Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2019 | Mar. 22, 2019 | Jul. 31, 2018 | |
Document Type | 10-K | ||
Amendment Flag | false | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Document Period End Date | Jan. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | MOV | ||
Entity Registrant Name | MOVADO GROUP INC | ||
Entity Central Index Key | 0000072573 | ||
Current Fiscal Year End Date | --01-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 802 | ||
Common Stock Class Undefined | |||
Entity Common Stock, Shares Outstanding | 16,397,399 | ||
Class A Common Stock | |||
Entity Common Stock, Shares Outstanding | 6,586,780 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | ||
Income Statement [Abstract] | ||||
Net sales | [1] | $ 679,567 | $ 567,953 | $ 552,752 |
Cost of sales | 310,209 | 269,875 | 257,935 | |
Gross profit | 369,358 | 298,078 | 294,817 | |
Selling, general and administrative | 307,161 | 254,878 | 240,836 | |
Operating income | [1],[2],[3],[4],[5],[6],[7],[8] | 62,197 | 43,200 | 53,981 |
Other expense (Note 8) | (1,282) | |||
Interest expense | (771) | (1,510) | (1,464) | |
Interest income | 307 | 452 | 219 | |
Income before income taxes | 61,733 | 42,142 | 51,454 | |
Provision for income taxes (Note 10) | 162 | 57,367 | 16,315 | |
Net income / (loss) | 61,571 | (15,225) | 35,139 | |
Less: Net (loss) / income attributable to noncontrolling interest | (53) | 78 | ||
Net income / (loss) attributable to Movado Group, Inc. | $ 61,624 | $ (15,225) | $ 35,061 | |
Basic income per share: | ||||
Weighted basic average shares outstanding | 23,197 | 23,073 | 23,070 | |
Net income / (loss) per share attributable to Movado Group, Inc. | $ 2.66 | $ (0.66) | $ 1.52 | |
Diluted income per share: | ||||
Weighted diluted average shares outstanding | 23,600 | 23,073 | 23,267 | |
Net income / (loss) per share attributable to Movado Group, Inc. | $ 2.61 | $ (0.66) | $ 1.51 | |
Dividends paid per share | $ 0.80 | $ 0.52 | $ 0.52 | |
[1] | The United States and International net sales are net of intercompany sales of $319.5 million, $268.1 million and $289.2 million for the fiscal years ended January 31, 2019, 2018 and 2017, respectively. | |||
[2] | Fiscal 2017 Watch and Accessory Brands and United States and International operating income included a $4.0 million charge as a result of actions taken by the Company in fiscal 2017 to achieve greater operating efficiencies and streamline its operations. | |||
[3] | Fiscal 2017 Watch and Accessory Brands and United States operating income included a pre-tax charge of $1.8 million, as a result of the immediate vesting of stock awards and certain other compensation related to the announcement of the retirement of the Company’s former Vice Chairman and Chief Operating Officer, in fiscal 2018. | |||
[4] | Fiscal 2019 Watch and Accessory Brands and United States and International operating (loss) / income included a charge of $0.3 million as part of the Company’s cost savings initiatives. The United States and International locations of the Watch and Accessory Brands segment include a pre-tax charge of $3.9 million and $9.7 million, respectively, for the fiscal year ended January 31, 2018 as part of the Company’s cost savings initiatives. In fiscal 2018, the Company took actions to better align its global infrastructure with the current business environment by consolidating certain operations and streamlining functions to reduce costs and improve profitability. Also, in light of the changing retail landscape and the growing importance of digital marketing and online sales, the Company decided to cease its participation in the Baselworld Watch and Jewelry Show. | |||
[5] | Fiscal 2019 Watch and Accessory Brands and United States and International operating (loss) / income included a charge of $14.3 million related to transaction charges and the amortization of acquisition accounting adjustments associated with the purchase of the MVMT brand. | |||
[6] | Fiscal 2019 Watch and Accessory Brands and United States and International operating (loss) / income included a charge of $2.9 million related to the amortization of intangible assets associated with the Olivia Burton brand. Fiscal 2018 Watch and Accessory Brands and United States and International operating (loss) / income included a charge of $6.8 million related to transaction charges and the amortization of acquisition accounting adjustments associated with the purchase of the Olivia Burton brand. | |||
[7] | The International operating income included $53.8 million, $41.5 million and $40.0 million of certain intercompany profits related to the Company’s supply chain operations for the fiscal years ended January 31, 2019, 2018 and 2017, respectively. | |||
[8] | The United States operating income included $43.5 million, $25.2 million and $26.3 million of unallocated corporate expenses for the fiscal years ended January 31, 2019, 2018 and 2017, respectively. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income / (loss) | $ 61,571 | $ (15,225) | $ 35,139 |
Other comprehensive income / (loss): | |||
Net unrealized (loss) / gain on investments, net of tax (benefit) / provision of ($14), ($13) and $30, respectively | (72) | (6) | 8 |
Net change in effective portion of hedging contracts, net of tax provision / (benefit) of $7, ($9) and ($10), respectively | 38 | (52) | (37) |
Prior service cost arising during the period, net of tax (benefit) of ($118) | (425) | ||
Amortization of prior service cost, net of tax of $1 | 5 | ||
Foreign currency translation adjustments | (19,382) | 23,621 | 8,280 |
Total other comprehensive (loss) / income, net of taxes | (19,836) | 23,563 | 8,251 |
Comprehensive income/ (loss) attributable to noncontrolling interest: | |||
Net (loss) / income | (53) | 78 | |
Foreign currency translation adjustments | 26 | (24) | |
Total comprehensive (loss)/ income attributable to noncontrolling interest | (27) | 54 | |
Total comprehensive income attributable to Movado Group, Inc. | $ 41,762 | $ 8,338 | $ 43,336 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (PARENTHETICAL) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net unrealized (loss) / gain on investments, tax (benefit) / provision | $ (14) | $ (13) | $ 30 |
Net change in effective portion of hedging contracts, tax provision / (benefit) | 7 | (9) | (10) |
Prior service cost arising during the period, tax (benefit) | (118) | ||
Amortization of prior service cost, tax | $ 1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jan. 31, 2019 | Jan. 31, 2018 | |
Current assets: | |||
Cash and cash equivalents | $ 189,911 | $ 214,811 | |
Trade receivables, net | 84,026 | 83,098 | |
Inventories | 165,311 | 151,676 | |
Other current assets | 28,898 | 32,015 | |
Total current assets | 468,146 | 481,600 | |
Property, plant and equipment, net | 26,067 | 24,671 | |
Deferred and non-current income taxes | 24,503 | 6,443 | |
Goodwill | 136,033 | 60,269 | |
Other intangibles, net | 48,183 | 23,124 | |
Other non-current assets | 56,769 | 49,273 | |
Total assets | 759,701 | 645,380 | |
Current liabilities: | |||
Loans payable to bank, current | 25,000 | ||
Accounts payable | 38,650 | 24,364 | |
Accrued liabilities | 44,429 | 32,814 | |
Accrued payroll and benefits | 18,773 | 15,129 | |
Income taxes payable | 10,831 | 2,989 | |
Total current liabilities | 112,683 | 100,296 | |
Loans payable to bank | 50,280 | ||
Deferred and non-current income taxes payable | 29,242 | 33,063 | |
Other non-current liabilities | 67,120 | 41,686 | |
Total liabilities | 259,325 | 175,045 | |
Commitments and contingencies (Note 9) | |||
Redeemable noncontrolling interest | 3,721 | ||
Equity: | |||
Preferred Stock, $0.01 par value, 5,000,000 shares authorized; no shares issued | |||
Capital in excess of par value | 201,814 | 189,808 | |
Retained earnings | 431,180 | 388,739 | |
Accumulated other comprehensive income | 80,507 | 100,343 | |
Treasury Stock, 11,268,492 and 11,046,671 shares, respectively, at cost | (217,188) | (208,894) | |
Total Movado Group, Inc. shareholders' equity | 496,655 | 470,335 | |
Total liabilities, redeemable noncontrolling interest and equity | 759,701 | 645,380 | |
Common Stock Class Undefined | |||
Equity: | |||
Common Stock | 277 | 273 | |
Total Movado Group, Inc. shareholders' equity | [1] | 277 | 273 |
Class A Common Stock | |||
Equity: | |||
Common Stock | 65 | 66 | |
Total Movado Group, Inc. shareholders' equity | [2] | $ 65 | $ 66 |
[1] | Each share of common stock is entitled to one vote per share on all matters submitted to a vote of the shareholders. | ||
[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. |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - $ / shares | Jan. 31, 2019 | Jan. 31, 2018 |
Preferred Stock, par value | $ 0.01 | $ 0.01 |
Preferred Stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Treasury Stock, shares | 11,268,492 | 11,046,671 |
Common Stock Class Undefined | ||
Common Stock, par value | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 100,000,000 | 100,000,000 |
Common Stock, shares issued | 27,701,742 | 27,342,802 |
Common Stock, shares outstanding | 27,701,742 | 27,342,802 |
Class A Common Stock | ||
Common Stock, par value | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 30,000,000 | 30,000,000 |
Common Stock, shares issued | 6,586,780 | 6,641,950 |
Common Stock, shares outstanding | 6,586,780 | 6,641,950 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands | 12 Months Ended | ||
Jan. 31, 2019USD ($) | Jan. 31, 2018USD ($) | Jan. 31, 2017USD ($) | |
Cash flows from operating activities: | |||
Net income / (loss) attributable to Movado Group, Inc. | $ 61,624 | $ (15,225) | $ 35,061 |
Adjustments to reconcile net income/ (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 14,165 | 13,457 | 11,507 |
Transactional (gains) / losses | 275 | (1,011) | 2,041 |
Provision for inventories and accounts receivable | 4,910 | 3,792 | 2,757 |
Deferred income taxes | (11,388) | 461 | (3,753) |
Stock-based compensation | 6,042 | 4,874 | 7,281 |
Impairment of long-term investment | 1,282 | ||
Cost savings initiatives | (281) | 13,587 | |
(Benefit) / Charge for 2017 tax act | (7,446) | 45,002 | |
Other | 70 | 78 | |
Changes in assets and liabilities: | |||
Trade receivables | (2,640) | (9,286) | 2,878 |
Inventories | (4,234) | 6,624 | 7,442 |
Other current assets | 5,375 | (3,824) | 512 |
Accounts payable | 6,082 | (4,006) | (401) |
Accrued liabilities | 2,623 | (416) | 244 |
Accrued payroll and benefits | 3,851 | 1,672 | (4,227) |
Income taxes payable | 5,252 | (1,898) | (2,479) |
Other non-current assets | 721 | (6,630) | (7,569) |
Other non-current liabilities | 1,169 | 7,551 | 5,499 |
Net cash provided by operating activities | 86,170 | 54,724 | 58,153 |
Cash flows from investing activities: | |||
Capital expenditures | (10,635) | (5,810) | (5,920) |
Tradenames and other intangibles | (492) | (556) | (328) |
Short-term investment | (152) | ||
Restricted cash deposits | 1,018 | (1,156) | |
Acquisitions, net of cash acquired | (97,882) | (78,991) | |
Net cash used in investing activities | (109,009) | (84,339) | (7,556) |
Cash flows from financing activities: | |||
Proceeds from bank borrowings | 50,296 | 3,000 | |
Repayments of bank borrowings | (25,000) | (5,000) | (13,000) |
Stock options exercised and other changes | 4,968 | (159) | (296) |
Stock repurchase | (7,418) | (3,631) | (3,864) |
Purchase of incremental ownership of joint venture | (162) | (1,320) | |
Debt issuance cost | (689) | ||
Dividends paid | (18,469) | (11,934) | (11,930) |
Net cash provided / (used in) by financing activities | 3,688 | (20,886) | (27,410) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (5,801) | 9,033 | 4,904 |
Net (decrease) / increase in cash, cash equivalents and restricted cash | (24,952) | (41,468) | 28,091 |
Cash, cash equivalents and restricted cash at beginning of year | 215,411 | 256,879 | 228,788 |
Cash, cash equivalents and restricted cash at end of year | 190,459 | 215,411 | 256,879 |
Reconciliation of cash, cash equivalents and restricted cash: | |||
Cash and cash equivalents | 189,911 | 214,811 | 256,279 |
Restricted cash included in other non-current assets | 548 | 600 | 600 |
Cash, cash equivalents and restricted cash at end of year | $ 190,459 | $ 215,411 | $ 256,879 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Common Stock Class Undefined | [1] | Class A Common Stock | [2] | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock | Redeemable Noncontrolling Interests | ||
Beginning Balance at Jan. 31, 2016 | $ 440,552 | $ 270 | $ 66 | $ 178,118 | $ 392,788 | $ 68,505 | $ (199,195) | |||||
Beginning Balance at Jan. 31, 2016 | $ 595 | |||||||||||
Net income/ (loss) attributable to Movado Group, Inc. | 35,061 | 35,061 | ||||||||||
Net income/ (loss) attributable to redeemable noncontrolling interests | 78 | 78 | ||||||||||
Dividends | (11,930) | (11,930) | ||||||||||
Stock options exercised, net of tax | (561) | 2 | 776 | (1,339) | ||||||||
Joint venture incremental share purchase | (1,011) | (1,011) | (649) | |||||||||
Stock repurchase | (3,864) | (3,864) | ||||||||||
Supplemental executive retirement plan | 190 | 190 | ||||||||||
Stock-based compensation expense | 7,281 | 7,281 | ||||||||||
Net unrealized gain (loss) on investments, net of tax provision (benefit) | 8 | 8 | ||||||||||
Net change in effective portion of hedging contracts, net of tax provision (benefit) | (37) | (37) | ||||||||||
Foreign currency translation adjustment | [3] | 8,304 | 8,304 | |||||||||
Foreign currency translation adjustment attributable to redeemable noncontrolling interests | (24) | (24) | [3] | |||||||||
Ending Balance at Jan. 31, 2017 | 473,993 | 272 | 66 | 185,354 | 415,919 | 76,780 | (204,398) | |||||
Net income/ (loss) attributable to Movado Group, Inc. | (15,225) | (15,225) | ||||||||||
Dividends | (11,934) | (11,934) | ||||||||||
Tax effect of rate change on marketable securities | [4] | (21) | 21 | |||||||||
Stock options exercised | (159) | 1 | 705 | (865) | ||||||||
Stock repurchase | (3,631) | (3,631) | ||||||||||
Supplemental executive retirement plan | 124 | 124 | ||||||||||
Stock-based compensation expense | [5] | 3,625 | 3,625 | |||||||||
Net unrealized gain (loss) on investments, net of tax provision (benefit) | (27) | (27) | ||||||||||
Net change in effective portion of hedging contracts, net of tax provision (benefit) | (52) | (52) | ||||||||||
Foreign currency translation adjustment | [3] | 23,621 | 23,621 | |||||||||
Ending Balance at Jan. 31, 2018 | 470,335 | 273 | 66 | 189,808 | 388,739 | 100,343 | (208,894) | |||||
Net income/ (loss) attributable to Movado Group, Inc. | 61,624 | 61,624 | ||||||||||
Net income/ (loss) attributable to redeemable noncontrolling interests | (53) | (53) | ||||||||||
Dividends | (18,469) | (18,469) | ||||||||||
Adoption of new revenue recognition standard (Topic 606) | (714) | (714) | ||||||||||
Stock options exercised | 4,968 | 3 | 5,841 | (876) | ||||||||
Joint venture purchase | 3,748 | |||||||||||
Stock repurchase | (7,418) | (7,418) | ||||||||||
Supplemental executive retirement plan | 123 | 123 | ||||||||||
Stock-based compensation expense | 6,042 | 6,042 | ||||||||||
Net unrealized gain (loss) on investments, net of tax provision (benefit) | (72) | (72) | ||||||||||
Net change in effective portion of hedging contracts, net of tax provision (benefit) | 38 | 38 | ||||||||||
Prior service cost, net of tax benefit | (420) | (420) | ||||||||||
Conversion of Class A Stock to Common Stock | 1 | (1) | ||||||||||
Foreign currency translation adjustment | [3] | (19,382) | (19,382) | |||||||||
Foreign currency translation adjustment attributable to redeemable noncontrolling interests | 26 | 26 | [3] | |||||||||
Ending Balance at Jan. 31, 2019 | $ 496,655 | $ 277 | $ 65 | $ 201,814 | $ 431,180 | $ 80,507 | $ (217,188) | |||||
Ending Balance at Jan. 31, 2019 | $ 3,721 | |||||||||||
[1] | Each share of common stock is entitled to one vote per share on all matters submitted to a vote of the shareholders. | |||||||||||
[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. | |||||||||||
[4] | Due to the early adoption of ASU 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income “. | |||||||||||
[5] | Stock-based compensation expense in fiscal 2018 includes $1.2 million related to the Company’s cost savings initiatives. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (PARENTHETICAL) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Dividends per share | $ 0.80 | $ 0.52 | $ 0.52 |
Stock options exercised, tax expense | $ 265 | ||
Net unrealized gain (loss) on investments, tax provision (benefit) | $ (14) | $ (13) | 30 |
Net change in effective portion of hedging contracts, tax provision / (benefit) | 7 | (9) | (10) |
Prior service cost, tax benefit | 117 | ||
Stock-based compensation | $ 6,042 | 4,874 | $ 7,281 |
Cost Savings Initiatives | |||
Stock-based compensation | $ 1,200 | ||
Common Stock Class Undefined | |||
Common Stock, Voting Rights | Each share of common stock is entitled to one vote per share on all matters submitted to a vote of the shareholders. | ||
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 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. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES Organization and Business Movado Group, Inc. (together with its subsidiaries, the “Company”) designs, sources, markets and distributes quality watches with prominent brands in almost every price category comprising the watch industry. In fiscal 2019, the Company marketed the following distinct brands of watches: Concord, Ebel, Movado, Olivia Burton, Coach, Tommy Hilfiger, HUGO BOSS, Lacoste, Scuderia Ferrari and Rebecca Minkoff/Uri Minkoff. On October 1, 2018, the Company acquired all the outstanding equity interests of MVMT Watches, Inc., the owner of the MVMT global aspirational lifestyle brand (“MVMT”). Movado (with the exception of certain Movado collections, including Movado BOLD), Ebel and Concord watches are manufactured in Switzerland by independent third-party assemblers and are manufactured using Swiss movements. All of the Company’s products are manufactured using components obtained from third party suppliers. Certain Movado collections of watches, including Movado BOLD, are manufactured by independent contractors in Asia using Swiss movements. Coach, Tommy Hilfiger, HUGO BOSS, Lacoste, MVMT, Olivia Burton, Scuderia Ferrari and Rebecca Minkoff and Uri Minkoff watches are manufactured by independent contractors in Asia. In addition to its sales to trade customers and independent distributors, the Company sells directly to consumers via its e-commerce platforms and also operates 43 retail outlet locations throughout the United States and one in Canada, through which it sells current and discontinued models and factory seconds of all of the Company’s watches. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany transactions and balances have been eliminated. To the extent a subsidiary is not wholly owned, any related noncontrolling interests are included as a separate component of Shareholders’ Equity. