the balance of deferred net losses on derivative financial instruments documented as cash flow hedges included in accumulated other comprehensive income (“AOCI”) was $0.5 million, net of tax benefit of $0.1 million. As of April 30, 2014, there was no balance of deferred net losses on derivative financial instruments documented as cash flow hedges included in AOCI. The maximum length of time the Company hedges its exposure to the fluctuation in future cash flows for forecasted transactions is 24 months. For the three months ended April 30, 2015, the Company reclassified from AOCI to earnings $0.1 million of net gains, net of tax of $0.1 million. For the three months ended April 30, 2014, the Company had no reclassifications from AOCI to earnings. | |||||||||||||||||||||||||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 3 Months Ended | |||||||||||||||
Apr. 30, 2015 | ||||||||||||||||
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | ||||||||||||||||
Accumulated Other Comprehensive Income | NOTE 10 - ACCUMULATED OTHER COMPREHENSIVE INCOME | |||||||||||||||
The components of accumulated other comprehensive income consisted of the following (in thousands): | ||||||||||||||||
Currency | Available-for-sale securities | Net Unrealized | Accumulated | |||||||||||||
Translation | Income \ (Loss) | Other | ||||||||||||||
Adjustments | On Hedging | Comprehensive | ||||||||||||||
Contracts | Income | |||||||||||||||
Balance, January 31, 2015 | $ | 98,642 | $ | 211 | $ | 1 | $ | 98,854 | ||||||||
Other comprehensive (loss) \ income before reclassifications | (3,135 | ) | 10 | (679 | ) | (3,804 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive (loss) \ income (1) | — | — | 171 | 171 | ||||||||||||
Net current-period other comprehensive (loss) \ income | (3,135 | ) | 10 | (508 | ) | (3,633 | ) | |||||||||
As of April 30, 2015 | $ | 95,507 | $ | 221 | $ | (507 | ) | $ | 95,221 | |||||||
Currency | Available-for-sale securities | Net Unrealized | Accumulated | |||||||||||||
Translation | Income | Other | ||||||||||||||
Adjustments | On Hedging | Comprehensive | ||||||||||||||
Contracts | Income | |||||||||||||||
Balance, January 31, 2014 | $ | 103,438 | $ | 263 | $ | 1 | $ | 103,702 | ||||||||
Other comprehensive income before reclassifications | 8,060 | 70 | — | 8,130 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income | — | — | — | — | ||||||||||||
Net current-period other comprehensive income | 8,060 | 70 | — | 8,130 | ||||||||||||
As of April 30, 2014 | $ | 111,498 | $ | 333 | $ | 1 | $ | 111,832 | ||||||||
-1 | Amounts reclassified to earnings in the Consolidated Statements of Operations. |
Treasury_Stock
Treasury Stock | 3 Months Ended |
Apr. 30, 2015 | |
Equity [Abstract] | |
Treasury Stock | NOTE 11 – TREASURY STOCK |
On March 21, 2013, the Board approved a share repurchase program under which the Company was authorized to purchase up to $50.0 million of its outstanding common stock from time to time, depending on market conditions, share price and other factors. The Company may purchase shares of its common stock through open market purchases, repurchase plans, block trades or otherwise. On November 25, 2014, the Board increased the amount of the share repurchase authorization to $100.0 million. This authorization expires on January 31, 2016. During the three months ended April 30, 2015, the Company repurchased a total of 859,700 shares of its common stock at a total cost of approximately $22.2 million or an average cost of $25.77 per share. During the three months ended April 30, 2014, the Company repurchased a total of 133,073 shares of its common stock at a total cost of approximately $5.3 million or an average cost of $39.92 per share. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 3 Months Ended |
Apr. 30, 2015 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | NOTE 12 – RECENT ACCOUNTING PRONOUNCEMENTS |
On April 7, 2015, FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs,” which states that debt issuance costs be presented in the balance sheet as a direct deduction from the debt liability, consistent with debt discounts. Under current accounting standards, such costs are recorded as an asset. The new guidance is effective for the beginning of the Company’s fiscal year 2017, with early adoption permitted. This new guidance is not expected to have a material impact on the Company’s consolidated financial statements. | |
In May 2014, FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” This pronouncement affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This pronouncement provides alternative methods of retrospective adoption and is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is not permitted. The Company is evaluating the effect of adopting this pronouncement, but the adoption is not expected to have a material impact on the Company’s consolidated financial statements. |
Operating_Efficiency_Initiativ
Operating Efficiency Initiatives and Other Items | 3 Months Ended | ||||||||||||||||||
Apr. 30, 2015 | |||||||||||||||||||
Restructuring And Related Activities [Abstract] | |||||||||||||||||||
Operating Efficiency Initiatives and Other Items | NOTE 13 – OPERATING EFFICIENCY INITIATIVES AND OTHER ITEMS | ||||||||||||||||||
As a result of actions taken by the Company in fiscal 2016 to achieve greater operating efficiencies and streamline its operations, primarily at certain of its foreign subsidiaries, the Company recorded $2.7 million of pre-tax expenses primarily for severance, occupancy charges, and fixed assets. The Company expects that the remaining liabilities will be paid during fiscal 2016. | |||||||||||||||||||
A summary rollforward of costs related to the operating efficiency initiatives and other items is as follows (in thousands): | |||||||||||||||||||
Balance at | Fiscal 2016 | Cash | Non-cash | Accrued | |||||||||||||||
January 31, 2015 | charges (4) | payments | adjustments | balance at | |||||||||||||||
30-Apr-15 | |||||||||||||||||||
Severance (1) | $ | 1,080 | $ | 1,300 | $ | (365 | ) | $ | - | $ | 2,015 | ||||||||
Occupancy charges (1) (2) | - | 788 | (16 | ) | - | 772 | |||||||||||||