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. These estimates and assumptions are based on management’s best estimates and judgment. On an on-going basis, the Company evaluates its estimates and judgement. These estimates include accounting for sales discounts, returns, allowances and incentives, warranties, income taxes, depreciation, amortization, inventory write-downs, stock-based compensation, pensions, contingencies, impairments and asset and liability valuations. Actual results could differ from those estimates. Translation of Foreign Currency Financial Statements and Foreign Currency Transactions The financial statements of the Company’s international subsidiaries have been translated into United States dollars by translating balance sheet accounts at year-end exchange rates and the weighted average exchange rate for each period for revenues, expenses, gains, losses and cash flows. Foreign currency transaction gains and losses are charged or credited to earnings as incurred. Foreign currency translation gains and losses are reflected in the equity section of the Company’s consolidated balance sheets in Accumulated Other Comprehensive Income. Cash and Cash Equivalents and Restricted Cash Cash equivalents include all highly liquid investments with original maturities at date of purchase of three months or less. Restricted cash is comprised of cash or cash equivalents which has been placed into an account that is restricted for a specific use and from which the Company cannot withdraw the cash on demand. Trade Receivables Trade receivables as shown on the consolidated balance sheets are net of various allowances. The allowance for doubtful accounts is determined through an analysis of the aging of accounts receivable, assessments of collectability based on historical trends, the financial condition of the Company’s customers and an evaluation of economic conditions. The Company writes off uncollectible trade receivables once collection efforts have been exhausted and third parties confirm the balance is not recoverable. The Company’s trade customers include department stores, jewelry store chains and independent jewelers. All of the Company’s watch brands are also marketed outside the U.S. through a network of independent distributors. Accounts receivable are stated net of doubtful accounts, returns and allowances of $23.8 million, $21.6 million, and $18.9 million at January 31, 2019, 2018 and 2017, respectively. Additionally, $2.2 million, $2.3 million and $2.2 million of receivables and allowances were recorded in non-current assets as of January 31, 2019, 2018 and 2017, respectively. Accounts receivable are also stated net of co-operative advertising allowances of $9.4 million, $9.4 million, and $7.8 million at January 31, 2019, 2018, and 2017, respectively. Co-operative advertising allowances are credits taken by the customer at a future date on previously executed co-operative advertising. The Company’s concentrations of credit risk arise primarily from accounts receivable related to trade customers during the peak selling seasons. The Company has significant accounts receivable balances due from major national chain and department stores. The Company’s results of operations could be materially adversely affected in the event any of these customers or a group of these customers defaulted on all or a significant portion of their obligations to the Company as a result of financial difficulties. As of January 31, 2019, except for those accounts provided for in the allowance for doubtful accounts, the Company knew of no situations with any of the Company’s major customers which would indicate any such customer’s inability to make its required payments. No single customer accounted for more than 10% of net sales during any of the years in the three-year period ended January 31, 2019. No single customer accounted for more than 10% of the Company’s account receivable balance at January 31, 2019 or 2018. Inventories The Company values its inventory at the lower of cost or net realizable value. Cost is determined using the average cost method. The Company performs reviews of its on-hand inventory to determine amounts, if any, of inventory that is deemed discontinued, excess, or unsaleable. Inventory classified as discontinued, together with the related component parts which can be assembled into saleable finished goods, is sold primarily through the Company’s outlet stores. Property, Plant and Equipment Property, plant and equipment, including computer software, are stated at cost less accumulated depreciation. The Company capitalizes certain computer software costs after technological feasibility has been established. Depreciation and amortization are computed using the straight-line method based on the estimated useful lives of the assets. The cost of property, plant and equipment and related depreciation and amortization are removed from the accounts upon the disposition or retirement of such assets and the resulting gain or loss is reflected in operating income. Intangibles Intangible assets consist primarily of a trade names, customer relationships and trademarks. In accordance with applicable guidance, the Company estimates and records the fair value of purchased intangible assets at the time of their acquisition. The fair values of these intangible assets are estimated based on independent third-party appraisals. Finite-lived intangible assets are amortized over their respective estimated useful lives, which range from three to ten years, and are evaluated for impairment periodically and whenever events or changes in circumstances indicate that their related carrying values may not be fully recoverable. Estimates of fair value for finite-lived intangible assets are primarily determined using discounted cash flow analysis of such assets, with consideration of market comparisons and recent transactions. This approach uses significant estimates and assumptions, including projected future cash flows, discount rates and growth rates. Goodwill At the time of an acquisition, in accordance with applicable guidance, the Company records all acquired net assets at their estimated fair values. These estimated fair values are based on management’s assessments and independent third-party appraisals. The excess of the purchase consideration plus the fair value of any noncontrolling interest in the acquired company over the aggregate estimated fair values of the acquired net assets, including any contingent consideration, is recorded as goodwill. Goodwill is not amortized but is assessed for impairment at least annually on November 1 st The quantitative impairment test is performed to measure the amount of impairment loss, if any. The quantitative impairment test identifies the existence of potential impairment by comparing the fair value of each reporting unit with its carrying value, including goodwill. If a reporting unit’s carrying amount exceeds its fair value, the Company will record an impairment charge, as an operating expense item, based on that difference. The impairment charge will be limited to the amount of goodwill allocated to that reporting unit. Determination of the fair value of a reporting unit and the fair value of individual assets and liabilities of a reporting unit is based on management’s assessment, including the consideration of independent third-party appraisals when necessary. Furthermore, this determination is subjective in nature and involves the use of significant estimates and assumptions. These estimates and assumptions could have a significant impact on whether or not an impairment charge is recognized and the amount of any such charge. Estimates of fair value are primarily determined using discounted cash flows, market comparisons, and recent transactions. These approaches use significant estimates and assumptions, including projected future cash flows, discount rates, growth rates, and determination of appropriate market comparisons. At November 1, 2018 and 2017, the Company evaluated goodwill for impairment. There were no indicators of impairment under this analysis and, accordingly, no impairment charge was recorded in fiscal 2019 or in fiscal 2018, respectively. Noncontrolling Interest Noncontrolling interests in subsidiaries that are redeemable for cash or other assets outside of the Company’s control are classified as mezzanine equity, outside of equity and liabilities, at the greater of the carrying value or the redemption value. The increases and decreases in the redemption amount are recorded with corresponding adjustments against the Capital in excess of par value and are reflected in the computation of earnings per share using the two-class method. Long-Lived Assets The Company periodically reviews the estimated useful lives of its property, plant and equipment and intangible assets based on factors including historical experience, the expected beneficial service period of the asset, the quality and durability of the asset and the Company’s maintenance policy including periodic upgrades. Changes in useful lives are made on a prospective basis unless factors indicate the carrying amounts of the assets may not be recoverable and an impairment write-down is necessary. The Company performs an impairment review of its long-lived assets once events or changes in circumstances indicate, in management’s judgment, that the carrying value of such assets may not be recoverable. When such a determination has been made, management compares the carrying value of the asset groups with their estimated future undiscounted cash flows. If it is determined that an impairment has occurred, the fair value of the asset group is determined and compared to its carrying value. The excess of the carrying value over the fair value, if any, is recognized as loss during that period. The impairment is calculated as the difference between asset carrying values and the fair value of the long-lived assets. At November 1, 2018 and 2017, the Company evaluated long-lived assets for impairment. There were no indicators of impairment under this analysis and, accordingly, no impairment charge was recorded in fiscal 2019 or in fiscal 2018, respectively Deferred Rent Obligations and Contributions from Landlords The Company accounts for rent expense under non-cancelable operating leases with scheduled rent increases on a straight-line basis over the lease term. The excess of straight-line rent expense over scheduled payments is recorded as a deferred liability in accrued liabilities and other non-current liabilities. In addition, the Company receives build out contributions from landlords primarily as an incentive for the Company to lease retail store space from the landlords. This is also recorded as a deferred liability in accrued liabilities and other non-current liabilities. Such amounts are amortized as a reduction of rent expense over the life of the related lease. Derivative Financial Instruments The Company accounts for its derivative financial instruments in accordance with the accounting guidance which requires that an entity recognize all derivatives as either assets or liabilities in the consolidated balance sheets and measure those instruments at fair value. A significant portion of the Company’s purchases are denominated in Swiss francs and, to a lesser extent, the Japanese Yen. The Company also sells to third-party customers in a variety of foreign currencies, most notably the Euro and the British Pound. The Company reduces its exposure to the Swiss franc, Euro, British Pound and Japanese Yen 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, from time to time the Company uses forward contracts to further reduce the net exposures to currency fluctuations. Certain of these contracts meet the requirements of qualified hedges. In these circumstances, 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 hedges designated and documented as a cash flow hedge and which are 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 mostly 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. The Company does not exclude any designated cash flow hedges from its effectiveness testing. Any ineffectiveness related to the derivative financial instruments’ change in fair value will be recognized as other expense in the Consolidated Statements of Operations in the period in which the ineffectiveness was calculated. The Company uses forward exchange contracts, which do not meet the requirements of qualified hedges, 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 in earnings in the period they arise, thereby offsetting the current earnings effect resulting from the revaluation 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. Revenue Recognition Wholesale revenue is recognized and recorded when a contract is in place, obligations under the terms of a contract with the customer are satisfied, control is transferred to the customer and is measured as the ultimate amount of consideration the Company expects to receive in exchange for transferring goods including variable consideration. Direct to consumer and after-sales service revenue is recognized at time of register receipt or delivery to customer. The Company records estimates of variable consideration, which includes sales returns, markdowns, volume-based programs and sales and cash discount allowances as a reduction of revenue in the same period that the sales are recorded. These estimates are based upon the expected value method considering all reasonably available information including historical analysis, customer agreements and/or currently known factors that arise in the normal course of business. Returns, discounts and allowances have historically been within the Company’s expectations and the provisions established. The future provisional rates may differ from those experienced in the past. The Company considers transfer of control to take place either when the goods ship or when goods are delivered depending on the shipping terms in the contract. Factors considered in the transfer of control include the right to payment, transfer of legal title, physical possession and customer acceptance of the goods and whether the significant risks and rewards for the goods belong with the customer. Taxes imposed by governmental authorities on the Company's revenue-producing activities with customers, such as sales taxes and value added taxes, are excluded from net sales. The Company’s sale of smart watches contains multiple performance obligations. The Company allocates revenue to each performance obligation using the relative standalone selling price method. The Company determines the standalone selling prices based on the prices charged to customers. Amounts allocated to the delivered smart watch collections and the related essential software are recognized at the time of sale. Amounts allocated to the cloud service and app updates are deferred and recognized on a straight-line basis over the estimated two-year period the updates are expected to be provided. The Company’s smart watch collections were available in limited quantities and in limited distribution, and, as a result, these deferred amounts were immaterial to all periods presented. The Company has considered each transaction to sell goods as separate and distinct, with no additional promises made. The Company uses the understanding of what the customer expects to receive as the final product to determine whether goods or services should be combined and accounted for as a single performance obligation. The Company does not incur significant costs to obtain or fulfill its contracts. Cost of Sales Cost of sales of the Company’s products consist primarily of costs for raw materials, component costs, royalties, depreciation, amortization, assembly costs, shipping to e-commerce customers, design costs and unit overhead costs associated with the Company’s supply chain operations predominately in Switzerland and Asia. The Company’s supply chain operations consist of logistics management of assembly operations and product sourcing predominately in Switzerland and Asia and minor assembly in Switzerland. Selling, General and Administrative (“SG&A”) Expenses The Company’s SG&A expenses consist primarily of marketing, selling, distribution, general and administrative expenses. Marketing expenditures are based principally on overall strategic considerations relative to maintaining or increasing market share in markets that management considers to be crucial to the Company’s continued success as well as on general economic conditions in the various markets around the world in which the Company sells its products. Marketing expenses include salaries, various forms of media advertising, digital advertising, customer acquisition costs and co-operative advertising with customers and distributors and other point of sale marketing and promotion spending. Selling expenses consist primarily of salaries, sales commissions, sales force travel and related expenses, depreciation and amortization, expenses associated with the Company’s annual worldwide customer conference, and other industry trade shows and operating costs incurred in connection with the Company’s retail business. Sales commissions vary with overall sales levels. Retail selling expenses consist primarily of payroll and related expenses and store occupancy costs. Distribution expenses consist primarily of salaries of distribution staff, rental and other occupancy costs, security, depreciation and amortization of furniture and leasehold improvements and shipping supplies. General and administrative expenses consist primarily of salaries and other employee compensation including performance based compensation, employee benefit plan costs, office rent, management information systems costs, professional fees, bad debts, depreciation and amortization of furniture, computer software, leasehold improvements, and intangible assets and various other general corporate expenses. Warranty Costs All watches sold by the Company come with limited warranties covering the movement against defects in material and workmanship for periods ranging from two to three years from the date of purchase, with the exception of Tommy Hilfiger watches, for which the warranty period is ten years. In addition, the warranty period is five years for the gold plating for Movado watch cases and bracelets. When changes in warranty costs are experienced, the Company will adjust the warranty liability as required. The Company records an estimate for future warranty costs based on historical repair costs. Warranty costs have historically been within the Company’s expectations and the provisions established. Warranty liability, included in accrued liabilities in the consolidated balance sheets, and activity for the fiscal years ended January 31, 2019, 2018 and 2017 was as follows (in thousands): 2019 2018 2017 Balance, beginning of year $ 3,288 $ 2,728 $ 2,556 Provision charged to operations 2,249 2,845 2,092 Settlements made (2,834 ) (2,285 ) (1,920 ) Balance, end of year $ 2,703 $ 3,288 $ 2,728 Pre-opening Costs Marketing and administrative costs associated with the opening of retail stores are expensed in the period incurred. Marketing The Company expenses the production costs of an advertising campaign at the commencement date of the advertising campaign. Included in marketing expenses are costs associated with co-operative advertising, media advertising, digital advertising, customer acquisition costs, production costs and costs of point of sale materials and displays. These costs are recorded as SG&A expenses. The Company participates in co-operative advertising programs on a voluntary basis and receives a “separately identifiable benefit in exchange for the consideration.” Since the amount of consideration paid to the retailer does not exceed the fair value of the benefit received by the Company, these costs are recorded as SG&A expenses as opposed to being recorded as a reduction of revenue. Marketing expense for fiscal 2019, 2018 and 2017 was $108.2 million, $73.1 million and $75.7 million, respectively. Included in other current assets and non-current assets in the consolidated balance sheets are the costs of certain prepaid advertising, including principally product displays and point of sale materials and to a lesser extent licensing agreements and sponsorships. Prepaid advertising accounted for in other current assets at January 31, 2019 and 2018, respectively. Prepaid advertising accounted for in other non-current assets at January 31, 2019 and 2018, respectively. Loyalty Program Our MVMT (see Note 3) Insider Rewards loyalty program allows customers to earn points for every purchase made and for engaging with MVMT’s brand through social media and other platforms. Once enough points are earned, the points may be redeemed like cash on . MVMT Insider Rewards loyalty program liabilities of $0.3 million were included in other current liabilities at January 31, 2019. The Company recognizes the estimated net amount of the rewards that will be earned and redeemed as a reduction of net sales or in selling, general and administrative, dependent on how points were earned. Shipping and Handling Costs Amounts charged to customers for shipping and handling were $2.2 million, $1.8 million and $1.9 million for fiscal years 2019, 2018 and 2017, respectively. The costs related to shipping and handling were $9.8 million, $5.2 million and $5.6 million for fiscal years 2019, 2018 and 2017, respectively. The amounts charged and incurred by the Company related to shipping and handling are included in net sales and cost of goods sold, respectively. Collaborative Arrangement The Company participates in a collaborative arrangement with Rebecca Minkoff, LLC relating to the Rebecca Minkoff and Uri Minkoff brand names. Both parties to the arrangement are active participants in the collaboration and are exposed to significant risks and rewards dependent on the commercial success of the activities. The arrangement involves various activities including the design, development, distribution and marketing of watches under the brand names. Amounts due between the parties to the arrangement related to sales and related activities are recorded in the Company’s cost of sales while those amounts related to general and administrative activities are recorded as an adjustment to selling, general and administrative expenses. The Company generated immaterial revenues and incurred immaterial expenses under its collaborative arrangement during fiscal 2019. Income Taxes The Company, under Accounting Standards Codification guidance for Income Taxes (“ASC Topic 740”), follows the asset and liability method of accounting for income taxes under which deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax laws and tax rates, in each jurisdiction where the Company operates, and applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities due to a change in tax rates is recognized in income in the period that includes the enactment date. In addition, the amounts of any future tax benefits are reduced by a valuation allowance to the extent such benefits are not expected to be realized on a more-likely-than-not basis. The Company calculates estimated income taxes in each of the jurisdictions in which it operates. This process involves estimating actual current tax expense along with assessing temporary differences resulting from differing treatment of items for both book and tax purposes. The Company follows guidance for accounting for uncertainty in income taxes. This guidance clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement standard for the financial statement recognition and measurement of an income tax position taken or expected to be taken in a tax return. This guidance also provides guidance for de-recognition, classification, interest and penalties, accounting in interim periods, disclosures and transitions. The 2017 Tax Act signed into law on December 22, 2017 constitutes a major change to the U.S. tax system. The 2017 Tax Act significantly changed the existing U.S. corporate income tax laws by, among other things, lowering the corporate tax rate from 35% to 21%, limiting the deductibility of interest expense and executive compensation, implementing a territorial tax system, and imposing a one-time mandatory deemed repatriation Transition Tax on cumulative undistributed foreign earnings which have not been previously taxed. The SEC issued Staff Accounting Bulletin No. 118 (“SAB 118”) which allowed the Company to record provisional amounts related to the 2017 Tax Act and provides a measurement period of up to one year from the enactment date for companies to complete their accounting under ASC Topic 740. As of December 21, 2018, the Company completed its accounting for the tax effects of the enactment (Note 10 – Income Taxes). The