Fixed assets (1) (3) | - | 582 | - | (582 | ) | - | |||||||||||||
Total | $ | 1,080 | $ | 2,670 | $ | (381 | ) | $ | (582 | ) | $ | 2,787 | |||||||
-1 | The total severance charges of $1.3 million include $0.6 million in SG&A and $0.7 million in Cost of sales on the Consolidated Statement of Operations for the three months ended April 30, 2015. The occupancy charge of $0.8 million and fixed asset charge of $0.6 million are included in SG&A on the Consolidated Statement of Operations for the three months ended April 30, 2015 | ||||||||||||||||||
-2 | Occupancy charges include expenses for rent, office equipment and legal expenses. | ||||||||||||||||||
-3 | Includes $0.5 million related to closing of certain shop-in-shops that were no longer in use in Asia. | ||||||||||||||||||
-4 | This pre-tax charge was the net of a $0.9 million transfer of the provision related to severance agreements and a charge of $3.6 million in the United States and International locations of the Wholesale segment, respectively. |
Recent_Accounting_Pronouncemen1
Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Apr. 30, 2015 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | On April 7, 2015, FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs,” which states that debt issuance costs be presented in the balance sheet as a direct deduction from the debt liability, consistent with debt discounts. Under current accounting standards, such costs are recorded as an asset. The new guidance is effective for the beginning of the Company’s fiscal year 2017, with early adoption permitted. This new guidance is not expected to have a material impact on the Company’s consolidated financial statements. |
In May 2014, FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” This pronouncement affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This pronouncement provides alternative methods of retrospective adoption and is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is not permitted. The Company is evaluating the effect of adopting this pronouncement, but the adoption is not expected to have a material impact on the Company’s consolidated financial statements. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||||
Apr. 30, 2015 | |||||||||||||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | |||||||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis (in thousands) as of April 30, 2015 and 2014 and January 31, 2015: | ||||||||||||||||||
Fair Value at April 30, 2015 | |||||||||||||||||||
Balance Sheet Location | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Assets: | |||||||||||||||||||
Available-for-sale securities | Other current assets | $ | 327 | $ | — | $ | — | $ | 327 | ||||||||||
Long-term investment | Other non-current assets | — | — | 1,264 | 1,264 | ||||||||||||||
SERP assets - employer | Other non-current assets | 1,520 | — | — | 1,520 | ||||||||||||||
SERP assets - employee | Other non-current assets | 26,047 | — | — | 26,047 | ||||||||||||||
Hedge derivatives | Other current assets | — | 866 | — | 866 | ||||||||||||||
Total | $ | 27,894 | $ | 866 | $ | 1,264 | $ | 30,024 | |||||||||||
Liabilities: | |||||||||||||||||||
SERP liabilities - employee | Other non-current liabilities | $ | 26,047 | $ | — | $ | — | $ | 26,047 | ||||||||||
Hedge derivatives | Accrued liabilities | — | 690 | — | 690 | ||||||||||||||
Total | $ | 26,047 | $ | 690 | $ | — | $ | 26,737 | |||||||||||
Fair Value at January 31, 2015 | |||||||||||||||||||
Balance Sheet Location | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Assets: | |||||||||||||||||||
Available-for-sale securities | Other current assets | $ | 314 | $ | — | $ | — | $ | 314 | ||||||||||
Long-term investment | Other non-current assets | — | — | 1,240 | 1,240 | ||||||||||||||
SERP assets - employer | Other non-current assets | 1,351 | — | — | 1,351 | ||||||||||||||
SERP assets - employee | Other non-current assets | 24,811 | — | — | 24,811 | ||||||||||||||
Hedge derivatives | Other current assets | — | 1,298 | — | 1,298 | ||||||||||||||
Total | $ | 26,476 | $ | 1,298 | $ | 1,240 | $ | 29,014 | |||||||||||
Liabilities: | |||||||||||||||||||
SERP liabilities - employee | Other non-current liabilities | $ | 24,811 | $ | — | $ | — | $ | 24,811 | ||||||||||
Hedge derivatives | Accrued liabilities | — | 71 | — | 71 | ||||||||||||||
Total | $ | 24,811 | $ | 71 | $ | — | $ | 24,882 | |||||||||||
Fair Value at April 30, 2014 | |||||||||||||||||||
Balance Sheet Location | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Assets: | |||||||||||||||||||
Available-for-sale securities | Other current assets | $ | 687 | $ | — | $ | — | $ | 687 | ||||||||||
Time deposits | Short-term investments | 34,063 | — | — | 34,063 | ||||||||||||||
SERP assets - employer | Other non-current assets | 1,273 | — | — | 1,273 | ||||||||||||||
SERP assets - employee | Other non-current assets | 22,478 | — | — | 22,478 | ||||||||||||||
Hedge derivatives | Other current assets | — | 772 | — | 772 | ||||||||||||||
Total | $ | 58,501 | $ | 772 | $ | — | $ | 59,273 | |||||||||||
Liabilities: | |||||||||||||||||||
SERP liabilities - employee | Other non-current liabilities | $ | 22,478 | $ | — | $ | — | $ | 22,478 | ||||||||||
Hedge derivatives | Accrued liabilities | — | 10 | — | 10 | ||||||||||||||
Total | $ | 22,478 | $ | 10 | $ | — | $ | 22,488 | |||||||||||
Reconciliation Of Assets Measured At Fair Value On Recurring Basis | The following table presents a reconciliation of the assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as of April 30, 2015 and 2014 and January 31, 2015. Level 3 consists of a long-term investment. | ||||||||||||||||||
April 30, | January 31, | April 30, | |||||||||||||||||
2015 | 2015 | 2014 | |||||||||||||||||
Balance, beginning of fiscal year | $ | 1,240 | $ | — | $ | — | |||||||||||||
Purchase of long-term investment | — | 1,200 | — | ||||||||||||||||
Interest income | 24 | 40 | — | ||||||||||||||||
Balance, end of period | $ | 1,264 | $ | 1,240 | $ | — | |||||||||||||
Equity_Tables
Equity (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||
Apr. 30, 2015 | |||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||
Components of Equity | The components of equity for the three months ended April 30, 2015 and 2014 are as follows (in thousands): | ||||||||||||||||||||||||||||||||
Movado Group, Inc. Shareholders' Equity | |||||||||||||||||||||||||||||||||
Common Stock (1) | Class A Common Stock (2) | Capital in Excess of Par Value | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income | Noncontrolling Interests | Total | ||||||||||||||||||||||||||
Balance, January 31, 2015 | $ | 268 | $ | 66 | $ | 174,826 | $ | 358,006 | $ | (149,811 | ) | $ | 98,854 | $ | 2,076 | $ | 484,285 | ||||||||||||||||
Net income | 3,622 | 19 | 3,641 | ||||||||||||||||||||||||||||||
Dividends | (2,636 | ) | (2,636 | ) | |||||||||||||||||||||||||||||
Stock repurchase | (22,154 | ) | (22,154 | ) | |||||||||||||||||||||||||||||
Stock options exercised, net of | 1 | 78 | (550 | ) | (471 | ) | |||||||||||||||||||||||||||
tax benefit of $42 | |||||||||||||||||||||||||||||||||
Supplemental executive | 100 | 100 | |||||||||||||||||||||||||||||||
retirement plan | |||||||||||||||||||||||||||||||||
Stock-based compensation | 1,520 | 1,520 | |||||||||||||||||||||||||||||||
expense | |||||||||||||||||||||||||||||||||
Net unrealized gain on | 10 | 10 | |||||||||||||||||||||||||||||||
investments, net of tax of $4 | |||||||||||||||||||||||||||||||||
Net change in effective portion | (508 | ) | (508 | ) | |||||||||||||||||||||||||||||
of hedging contracts, net of | |||||||||||||||||||||||||||||||||
tax benefit of $100 | |||||||||||||||||||||||||||||||||
Foreign currency translation | (3,135 | ) | (2 | ) | (3,137 | ) | |||||||||||||||||||||||||||
adjustment (3) | |||||||||||||||||||||||||||||||||
Balance, April 30, 2015 | $ | 269 | $ | 66 | $ | 176,524 | $ | 358,992 | $ | (172,515 | ) | $ | 95,221 | $ | 2,093 | $ | 460,650 | ||||||||||||||||
Common Stock (1) | Class A Common Stock (2) | Capital in Excess of Par Value | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income | Noncontrolling Interests | Total | ||||||||||||||||||||||||||
Balance, January 31, 2014 | $ | 266 | $ | 66 | $ | 165,342 | $ | 316,334 | $ | (122,406 | ) | $ | 103,702 | $ | 2,686 | $ | 465,990 | ||||||||||||||||
Net income | 7,365 | 64 | 7,429 | ||||||||||||||||||||||||||||||
Dividends | (2,523 | ) | (2,523 | ) | |||||||||||||||||||||||||||||
Stock repurchase | (5,312 | ) | (5,312 | ) | |||||||||||||||||||||||||||||
Stock options exercised, net of | 2 | 856 | (1,324 | ) | (466 | ) | |||||||||||||||||||||||||||
tax benefit of $858 | |||||||||||||||||||||||||||||||||
Supplemental executive | 18 | 18 | |||||||||||||||||||||||||||||||
retirement plan | |||||||||||||||||||||||||||||||||
Stock-based compensation | 1,180 | 1,180 | |||||||||||||||||||||||||||||||
expense | |||||||||||||||||||||||||||||||||
Net unrealized gain on | 70 | 70 | |||||||||||||||||||||||||||||||
investments, net of tax of $39 | |||||||||||||||||||||||||||||||||
Stock donation | 671 | 385 | 1,056 | ||||||||||||||||||||||||||||||
Foreign currency translation | 8,060 | 71 | 8,131 | ||||||||||||||||||||||||||||||
adjustment (3) | |||||||||||||||||||||||||||||||||
Balance, April 30, 2014 | $ | 268 | $ | 66 | $ | 168,067 | $ | 321,176 | $ | (128,657 | ) | $ | 111,832 | $ | 2,821 | $ | 475,573 | ||||||||||||||||
(1) Each share of common stock is entitled to one vote per share. | |||||||||||||||||||||||||||||||||
(2) Each share of class A common stock is entitled to 10 votes per share on all matters submitted to a vote of the shareholders. Each holder of class A common stock is entitled to convert, at any time, any and all of such shares into the same number of shares of common stock. Each share of class A common stock is converted automatically into common stock in the event that the beneficial or record ownership of such shares of class A common stock is transferred to any person, except to certain family members or affiliated persons deemed “permitted transferees” pursuant to the Company’s Restated Certificate of Incorporation as amended. The class A common stock is not publicly traded and consequently, there is currently no established public trading market for these shares. | |||||||||||||||||||||||||||||||||
(3) The currency translation adjustment is not adjusted for income taxes to the extent that it relates to permanent investments of earnings in international subsidiaries. | |||||||||||||||||||||||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||||||||||
Apr. 30, 2015 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Operating Segment Data | Operating Segment Data for the Three Months Ended April 30, 2015 and 2014 (in thousands): | |||||||||||||||
Net Sales | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Wholesale: | ||||||||||||||||
Luxury brands category | $ | 44,903 | $ | 44,220 | ||||||||||||
Licensed brands category | 60,842 | 61,729 | ||||||||||||||
After-sales service and all other | 3,852 | 3,736 | ||||||||||||||
Total Wholesale | 109,597 | 109,685 | ||||||||||||||
Retail | 10,864 | 11,236 | ||||||||||||||
Consolidated total | $ | 120,461 | $ | 120,921 | ||||||||||||
Operating Income | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Wholesale | $ | 5,925 | $ | 9,375 | ||||||||||||
Retail | 950 | 1,546 | ||||||||||||||
Consolidated total | $ | 6,875 | $ | 10,921 | ||||||||||||
Total Assets | ||||||||||||||||
April 30, | January 31, | April 30, | ||||||||||||||
2015 | 2015 | 2014 | ||||||||||||||
Wholesale | $ | 563,947 | $ | 562,462 | $ | 553,833 | ||||||||||
Retail | 20,590 | 20,561 | 21,051 | |||||||||||||
Consolidated total | $ | 584,537 | $ | 583,023 | $ | 574,884 | ||||||||||
Geographic Segment Data | Geographic Location Data for the Three Months Ended April 30, 2015 and 2014 (in thousands): | |||||||||||||||
Net Sales | Operating Income / (Loss) | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
United States (1) | $ | 64,584 | $ | 62,279 | $ | 2,429 | $ | (843 | ) | |||||||
International (2) | 55,877 | 58,642 | 4,446 | 11,764 | ||||||||||||
Consolidated total | $ | 120,461 | $ | 120,921 | $ | 6,875 | $ | 10,921 | ||||||||