Company has finalized its policy election to account for the tax on Global Intangible Low-Tax Income (“GILTI”) as a period cost and therefore has not recorded deferred taxes related to GILTI. The Company early adopted Accounting Standards Update (“ASU”) 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“AOCI”) which permits companies to reclassify disproportionate tax effects in accumulated other comprehensive income caused by the 2017 Tax Act to retained earnings. As a result, the Company made the election to reclassify the income tax effects of the 2017 Tax Act from AOCI to retained earnings in the prior year. The adoption of this standard did not have a material impact on the Company’s consolidated results of operations or financial position. Comparable Stores Sales The Company considers comparable outlet store sales to be sales of stores that were open as of February 1 st st Earnings Per Share The Company presents net income / (loss) attributable to Movado Group, Inc. after adjusting for redeemable noncontrolling interest, as applicable per share on a basic and diluted basis. Basic earnings per share is computed using weighted-average shares outstanding during the period. Diluted earnings per share is computed using the weighted-average number of shares outstanding adjusted for dilutive common stock equivalents. The number of shares used in calculating basic and diluted earnings (loss) per share is as follows (in thousands): Fiscal Years Ended January 31, 2019 2018 2017 Weighted average common shares outstanding: Basic 23,197 23,073 23,070 Effect of dilutive securities: Options to purchase shares of common stock 403 — 197 Diluted 23,600 23,073 23,267 For the fiscal years ended January 31, 2019, 2018 and 2017 81,185, 795,644 and 785,190 respectively, of potentially dilutive common stock equivalents were excluded from the computation of diluted earnings per share because their effect would have been antidilutive. For the fiscal year ended January 31, 2018, the Company also had 198,804 stock options outstanding that could potentially dilute earnings per share in future periods that were excluded from the computation of diluted EPS because their effect would have been anti-dilutive given the net loss during the period. Stock-Based Compensation The Company utilizes the Black-Scholes option-pricing model which requires that certain assumptions be made to calculate the fair value of each option at the grant date. The expected life of stock option grants is determined using historical data and represents the time period during which the stock option is expected to be outstanding until it is exercised. The risk free interest rate is based on the U.S. treasury note interest rate in effect on the date of grant for the expected life of the stock option. The expected stock price volatility is derived from historical volatility and calculated based on the estimated term structure of the stock option grant. The expected dividend yield is calculated using the Company’s historical average of annualized dividend yields and applied over the expected term of the option. Management monitors stock option exercises and employee termination patterns to estimate forfeitures rates within the valuation model. Separate groups of employees that have similar historical exercise behavior are considered separately for valuation purposes. In addition to stock options, the Company may also grant stock awards to employees. The stock awards are generally in the form of time-vesting restricted stock unit awards (pursuant to which unrestricted shares of Common Stock are issued to the grantee when the award vests) or performance-based awards (under which vesting |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Jan. 31, 2019 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | NOTE 2 –RECENT ACCOUNTING PRONOUNCEMENTS On October 25, 2018 , the FASB issued ASU 2018-16, “Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting”, which permits use of the OIS rate based on SOFR as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815 in addition to the UST, the LIBOR swap rate, the OIS rate based on the Fed Funds Effective Rate, and the SIFMA Municipal Swap Rate for Derivatives and Hedging (Topic 815). Early adoption is permitted in any interim period upon issuance of this update if an entity already has adopted Update 2017-12. The amendments should be adopted on a prospective basis for qualifying new or redesignated hedging relationships entered into on or after the date of adoption. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements or related disclosures. On August 28, 2018, the FASB issued 2018-13, “Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement”, which modifies the disclosure requirements in ASC 820, Fair Value Measurement. This guidance is effective for fiscal years beginning after December 15, 2019, which will be the Company’s first quarter of fiscal 2021, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard on its related disclosures. On June 20, 2018, the FASB issued ASU 2018-07, which simplifies the accounting for share-based payments granted to nonemployees for goods and services. Under the ASU, most of the guidance on such payments to nonemployees would be aligned with the requirements for share-based payments granted to employees. For public companies, the standard will be effective for the first interim reporting period within annual periods beginning after December 15, 2018, which will be the Company’s first quarter of fiscal 2020, with early adoption permitted. The new standard must be adopted using a modified retrospective transition with a cumulative effect adjustment recorded to opening retained earnings as of the initial adoption date. The adoption of this guidance will not have a material impact on the Company’s consolidated financial statements. On February 25, 2016, FASB issued ASU 2016-02, “Leases,” which requires lessees to recognize most leases on the balance sheet. This change is expected to increase both reported assets and liabilities. For public companies, the standard will be effective for the first interim reporting period within annual periods beginning after December 15, 2018, which will be the Company’s first quarter of fiscal 2020. The requirements of this standard include a significant increase in required disclosures and will result in a material increase to the Company’s total assets and liabilities through recognition of right-of-use assets and related lease liabilities. effect adjustment in the first quarter of fiscal 2020, rather than restating any prior periods. In addition, the Company will elect the package of practical expedients permitted under the transition guidance, which does not require reassessment of prior conclusions related to contracts containing a lease, lease classification and initial direct lease costs. The Company is in the process of finalizing its calculation and testing of the third-party software solution and estimates On August 28, 2017, FASB issued ASU 2017-12, “Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities,” which expands an entity’s ability to apply hedge accounting for nonfinancial and financial risk components and allows for a simplified approach for fair value hedging of interest rate risk. The new guidance eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The new guidance also simplifies the hedge documentation and effectiveness assessment requirements. For public companies, the standard will be effective for the first interim reporting period within annual periods beginning after December 15, 2018, which will be the Company’s first quarter of fiscal 2020, with early adoption permitted. The new standard must be adopted using a modified retrospective transition with a cumulative effect adjustment recorded to opening retained earnings as of the initial adoption date. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements or related disclosures. |
Acquisitions
Acquisitions | 12 Months Ended |
Jan. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | NOTE 3 – ACQUISITIONS City Time On December 3, 2018, the Company acquired 51% of City Time Distribucion, S.L.U, (“City Time”), the Company’s distributor in Spain, and simultaneously signed a joint venture agreement. The purchase price was $4.8 million, or 4.2 million Euros, net of cash acquired, and was funded with cash on hand. The results of City Time have been included in the consolidated financial statements since the date of acquisition within the International location of the Watch and Accessory Brands segment. Of the total purchase consideration, there was no material amounts allocated to assets acquired and liabilities assumed. Pursuant to the joint venture agreement, the noncontrolling interest holder has the right to sell its interest in City Time to the Company on two specific dates in the future. The noncontrolling interest is not redeemable until such dates. The Company will adjust the carrying value of the redeemable interest to the redemption amount assuming the security was redeemable at the balance sheet date. At January 31, 2019, the Company concluded that the remeasurement adjustment is immaterial. MVMT On October 1, 2018, the Company acquired MVMT Watches, Inc., owner of MVMT, for an initial payment of $100.0 million and two future contingent payments that combined could total up to an additional $100.0 million before tax benefits. The exact amount of the future payments will be determined by MVMT's future financial performance with no minimum required future payment. After giving effect to the closing adjustments, the purchase price was $108.4 million, net of cash acquired of $3.8 million. The acquisition was funded with cash on hand and adds a new brand with significant global growth potential to the Company’s portfolio. The results of the MVMT brand have been included in the consolidated financial statements since the date of acquisition within the U.S. and International locations of the Watch and Accessory Brands segment. For the fiscal year ended January 31, 2019, consolidated operating income included $14.4 million of expenses primarily related to integration and transaction costs, as a result of the Company’s acquisition of MVMT. The acquisition was accounted for in accordance with FASB Topic ASC 805-Business Combinations, which requires that the total cost of an acquisition be allocated to the tangible and intangible assets acquired and liabilities assumed based upon their respective fair values at the date of acquisition. The following table summarizes the fair value of the assets acquired and liabilities assumed as of the October 1, 2018 acquisition date (in thousands): Assets Acquired and Liabilities Assumed Fair Value Cash and cash equivalents $ 3,848 Trade receivables 370 Inventories 14,552 Prepaid expenses and other current assets 2,325 Property, plant and equipment 179 Other non-current assets 6,500 Goodwill 77,542 Trade name and other intangibles 28,928 Total assets acquired 134,244 Accounts payable 5,982 Accrued liabilities 9,018 Other non-current liabilities 7,064 Total liabilities assumed 22,064 Total purchase price $ 112,180 Inventories (as of October 1, 2018) included a step-up adjustment of $0.7 million, which is being amortized over 5 months. The components of Trade name and other intangibles (as of October 1, 2018) included a trade name of $24.7 million (amortized over 10 years), and customer relationships of $4.2 million (amortized over 10 years). Other non-current assets and other non-current liabilities each included $6.5 million at the acquisition date related to escrow amounts established under the acquisition agreement, associated with certain contingencies that existed at the date of acquisition. In January 2019, $1.4 million of the escrow amount was settled. Upon settlement of all of the remaining contingencies, the excess funds in escrow, if any will be returned to the selling group. If the costs to settle the contingencies exceed the escrowed balances, the additional cost shall be borne by the Company. The acquisition agreement also includes a contingent consideration arrangement based on the MVMT brand achieving certain revenue and EBITDA (as defined in the acquisition agreement) targets. In connection therewith, the Company recorded a non-current liability of $16.5 million as of the date of acquisition to reflect the estimated fair value of the contingent purchase price. $14.5 million is allocated to purchase price and $2.0 million to deferred compensation expense based on future employee service requirements. The estimated fair value of the contingent consideration was determined using a Monte Carlo simulation that includes key assumptions regarding MVMT’s projected financial performance during the earn-out period, volatilities, estimated discount rates, risk-free interest rate, and correlation. Each reporting period after the acquisition, the Company will revalue the contingent purchase price liability and record increases or decreases in the fair value of the liability in its Consolidated Statements of Operations. Changes in fair value will result from changes in actual and projected financial performance, discount rates, volatilities, and the other key assumptions. The inputs and assumptions are not observable in the market but reflect the assumptions the Company believes would be made by a market participant. The possible outcomes for the contingent consideration range from $0 to $100 million on an undiscounted basis. As of the January 31, 2019 remeasurement date, the contingent purchase price liability has been accreted to $16.7 million. The $0.2 million increase in the liability is included as a reduction in operating income in the Consolidated Statement of Operations. Refer to Note 8 for further discussion of fair value measurements. The Company recorded goodwill (as of October 1, 2018) of $77.5 million based on the amount by which the purchase price exceeded the fair value of the net assets acquired. As the structure of the acquisition allowed for a step up in basis for tax purposes, the full amount of the goodwill balance will be deductible for federal income tax purposes over 15 years. MVMT’s operating results have been included in the Company’s Consolidated Financial Statements beginning October 1, 2018. Net sales of the acquired MVMT brand since the date of acquisition through January 31, 2019 were $39.8 million. The MVMT brand’s operating income since the date of acquisition was $0.6 million. These foregoing operating results exclude certain activity of the Company or its wholly owned subsidiaries in support of the MVMT brand. The following table provides the Company’s unaudited pro forma net sales, net income and net income per basic and diluted common share as if the results of operations of the MVMT brand had been included in the Company’s operations commencing on February 1, 2017, based on available information relating to operations of the MVMT brand. This pro forma information is not necessarily indicative either of the combined results of operations that actually would have been realized by the Company had the MVMT brand acquisition been consummated at the beginning of the period for which the pro forma information is presented, or of future results. Fiscal Year Ended January 31, 2019 2018 (1) (In thousands, except per share data) (Unaudited) Net sales $ 712,587 $ 639,319 Net income / (loss) attributable to Movado Croup, Inc. (1) $ 64,118 $ (21,519 ) Basic income per share: Net income / (loss) per share attributable to Movado Group, Inc. $ 2.76 $ (0.93 ) Diluted income per share: Net income / (loss) per share attributable to Movado Group, Inc. $ 2.72 $ (0.93 ) (1) Includes non-recurring transaction costs of $7.0 million associated with the acquisition. Olivia Burton On July 3, 2017, the Company, through a wholly-owned U.K. subsidiary, acquired JLB Brands Ltd. (“JLB”), the owner of the Olivia Burton brand, one of the United Kingdom’s fastest growing fashion watch and jewelry brands, for $78.2 million, or £60.0 million in cash, subject to working capital and other closing adjustments. After giving effect to the closing adjustments, the purchase price was $79.0 million, or £60.7 million, net of cash acquired of $5.9 million, or £4.5 million. The acquisition was funded with cash on hand of the Company’s non-U.S. subsidiaries, and no debt was assumed in the acquisition. The acquisition adds a new brand with significant global growth potential to the Company’s portfolio. The results of JLB’s operations have been included in the consolidated financial statements since the date of acquisition within the International location of the Watch and Accessory Brands segment. In the Watch and Accessory Brands segment, for the fiscal year ended January 31, 2019 and 2018, operating income included $2.9 million and $6.8 million, respectively, of expenses primarily related to transaction costs and adjustments in acquisition accounting, as a result of the Company’s purchase of JLB. The acquisition was accounted for in accordance with ASC 805, which requires that the total cost of an acquisition be allocated to the tangible and intangible assets acquired and liabilities assumed based upon their respective fair values at the date of acquisition The following table summarizes the fair value of the assets acquired and liabilities assumed as of the July 3, 2017 acquisition date (in thousands): Assets Acquired and Liabilities Assumed Fair Value Cash and cash equivalents $ 5,909 Trade receivables, net 3,106 Inventories 4,164 Prepaid expenses and other current assets 913 Property, plant and equipment, net 131 Goodwill 55,322 Trade name and other intangibles 21,415 Total assets acquired 90,960 Accounts payable 608 Accrued liabilities 844 Income taxes payable 643 Deferred and non-current income taxes payable 3,965 Total liabilities assumed 6,060 Total purchase price $ 84,900 Inventories (as of July 3, 2017) included a step-up adjustment of $0.8 million, which was expensed over the sell-through cycle of three months. The components of Trade name and other intangibles (as of July 3, 2017) include a trade name of $12.8 million (amortized over 10 years), and customer relationships of $8.6 million (amortized over 6 years). The Company recorded goodwill (as of July 3, 2017) of $55.3 million based on the amount by which the purchase price exceeded the fair value of the net assets acquired. Goodwill related to the acquisition of the Olivia Burton brand is not deductible for income tax purposes. The operating results of JLB have been included in the Company’s Consolidated Financial Statements beginning July 3, 2017. Net sales and operating income of JLB since the date of acquisition through January 31, 2018 were $17.8 million and $5.3 million, respectively. JLB’s operating results exclude sales recognized and expenses incurred by certain wholly-owned subsidiaries of the Company in support of the Olivia Burton brand. The changes in the carrying amount of goodwill during the fiscal years ended January 31, 2019, 2018 and 2017 are as follows (in thousands): MVMT (1) City Time(2) JLB (3) Total Balance at January 31, 2017 $ — $ — $ — $ — Acquisition of JLB — — 55,322 55,322 Foreign exchange impact — — 4,947 4,947 Balance at January 31, 2018 — — 60,269 60,269 Acquisition of MVMT 77,542 — — 77,542 Acquisition of City Time — 2,833 — 2,833 Foreign exchange impact — 18 (4,629 ) (4,611 ) Balance at January 31, 2019 $ 77,542 $ 2,851 55,640 136,033 (1) Goodwill associated with the MVMT brand is included in the United States location of the Watch and Accessory Brands segment. (2) Goodwill associated with City Time is included in the International location of the Watch and Accessory Brands segment. (3) Goodwill associated with JLB is included in the International location of the Watch and Accessory Brands segment. At November 1, 2018, the Company evaluated goodwill for impairment. There were no indicators of impairment under this analysis and, accordingly, no impairment charge was recorded in fiscal 2019. The changes in the carrying amount of other intangible assets during the fiscal years ended January 31, 2019, 2018 and 2017 are as follows (in thousands): Trade names Customer relationships Other (1) Total Balance at January 31, 2016 $ — $ — $ 1,490 $ 1,490 Amortization — — (420 ) (420 ) Additions — — 328 328 Foreign exchange impact — — 235 235 Balance at January 31, 2017 — — 1,633 1,633 Acquisition of JLB 12,797 8,618 — 21,415 Additions — — 556 556 Amortization (781 ) (876 ) (434 ) (2,091 ) Foreign exchange impact 1,080 715 (184 ) 1,611 Balance at January 31, 2018 13,096 8,457 1,571 23,124 Acquisition of MVMT 24,700 4,200 28 28,928 Acquisition of City-Time — 1,672 — 1,672 Additions — — 492 492 Amortization (2,126 ) (1,628 ) (597 ) (4,351 ) Foreign exchange impact (899 ) (520 ) (263 ) (1,682 ) Balance at January 31, 2019 $ 34,771 $ 12,181 $ 1,231 $ 48,183 (1) Other includes fees paid related to trademarks and non-compete agreement related to Olivia Burton brand. Weighted average amortization periods over a straight-line basis are as follows: In Years Trade names 10 Customer relationships 7 Other 7 The estimated future amortization expense during each of the next five fiscal years is as follows: For the fiscal year ending January 31, (in thousands) 2020 $ 6,149 2021 6,036 2022 5,971 2023 5,942 2024 5,071 Thereafter 19,014 Total estimated future amortization expense $ 48,183 |
Inventories
Inventories | 12 Months Ended |