United States and International net sales are net of intercompany sales of $81.5 million and $64.8 million for the three months ended April 30, 2015 and 2014, respectively. | ||||||||||||||||
(1) The United States operating income included $7.1 million and $7.0 million of unallocated corporate expenses for the three months ended April 30, 2015 and 2014. | ||||||||||||||||
(2) The International operating income included $8.8 million and $9.6 million of certain intercompany profits related to the Company’s supply chain operations for the three months ended April 30, 2015 and 2014. | ||||||||||||||||
Total Assets | ||||||||||||||||
April 30, | January 31, | April 30, | ||||||||||||||
2015 | 2015 | 2014 | ||||||||||||||
United States | $ | 214,062 | $ | 209,660 | $ | 218,760 | ||||||||||
International | 370,475 | 373,363 | 356,124 | |||||||||||||
Consolidated total | $ | 584,537 | $ | 583,023 | $ | 574,884 | ||||||||||
Long-Lived Assets | ||||||||||||||||
April 30, | January 31, | April 30, | ||||||||||||||
2015 | 2015 | 2014 | ||||||||||||||
United States | $ | 25,072 | $ | 25,950 | $ | 24,969 | ||||||||||
International | 19,282 | 20,723 | 21,837 | |||||||||||||
Consolidated total | $ | 44,354 | $ | 46,673 | $ | 46,806 | ||||||||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||||||
Apr. 30, 2015 | ||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||
Components of Inventories | Inventories consisted of the following (in thousands): | |||||||||||
April 30, | January 31, | April 30, | ||||||||||
2015 | 2015 | 2014 | ||||||||||
Finished goods | $ | 128,451 | $ | 115,435 | $ | 121,150 | ||||||
Component parts | 50,100 | 49,790 | 55,272 | |||||||||
Work-in-process | 5,353 | 5,563 | 8,021 | |||||||||
$ | 183,904 | $ | 170,788 | $ | 184,443 | |||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||
Apr. 30, 2015 | |||||||||||||||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||
Fair Value and Presentation of Derivatives | The following table summarizes the fair value and presentation in the Consolidated Balance Sheets for derivatives (in thousands): | ||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||||||||||||||||
Balance | April 30, | January 31, | April 30, | Balance | April 30, | January 31, | April 30, | ||||||||||||||||||||||||
Sheet | 2015 | 2015 | 2014 | Sheet | 2015 | 2015 | 2014 | ||||||||||||||||||||||||
Location | Fair | Fair | Fair | Location | Fair | Fair | Fair | ||||||||||||||||||||||||
Value | Value | Value | Value | Value | Value | ||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||||
Foreign Exchange Contracts | Other Current | $ | 866 | $ | 1,298 | $ | 772 | Accrued | $ | 87 | $ | 71 | $ | 10 | |||||||||||||||||
Assets | Liabilities | ||||||||||||||||||||||||||||||
Total Derivative Instruments | $ | 866 | $ | 1,298 | $ | 772 | $ | 87 | $ | 71 | $ | 10 | |||||||||||||||||||
Liability Derivatives | |||||||||||||||||||||||||||||||
Balance | April 30, | January 31, | April 30, | ||||||||||||||||||||||||||||
Sheet | 2015 | 2015 | 2014 | ||||||||||||||||||||||||||||
Location | Fair | Fair | Fair | ||||||||||||||||||||||||||||
Value | Value | Value | |||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||||
Foreign Exchange Contracts | Accrued | $ | 603 | $ | - | $ | - | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||
Total Derivative Instruments | $ | 603 | $ | - | $ | - | |||||||||||||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended | |||||||||||||||
Apr. 30, 2015 | ||||||||||||||||
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | ||||||||||||||||
Schedule of Components of Accumulated Other Comprehensive Income | The components of accumulated other comprehensive income consisted of the following (in thousands): | |||||||||||||||
Currency | Available-for-sale securities | Net Unrealized | Accumulated | |||||||||||||
Translation | Income \ (Loss) | Other | ||||||||||||||
Adjustments | On Hedging | Comprehensive | ||||||||||||||
Contracts | Income | |||||||||||||||
Balance, January 31, 2015 | $ | 98,642 | $ | 211 | $ | 1 | $ | 98,854 | ||||||||
Other comprehensive (loss) \ income before reclassifications | (3,135 | ) | 10 | (679 | ) | (3,804 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive (loss) \ income (1) | — | — | 171 | 171 | ||||||||||||
Net current-period other comprehensive (loss) \ income | (3,135 | ) | 10 | (508 | ) | (3,633 | ) | |||||||||
As of April 30, 2015 | $ | 95,507 | $ | 221 | $ | (507 | ) | $ | 95,221 | |||||||
Currency | Available-for-sale securities | Net Unrealized | Accumulated | |||||||||||||
Translation | Income | Other | ||||||||||||||
Adjustments | On Hedging | Comprehensive | ||||||||||||||
Contracts | Income | |||||||||||||||
Balance, January 31, 2014 | $ | 103,438 | $ | 263 | $ | 1 | $ | 103,702 | ||||||||
Other comprehensive income before reclassifications | 8,060 | 70 | — | 8,130 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income | — | — | — | — | ||||||||||||
Net current-period other comprehensive income | 8,060 | 70 | — | 8,130 | ||||||||||||
As of April 30, 2014 | $ | 111,498 | $ | 333 | $ | 1 | $ | 111,832 | ||||||||
-1 | Amounts reclassified to earnings in the Consolidated Statements of Operations. |
Operating_Efficiency_Initiativ1
Operating Efficiency Initiatives and Other Items (Tables) | 3 Months Ended | ||||||||||||||||||
Apr. 30, 2015 | |||||||||||||||||||
Restructuring And Related Activities [Abstract] | |||||||||||||||||||
Summary of Costs Related to Operating Efficiency Initiatives and Other Items | A summary rollforward of costs related to the operating efficiency initiatives and other items is as follows (in thousands): | ||||||||||||||||||
Balance at | Fiscal 2016 | Cash | Non-cash | Accrued | |||||||||||||||
January 31, 2015 | charges (4) | payments | adjustments | balance at | |||||||||||||||
30-Apr-15 | |||||||||||||||||||
Severance (1) | $ | 1,080 | $ | 1,300 | $ | (365 | ) | $ | - | $ | 2,015 | ||||||||
Occupancy charges (1) (2) | - | 788 | (16 | ) | - | 772 | |||||||||||||
Fixed assets (1) (3) | - | 582 | - | (582 | ) | - | |||||||||||||
Total | $ | 1,080 | $ | 2,670 | $ | (381 | ) | $ | (582 | ) | $ | 2,787 | |||||||
-1 | The total severance charges of $1.3 million include $0.6 million in SG&A and $0.7 million in Cost of sales on the Consolidated Statement of Operations for the three months ended April 30, 2015. The occupancy charge of $0.8 million and fixed asset charge of $0.6 million are included in SG&A on the Consolidated Statement of Operations for the three months ended April 30, 2015 | ||||||||||||||||||
-2 | Occupancy charges include expenses for rent, office equipment and legal expenses. | ||||||||||||||||||
-3 | Includes $0.5 million related to closing of certain shop-in-shops that were no longer in use in Asia. | ||||||||||||||||||
-4 | This pre-tax charge was the net of a $0.9 million transfer of the provision related to severance agreements and a charge of $3.6 million in the United States and International locations of the Wholesale segment, respectively. |
Fair_Value_Measurements_Assets
Fair Value Measurements Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) (Fair Value, Measurements, Recurring, USD $) | Apr. 30, 2015 | Jan. 31, 2015 | Apr. 30, 2014 |
In Thousands, unless otherwise specified | |||
Assets: | |||
Total assets measured at fair value | $30,024 | $29,014 | $59,273 |
Liabilities: | |||
Total liabilities measured at fair value | 26,737 | 24,882 | 22,488 |
Other Current Assets | Available-for-sale securities | |||
Assets: | |||
Total assets measured at fair value | 327 | 314 | 687 |
Other Current Assets | Hedge derivatives-Assets | |||
Assets: | |||
Total assets measured at fair value | 866 | 1,298 | 772 |
Other non-current assets | Long-term investment | |||
Assets: | |||
Total assets measured at fair value | 1,264 | 1,240 | |
Other non-current assets | SERP assets - employer | |||
Assets: | |||
Total assets measured at fair value | 1,520 | 1,351 | 1,273 |
Other non-current assets | SERP assets - employee | |||
Assets: | |||
Total assets measured at fair value | 26,047 | 24,811 | 22,478 |
Other non-current liabilities | SERP liabilities - employee | |||
Liabilities: | |||
Total liabilities measured at fair value | 26,047 | 24,811 | 22,478 |
Accrued Liabilities | Hedge derivatives-Liabilities | |||
Liabilities: | |||
Total liabilities measured at fair value | 690 | 71 | 10 |
Short-term Investments | Time deposits | |||
Assets: | |||
Total assets measured at fair value | 34,063 | ||
Level 1 | |||
Assets: | |||
Total assets measured at fair value | 27,894 | 26,476 | 58,501 |
Liabilities: | |||
Total liabilities measured at fair value | 26,047 | 24,811 | 22,478 |
Level 1 | Other Current Assets | Available-for-sale securities | |||
Assets: | |||
Total assets measured at fair value | 327 | 314 | 687 |
Level 1 | Other non-current assets | SERP assets - employer | |||
Assets: | |||
Total assets measured at fair value | 1,520 | 1,351 | 1,273 |
Level 1 | Other non-current assets | SERP assets - employee | |||
Assets: | |||
Total assets measured at fair value | 26,047 | 24,811 | 22,478 |
Level 1 | Other non-current liabilities | SERP liabilities - employee | |||
Liabilities: | |||
Total liabilities measured at fair value | 26,047 | 24,811 | 22,478 |
Level 1 | Short-term Investments | Time deposits | |||
Assets: | |||
Total assets measured at fair value | 34,063 | ||
Level 2 | |||
Assets: | |||
Total assets measured at fair value | 866 | 1,298 | 772 |
Liabilities: | |||
Total liabilities measured at fair value | 690 | 71 | 10 |
Level 2 | Other Current Assets | Hedge derivatives-Assets | |||
Assets: | |||
Total assets measured at fair value | 866 | 1,298 | 772 |
Level 2 | Accrued Liabilities | Hedge derivatives-Liabilities | |||
Liabilities: | |||
Total liabilities measured at fair value | 690 | 71 | 10 |
Level 3 | |||
Assets: | |||
Total assets measured at fair value | 1,264 | 1,240 | |
Level 3 | Other non-current assets | Long-term investment | |||
Assets: | |||
Total assets measured at fair value | $1,264 | $1,240 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details Textual) | 3 Months Ended |
Apr. 30, 2015 | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Abstract] | |
Fair Value, long-term investment | The fair value of the long-term investment is based on the purchase price plus eight percent calculated annually |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 1) (Long-term investment, USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Apr. 30, 2015 | Jan. 31, 2015 |
Long-term investment | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Balance, beginning of fiscal year | $1,240 | |
Purchase of long-term investment | 1,200 | |
Interest income | 24 | 40 |
Balance, end of period | $1,264 | $1,240 |
Equity_Details
Equity (Details) (USD $) | 3 Months Ended | |||||||
Apr. 30, 2015 | Apr. 30, 2014 | Jan. 31, 2015 | Jan. 31, 2014 | |||||
Beginning Balance | $484,285,000 | $465,990,000 | ||||||
Net income | 3,641,000 | 7,429,000 | ||||||
Dividends | -2,636,000 | -2,523,000 | ||||||
Stock repurchase | -22,154,000 | -5,312,000 | ||||||
Stock options exercised, net of tax benefit of $42 | -471,000 | -466,000 | ||||||
Supplemental executive retirement plan | 100,000 | 18,000 | ||||||
Stock-based compensation expense | 1,520,000 | 1,180,000 | ||||||
Net unrealized gain on investments, net of tax of $4 and $39, respectively | 10,000 | 70,000 | ||||||
Net change in effective portion of hedging contracts, net of tax benefit of $100 and $0, respectively | -508,000 | 0 | ||||||
Stock donation | 1,056,000 | |||||||
Foreign currency translation adjustments | -3,137,000 | [1] | 8,131,000 | [1] | ||||
Ending Balance | 460,650,000 | 475,573,000 | ||||||
Class A Common Stock | ||||||||
Beginning Balance | 66,000 | [2] | 66,000 | [2] | ||||
Ending Balance | 66,000 | [2] | 66,000 | [2] | 66,000 | [2] | 66,000 | [2] |
Common Stock | ||||||||
Beginning Balance | 268,000 | [3] | 266,000 | [3] | ||||
Stock options exercised, net of tax benefit of $42 | 1,000 | [3] | 2,000 | [3] | ||||
Ending Balance | 269,000 | [3] | 268,000 | [3] | ||||
Capital in Excess of Par Value | ||||||||
Beginning Balance | 174,826,000 | 165,342,000 | ||||||
Stock options exercised, net of tax benefit of $42 | 78,000 | 856,000 | ||||||
Supplemental executive retirement plan | 100,000 | 18,000 | ||||||