Jan. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 4 – INVENTORIES Inventories consisted of the following (in thousands): As of January 31, 2019 2018 Finished goods $ 123,947 $ 112,712 Component parts 39,752 37,404 Work-in-process 1,612 1,560 $ 165,311 $ 151,676 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Jan. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | NOTE 5 – PROPERTY, PLANT AND EQUIPMENT A summary of the components of property, plant and equipment and their estimated useful lives is as follows (in thousands): As of January 31, 2019 2018 Estimated Useful Lives Land and buildings $ 1,176 $ 1,610 40 years for buildings Furniture and equipment 52,314 48,748 4 to 10 years Computer software 33,289 32,359 5 to 10 years Leasehold improvements 36,727 32,814 Lesser of lease term or useful life Design fees and tooling costs 2,250 2,398 3 years 125,756 117,929 Less: Accumulated depreciation and amortization (99,689 ) (93,258 ) Property, plant and equipment, net $ 26,067 $ 24,671 Depreciation and amortization expense from operations related to property, plant and equipment for fiscal 2019, 2018 and 2017 was $9.4 million, $11.8 million and $11.9 million, respectively, which includes computer software amortization expense for fiscal 2019, 2018 and 2017 of $3.2 million, $3.6 million and $3.5 million, respectively. |
Debt and Lines of Credit
Debt and Lines of Credit | 12 Months Ended |
Jan. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt and Lines of Credit | NOTE 6 – DEBT AND LINES OF CREDIT On October 12, 2018, the Company, together with Movado Group Delaware Holdings Corporation, Movado Retail Group, Inc. and Movado LLC (together with the Company, the “U.S. Borrowers”), each a wholly owned domestic subsidiary of the Company, and Movado Watch Company S.A. and MGI Luxury Group S.A. (collectively, the “Swiss Borrowers” and, together with the U.S. Borrowers, the “Borrowers”), each a wholly owned Swiss subsidiary of the Company, entered into an Amended and Restated 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 amends and restates the Company’s prior credit agreement dated as of January 30, 2015 (the “Prior Credit Agreement”) and extends the maturity of the $100.0 million senior secured revolving credit facility (the “Facility”) provided thereunder to October 12, 2023. The Facility includes a $15.0 million letter of credit subfacility, a $25.0 million swingline subfacility and a $75.0 million sublimit for borrowings by the Swiss Borrowers, with provisions for uncommitted increases to the Facility of up to $50.0 million in the aggregate subject to customary terms and conditions. As of January 31, 2019, and January 31, 2018, there were $50.0 million in Swiss francs (with a dollar equivalent of $50.3 million) and $25.0 million, respectively, in loans outstanding under the Facility. Availability under the Facility was reduced by the aggregate number of letters of credit outstanding, issued in connection with retail and operating facility leases to various landlords and for Canadian payroll to the Royal Bank of Canada, totaling approximately $0.3 million at both January 31, 2019 and January 31, 2018. At January 31, 2019, the letters of credit have expiration dates through May 31, 2019. As of January 31, 2019, and January 31, 2018, availability under the Facility was $49.4 million and $74.7 million, respectively. As of January 31, 2018, the Company had classified all of the outstanding balance under the Facility as current, based on voluntary payments expected to be made during the next twelve months. As of February 28, 2018, the Company had repaid all $25.0 million of its then-outstanding debt. The Company had weighted average borrowings under the Facility of $15.8 million and $29.3 million, with a weighted average interest rate of 1.25% and 2.64% during fiscal 2019 and 2018, respectively. Borrowings under the Credit Agreement bear interest at rates based on either LIBOR or a specified base rate, as selected periodically by the Company. The LIBOR-based loans bear interest at LIBOR plus a spread ranging from 1.00% to 1.75% per annum and the base rate loans bear interest at the base rate plus a spread ranging from 0% to 0.75% per annum, with the spread in each case being based on the Company’s consolidated leverage ratio (as defined in the Credit Agreement). As of January 31, 2019, the Company’s spreads were 1.00% over LIBOR and 0% over the base rate. Prior to October 12, 2018, borrowings under the Prior Credit Agreement bore interest at LIBOR plus a spread ranging from 1.25% to 1.75% per annum or at a base rate plus a spread ranging from 0.25% to 0.75% per annum, with the spread in each case being based on the Company’s consolidated leverage ratio. As of January 31, 2018, the Company’s spreads were 1.25% over LIBOR and 0.25% over the base rate. Under the Credit Agreement, the Company also agreed to pay certain fees and expenses, included in interest expense in the consolidated statements of operations, and to 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, except that the Swiss Borrowers are not liable for, nor do they guarantee, the obligations of the U.S. Borrowers. In addition, the Borrowers’ obligations under the Facility are secured by first priority liens, subject to permitted liens, on substantially all of the U.S. Borrowers’ assets other than certain excluded assets. The Swiss Borrowers do not provide collateral to secure the obligations under the Facility. The security agreement under the Company’s existing credit agreement remains in place in connection with the Facility and contains customary representations and warranties and covenants relating to the creation and perfection of security interests in favor of the Agent over various categories of the U.S. Borrowers’ assets. The Credit Agreement contains affirmative and negative covenants binding on the Company and its 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). A Swiss subsidiary of the Company maintains unsecured lines of credit with an unspecified maturity with a Swiss bank. As of January 31, 2019, and 2018, these lines of credit totaled 6.5 million Swiss francs for both periods, with a dollar equivalent of $6.5 million and $7.0 million, respectively. As of January 31, 2019, and 2018, there were no borrowings against these lines. As of January 31, 2019, and 2018, 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, of which $0.5 million and $0.6 million, respectively, was a restricted deposit as it relates to lease agreements. During fiscal 2019, the Company incurred and capitalized $0.7 million of fees related to the amendment. These fees, along with the unamortized fees of $0.3 million paid related to the base Credit Agreement, are being amortized on a straight-line basis over 60 months, the revised term of the Facility, and are included in other non-current assets on the consolidated balance sheets. Cash paid for interest, including unused commitment fees, during fiscal 2019, 2018 and 2017 was $0.5 million, $1.2 million and $1.1 million, respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Jan. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | NOTE 7 – DERIVATIVE FINANCIAL INSTRUMENTS As of January 31, 2019, the Company’s entire net forward contracts hedging portfolio consisted of 33 million Swiss francs equivalent, 8.3 million Euros equivalent and 0.4 million British Pounds equivalent with various expiry dates ranging through July 10, 2019. The following table summarizes the fair value and presentation in the Consolidated Balance Sheets for derivatives as of January 31, 2019 and 2018 (in thousands): Asset Derivatives Liability Derivatives Balance Sheet Location 2019 Fair Value 2018 Fair Value Balance Sheet Location 2019 Fair Value 2018 Fair Value Derivatives not designated as hedging instruments: Foreign Exchange Contracts Other Current Assets $ 22 $ 544 Accrued Liabilities $ 156 $ 2 Total Derivative Instruments $ 22 $ 544 $ 156 $ 2 Asset Derivatives Liability Derivatives Balance Sheet Location 2019 Fair Value 2018 Fair Value Balance Sheet Location 2019 Fair Value 2018 Fair Value Derivatives designated as hedging instruments: Foreign Exchange Contracts Other Current Assets $ — $ — Accrued Liabilities $ — $ 44 Total Derivative Instruments $ — $ — $ — $ 44 As of January 31, 2019, and 2018, the balance of deferred net gains on derivative financial instruments documented as cash flow hedges included in accumulated other comprehensive income (“AOCI”) were immaterial for both periods, respectively. The maximum length of time the Company hedges its exposure to the fluctuation in future cash flows for forecasted transactions is 12 months. For the fiscal year ended January 31, 2019, the Company reclassified from AOCI to earnings $0.4 million of net gain, net of tax of $0.1million. For the fiscal year ended January 31, 2018, the Company reclassified from AOCI to earnings $0.9 million of net losses, net of tax benefit of $0.2 million. No ineffectiveness has been recorded in fiscal years 2019 and 2018, respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 31, 2019 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | |
Fair Value Measurements | NOTE 8 - 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 guidance requires the use of observable market data if such data is available without undue cost and effort. The following tables present the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of January 31, 2019 and 2018 (in thousands): Fair Value at January 31, 2019 Balance Sheet Location Level 1 Level 2 Level 3 Total Assets: Available-for-sale securities Other current assets $ 177 $ — $ — $ 177 Short-term investment Other current assets 155 — — 155 SERP assets - employer Other non-current assets 860 — — 860 SERP assets - employee Other non-current assets 38,170 — — 38,170 Hedge derivatives Other current assets — 22 — 22 Total $ 39,362 $ 22 $ — $ 39,384 Liabilities: SERP liabilities - employee Other non-current liabilities $ 38,170 $ — $ — $ 38,170 Hedge derivatives Accrued liabilities — 156 — 156 Contingent purchase price liability Other non-current liabilities — — 16,718 16,718 Total $ 38,170 $ 156 $ 16,718 $ 55,044 Fair Value at January 31, 2018 Balance Sheet Location Level 1 Level 2 Level 3 Total Assets: Available-for-sale securities Other current assets $ 275 $ — $ — $ 275 Short-term investment Other current assets 164 — — 164 SERP assets - employer Other non-current assets 994 — — 994 SERP assets - employee Other non-current assets 38,577 — — 38,577 Hedge derivatives Other current assets — 544 — 544 Total $ 40,010 $ 544 $ — $ 40,554 Liabilities: SERP liabilities - employee Other non-current liabilities $ 38,577 $ — $ — $ 38,577 Hedge derivatives Accrued liabilities — 46 — 46 Total $ 38,577 $ 46 $ — $ 38,623 The fair values of the Company’s available-for-sale securities are based on quoted prices. The fair value of the Level 3 contingent purchase price liability related to the acquisition of MVMT Watches, Inc., owner of MVMT, a global aspirational lifestyle brand, is measured using a Monte Carlo simulation with key assumptions that include revenue and brand EBITDA, (as defined in the acquisition agreement) of the acquired business during the earn-out period, volatilities, estimated discount rates, risk-free rate, and correlation. The liability is revalued each reporting period after the acquisition and increases or decreases in the fair value of the liability are recorded in the Consolidated Statements of Operations. Changes in fair value can result from the estimated achievement of the revenue and brand EBITDA performance hurdles, and movements in discount rates, volatilities, and the other key assumptions. The inputs and assumptions are not observable in the market but reflect the assumptions we believe would be made by a market participant. The following table presents the change in the Level 3 contingent purchase price liability during the twelve months ended January 31, 2019: Fiscal Year Ended January 31, (In thousands) 2019 Beginning balance $ — Acquisition of MVMT 16,500 Payments — Adjustments included in earnings 218 Ending balance $ 16,718 There were no transfers between any levels of the fair value hierarchy for any of the Company’s fair value measurements. See Note 15 for a discussion of the fair value of the assets held in the Company’s defined benefit plan in Switzerland. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 9 – COMMITMENTS AND CONTINGENCIES Licensing Agreements: The Company has minimum commitments related to the Company’s license agreements and endorsement agreements with brand ambassadors. The Company sources, distributes, advertises and sells watches pursuant to its exclusive license agreements with unaffiliated licensors. Royalty amounts under the license agreements are generally based on a stipulated percentage of revenues, although most of these agreements contain provisions for the payment of minimum annual royalty amounts. The license agreements have various terms, and some have additional renewal options, provided that minimum sales levels are achieved. Additionally, the license agreements require the Company to pay minimum annual advertising amounts. As of January 31, 2019, the total amount of the Company’s minimum commitments related to its license agreements and endorsement agreements was $144.3 million. Operating Lease Commitments: The Company leases office, distribution, retail and manufacturing facilities, and office equipment under operating leases, which expire at various dates through June 2030. Certain leases include renewal options and the payment of real estate taxes and other occupancy costs. Some leases also contain rent escalation clauses (step rents) that require additional rent amounts in the later years of the term. Rent expense for leases with step rents is recognized on a straight-line basis over the minimum lease term. Likewise, capital funding and other lease concessions that are occasionally provided to the Company are recorded as deferred rent and amortized on a straight-line basis over the minimum lease term as adjustments to rent expense. Rent expense for equipment and distribution, factory and office facilities under operating leases was $20.2 million, $17.8 million and $14.2 million in fiscal 2019, 2018 and 2017, respectively. Minimum annual rentals under noncancelable operating leases as of January 31, 2019, excluding real estate taxes and operating costs, are as follows (in thousands): Fiscal Year Ending January 31, 2020 $ 14,036 2021 11,325 2022 10,135 2023 8,279 2024 7,683 Thereafter 35,020 $ 86,478 Purchase Obligations: The Company had outstanding purchase obligations of $60.8 million with suppliers at the end of fiscal 2019 primarily for raw materials, finished watches and packaging in the normal course of business. These purchase obligation amounts do not represent total anticipated purchases but represent only amounts to be paid for items required to be purchased under agreements that are enforceable, legally binding and specify minimum quantity, price and term . Tax: Due to the enactment of the 2017 Tax Act, the Company recorded an obligation associated with the Transition Tax of $28.2 million, which will be paid in installments over eight years, with the first payment having been made in fiscal 2019. The Company believes that income tax reserves are adequate; however, amounts asserted by taxing authorities could be greater or less than amounts accrued and reflected in the consolidated balance sheet. Accordingly, the Company could record adjustments to the amounts for federal, state, and foreign liabilities in the future as the Company revises estimates or settles or otherwise resolves the underlying matters. In the ordinary course of business, the Company may take new positions that could increase or decrease unrecognized tax benefits in future periods. Acquisition Related: The purchase consideration for the MVMT business includes two future contingent payments that combined could total up to $100 million. Although the Company has established appropriate reserves for this liability based on its current estimate of the amounts that will eventually become payable, the exact amount of the future payments will be determined by MVMT's financial performance through the end of fiscal 2023. The Company expects to recognize gains/losses, as the case may be, as the Company’s estimate of the amount payable is updated from time to time. See Note 3 (Acquisitions). Litigation: The Company is involved in legal proceedings and claims from time to time, in the ordinary course of its business. Legal reserves are recorded in accordance with the accounting guidance for contingencies. Contingencies are inherently unpredictable and it is possible that results of operations, balance sheets or cash flows could be materially and adversely affected in any particular period by unfavorable developments in, or resolution or disposition of, such matters. For those legal proceedings and claims for which the Company believes that it is probable that a reasonably estimable loss may result, the Company records a reserve for the potential loss. For proceedings and claims where the Company believes it is reasonably possible that a loss may result that is materially in excess of amounts accrued for the matter, the Company either discloses an estimate of such possible loss or range of loss or includes a statement that such an estimate cannot be made. On October 23, 2018, Swiss Time Watch & Jewellry GmbH (“ST Germany”) filed a lawsuit against the Company in the Superior Court of California for the County of Los Angeles. The lawsuit, which was subsequently removed to the United States District Court for the Central District of California, primarily alleged that the Company, as legal successor to MVMT Watches, Inc., failed to perform its obligations under the parties’ August 1, 2018 distribution agreement (the “ST Germany Agreement”). Under this agreement, ST Germany was granted the right, subject to certain limitations, to distribute a curated collection of MVMT watch styles in Germany. ST Germany also alleged various related torts and statutory violations and sought specific performance of the ST Germany Agreement as well as unspecified monetary damages. In February 2019, the parties settled the matter and the lawsuit was subsequently dismissed. The settlement terms included an immaterial cash payment by the Company and certain amendments to the ST Germany Agreement, including an extension of the agreement through early fiscal 2023. In December 2016, U.S. Customs and Border Protection (“U.S. Customs”) issued an audit report concerning the methodology used by the Company to allocate the cost of certain watch styles imported into the U.S. among the component parts of those watches for tariff purposes. The report disputes the reasonableness of the Company’s historical allocation formulas and proposes an alternative methodology that would imply $5.1 million in underpaid duties over the five-year period covered by the statute of limitations, plus possible penalties and interest. The Company believes that U.S. Customs’ alternative duty methodology and estimate are not consistent with the Company’s facts and circumstances and is disputing U.S. Customs’ position. On February 24, 2017, the Company provided U.S. Customs with supplemental analyses and information supporting the Company’s historical allocation formulas and thereafter provided additional information for U.S. Customs’ review. Although the Company disagrees with U.S. Customs’ position, it cannot predict with any certainty the outcome of this matter. The Company intends to continue to work with U.S. Customs to reach a mutually-satisfactory resolution. In addition to the above matters, as of January 31, 2019, the Company is involved in other legal proceedings and contingencies, the resolution of which is not expected to materially affect its financial condition, future results of operations or cash flows. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 10 - INCOME TAXES The 2017 Tax Act that was signed into law on December 22, 2017 significantly changed existing U.S. corporate income tax laws by, among other things, lowering the corporate tax rate from 35% to 21%, limiting the deductibility of interest expense and executive compensation, implementing a modified territorial tax system, and imposing a one-time mandatory deemed Transition Tax on undistributed foreign earnings which have not been previously taxed. Undistributed foreign earnings in the form of cash and cash equivalents have been taxed at a rate of 15.5% and all other earnings were taxed at a rate of 8.0%. On December 22, 2017, the SEC issued SAB 118, which allowed the Company to record provisional amounts related to the 2017 Tax Act and provided a measurement period of up to one year from the enactment date for companies to complete their accounting under ASC Topic 740. During the fiscal year ended January 31, 2018, the Company recorded a provisional tax expense of $45.0 million. The provisional amount related to the Transition Tax, which will be paid in installments over eight years, was $28.2 million based on an estimate of foreign earnings of $279.9 million. The provisional amount related to the re-measurement of certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future was $8.3 million. The provisional change to deferred taxes related to withholding and U.S. income taxes was $8.5 million based on unremitted foreign earnings of $236.8 million, which are earmarked for future repatriation. As of December 21, 2018, the Company completed its accounting for the tax effects of the enactment and recorded immaterial adjustments to the Transition Tax and no adjustment to the re-measurement of certain deferred tax assets and liabilities based on the change in tax rate. The Company also recorded a $8.0 million reduction to deferred tax liability related to withholding and U.S. income taxes on unremitted foreign earnings. Lastly, the Company has finalized its policy election to account for the tax on GILTI as a period cost and therefore has not recorded deferred taxes related to GILTI. FASB issued ASU 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which permits companies to reclassify disproportionate tax effects in accumulated other comprehensive income caused by the 2017 Tax Act to retained earnings. The Company early adopted ASU 2018-02 during the fourth quarter of fiscal 2018 (see Note 2 – Recent Accounting Pronouncements) and, as a result, the Company made the election to reclassify the income tax effects of the 2017 Tax Act from AOCI to retained earnings. The adoption of this standard did not have a material impact on the Company’s consolidated results of operations or financial position. Income before provision for income taxes for the fiscal year ended January 31, 2019, 2018, and 2017 on a legal entity basis consists of the following (in thousands): 2019 2018 2017 U.S. income before taxes $ 6,795 $ 11,731 $ 26,299 Non-U.S. income before taxes 54,938 30,411 25,155 Income before income taxes $ 61,733 $ 42,142 $ 51,454 The Company conducts business globally and, as a result, is subject to income taxes in the U.S. federal, state, local and foreign jurisdictions. In the normal course of business, the Company is subject to examinations by taxing authorities in many countries, such as Germany, Hong Kong, Switzerland and the United States. The Company is no longer subject to income tax examination for years ended prior to January 31, 2015, with few exceptions. Cash paid for income taxes during fiscal 2019, 2018, and 2017 was $9.5 million, $20.4 million and $22.8 million respectively. The provision (benefit) for income taxes for the fiscal years ended January 31, 2019, 2018 and 2017 consists of the following components (in thousands): 2019 2018 2017 Current: U.S. Federal $ 6,665 $ 31,599 $ 14,079 U.S. State and Local 3,556 960 1,117 Non-U.S. 8,775 7,145 5,091 18,996 39,704 20,287 Deferred: U.S. Federal (12,706 ) 16,671 (4,231 ) U.S. State and Local (2,339 ) 622 (167 ) Non-U.S. (3,789 ) 370 426 (18,834 ) 17,663 (3,972 ) Provision for income taxes $ 162 $ 57,367 $ 16,315 Significant components of the Company’s deferred income tax assets and liabilities for the fiscal years ended January 31, 2019 and 2018 are as follows (in thousands): 2019 Deferred Taxes 2018 Deferred Taxes Assets Liabilities Assets Liabilities Net operating loss carryforwards $ 9,738 $ — $ 10,589 $ — Inventory 1,848 — 2,199 — Unprocessed returns 980 — 955 — Receivables allowances 336 — 227 — Deferred compensation 14,953 — 12,985 — Unrepatriated earnings — 3,540 — 11,690 Depreciation/amortization — 1,212 — 4,440 Other provisions/accruals 1,498 — 63 — Deferred occupancy costs 1,222 — — — Miscellaneous 271 — — 199 30,846 4,752 27,018 16,329 Valuation allowance (5,257 ) — (8,960 ) — Total deferred tax assets and liabilities $ 25,589 $ 4,752 $ 18,058 $ 16,329 As of January 31, 2019, the Company had no U.S. federal net operating loss carryforwards and had U.S. state and foreign net operating loss carryforwards of $4.7 million and $37.1 million, respectively, with expiration dates ranging from 1-10 years and some foreign jurisdictions with an indefinite carryforward period. Of the foreign net operating losses, $14.3 million are related to Switzerland and the remaining is related to China, Germany, and other foreign countries. A valuation allowance is required to be established unless management determines it is more likely than not that the Company will ultimately utilize the tax benefit associated with a deferred tax asset. The Company has foreign valuation allowances of $5.3 million, which are primarily related to net operating loss carryforwards. Management will continue to evaluate the appropriate level of valuation allowance on all deferred tax assets considering such factors as prior earnings history, expected future earnings, carryback and carryforward periods, and tax and business strategies that could potentially enhance the likelihood of realization of the deferred tax assets. The provision for income taxes for the fiscal years ended January 31, 2019, 2018, and 2017 differs from the U.S. federal statutory rate due to the following (in thousands): Fiscal Year Ended January 31, 2019 2018 2017 Provision for income taxes at the U.S. statutory rate $ 12,964 $ 14,248 $ 18,009 Lower effective non-U.S. income tax rate (1,303 ) (4,378 ) (4,725 ) Change in valuation allowance (2,138 ) 136 828 U.S. tax provided on earnings of non-U.S. subsidiaries — — 541 Change in liabilities for uncertain tax positions, net (1,346 ) (381 ) 215 State and local taxes, net of federal benefit 962 626 617 Impact of 2017 Tax Act (7,446 ) 45,002 — Excess tax deficiencies from stock-based compensation (118 ) 1,094 — Other permanent differences (1,759 ) 978 979 Other, net 346 42 (149 ) Total provision for income taxes $ 162 $ 57,367 $ 16,315 Due to the 2017 Tax Act, the Company had a U.S. federal statutory rate of 21.0% for its fiscal year ended January 31, 2019, a blended rate of 33.8% for fiscal year ended January 31, 2018, and a rate of 35.0% for fiscal year ended January 31, 2017. The effective tax rate for fiscal 2019 was 0.3%, primarily due to the impact of the 2017 Tax Act and the release of certain foreign valuation allowances. The effective tax rate for fiscal 2018 was 136.1%, primarily due to the impact of the 2017 Tax Act and excess tax deficiencies related to stock-based compensation, partially offset by foreign profits being taxed in lower taxing jurisdictions. The effective tax rate for fiscal 2017 was 31.7%, primarily as a result of foreign profits being taxed in lower taxing jurisdictions, partially offset by no tax benefit being recognized on certain earnings of foreign subsidiaries and U.S. tax provided on earnings of non-U.S. subsidiaries. A windfall tax benefit of $0.1 million and a shortfall tax expense of $1.1 million were recorded in income tax expense during fiscal years 2019 and 2018, respectively. Shortfall tax expense of $0.3 million was recorded in additional paid-in-capital during fiscal year 2017. A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits (exclusive of interest) for the fiscal years ended January 31, 2019, 2018 and 2017 are as follows (in thousands): 2019 2018 2017 Beginning balance $ 2,354 $ 2,619 $ 2,481 Tax positions taken in the current year 234 180 142 Tax positions taken in prior years (774 ) 148 — Lapse of statute of limitations (122 ) (630 ) — Settlements (236 ) (149 ) — Non-U.S. currency exchange fluctuations (105 ) 186 (4 ) Ending balance $ 1,351 $ 2,354 $ 2,619 Included in the balances at January 31, 2019, January 31, 2018 and January 31, 2017 are $1.2 million, $2.3 million and $2.6 million, of unrecognized tax benefits which would impact the Company’s effective tax rate, if recognized. Interest and penalties, if any, related to unrecognized tax benefits are recorded as income tax expense in the consolidated statement of operations. As of January 31, 2019, January 31, 2018 and January 31, 2017, the Company had $0.7 million, $0.8 million and $0.7 million, respectively of accrued interest (net of tax benefit) and penalties related to unrecognized tax benefits. During fiscal years 2019, 2018 and 2017, the Company accrued $0.0 million, $0.1 million and $0.1 million of interest (net of tax benefit) and penalties. |
Treasury Stock
Treasury Stock | 12 Months Ended |
Jan. 31, 2019 | |
Equity [Abstract] | |
Treasury Stock | NOTE 11 – TREASURY STOCK On August 29, 2017, the Board approved a share repurchase program under which the Company is 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 program had replaced a prior share repurchase program approved by the Board on March 31, 2016 under which the Company was authorized to purchase up to $50.0 million of its outstanding common stock from time to time and under which $5.5 million had been repurchased. Under the existing program, the company may purchase shares of its common stock through open market purchases, repurchase plans, block trades or otherwise. This authorization expires on August 29, 2020. During the fiscal year ended January 31, 2019, under the existing repurchase program, the Company repurchased a total of 200,088 shares of its common stock at a total cost of $7.4 million, or an average of $37.08 per share. During the fiscal year ended January 31, 2018, under both the existing and previously authorized repurchase plans, the Company repurchased a total of 140,507 shares of its common stock at a total cost of $3.6 million, or an average of $25.84 per share, which included 40,000 shares repurchased from the Movado Group Foundation at a total cost of $1.1 million, or an average of $27.13 per share. During the fiscal year ended January 31, 2017, under the previously issued share repurchase program, the Company repurchased a total of 157,499 shares of its common stock at a total cost of $3.9 million, or an average of $24.54 per share, which included 35,000 shares repurchased from the Movado Group Foundation at a total cost of $1.0 million, or an average of $29.03 per share. At January 31,2019, $40.6 million remains under the Company’s current repurchase program. There were 21,733, 36,843 and 47,310 shares of common stock repurchased during the fiscal years ended January 31, 2019, 2018 and 2017, respectively, as a result of the surrender of shares in connection with the vesting of certain stock awards. At the election of an employee, shares having an aggregate value on the vesting date equal to the employee’s withholding tax obligation may be surrendered to the Company. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Jan. 31, 2019 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Income | NOTE 12 – ACCUMULATED OTHER COMPREHENSIVE INCOME The accumulated balances at January 31, related to each component of accumulated other comprehensive income (loss) are as follows (in thousands): 2019 2018 2017 Foreign currency translation adjustments $ 80,808 $ 100,190 $ 76,569 Available-for-sale securities 119 191 197 Hedging contracts — (38 ) 14 Unrecognized prior service cost related to defined benefit pension plan (420 ) — — Total accumulated other comprehensive loss $ 80,507 $ 100,343 $ 76,780 Amounts reclassified from accumulated other comprehensive income (loss) to operating income in the Consolidated Statements of Operations during fiscal 2019, 2018 and 2017 were $360, $(926) and $371, respectively. |
Revenue
Revenue | 12 Months Ended |
Jan. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | NOTE 13 – REVENUE On February 1, 2018, the Company adopted ASC 606 using the modified retrospective method and recognized the cumulative effect of initially applying the new revenue standard as an adjustment to opening retained earnings. Under the modified retrospective method, the Company recognized a reduction of $0.7 million to opening retained earnings as the cumulative effect of adopting the new revenue standard. This adjustment did not have a material impact on the Company’s Consolidated Financial Statements. Results for reporting periods beginning after February 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted. The impact from the adoption of ASC 606 related principally to the timing of the recognition of markdowns and returns in the Company’s Watch and Accessory Brands segment. As of and for the fiscal year ended January 31, 2019, such timing differences have reversed. Revenue Recognition As presented in the disaggregated revenue table below, wholesale revenue is recognized and recorded when a contract is in place, obligations under the terms of a contract with the customer are satisfied, control is transferred to the customer and is measured as the ultimate amount of consideration the Company expects to receive in exchange for transferring goods including variable consideration. Direct to consumer and after-sales service revenue is recognized at time of register receipt or delivery to customer. The Company records estimates of variable consideration, which includes sales returns, markdowns, volume-based programs and sales and cash discount allowances as a reduction of revenue in the same period that the sales are recorded. These estimates are based upon the expected value method considering all reasonably available information including historical analysis, customer agreements and/or currently known factors that arise in the normal course of business. Returns, discounts and allowances have historically been within the Company’s expectations and the provisions established. The future provisional rates may differ from those experienced in the past. The Company considers transfer of control to take place either when the goods ship or when goods are delivered depending on the shipping terms in the contract. Factors considered in the transfer of control include the right to payment, transfer of legal title, physical possession and customer acceptance of the goods and whether the significant risks and rewards for the goods belong with the customer. Taxes imposed by governmental authorities on the Company's revenue-producing activities with customers, such as sales taxes and value added taxes, are excluded from net sales. The Company’s sale of smart watches contains multiple performance obligations. The Company allocates revenue to each performance obligation using the relative standalone selling price method. The Company determines the standalone selling prices based on the prices charged to customers. Amounts allocated to the delivered smart watch collections and the related essential software are recognized at the time of sale. Amounts allocated to the cloud service and app updates are deferred and recognized on a straight-line basis over the estimated two-year period the updates are expected to be provided. The Company’s smart watch collections were available in limited quantities and in limited distribution, and, as a result, these deferred amounts were immaterial to all periods presented. The Company has considered each transaction to sell goods as separate and distinct, with no additional promises made. The Company uses the understanding of what the customer expects to receive as the final product to determine whether goods or services should be combined and accounted for as a single performance obligation. The Company does not incur significant costs to obtain or fulfill its contracts. Practical Expedients and Exemptions The Company does not consider the effects of a financing component for contracts because the length of time is one year or less, between when the Company transfers goods and when the customer is expected to pay. The Company’s shipping costs are sometimes paid by the customer, while other times the shipping costs are included in the sales price for the watches. The Company does not deem shipping as a promised service to the customer because shipping is a fulfillment activity as part of the sale of goods. Revenue The following table presents the Company’s net sales disaggregated by customer type. Sales and usage-based taxes are excluded from net sales (in thousands). Fiscal Year Ended Customer Type January 31, 2019 Wholesale $ 532,565 Direct to consumer 142,439 After-sales service 4,563 Net Sales $ 679,567 The Company’s revenue from contracts with customers is recognized at a point in time. The Company’s net sales disaggregated by geography are based on the location of the Company’s customer, (see Note 17 Segment and Geographic Information). Wholesale Revenue The Company’s wholesale revenue consists primarily of revenues from independent distributors, and from department stores, and chain and independent jewelry stores. The Company recognizes and records its revenue when obligations under the terms of a contract with the customer are satisfied, and control is transferred to the customer. Wholesale revenue is measured as the amount of consideration the Company ultimately expects to receive in exchange for transferring goods. Wholesale revenue is included entirely within the Watch and Accessory Brands Segment (see Note 17 Segment and Geographic Information), consistent with how management makes decisions regarding the allocation of resources and performance measurement. Direct to Consumer Revenue The Company’s direct to consumer revenue primarily consists of revenues from the Company’s outlet stores, concession stores, e-commerce, and consumer repairs. Revenue is recognized as the end consumer obtains delivery of the merchandise. Direct to Consumer revenue derived from concession stores and e-commerce is included within the Watch and Accessory Brands Segment; revenue derived from outlet stores is included within the Company Stores Segment (see Note 17 Segment and Geographic Information). Direct to Consumer revenue is determined based on the type of customer and may be included in either the Watch and Accessory Brands or Company Stores Segments based on how the Company makes decisions about the allocation of resources and performance measurement. After-sales service All watches sold by the Company come with limited warranties covering the movement against defects in material workmanship. The Company does not sell warranties separately. The Company’s after-sales service revenues consists of out of warranty service provided to wholesale customers and authorized third party repair centers, and sale of watch parts. The Company recognizes and records its revenue when obligations under the terms of a contract with the customer are satisfied, control is transferred to the customer and is measured as the amount of consideration the Company ultimately expects to receive in exchange for transferring goods. Revenue from after sales service, including consumer repairs, is included entirely within the Watch and Accessory Brands Segment, consistent with how management makes decisions about the allocation of resources and performance measurement. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jan. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | NOTE 14 – STOCK-BASED COMPENSATION Under the Company’s Employee Stock Option Plan, as amended and restated as of April 4, 2013 (the “Plan”), the Compensation Committee of the Board of Directors, which consists of four of the Company’s non-employee directors, has the authority to grant participants incentive stock options, nonqualified stock options, restricted stock, stock appreciation rights and stock awards, for up to 11,000,000 shares of common stock. Stock Options: Stock options granted to participants under the Plan generally become exercisable in equal installments over three years or cliff-vested after three years and remain exercisable until the tenth anniversary of the date of grant. All stock options granted under the Plan have an exercise price equal to or greater than the fair market value of the Company’s common stock on the grant date. The table below presents the weighted average assumptions used with the Black-Scholes option-pricing model for the calculation of the fair value of stock options granted during the fiscal years ended January 31, 2018 and 2017. There were no stock options granted during the fiscal year ended Fiscal Year Ended January 31, 2018 2017 Expected volatility 46.16 % 47.81 % Expected life in years 6.0 6.0 Risk-free interest rates 1.93 % 1.42 % Dividend rate 1.51 % 1.01 % Weighted average fair value per option at date of grant $ 9.15 $ 11.17 The fair value of the stock options, less expected forfeitures, is amortized on a straight-line basis over the vesting term. Total compensation expense for stock option grants recognized during the fiscal years ended January 31, 2019, 2018 and 2017 was $0.8 million (net of tax of $0.2 million), $0.5 million (net of tax of $0.3 million), and $1.3 million (net of tax of $0.8 million), respectively. As of January 31, 2019, there was $0.6 million of unrecognized compensation cost related to unvested stock options. These costs are expected to be recognized over a weighted-average period of 0.6 years. Total consideration received for stock option exercises during the fiscal years ended January 31, 2019, 2018 and 2017 was $5.9 million, $2.0 million and $1.0 million, respectively. The windfall tax provision realized on these exercises in fiscal 2019 was $0.2 million. The following table summarizes the Company’s stock option plan as of January 31, 2019 and changes during each of the fiscal years in the three-year period ended January 31, 2019: Outstanding Options Weighted Average Exercise Price per Option Option Price Per Share Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value $(000) Options outstanding at January 31, 2016 (374,377 options exercisable) 699,600 $ 30.41 Granted 200,346 $ 26.97 Exercised (40,588 ) $ 25.68 Cancelled — $ — Options outstanding at January 31, 2017 (482,255 options exercisable) 859,358 $ 29.83 Granted 161,205 $ 23.35 Exercised (85,600 ) $ 23.18 Cancelled (173,262 ) $ 30.21 Options outstanding at January 31, 2018 (394,455 options exercisable) 761,701 $ 29.12 $ 21.03-$45.02 6.3 $ 2,291 Granted — $ — Exercised (189,941 ) $ 30.77 $ 22.04-$42.12 Cancelled (5,500 ) $ 42.12 $ 42.12 Options outstanding at January 31, 2019 566,260 $ 28.43 $ 23.35-$42.12 6.2 $ 2,654 Exercisable at January 31, 2019 264,244 $ 31.89 4.4 $ 675 Expected to vest at January 31, 2019 296,611 $ 25.42 7.8 $ 1,950 The table below presents information related to stock option activity for the years ended January 31, 2019, 2018 and 2017: Fiscal Year Ended January 31, 2019 2018 2017 (in thousands) Total fair value of stock options exercised $ 1,912 $ 454 $ 212 Total fair value of stock options vested $ 803 $ 1,275 $ 2,021 Non-vested Stock Options A summary of the Company’s non-vested stock options at January 31, 2019 and changes during fiscal 2019 are presented below: Shares Weight Average Grant Date Fair Value Non-vested stock options: Non-vested at January 31,2018 367,246 $ 10.62 Vested (65,230 ) $ 12.31 Non-vested at January 31,2019 302,016 $ 10.25 Stock Awards: Under the Plan, the Company can also grant stock awards to employees. For fiscal years 2019, 2018 and 2017, compensation expense for stock awards was $3.8 million (net of tax of $1.2 million), $1.8 million (net of tax of $1.1 million), and $3.2 million (net of tax of $2.0 million), respectively. As of January 31, 2019, there was $7.8 million of unrecognized compensation cost related to unvested stock awards. These costs are expected to be recognized over a weighted-average period of 2.4 years. Transactions for stock award units under the Plan since fiscal 2016 are summarized as follows: Number of Stock Award Units Weighted- Average Grant Date Fair Value Weighted- Average Remaining Contractual Term (years) Aggregate Intrinsic Value ($(000's) January 31, 2016 374,598 $ 33.83 Units granted 187,777 $ 27.76 Units vested (170,010 ) $ 31.85 Units forfeited (11,207 ) $ 34.50 January 31, 2017 381,158 $ 31.71 Units granted 133,245 $ 23.31 Units vested (115,574 ) $ 39.44 Units forfeited (56,059 ) $ 30.27 January 31, 2018 342,770 $ 26.07 Units granted 228,310 $ 39.22 Units vested (112,170 ) $ 27.60 Units forfeited (11,888 ) $ 30.82 Units outstanding at January 31, 2019 447,022 $ 32.27 1.4 $ 14,282 Upon the vesting of a stock award, shares are issued from the pool of authorized shares. The number of shares issued can vary from 0% to 150% of the target number of underlying stock award units, depending on the extent of the achievement of predetermined financial goals. The total fair value of stock award units that vested during fiscal 2019, 2018 and 2017 was $3.1 million, $2.6 million and $4.8 million, respectively. Unvested stock award units had a total fair value of $14.3 million, $10.5 million and $10.3 million, for fiscal 2019, 2018 and 2017, respectively. The windfall tax benefit realized on the vested stock awards for fiscal 2019 was $0.3 million. |