Stock-based compensation expense | 1,520,000 | 1,180,000 | ||||||
Stock donation | 671,000 | |||||||
Ending Balance | 176,524,000 | 168,067,000 | ||||||
Retained Earnings | ||||||||
Beginning Balance | 358,006,000 | 316,334,000 | ||||||
Net income | 3,622,000 | 7,365,000 | ||||||
Dividends | -2,636,000 | -2,523,000 | ||||||
Ending Balance | 358,992,000 | 321,176,000 | ||||||
Treasury Stock | ||||||||
Beginning Balance | -149,811,000 | -122,406,000 | ||||||
Stock repurchase | -22,154,000 | -5,312,000 | ||||||
Stock options exercised, net of tax benefit of $42 | -550,000 | -1,324,000 | ||||||
Stock donation | 385,000 | |||||||
Ending Balance | -172,515,000 | -128,657,000 | ||||||
Accumulated Other Comprehensive Income | ||||||||
Beginning Balance | 98,854,000 | 103,702,000 | ||||||
Net unrealized gain on investments, net of tax of $4 and $39, respectively | 10,000 | 70,000 | ||||||
Net change in effective portion of hedging contracts, net of tax benefit of $100 and $0, respectively | -508,000 | |||||||
Foreign currency translation adjustments | -3,135,000 | [1] | 8,060,000 | [1] | ||||
Ending Balance | 95,221,000 | 111,832,000 | ||||||
Noncontrolling Interests | ||||||||
Beginning Balance | 2,076,000 | 2,686,000 | ||||||
Net income | 19,000 | 64,000 | ||||||
Foreign currency translation adjustments | -2,000 | [1] | 71,000 | [1] | ||||
Ending Balance | $2,093,000 | $2,821,000 | ||||||
[1] | The currency translation adjustment is not adjusted for income taxes to the extent that it relates to permanent investments of earnings in international subsidiaries. | |||||||
[2] | Each share of class A common stock is entitled to 10 votes per share on all matters submitted to a vote of the shareholders. Each holder of class A common stock is entitled to convert, at any time, any and all of such shares into the same number of shares of common stock. Each share of class A common stock is converted automatically into common stock in the event that the beneficial or record ownership of such shares of class A common stock is transferred to any person, except to certain family members or affiliated persons deemed “permitted transferees†pursuant to the Company’s Restated Certificate of Incorporation as amended. The class A common stock is not publicly traded and consequently, there is currently no established public trading market for these shares. | |||||||
[3] | Each share of common stock is entitled to one vote per share. |
Equity_Details_Parenthetical
Equity (Details) (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 |
Stock options exercised, tax benefit | $42 | $858 |
Net unrealized gain on investments, tax | 4 | 39 |
Net change in effective portion of hedging contracts, tax | $100 | $0 |
Common Stock Class Undefined | ||
Common Stock, Voting Rights | Each share of common stock is entitled to one vote per share. | |
Class A Common Stock | ||
Common Stock, Voting Rights | Each share of class A common stock is entitled to 10 votes per share on all matters submitted to a vote of the shareholders. | |
Common stock, Conversion basis | Each holder of class A common stock is entitled to convert, at any time, any and all of such shares into the same number of shares of common stock. Each share of class A common stock is converted automatically into common stock in the event that the beneficial or record ownership of such shares of class A common stock is transferred to any person, except to certain family members or affiliated persons deemed “permitted transferees†pursuant to the Company’s Restated Certificate of Incorporation as amended. |
Segment_Information_Details_Te
Segment Information (Details Textual) (USD $) | 3 Months Ended | |
Apr. 30, 2015 | Apr. 30, 2014 | |
Location | ||
Segment | ||
Segment Reporting Information [Line Items] | ||
Number of operating segments | 2 | |
Number of geographic locations | 2 | |
Net sales | $120,461,000 | $120,921,000 |
Unallocated corporate expenses | 7,100,000 | 7,000,000 |
Profits related to the company's supply chain operations | 8,800,000 | 9,600,000 |
Intersegment Eliminations | ||
Segment Reporting Information [Line Items] | ||
Net sales | $81,500,000 | $64,800,000 |
Geographic Concentration Risk | Europe | Total net sales | ||
Segment Reporting Information [Line Items] | ||
International Operations Contribution | 18.60% | 20.30% |
Geographic Concentration Risk | the Americas (excluding the United States) | Total net sales | ||
Segment Reporting Information [Line Items] | ||
International Operations Contribution | 11.00% | 12.80% |
Geographic Concentration Risk | Middle East | Total net sales | ||
Segment Reporting Information [Line Items] | ||
International Operations Contribution | 8.70% | 8.10% |
Geographic Concentration Risk | Asia | Total net sales | ||
Segment Reporting Information [Line Items] | ||
International Operations Contribution | 8.10% | 7.40% |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 | Jan. 31, 2015 |
Operating segment data | |||
Net sales | $120,461 | $120,921 | |
Operating Income | 6,875 | 10,921 | |
Total Assets | 584,537 | 574,884 | 583,023 |
Wholesale | |||
Operating segment data | |||
Net sales | 109,597 | 109,685 | |
Operating Income | 5,925 | 9,375 | |
Total Assets | 563,947 | 553,833 | 562,462 |
Wholesale | Luxury brands category | |||
Operating segment data | |||
Net sales | 44,903 | 44,220 | |
Wholesale | Licensed brands category | |||
Operating segment data | |||
Net sales | 60,842 | 61,729 | |
Wholesale | After-sales service and all other | |||
Operating segment data | |||
Net sales | 3,852 | 3,736 | |
Retail | |||
Operating segment data | |||
Net sales | 10,864 | 11,236 | |
Operating Income | 950 | 1,546 | |
Total Assets | $20,590 | $21,051 | $20,561 |
Segment_Information_Details_1
Segment Information (Details 1) (USD $) | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 | Jan. 31, 2015 | ||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||
Net sales | $120,461 | $120,921 | |||
Operating Income | 6,875 | 10,921 | |||
Total Assets | 584,537 | 574,884 | 583,023 | ||
Long-Lived Assets | 44,354 | 46,806 | 46,673 | ||
United States | |||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||
Net sales | 64,584 | [1] | 62,279 | [1] | |
Operating Income | 2,429 | [1] | -843 | [1] | |
Total Assets | 214,062 | 218,760 | 209,660 | ||
Long-Lived Assets | 25,072 | 24,969 | 25,950 | ||
International | |||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||
Net sales | 55,877 | [2] | 58,642 | [2] | |
Operating Income | 4,446 | [2] | 11,764 | [2] | |
Total Assets | 370,475 | 356,124 | 373,363 | ||
Long-Lived Assets | $19,282 | $21,837 | $20,723 | ||
[1] | The United States operating income included $7.1 million and $7.0 million of unallocated corporate expenses for the three months ended April 30, 2015 and 2014. | ||||
[2] | The International operating income included $8.8 million and $9.6 million of certain intercompany profits related to the Company’s supply chain operations for the three months ended April 30, 2015 and 2014. |
Inventories_Details
Inventories (Details) (USD $) | Apr. 30, 2015 | Jan. 31, 2015 | Apr. 30, 2014 |
In Thousands, unless otherwise specified | |||
Inventory Net [Abstract] | |||
Finished goods | $128,451 | $115,435 | $121,150 |
Component parts | 50,100 | 49,790 | 55,272 |
Work-in-process | 5,353 | 5,563 | 8,021 |
Inventories | $183,904 | $170,788 | $184,443 |
Debt_and_Lines_of_Credit_Detai
Debt and Lines of Credit (Details Textual) | 3 Months Ended | 3 Months Ended | 3 Months Ended | |||||||||||||||
Apr. 30, 2015 | Apr. 30, 2015 | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2015 | Apr. 30, 2015 | Apr. 30, 2015 | Apr. 30, 2015 | Jan. 30, 2015 | Apr. 30, 2015 | Apr. 30, 2015 | Apr. 30, 2015 | Apr. 30, 2015 | Jan. 30, 2015 | |
USD ($) | Unsecured Debt | Unsecured Debt | Unsecured Debt | Unsecured Debt | Senior Secured Revolving Credit Facility | Senior Secured Revolving Credit Facility | Line of Credit | Line of Credit | Minimum | Maximum | Senior Secured Revolving Credit Facility Due on January 30, 2020 | Senior Secured Revolving Credit Facility Due on January 30, 2020 | Senior Secured Revolving Credit Facility Due on January 30, 2020 | Senior Secured Revolving Credit Facility Due on January 30, 2020 | Senior Secured Revolving Credit Facility Due on January 30, 2020 | Senior Secured Revolving Credit Facility Due on January 30, 2020 | Senior Secured Revolving Credit Facility Due on January 30, 2020 | |
Swiss subsidiary | Swiss subsidiary | Swiss subsidiary | Swiss subsidiary | USD ($) | USD ($) | Unsecured Debt | Unsecured Debt | USD ($) | London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | Base Rate | Base Rate | Letter of Credit | |||||
USD ($) | CHF | USD ($) | CHF | Swiss subsidiary | Swiss subsidiary | Minimum | Maximum | Minimum | Maximum | USD ($) | ||||||||
Subsidiary | USD ($) | |||||||||||||||||
Bank | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Asset based senior revolving credit facility | $71,500,000 | $100,000,000 | $15,000,000 | |||||||||||||||
Line of credit facility, maximum borrowing capacity | 5,400,000 | 5,000,000 | 5,700,000 | 5,000,000 | 50,000,000 | |||||||||||||
Credit facility matures date | 30-Jan-20 | |||||||||||||||||
Loan drawn under the facility | 25,000,000 | |||||||||||||||||
Line of credit facility fair value of amount outstanding | 3,500,000 | |||||||||||||||||
Applicable margin rate | 1.25% | 1.75% | 0.25% | 0.75% | ||||||||||||||
Consolidated Earnings Before Interest Tax Depreciation And Amortization | 50,000,000 | |||||||||||||||||
Consolidated leverage ratio | 2.50% | 1.00% | ||||||||||||||||
Outstanding borrowing amount | 0 | 0 | 0 | 0 | ||||||||||||||
Number of European banks guaranteed obligations to third parties | 2 | 2 | ||||||||||||||||
Number of foreign subsidiaries under guaranteed obligation | 2 | 2 | ||||||||||||||||
Guaranteed obligations to third parties | $1,200,000 |
Earnings_Per_Share_Details_Tex
Earnings Per Share (Details Textual) | 3 Months Ended | |
Apr. 30, 2015 | Apr. 30, 2014 | |
Earnings Per Share [Abstract] | ||
Weighted basic average shares outstanding | 24,279,000 | 25,325,000 |
Increase in number of shares outstanding for diluted earnings per share | 290,000 | 371,000 |
Dilutive common stock equivalents were excluded from the computation of dilutive earnings per share | 371,000 | 36,000 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details Textual) (USD $) | 3 Months Ended | |
Apr. 30, 2015 | Apr. 30, 2014 | |
Loss Contingencies [Line Items] | ||
Number of issued standby letter of credit | 4 | |
Unsecured Debt | Swiss subsidiary | ||
Loss Contingencies [Line Items] | ||
Outstanding borrowing amount | $0 | $0 |
Letter of Credit | ||
Loss Contingencies [Line Items] | ||
Outstanding borrowing amount | 3,500,000 | |
Credit facility matures date | 30-Apr-16 | |
Line of Credit | Unsecured Debt | Swiss subsidiary | ||
Loss Contingencies [Line Items] | ||
Number of European banks guaranteed obligations to third parties | 2 | |
Number of foreign subsidiaries under guaranteed obligation | 2 | |
Guaranteed obligations to third parties | $1,200,000 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 3 Months Ended | |
Apr. 30, 2015 | Apr. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | $3,135,000 | $3,433,000 |
Effective tax rate for continuing operations | 46.30% | 31.60% |
U.S. statutory tax rate | 35.00% | 35.00% |
Income tax expense (benefit) | $0 | $0 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details Textual) | 3 Months Ended | 3 Months Ended | ||||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2015 | Apr. 30, 2015 | ||
USD ($) | USD ($) | Foreign Exchange Forward | Foreign Exchange Forward | Maximum | ||
CHF | EUR (€) | |||||
Derivatives Fair Value [Line Items] | ||||||
Net forward contracts hedging portfolio | 28,000,000 | € 14,000,000 | ||||
Expiry dates ranging | 18-Dec-15 | |||||
Net change in effective portion of hedging contracts, net of tax | -508,000 | 0 | ||||
Net change in effective portion of hedging contracts, tax | 100,000 | 0 | ||||
Maximum length of time hedged in cash flow hedge | 24 months | |||||
Accumulated other comprehensive income, tax | 100,000 | 0 | ||||
Reclassification from accumulated other comprehensive income, after tax | $171,000 | [1] | ||||