Pension and Retirement Savings
Pension and Retirement Savings Plan | 12 Months Ended |
Jan. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension and Retirement Savings Plan | NOTE 15 – PENSION AND RETIREMENT SAVINGS PLAN Defined Contribution Plans 401(k) Savings Plan All employees in the United States are eligible to participate in the Company’s Employee Savings and Investment Plan (“401(k) Plan”), a tax-qualified defined contribution retirement savings plan. The Company matches 50% of each 1% contributed by the employee up to a maximum of 6% of pay (totaling a company maximum match of 3%), subject to the contribution limits imposed by the Internal Revenue Code. Employees vest in the Company match after three years of service. In fiscal 2019, 2018 and 2017, the Company contributed $1.1 million, $1.1 million and $1.0 million, respectively, in cash to the 401(k) Plan. Other Defined Contribution Plans The Company sponsors defined contribution benefit plans for its employees located in Switzerland (prior to amendment effective December 31, 2018 – see below for discussion) Asia and the United Kingdom. Company contributions and expenses of administering the plans were $0.6 million, $2.0 million and $2.1 million in fiscal 2019, 2018 and 2017, respectively. Contributions in fiscal 2018 and 2017 included employees located in Switzerland. The Company maintains a defined contribution Deferred Compensation Plan (also known as a supplemental employee retirement plan or SERP). The SERP provides eligible executives with supplemental retirement benefits in addition to amounts received under the Company’s other retirement plans. The Company makes a matching contribution, up to either 5% or 10% of the executive’s salary, which vests in equal annual installments over five years. Twenty percent of the Company’s matching contribution is in the form of rights to the Company’s common stock. During fiscal 2019, 2018 and 2017, the Company recorded expenses related to the SERP of $0.7 million, $0.6 million and $0.9 million (which included $0.3 million related to the retirement of the Company’s former Vice Chairman and Chief Operating Officer). Defined Benefit Plan The Company sponsors a plan in Switzerland which was amended to a defined benefit plan effective December 31, 2018. The plan covers certain international employees and is based on years of service and compensation on a career-average pay basis. The components of the net periodic pension costs for the fiscal year ended January 31, 2019 are as follows: (Amounts in thousands) 2019 Service cost $ 93 Interest cost 25 Expected return on assets (25 ) Amortization of prior service costs 6 Net Periodic Pension Cost $ 99 The other components of the net periodic pension costs, including the interest cost, expected return on assets and the amortization of the prior service cost, are all included in selling, general and administrative expenses in the consolidated statement of operations . The estimated prior service cost that will be amortized from accumulated other comprehensive income into net periodic pension cost in the fiscal year ended January 31, 2020 is $0.1 million. A reconciliation of the change in benefit obligation, the change in plan assets and the net amount recognized in the consolidated balance sheets shown below (based on a January 31 measurement date): (Amounts in thousands) 2019 Change in benefit obligation: Pension benefit obligation at 12/31/2018 $ 34,088 Service cost 93 Interest cost 25 Benefit and expense payments (81 ) Employee contributions 70 Foreign currency exchange rate impact (441 ) Pension benefit obligation at end of year 33,754 Change in plan assets: Fair value of plan assets at 12/31/2018 $ 33,538 Company contributions 105 Benefit and expense payments (81 ) Actual return on plan assets 25 Employee contributions 70 Foreign currency exchange rate impact (434 ) Fair value of plan assets at end of year 33,223 Funded status - consolidated $ (531 ) Amounts recognized in the consolidated balance sheets consist of: Other long-term liabilities $ 531 Amounts recognized in accumulated other comprehensive (loss): Prior service cost 537 Tax effect (117 ) Net amount recognized, after tax $ 420 Accumulated benefit obligation $ 30,083 Investment Policy: It is the objective of the plan sponsor to maintain an adequate level of diversification to balance market risk, to prudently invest to preserve capital and to provide sufficient liquidity while maximizing earnings for near-term payments of benefits accrued under the plans and to pay plan administrative expenses. The assumption used for the expected long-term rate of return on plan assets is based on the long-term expected returns for the investment mix of assets currently in the portfolio. Historical return trends for the various asset classes in the class portfolio are combined with current and anticipated future market conditions to estimate the rate of return for each class. These rates are then adjusted for anticipated future inflation to determine estimated nominal rates of return for each class. The assets are classified as a Level 3 asset within the fair value hierarchy and consist of an investment in pooled assets and include separate employee accounts that are invested in equity securities, debt securities and real estate. The values of the separate accounts invested are based on values provided by the administrator of the funds that cannot be readily derived from or corroborated by observable market data. The weighted‑average assumptions that were used to determine the Company’s benefit obligations as of the measurement date (January 31) and that were used to determine the Company’s net periodic benefit cost were as follows: 2019 Discount rate 0.90 % Salary progression rate 1.10 % Expected long-term rate of return on plan assets 0.90 % The assumptions used at the amendment date were materially consistent with those used at the measurement date. The discount rates used are based on high quality AAA- and AA-rated corporate bonds with durations corresponding to the expected durations of the benefit obligations and service time. The overall expected long-term rate of return on plan assets is a weighted-average expectation based on the targeted portfolio composition. Historical experience and current benchmarks are considered to arrive at expected long-term rates of return in each asset category. The Company expects the following benefit payments to be paid out for the fiscal years indicated. The expected benefit payments are based on the same assumptions used to measure the Company’s benefit obligation at January 31, 2019 and include estimated future employee service. The Company does not expect any plan assets to be returned to it during the fiscal year ending January 31, 2020. Payments from the pension plan are made from the plan assets. Fiscal Year ending January 31, (in thousands) 2020 $ 696 2021 709 2022 717 2023 727 2024 740 2025-2030 3,783 During fiscal 2020, the Company expects to contribute $1.3 million to its Swiss defined benefit plan. |
Cost Savings Initiatives
Cost Savings Initiatives | 12 Months Ended |
Jan. 31, 2019 | |
Restructuring And Related Activities [Abstract] | |
Cost Savings Initiatives | NOTE 16 – COST SAVINGS INITIATIVES In fiscal 2018, the Company took actions to better align its global infrastructure with the current business environment by consolidating certain operations and streamlining functions to reduce costs and improve profitability. Also, in light of the changing retail landscape and the growing importance of digital marketing and online sales, the Company decided to cease its participation in the Baselworld Watch and Jewelry Show. As a result, the Company recorded $13.6 million of pre-tax expenses primarily for severance and payroll related expenses, fixed assets, other and occupancy charges, predominantly impacting the Company’s North American and Swiss operations. The Company substantially completed the actions under the cost savings initiatives as of January 31, 2018. A summary rollforward of costs related to the cost savings initiatives is as follows (in thousands): Severance and payroll related (1) Fixed assets (1) Other (1) Occupancy Charges (1) Total Fiscal 2018 Charges (2) $ 5,630 $ 5,166 $ 2,692 $ 99 $ 13,587 Cash payments (5,895 ) — (1,847 ) (34 ) (7,776 ) Non-cash adjustments 1,124 (5,166 ) — — (4,042 ) Foreign exchange 72 — 74 9 155 Accrued balance at January 31, 2018 931 — 919 74 1,924 Cash payments (601 ) — (589 ) (45 ) (1,235 ) Non-cash adjustments (3) (30 ) — (251 ) — (281 ) Foreign exchange — — (52 ) (4 ) (56 ) Accrued balance at January 31, 2019 $ 300 $ — $ 27 $ 25 $ 352 (1) The total severance and payroll related charges of $5.6 million include $4.3 million in SG&A and $1.3 million in Cost of Sales in the Consolidated Statement of Operations for the fiscal year ended January 31, 2018. The fixed assets charges of $5.2 million, other charges of $2.7 million and occupancy charges of $0.1 million are included in SG&A in the Consolidated Statement of Operations for the fiscal year ended January 31, 2018. These accrued balances are located in accrued liabilities in the Company’s Consolidated Balance Sheets. (2) The United States and International locations of the Watch and Accessory Brands segment include a pre-tax charge of $3.9 million and $9.7 million, respectively, for the fiscal year ended January 31, 2018. (3) Non-cash adjustments during fiscal 2019 relate to a change in estimate for severance and other. The United States and International locations of the Watch and Accessory Brands segment include pre-tax income of approximately $43,000 and $238,000 respectively. In fiscal 2016, the Company had commenced an initiative to achieve greater operating efficiencies and streamline its operations, primarily at certain of its foreign subsidiaries. The Company recorded a total of $4.0 million of pre-tax expenses during fiscal 2017 and substantially completed the actions under this initiative as of January 31, 2017. As of January 31, 2019, and 2018, zero and $0.3 million remained in accrued liabilities, respectively. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Jan. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | NOTE 17 – SEGMENT AND GEOGRAPHIC 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: Watch and Accessory Brands and Company Stores. The Company’s Watch and Accessory Brands segment includes the designing, manufacturing and distribution of watches of quality owned brands and licensed brands, in addition to revenue generated from after-sales service activities and shipping. The Company Stores segment includes the Company’s retail outlet locations. The Company divides its business into two major geographic locations: United States operations, and International, which includes the results of all non-U.S. 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 31.6%, 8.8%, 7.7% and 6.5%, respectively, of the Company’s total net sales for fiscal 2019. For fiscal 2018, the Company’s International operations in Europe, the Americas (excluding the United States), the Middle East and Asia accounted for 32.1%, 9.2%, 7.7% and 5.1%, respectively, of the Company’s total net sales. For fiscal 2017, the Company’s International operations in Europe, the Americas (excluding the United States), the Middle East and Asia accounted for 23.1%, 8.9%, 8.1% and 6.3%, respectively, of the Company’s total net sales. Substantially all of the Company’s tangible International assets are owned by the Company’s Swiss and Hong Kong subsidiaries. Operating Segment Data as of and for the Fiscal Year Ended January 31, (in thousands): Net Sales 2019 2018 2017 Watch and Accessory Brands: Owned brands category $ 263,904 $ 204,897 $ 205,396 Licensed brands category 320,911 277,323 265,137 After-sales service and all other 11,061 9,862 13,911 Total Watch and Accessory Brands 595,876 492,082 484,444 Company Stores 83,691 75,871 68,308 Consolidated total $ 679,567 $ 567,953 $ 552,752 Operating Income (1) (2) (3) (4) (5) 2019 2018 2017 Watch and Accessory Brands $ 45,194 $ 28,296 $ 41,773 Company Stores 17,003 14,904 12,208 Consolidated total $ 62,197 $ 43,200 $ 53,981 Total Assets Capital Expenditures 2019 2018 2019 2018 2017 Watch and Accessory Brands $ 735,244 $ 621,965 $ 6,508 $ 3,133 $ 5,666 Company Stores 24,457 23,415 4,127 2,677 254 Consolidated total $ 759,701 $ 645,380 $ 10,635 $ 5,810 $ 5,920 Depreciation and Amortization 2019 2018 2017 Watch and Accessory Brands $ 12,446 $ 11,765 $ 9,875 Company Stores 1,719 1,692 1,632 Consolidated total $ 14,165 $ 13,457 $ 11,507 Geographic Location Data as of and for the Fiscal Year Ended January 31, (in thousands): Net Sales (6) Operating (Loss) / Income (1) (2) (3) (4) (5) (6) (7) (8) 2019 2018 2017 2019 2018 2017 United States $ 308,420 $ 260,606 $ 296,311 $ (3,856 ) $ (629 ) $ 16,917 International 371,147 307,347 256,441 66,053 43,829 37,064 Consolidated total $ 679,567 $ 567,953 $ 552,752 $ 62,197 $ 43,200 $ 53,981 Total Assets Property, Plant and Equipment, Net 2019 2018 2019 2018 United States $ 328,014 $ 188,346 $ 17,030 $ 16,570 International 431,687 457,034 9,037 8,101 Consolidated total $ 759,701 $ 645,380 $ 26,067 $ 24,671 (1) Fiscal 2019 Watch and Accessory Brands and United States and International operating (loss) / income included a charge of $2.9 million related to the amortization of intangible assets associated with the Olivia Burton brand. Fiscal 2018 United States and International operating (loss) / income included a charge of $6.8 million related to transaction charges and the amortization of acquisition accounting adjustments associated with the purchase of the Olivia Burton brand. (2) Fiscal 2019 Watch and Accessory Brands and United States and International operating (loss) / income included a charge of $14.3 million related to transaction charges and the amortization of acquisition accounting adjustments associated with the purchase of the MVMT brand. (3) Fiscal 2019 Watch and Accessory Brands and United States and International operating (loss) / income included a charge of $0.3 million as part of the Company’s cost savings initiatives. as part of the Company’s cost savings initiatives. (4) Fiscal 2017 Watch and Accessory Brands and United States operating income included a pre-tax charge of $1.8 million, as a result of the immediate vesting of stock awards and certain other compensation related to the announcement of the retirement of the Company’s former Vice Chairman and Chief Operating Officer, in fiscal 2018. (5) Fiscal 2017 Watch and Accessory Brands and United States and International operating income included a $4.0 million charge as a result of actions taken by the Company in fiscal 2017 to achieve greater operating efficiencies and streamline its operations. (6) The United States and International net sales are net of intercompany sales of $319.5 million, $268.1 million and $289.2 million for the fiscal years ended January 31, 2019, 2018 and 2017, respectively. (7) The United States operating income included $43.5 million, $25.2 million and $26.3 million of unallocated corporate expenses for the fiscal years ended January 31, 2019, 2018 and 2017, respectively. (8) The International operating income included $53.8 million, $41.5 million and $40.0 million of certain intercompany profits related to the Company’s supply chain operations for the fiscal years ended January 31, 2019, 2018 and 2017, respectively. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Jan. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | NOTE 18 - QUARTERLY FINANCIAL DATA (UNAUDITED) The following table presents unaudited selected interim operating results of the Company for fiscal 2019 and 2018 (in thousands, except per share amounts): Quarter 1 st 2 nd 3 rd 4 th Fiscal 2019 Net sales $ 127,149 $ 144,093 $ 208,949 $ 199,376 Gross profit $ 67,524 $ 77,834 $ 113,364 $ 110,636 Income before income taxes $ 7,974 $ 12,755 $ 24,105 $ 16,899 Net income attributable to Movado Group, Inc. $ 8,115 $ 9,140 $ 26,922 $ 17,447 Basic income per share: Net income attributable to Movado Group, Inc. $ 0.35 $ 0.39 $ 1.16 $ 0.75 Diluted income per share: Net income attributable to Movado Group, Inc. $ 0.35 $ 0.39 $ 1.14 $ 0.74 Fiscal 2018 Net sales $ 99,265 $ 128,781 $ 190,693 $ 149,214 Gross profit $ 49,137 $ 66,126 $ 104,070 $ 78,745 (Loss)/income before income taxes $ (3,882 ) $ 8,056 $ 24,850 $ 13,118 Net (loss) income attributable to Movado Group, Inc. $ (4,159 ) $ 5,482 $ 17,360 $ (33,908 ) Basic income per share: Net (loss) income attributable to Movado Group, Inc. $ (0.18 ) $ 0.24 $ 0.75 $ (1.47 ) Diluted income per share: Net (loss) income attributable to Movado Group, Inc. $ (0.18 ) $ 0.24 $ 0.75 $ (1.47 ) As each quarter is calculated as a discrete period, the sum of the four quarters may not equal the calculated full year amount. This is in accordance with prescribed reporting requirements. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Jan. 31, 2019 | |
Valuation And Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Schedule II MOVADO GROUP, INC. (In thousands) Description Balance at beginning of year Net (benefit) / provision charged to operations Currency revaluation Net write-offs Balance at end of year Year ended January 31, 2019: Doubtful accounts $ 4,181 $ 2,104 $ (257 ) $ (536 ) $ 5,492 Returns 12,359 32,710 (1) (691 ) (31,344 ) 13,034 Other sales allowances 7,344 9,383 20 (9,367 ) 7,380 Deferred tax asset valuation allowance 8,960 (2,199 ) (319 ) (1,185 ) 5,257 Total $ 32,844 $ 41,998 $ (1,247 ) $ (42,432 ) $ 31,163 Year ended January 31, 2018: Doubtful accounts $ 5,499 $ (176 ) $ 289 $ (1,431 ) $ 4,181 Returns 11,648 30,477 288 (30,054 ) 12,359 Other sales allowances 3,959 9,887 340 (6,842 ) 7,344 Deferred tax asset valuation allowance 8,714 628 97 (479 ) 8,960 Total $ 29,820 $ 40,816 $ 1,014 $ (38,806 ) $ 32,844 Year ended January 31, 2017: Doubtful accounts $ 4,274 $ 1,739 $ 52 $ (566 ) $ 5,499 Returns 10,856 30,075 10 (29,293 ) 11,648 Other sales allowances 4,179 8,749 (19 ) (8,950 ) 3,959 Deferred tax asset valuation allowance 8,089 716 100 (191 ) 8,714 Total $ 27,398 $ 41,279 $ 143 $ (39,000 ) $ 29,820 (1) On February 1, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) using the modified retrospective method and recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening retained earnings. Under the modified retrospective method, the Company recognized in part an increase in reserve for returns with a corresponding reduction of approximately $817,000 to opening retained earnings as the cumulative effect of adopting the new revenue standard. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2019 | |
Accounting Policies [Abstract] | |
Organization and Business | Organization and Business Movado Group, Inc. (together with its subsidiaries, the “Company”) designs, sources, markets and distributes quality watches with prominent brands in almost every price category comprising the watch industry. In fiscal 2019, the Company marketed the following distinct brands of watches: Concord, Ebel, Movado, Olivia Burton, Coach, Tommy Hilfiger, HUGO BOSS, Lacoste, Scuderia Ferrari and Rebecca Minkoff/Uri Minkoff. On October 1, 2018, the Company acquired all the outstanding equity interests of MVMT Watches, Inc., the owner of the MVMT global aspirational lifestyle brand (“MVMT”). Movado (with the exception of certain Movado collections, including Movado BOLD), Ebel and Concord watches are manufactured in Switzerland by independent third-party assemblers and are manufactured using Swiss movements. All of the Company’s products are manufactured using components obtained from third party suppliers. Certain Movado collections of watches, including Movado BOLD, are manufactured by independent contractors in Asia using Swiss movements. Coach, Tommy Hilfiger, HUGO BOSS, Lacoste, MVMT, Olivia Burton, Scuderia Ferrari and Rebecca Minkoff and Uri Minkoff watches are manufactured by independent contractors in Asia. In addition to its sales to trade customers and independent distributors, the Company sells directly to consumers via its e-commerce platforms and also operates 43 retail outlet locations throughout the United States and one in Canada, through which it sells current and discontinued models and factory seconds of all of the Company’s watches. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany transactions and balances have been eliminated. To the extent a subsidiary is not wholly owned, any related noncontrolling interests are included as a separate component of Shareholders’ Equity. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. These estimates and assumptions are based on management’s best estimates and judgment. On an on-going basis, the Company evaluates its estimates and judgement. These estimates include accounting for sales discounts, returns, allowances and incentives, warranties, income taxes, depreciation, amortization, inventory write-downs, stock-based compensation, pensions, contingencies, impairments and asset and liability valuations. Actual results could differ from those estimates. |