[1] | Amounts reclassified to earnings in the Consolidated Statements of Operations. |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Details) (USD $) | Apr. 30, 2015 | Jan. 31, 2015 | Apr. 30, 2014 |
In Thousands, unless otherwise specified | |||
Not Designated as Hedging Instrument | |||
Fair value and presentation of derivatives | |||
Asset Derivatives | $866 | $1,298 | $772 |
Liability Derivatives | 87 | 71 | 10 |
Not Designated as Hedging Instrument | Foreign Exchange Contract | Other Current Assets | |||
Fair value and presentation of derivatives | |||
Asset Derivatives | 866 | 1,298 | 772 |
Not Designated as Hedging Instrument | Foreign Exchange Contract | Accrued Liabilities | |||
Fair value and presentation of derivatives | |||
Liability Derivatives | 87 | 71 | 10 |
Designated as Hedging Instrument | |||
Fair value and presentation of derivatives | |||
Liability Derivatives | 603 | ||
Designated as Hedging Instrument | Foreign Exchange Contract | Accrued Liabilities | |||
Fair value and presentation of derivatives | |||
Liability Derivatives | $603 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | $98,854 | $103,702 | |
Other comprehensive (loss) \ income before reclassifications | -3,804 | 8,130 | |
Amounts reclassified from accumulated other comprehensive (loss) \ income | 171 | [1] | |
Net current-period other comprehensive (loss) \ income | -3,633 | 8,130 | |
Ending Balance | 95,221 | 111,832 | |
Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | 98,642 | 103,438 | |
Other comprehensive (loss) \ income before reclassifications | -3,135 | 8,060 | |
Net current-period other comprehensive (loss) \ income | -3,135 | 8,060 | |
Ending Balance | 95,507 | 111,498 | |
Available-for-sale securities | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | 211 | 263 | |
Other comprehensive (loss) \ income before reclassifications | 10 | 70 | |
Net current-period other comprehensive (loss) \ income | 10 | 70 | |
Ending Balance | 221 | 333 | |
Net Unrealized Income (Loss) On Hedging Contracts | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | 1 | 1 | |
Other comprehensive (loss) \ income before reclassifications | -679 | 0 | |
Amounts reclassified from accumulated other comprehensive (loss) \ income | 171 | [1] | |
Net current-period other comprehensive (loss) \ income | -508 | 0 | |
Ending Balance | ($507) | $1 | |
[1] | Amounts reclassified to earnings in the Consolidated Statements of Operations. |
Treasury_Stock_Details_Textual
Treasury Stock (Details Textual) (USD $) | 3 Months Ended | |||
Apr. 30, 2015 | Apr. 30, 2014 | Nov. 25, 2014 | Mar. 21, 2013 | |
Equity Class Of Treasury Stock [Line Items] | ||||
Stock repurchase program, number of shares authorized | $100,000,000 | $50,000,000 | ||
Stock repurchase program expiration date | 31-Jan-16 | |||
Stock repurchase program, number of shares repurchased | 859,700 | 133,073 | ||
Stock repurchase program, total cost of shares repurchased | $22,154,000 | $5,312,000 | ||
Stock repurchase program, average per share price of shares repurchased | $25.77 | $39.92 | ||
Surrender of Shares by Employee | ||||
Equity Class Of Treasury Stock [Line Items] | ||||
Stock repurchase program, number of shares repurchased | 17,979 |
Operating_Efficiency_Initiativ2
Operating Efficiency Initiatives and Other Items (Details Textual) (USD $) | 3 Months Ended | |
Apr. 30, 2015 | ||
Restructuring Cost And Reserve [Line Items] | ||
Operating efficiency expenses | $2,670,000 | [1] |
Severance charges | 1,300,000 | |
Asia | ||
Restructuring Cost And Reserve [Line Items] | ||
Operating efficiency expenses | 500,000 | |
United States | ||
Restructuring Cost And Reserve [Line Items] | ||
Severance charges | 900,000 | |
International | ||
Restructuring Cost And Reserve [Line Items] | ||
Severance charges | 3,600,000 | |
S G & A | ||
Restructuring Cost And Reserve [Line Items] | ||
Severance charges | 600,000 | |
Occupancy charge | 800,000 | |
Fixed asset charge | 600,000 | |
Cost of sales | ||
Restructuring Cost And Reserve [Line Items] | ||
Severance charges | $700,000 | |
[1] | This pre-tax charge was the net of a $0.9 million transfer of the provision related to severance agreements and a charge of $3.6Â million in the United States and International locations of the Wholesale segment, respectively. |
Operating_Efficiency_Initiativ3
Operating Efficiency Initiatives and Other Items (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 30, 2015 | |
Restructuring Cost And Reserve [Line Items] | ||
Balance at January 31, 2015 | $1,080 | |
Fiscal 2016 Charges | 2,670 | [1] |
Cash payments | -381 | |
Non-cash adjustments | -582 | |
Accrued balance at April 30, 2015 | 2,787 | |
Severance | ||
Restructuring Cost And Reserve [Line Items] | ||
Balance at January 31, 2015 | 1,080 | [2] |
Fiscal 2016 Charges | 1,300 | [1],[2] |
Cash payments | -365 | [2] |
Accrued balance at April 30, 2015 | 2,015 | [2] |
Occupancy charges | ||
Restructuring Cost And Reserve [Line Items] | ||
Fiscal 2016 Charges | 788 | [1],[2],[3] |
Cash payments | -16 | [2],[3] |
Accrued balance at April 30, 2015 | 772 | [2],[3] |
Fixed assets | ||
Restructuring Cost And Reserve [Line Items] | ||
Fiscal 2016 Charges | 582 | [1],[2],[4] |
Non-cash adjustments | ($582) | [2],[4] |
[1] | This pre-tax charge was the net of a $0.9 million transfer of the provision related to severance agreements and a charge of $3.6Â million in the United States and International locations of the Wholesale segment, respectively. | |
[2] | The total severance charges of $1.3 million include $0.6 million in SG&A and $0.7 million in Cost of sales on the Consolidated Statement of Operations for the three months ended April 30, 2015. The occupancy charge of $0.8 million and fixed asset charge of $0.6 million are included in SG&A on the Consolidated Statement of Operations for the three months ended April 30, 2015 | |
[3] | Occupancy charges include expenses for rent, office equipment and legal expenses. | |
[4] | Includes $0.5 million related to closing of certain shop-in-shops that were no longer in use in Asia. |