Translation of Foreign Currency Financial Statements and Foreign Currency Transactions | Translation of Foreign Currency Financial Statements and Foreign Currency Transactions The financial statements of the Company’s international subsidiaries have been translated into United States dollars by translating balance sheet accounts at year-end exchange rates and the weighted average exchange rate for each period for revenues, expenses, gains, losses and cash flows. Foreign currency transaction gains and losses are charged or credited to earnings as incurred. Foreign currency translation gains and losses are reflected in the equity section of the Company’s consolidated balance sheets in Accumulated Other Comprehensive Income. |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents and Restricted Cash Cash equivalents include all highly liquid investments with original maturities at date of purchase of three months or less. Restricted cash is comprised of cash or cash equivalents which has been placed into an account that is restricted for a specific use and from which the Company cannot withdraw the cash on demand. |
Trade Receivables | Trade Receivables Trade receivables as shown on the consolidated balance sheets are net of various allowances. The allowance for doubtful accounts is determined through an analysis of the aging of accounts receivable, assessments of collectability based on historical trends, the financial condition of the Company’s customers and an evaluation of economic conditions. The Company writes off uncollectible trade receivables once collection efforts have been exhausted and third parties confirm the balance is not recoverable. The Company’s trade customers include department stores, jewelry store chains and independent jewelers. All of the Company’s watch brands are also marketed outside the U.S. through a network of independent distributors. Accounts receivable are stated net of doubtful accounts, returns and allowances of $23.8 million, $21.6 million, and $18.9 million at January 31, 2019, 2018 and 2017, respectively. Additionally, $2.2 million, $2.3 million and $2.2 million of receivables and allowances were recorded in non-current assets as of January 31, 2019, 2018 and 2017, respectively. Accounts receivable are also stated net of co-operative advertising allowances of $9.4 million, $9.4 million, and $7.8 million at January 31, 2019, 2018, and 2017, respectively. Co-operative advertising allowances are credits taken by the customer at a future date on previously executed co-operative advertising. The Company’s concentrations of credit risk arise primarily from accounts receivable related to trade customers during the peak selling seasons. The Company has significant accounts receivable balances due from major national chain and department stores. The Company’s results of operations could be materially adversely affected in the event any of these customers or a group of these customers defaulted on all or a significant portion of their obligations to the Company as a result of financial difficulties. As of January 31, 2019, except for those accounts provided for in the allowance for doubtful accounts, the Company knew of no situations with any of the Company’s major customers which would indicate any such customer’s inability to make its required payments. No single customer accounted for more than 10% of net sales during any of the years in the three-year period ended January 31, 2019. No single customer accounted for more than 10% of the Company’s account receivable balance at January 31, 2019 or 2018. |
Inventories | Inventories The Company values its inventory at the lower of cost or net realizable value. Cost is determined using the average cost method. The Company performs reviews of its on-hand inventory to determine amounts, if any, of inventory that is deemed discontinued, excess, or unsaleable. Inventory classified as discontinued, together with the related component parts which can be assembled into saleable finished goods, is sold primarily through the Company’s outlet stores. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment, including computer software, are stated at cost less accumulated depreciation. The Company capitalizes certain computer software costs after technological feasibility has been established. Depreciation and amortization are computed using the straight-line method based on the estimated useful lives of the assets. The cost of property, plant and equipment and related depreciation and amortization are removed from the accounts upon the disposition or retirement of such assets and the resulting gain or loss is reflected in operating income. |
Intangibles | Intangibles Intangible assets consist primarily of a trade names, customer relationships and trademarks. In accordance with applicable guidance, the Company estimates and records the fair value of purchased intangible assets at the time of their acquisition. The fair values of these intangible assets are estimated based on independent third-party appraisals. Finite-lived intangible assets are amortized over their respective estimated useful lives, which range from three to ten years, and are evaluated for impairment periodically and whenever events or changes in circumstances indicate that their related carrying values may not be fully recoverable. Estimates of fair value for finite-lived intangible assets are primarily determined using discounted cash flow analysis of such assets, with consideration of market comparisons and recent transactions. This approach uses significant estimates and assumptions, including projected future cash flows, discount rates and growth rates. |
Goodwill | Goodwill At the time of an acquisition, in accordance with applicable guidance, the Company records all acquired net assets at their estimated fair values. These estimated fair values are based on management’s assessments and independent third-party appraisals. The excess of the purchase consideration plus the fair value of any noncontrolling interest in the acquired company over the aggregate estimated fair values of the acquired net assets, including any contingent consideration, is recorded as goodwill. Goodwill is not amortized but is assessed for impairment at least annually on November 1 st The quantitative impairment test is performed to measure the amount of impairment loss, if any. The quantitative impairment test identifies the existence of potential impairment by comparing the fair value of each reporting unit with its carrying value, including goodwill. If a reporting unit’s carrying amount exceeds its fair value, the Company will record an impairment charge, as an operating expense item, based on that difference. The impairment charge will be limited to the amount of goodwill allocated to that reporting unit. Determination of the fair value of a reporting unit and the fair value of individual assets and liabilities of a reporting unit is based on management’s assessment, including the consideration of independent third-party appraisals when necessary. Furthermore, this determination is subjective in nature and involves the use of significant estimates and assumptions. These estimates and assumptions could have a significant impact on whether or not an impairment charge is recognized and the amount of any such charge. Estimates of fair value are primarily determined using discounted cash flows, market comparisons, and recent transactions. These approaches use significant estimates and assumptions, including projected future cash flows, discount rates, growth rates, and determination of appropriate market comparisons. At November 1, 2018 and 2017, the Company evaluated goodwill for impairment. There were no indicators of impairment under this analysis and, accordingly, no impairment charge was recorded in fiscal 2019 or in fiscal 2018, respectively. |
Noncontrolling Interest | Noncontrolling Interest Noncontrolling interests in subsidiaries that are redeemable for cash or other assets outside of the Company’s control are classified as mezzanine equity, outside of equity and liabilities, at the greater of the carrying value or the redemption value. The increases and decreases in the redemption amount are recorded with corresponding adjustments against the Capital in excess of par value and are reflected in the computation of earnings per share using the two-class method. |
Long-Lived Assets | Long-Lived Assets The Company periodically reviews the estimated useful lives of its property, plant and equipment and intangible assets based on factors including historical experience, the expected beneficial service period of the asset, the quality and durability of the asset and the Company’s maintenance policy including periodic upgrades. Changes in useful lives are made on a prospective basis unless factors indicate the carrying amounts of the assets may not be recoverable and an impairment write-down is necessary. The Company performs an impairment review of its long-lived assets once events or changes in circumstances indicate, in management’s judgment, that the carrying value of such assets may not be recoverable. When such a determination has been made, management compares the carrying value of the asset groups with their estimated future undiscounted cash flows. If it is determined that an impairment has occurred, the fair value of the asset group is determined and compared to its carrying value. The excess of the carrying value over the fair value, if any, is recognized as loss during that period. The impairment is calculated as the difference between asset carrying values and the fair value of the long-lived assets. At November 1, 2018 and 2017, the Company evaluated long-lived assets for impairment. There were no indicators of impairment under this analysis and, accordingly, no impairment charge was recorded in fiscal 2019 or in fiscal 2018, respectively |
Deferred Rent Obligations and Contributions from Landlords | Deferred Rent Obligations and Contributions from Landlords The Company accounts for rent expense under non-cancelable operating leases with scheduled rent increases on a straight-line basis over the lease term. The excess of straight-line rent expense over scheduled payments is recorded as a deferred liability in accrued liabilities and other non-current liabilities. In addition, the Company receives build out contributions from landlords primarily as an incentive for the Company to lease retail store space from the landlords. This is also recorded as a deferred liability in accrued liabilities and other non-current liabilities. Such amounts are amortized as a reduction of rent expense over the life of the related lease. |
Derivative Financial Instruments | Derivative Financial Instruments The Company accounts for its derivative financial instruments in accordance with the accounting guidance which requires that an entity recognize all derivatives as either assets or liabilities in the consolidated balance sheets and measure those instruments at fair value. A significant portion of the Company’s purchases are denominated in Swiss francs and, to a lesser extent, the Japanese Yen. The Company also sells to third-party customers in a variety of foreign currencies, most notably the Euro and the British Pound. The Company reduces its exposure to the Swiss franc, Euro, British Pound and Japanese Yen 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, from time to time the Company uses forward contracts to further reduce the net exposures to currency fluctuations. Certain of these contracts meet the requirements of qualified hedges. In these circumstances, 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 hedges designated and documented as a cash flow hedge and which are 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 mostly 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. The Company does not exclude any designated cash flow hedges from its effectiveness testing. Any ineffectiveness related to the derivative financial instruments’ change in fair value will be recognized as other expense in the Consolidated Statements of Operations in the period in which the ineffectiveness was calculated. The Company uses forward exchange contracts, which do not meet the requirements of qualified hedges, 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 in earnings in the period they arise, thereby offsetting the current earnings effect resulting from the revaluation 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. |
Revenue Recognition | Revenue Recognition Wholesale revenue is recognized and recorded when a contract is in place, obligations under the terms of a contract with the customer are satisfied, control is transferred to the customer and is measured as the ultimate amount of consideration the Company expects to receive in exchange for transferring goods including variable consideration. Direct to consumer and after-sales service revenue is recognized at time of register receipt or delivery to customer. The Company records estimates of variable consideration, which includes sales returns, markdowns, volume-based programs and sales and cash discount allowances as a reduction of revenue in the same period that the sales are recorded. These estimates are based upon the expected value method considering all reasonably available information including historical analysis, customer agreements and/or currently known factors that arise in the normal course of business. Returns, discounts and allowances have historically been within the Company’s expectations and the provisions established. The future provisional rates may differ from those experienced in the past. The Company considers transfer of control to take place either when the goods ship or when goods are delivered depending on the shipping terms in the contract. Factors considered in the transfer of control include the right to payment, transfer of legal title, physical possession and customer acceptance of the goods and whether the significant risks and rewards for the goods belong with the customer. Taxes imposed by governmental authorities on the Company's revenue-producing activities with customers, such as sales taxes and value added taxes, are excluded from net sales. The Company’s sale of smart watches contains multiple performance obligations. The Company allocates revenue to each performance obligation using the relative standalone selling price method. The Company determines the standalone selling prices based on the prices charged to customers. Amounts allocated to the delivered smart watch collections and the related essential software are recognized at the time of sale. Amounts allocated to the cloud service and app updates are deferred and recognized on a straight-line basis over the estimated two-year period the updates are expected to be provided. The Company’s smart watch collections were available in limited quantities and in limited distribution, and, as a result, these deferred amounts were immaterial to all periods presented. The Company has considered each transaction to sell goods as separate and distinct, with no additional promises made. The Company uses the understanding of what the customer expects to receive as the final product to determine whether goods or services should be combined and accounted for as a single performance obligation. The Company does not incur significant costs to obtain or fulfill its contracts. |
Cost of Sales | Cost of Sales Cost of sales of the Company’s products consist primarily of costs for raw materials, component costs, royalties, depreciation, amortization, assembly costs, shipping to e-commerce customers, design costs and unit overhead costs associated with the Company’s supply chain operations predominately in Switzerland and Asia. The Company’s supply chain operations consist of logistics management of assembly operations and product sourcing predominately in Switzerland and Asia and minor assembly in Switzerland. |
Selling, General and Administrative ("SG&A") Expenses | Selling, General and Administrative (“SG&A”) Expenses The Company’s SG&A expenses consist primarily of marketing, selling, distribution, general and administrative expenses. Marketing expenditures are based principally on overall strategic considerations relative to maintaining or increasing market share in markets that management considers to be crucial to the Company’s continued success as well as on general economic conditions in the various markets around the world in which the Company sells its products. Marketing expenses include salaries, various forms of media advertising, digital advertising, customer acquisition costs and co-operative advertising with customers and distributors and other point of sale marketing and promotion spending. Selling expenses consist primarily of salaries, sales commissions, sales force travel and related expenses, depreciation and amortization, expenses associated with the Company’s annual worldwide customer conference, and other industry trade shows and operating costs incurred in connection with the Company’s retail business. Sales commissions vary with overall sales levels. Retail selling expenses consist primarily of payroll and related expenses and store occupancy costs. Distribution expenses consist primarily of salaries of distribution staff, rental and other occupancy costs, security, depreciation and amortization of furniture and leasehold improvements and shipping supplies. General and administrative expenses consist primarily of salaries and other employee compensation including performance based compensation, employee benefit plan costs, office rent, management information systems costs, professional fees, bad debts, depreciation and amortization of furniture, computer software, leasehold improvements, and intangible assets and various other general corporate expenses. |
Warranty Costs | Warranty Costs All watches sold by the Company come with limited warranties covering the movement against defects in material and workmanship for periods ranging from two to three years from the date of purchase, with the exception of Tommy Hilfiger watches, for which the warranty period is ten years. In addition, the warranty period is five years for the gold plating for Movado watch cases and bracelets. When changes in warranty costs are experienced, the Company will adjust the warranty liability as required. The Company records an estimate for future warranty costs based on historical repair costs. Warranty costs have historically been within the Company’s expectations and the provisions established. Warranty liability, included in accrued liabilities in the consolidated balance sheets, and activity for the fiscal years ended January 31, 2019, 2018 and 2017 was as follows (in thousands): 2019 2018 2017 Balance, beginning of year $ 3,288 $ 2,728 $ 2,556 Provision charged to operations 2,249 2,845 2,092 Settlements made (2,834 ) (2,285 ) (1,920 ) Balance, end of year $ 2,703 $ 3,288 $ 2,728 |
Pre-opening Costs | Pre-opening Costs Marketing and administrative costs associated with the opening of retail stores are expensed in the period incurred. |
Marketing | Marketing The Company expenses the production costs of an advertising campaign at the commencement date of the advertising campaign. Included in marketing expenses are costs associated with co-operative advertising, media advertising, digital advertising, customer acquisition costs, production costs and costs of point of sale materials and displays. These costs are recorded as SG&A expenses. The Company participates in co-operative advertising programs on a voluntary basis and receives a “separately identifiable benefit in exchange for the consideration.” Since the amount of consideration paid to the retailer does not exceed the fair value of the benefit received by the Company, these costs are recorded as SG&A expenses as opposed to being recorded as a reduction of revenue. Marketing expense for fiscal 2019, 2018 and 2017 was $108.2 million, $73.1 million and $75.7 million, respectively. Included in other current assets and non-current assets in the consolidated balance sheets are the costs of certain prepaid advertising, including principally product displays and point of sale materials and to a lesser extent licensing agreements and sponsorships. Prepaid advertising accounted for in other current assets at January 31, 2019 and 2018, respectively. Prepaid advertising accounted for in other non-current assets at January 31, 2019 and 2018, respectively. |
Loyalty Program | Loyalty Program Our MVMT (see Note 3) Insider Rewards loyalty program allows customers to earn points for every purchase made and for engaging with MVMT’s brand through social media and other platforms. Once enough points are earned, the points may be redeemed like cash on . MVMT Insider Rewards loyalty program liabilities of $0.3 million were included in other current liabilities at January 31, 2019. The Company recognizes the estimated net amount of the rewards that will be earned and redeemed as a reduction of net sales or in selling, general and administrative, dependent on how points were earned. |
Shipping and Handling Costs | Shipping and Handling Costs Amounts charged to customers for shipping and handling were $2.2 million, $1.8 million and $1.9 million for fiscal years 2019, 2018 and 2017, respectively. The costs related to shipping and handling were $9.8 million, $5.2 million and $5.6 million for fiscal years 2019, 2018 and 2017, respectively. The amounts charged and incurred by the Company related to shipping and handling are included in net sales and cost of goods sold, respectively. |
Collaborative Arrangement | Collaborative Arrangement The Company participates in a collaborative arrangement with Rebecca Minkoff, LLC relating to the Rebecca Minkoff and Uri Minkoff brand names. Both parties to the arrangement are active participants in the collaboration and are exposed to significant risks and rewards dependent on the commercial success of the activities. The arrangement involves various activities including the design, development, distribution and marketing of watches under the brand names. Amounts due between the parties to the arrangement related to sales and related activities are recorded in the Company’s cost of sales while those amounts related to general and administrative activities are recorded as an adjustment to selling, general and administrative expenses. The Company generated immaterial revenues and incurred immaterial expenses under its collaborative arrangement during fiscal 2019. |
Income Taxes | Income Taxes The Company, under Accounting Standards Codification guidance for Income Taxes (“ASC Topic 740”), follows the asset and liability method of accounting for income taxes under which deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax laws and tax rates, in each jurisdiction where the Company operates, and applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities due to a change in tax rates is recognized in income in the period that includes the enactment date. In addition, the amounts of any future tax benefits are reduced by a valuation allowance to the extent such benefits are not expected to be realized on a more-likely-than-not basis. The Company calculates estimated income taxes in each of the jurisdictions in which it operates. This process involves estimating actual current tax expense along with assessing temporary differences resulting from differing treatment of items for both book and tax purposes. The Company follows guidance for accounting for uncertainty in income taxes. This guidance clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement standard for the financial statement recognition and measurement of an income tax position taken or expected to be taken in a tax return. This guidance also provides guidance for de-recognition, classification, interest and penalties, accounting in interim periods, disclosures and transitions. The 2017 Tax Act signed into law on December 22, 2017 constitutes a major change to the U.S. tax system. The 2017 Tax Act significantly changed the existing U.S. corporate income tax laws by, among other things, lowering the corporate tax rate from 35% to 21%, limiting the deductibility of interest expense and executive compensation, implementing a territorial tax system, and imposing a one-time mandatory deemed repatriation Transition Tax on cumulative undistributed foreign earnings which have not been previously taxed. The SEC issued Staff Accounting Bulletin No. 118 (“SAB 118”) which allowed the Company to record provisional amounts related to the 2017 Tax Act and provides a measurement period of up to one year from the enactment date for companies to complete their accounting under ASC Topic 740. As of December 21, 2018, the Company completed its accounting for the tax effects of the enactment (Note 10 – Income Taxes). The Company has finalized its policy election to account for the tax on Global Intangible Low-Tax Income (“GILTI”) as a period cost and therefore has not recorded deferred taxes related to GILTI. The Company early adopted Accounting Standards Update (“ASU”) 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“AOCI”) which permits companies to reclassify disproportionate tax effects in accumulated other comprehensive income caused by the 2017 Tax Act to retained earnings. As a result, the Company made the election to reclassify the income tax effects of the 2017 Tax Act from AOCI to retained earnings in the prior year. The adoption of this standard did not have a material impact on the Company’s consolidated results of operations or financial position. |
Comparable Stores Sales | Comparable Stores Sales The Company considers comparable outlet store sales to be sales of stores that were open as of February 1 st st |
Earnings Per Share | Earnings Per Share The Company presents net income / (loss) attributable to Movado Group, Inc. after adjusting for redeemable noncontrolling interest, as applicable per share on a basic and diluted basis. Basic earnings per share is computed using weighted-average shares outstanding during the period. Diluted earnings per share is computed using the weighted-average number of shares outstanding adjusted for dilutive common stock equivalents. The number of shares used in calculating basic and diluted earnings (loss) per share is as follows (in thousands): Fiscal Years Ended January 31, 2019 2018 2017 Weighted average common shares outstanding: Basic 23,197 23,073 23,070 Effect of dilutive securities: Options to purchase shares of common stock 403 — 197 Diluted 23,600 23,073 23,267 For the fiscal years ended January 31, 2019, 2018 and 2017 81,185, 795,644 and 785,190 respectively, of potentially dilutive common stock equivalents were excluded from the computation of diluted earnings per share because their effect would have been antidilutive. For the fiscal year ended January 31, 2018, the Company also had 198,804 stock options outstanding that could potentially dilute earnings per share in future periods that were excluded from the computation of diluted EPS because their effect would have been anti-dilutive given the net loss during the period. |
Stock-Based Compensation | Stock-Based Compensation The Company utilizes the Black-Scholes option-pricing model which requires that certain assumptions be made to calculate the fair value of each option at the grant date. The expected life of stock option grants is determined using historical data and represents the time period during which the stock option is expected to be outstanding until it is exercised. The risk free interest rate is based on the U.S. treasury note interest rate in effect on the date of grant for the expected life of the stock option. The expected stock price volatility is derived from historical volatility and calculated based on the estimated term structure of the stock option grant. The expected dividend yield is calculated using the Company’s historical average of annualized dividend yields and applied over the expected term of the option. Management monitors stock option exercises and employee termination patterns to estimate forfeitures rates within the valuation model. Separate groups of employees that have similar historical exercise behavior are considered separately for valuation purposes. In addition to stock options, the Company may also grant stock awards to employees. The stock awards are generally in the form of time-vesting restricted stock unit awards (pursuant to which unrestricted shares of Common Stock are issued to the grantee when the award vests) or performance-based awards (under which vesting occurs only if one or more predetermined financial goals are achieved within the relevant performance period); both are subject to the participant’s continued employment with the Company through such vesting date. Stock awards generally are cliff-vested after three years from the date of grant. The fair value of stock awards is equal to the closing price of the Company’s publicly-traded common stock on the grant date. Compensation expense for all awards is accrued based on the estimated number of instruments for which the requisite service is expected to be rendered as well as awards expected to be paid in cash. This estimate is reflected in the period the stock option and stock awards are either granted or canceled. Expense related to stock options and stock awards compensation is recognized on a straight-line basis over the vesting term |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) consists of net income (loss) attributable to the Movado Group, Inc. and other gains and losses that are not included in net income (loss), but are recorded directly in the consolidated statements of shareholders’ equity, such as the unrealized gains and losses on the translation of the assets and liabilities of the Company’s foreign operations, unrealized gains or losses on available for sale securities and prior service costs associated with pension benefits, net of tax, that have not been recognized as components of net periodic benefit cost. |
Reclassifications | Reclassifications Certain reclassifications have been made to prior years consolidated financial statement amounts and related note disclosures to conform to fiscal 2019 presentation. The Company reclassified restricted cash to cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the statement of cash flows in accordance with ASU 2016-18, “Statement of Cash Flows (Topic 230) — Restricted Cash”. The Company also reclassified the activity during fiscal 2017 of its noncontrolling interest in the consolidated statements of cash flows and changes in equity to agree to current year’s presentation. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Warranty Liability, Included in Accrued Liabilities in Consolidated Balance Sheets and Activity | Warranty liability, included in accrued liabilities in the consolidated balance sheets, and activity for the fiscal years ended January 31, 2019, 2018 and 2017 was as follows (in thousands): 2019 2018 2017 Balance, beginning of year $ 3,288 $ 2,728 $ 2,556 Provision charged to operations 2,249 2,845 2,092 Settlements made (2,834 ) (2,285 ) (1,920 ) Balance, end of year $ 2,703 $ 3,288 $ 2,728 |
Schedule of Number of Shares Used in Calculating Basic and Diluted Earnings (Loss) Per Share | The number of shares used in calculating basic and diluted earnings (loss) per share is as follows (in thousands): Fiscal Years Ended January 31, 2019 2018 2017 Weighted average common shares outstanding: Basic 23,197 23,073 23,070 Effect of dilutive securities: Options to purchase shares of common stock 403 — 197 Diluted 23,600 23,073 23,267 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Summary of Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill during the fiscal years ended January 31, 2019, 2018 and 2017 are as follows (in thousands): MVMT (1) City Time(2) JLB (3) Total Balance at January 31, 2017 $ — $ — $ — $ — Acquisition of JLB — — 55,322 55,322 Foreign exchange impact — — 4,947 4,947 Balance at January 31, 2018 — — 60,269 60,269 Acquisition of MVMT 77,542 — — 77,542 Acquisition of City Time — 2,833 — 2,833 Foreign exchange impact — 18 (4,629 ) (4,611 ) Balance at January 31, 2019 $ 77,542 $ 2,851 55,640 136,033 (1) Goodwill associated with the MVMT brand is included in the United States location of the Watch and Accessory Brands segment. (2) Goodwill associated with City Time is included in the International location of the Watch and Accessory Brands segment. (3) Goodwill associated with JLB is included in the International location of the Watch and Accessory Brands segment. |
Summary of Changes in Carrying Amount of Other Intangible Assets | The changes in the carrying amount of other intangible assets during the fiscal years ended January 31, 2019, 2018 and 2017 are as follows (in thousands): Trade names Customer relationships Other (1) Total Balance at January 31, 2016 $ — $ — $ 1,490 $ 1,490 Amortization — — (420 ) (420 ) Additions — — 328 328 Foreign exchange impact — — 235 235 Balance at January 31, 2017 — — 1,633 1,633 Acquisition of JLB 12,797 8,618 — 21,415 Additions — — 556 556 Amortization (781 ) (876 ) (434 ) (2,091 ) Foreign exchange impact 1,080 715 (184 ) 1,611 Balance at January 31, 2018 13,096 8,457 1,571 23,124 Acquisition of MVMT 24,700 4,200 28 28,928 Acquisition of City-Time — 1,672 — 1,672 Additions — — 492 492 Amortization (2,126 ) (1,628 ) (597 ) (4,351 ) Foreign exchange impact (899 ) (520 ) (263 ) (1,682 ) Balance at January 31, 2019 $ 34,771 $ 12,181 $ 1,231 $ 48,183 (1) Other includes fees paid related to trademarks and non-compete agreement related to Olivia Burton brand. |
Summary of Weighted Average Amortization Periods Over Straight-Line Basis | Weighted average amortization periods over a straight-line basis are as follows: In Years Trade names 10 Customer relationships 7 Other 7 |
Summary of Estimated Future Amortization Expense | The estimated future amortization expense during each of the next five fiscal years is as follows: For the fiscal year ending January 31, (in thousands) 2020 $ 6,149 2021 6,036 2022 5,971 2023 5,942 2024 5,071 Thereafter 19,014 Total estimated future amortization expense $ 48,183 |
MVMT Watches, Inc. | |
Summary of Fair Value of Assets Acquired and Liabilities Assumed at Acquisition Date | The following table summarizes the fair value of the assets acquired and liabilities assumed as of the October 1, 2018 acquisition date (in thousands): Assets Acquired and Liabilities Assumed Fair Value Cash and cash equivalents $ 3,848 Trade receivables 370 Inventories 14,552 Prepaid expenses and other current assets 2,325 Property, plant and equipment 179 Other non-current assets 6,500 Goodwill 77,542 Trade name and other intangibles 28,928 Total assets acquired 134,244 Accounts payable 5,982 Accrued liabilities 9,018 Other non-current liabilities 7,064 Total liabilities assumed 22,064 Total purchase price $ 112,180 |
Summary of Unaudited Pro Forma Information | The following table provides the Company’s unaudited pro forma net sales, net income and net income per basic and diluted common share as if the results of operations of the MVMT brand had been included in the Company’s operations commencing on February 1, 2017, based on available information relating to operations of the MVMT brand. This pro forma information is not necessarily indicative either of the combined results of operations that actually would have been realized by the Company had the MVMT brand acquisition been consummated at the beginning of the period for which the pro forma information is presented, or of future results. Fiscal Year Ended January 31, 2019 2018 (1) (In thousands, except per share data) (Unaudited) Net sales $ 712,587 $ 639,319 Net income / (loss) attributable to Movado Croup, Inc. (1) $ 64,118 $ (21,519 ) Basic income per share: Net income / (loss) per share attributable to Movado Group, Inc. $ 2.76 $ (0.93 ) Diluted income per share: Net income / (loss) per share attributable to Movado Group, Inc. $ 2.72 $ (0.93 ) (1) Includes non-recurring transaction costs of $7.0 million associated with the acquisition. |
JLB Brands Ltd | |
Summary of Fair Value of Assets Acquired and Liabilities Assumed at Acquisition Date | The following table summarizes the fair value of the assets acquired and liabilities assumed as of the July 3, 2017 acquisition date (in thousands): Assets Acquired and Liabilities Assumed Fair Value Cash and cash equivalents $ 5,909 Trade receivables, net 3,106 Inventories 4,164 Prepaid expenses and other current assets 913 Property, plant and equipment, net 131 Goodwill 55,322 Trade name and other intangibles 21,415 Total assets acquired 90,960 Accounts payable 608 Accrued liabilities 844 Income taxes payable 643 Deferred and non-current income taxes payable 3,965 Total liabilities assumed 6,060 Total purchase price $ 84,900 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | Inventories consisted of the following (in thousands): As of January 31, 2019 2018 Finished goods $ 123,947 $ 112,712 Component parts 39,752 37,404 Work-in-process 1,612 1,560 $ 165,311 $ 151,676 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | A summary of the components of property, plant and equipment and their estimated useful lives is as follows (in thousands): As of January 31, 2019 2018 Estimated Useful Lives Land and buildings $ 1,176 $ 1,610 40 years for buildings Furniture and equipment 52,314 48,748 4 to 10 years Computer software 33,289 32,359 5 to 10 years Leasehold improvements 36,727 32,814 Lesser of lease term or useful life Design fees and tooling costs 2,250 2,398 3 years 125,756 117,929 Less: Accumulated depreciation and amortization (99,689 ) (93,258 ) Property, plant and equipment, net $ 26,067 $ 24,671 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
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 as of January 31, 2019 and 2018 (in thousands): Asset Derivatives Liability Derivatives Balance Sheet Location 2019 Fair Value 2018 Fair Value Balance Sheet Location 2019 Fair Value 2018 Fair Value Derivatives not designated as hedging instruments: Foreign Exchange Contracts Other Current Assets $ 22 $ 544 Accrued Liabilities $ 156 $ 2 Total Derivative Instruments $ 22 $ 544 $ 156 $ 2 Asset Derivatives Liability Derivatives Balance Sheet Location 2019 Fair Value 2018 Fair Value Balance Sheet Location 2019 Fair Value 2018 Fair Value Derivatives designated as hedging instruments: Foreign Exchange Contracts Other Current Assets $ — $ — Accrued Liabilities $ — $ 44 Total Derivative Instruments $ — $ — $ — $ 44 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
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 as of January 31, 2019 and 2018 (in thousands): Fair Value at January 31, 2019 Balance Sheet Location Level 1 Level 2 Level 3 Total Assets: Available-for-sale securities Other current assets $ 177 $ — $ — $ 177 Short-term investment Other current assets 155 — — 155 SERP assets - employer Other non-current assets 860 — — 860 SERP assets - employee Other non-current assets 38,170 — — 38,170 Hedge derivatives Other current assets — 22 — 22 Total $ 39,362 $ 22 $ — $ 39,384 Liabilities: SERP liabilities - employee Other non-current liabilities $ 38,170 $ — $ — $ 38,170 Hedge derivatives Accrued liabilities — 156 — 156 Contingent purchase price liability Other non-current liabilities — — 16,718 16,718 Total $ 38,170 $ 156 $ 16,718 $ 55,044 Fair Value at January 31, 2018 Balance Sheet Location Level 1 Level 2 Level 3 Total Assets: Available-for-sale securities Other current assets $ 275 $ — $ — $ 275 Short-term investment Other current assets 164 — — 164 SERP assets - employer Other non-current assets 994 — — 994 SERP assets - employee Other non-current assets 38,577 — — 38,577 Hedge derivatives Other current assets — 544 — 544 Total $ 40,010 $ 544 $ — $ 40,554 Liabilities: SERP liabilities - employee Other non-current liabilities $ 38,577 $ — $ — $ 38,577 Hedge derivatives Accrued liabilities — 46 — 46 Total $ 38,577 $ 46 $ — $ 38,623 |
Schedule of Change in Level 3 Contingent Purchase Price Liability | The following table presents the change in the Level 3 contingent purchase price liability during the twelve months ended January 31, 2019: Fiscal Year Ended January 31, (In thousands) 2019 Beginning balance $ — Acquisition of MVMT 16,500 Payments — Adjustments included in earnings 218 Ending balance $ 16,718 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Minimum Annual Rentals Under Noncancelable Operating Leases | Minimum annual rentals under noncancelable operating leases as of January 31, 2019, excluding real estate taxes and operating costs, are as follows (in thousands): Fiscal Year Ending January 31, 2020 $ 14,036 2021 11,325 2022 10,135 2023 8,279 2024 7,683 Thereafter 35,020 $ 86,478 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Provision for Income Taxes | Income before provision for income taxes for the fiscal year ended January 31, 2019, 2018, and 2017 on a legal entity basis consists of the following (in thousands): 2019 2018 2017 U.S. income before taxes $ 6,795 $ 11,731 $ 26,299 Non-U.S. income before taxes 54,938 30,411 25,155 Income before income taxes $ 61,733 $ 42,142 $ 51,454 |
Schedule of Income Taxes Provision (Benefit) for Continuing Operations | The provision (benefit) for income taxes for the fiscal years ended January 31, 2019, 2018 and 2017 consists of the following components (in thousands): 2019 2018 2017 Current: U.S. Federal $ 6,665 $ 31,599 $ 14,079 U.S. State and Local 3,556 960 1,117 Non-U.S. 8,775 7,145 5,091 18,996 39,704 20,287 Deferred: U.S. Federal (12,706 ) 16,671 (4,231 ) U.S. State and Local (2,339 ) 622 (167 ) Non-U.S. (3,789 ) 370 426 (18,834 ) 17,663 (3,972 ) Provision for income taxes $ 162 $ 57,367 $ 16,315 |
Schedule of Significant Components of Deferred Income Tax Assets and Liabilities | Significant components of the Company’s deferred income tax assets and liabilities for the fiscal years ended January 31, 2019 and 2018 are as follows (in thousands): 2019 Deferred Taxes 2018 Deferred Taxes Assets Liabilities Assets Liabilities Net operating loss carryforwards $ 9,738 $ — $ 10,589 $ — Inventory 1,848 — 2,199 — Unprocessed returns 980 — 955 — Receivables allowances 336 — 227 — Deferred compensation 14,953 — 12,985 — Unrepatriated earnings — 3,540 — 11,690 Depreciation/amortization — 1,212 — 4,440 Other provisions/accruals 1,498 — 63 — Deferred occupancy costs 1,222 — — — Miscellaneous 271 — — 199 30,846 4,752 27,018 16,329 Valuation allowance (5,257 ) — (8,960 ) — Total deferred tax assets and liabilities $ 25,589 $ 4,752 $ 18,058 $ 16,329 |
Schedule of Income Taxes Provision for Continuing Operations by Applying U.S. Federal Statutory Rate | The provision for income taxes for the fiscal years ended January 31, 2019, 2018, and 2017 differs from the U.S. federal statutory rate due to the following (in thousands): Fiscal Year Ended January 31, 2019 2018 2017 Provision for income taxes at the U.S. statutory rate $ 12,964 $ 14,248 $ 18,009 Lower effective non-U.S. income tax rate (1,303 ) (4,378 ) (4,725 ) Change in valuation allowance (2,138 ) 136 828 U.S. tax provided on earnings of non-U.S. subsidiaries — — 541 Change in liabilities for uncertain tax positions, net (1,346 ) (381 ) 215 State and local taxes, net of federal benefit 962 626 617 Impact of 2017 Tax Act (7,446 ) 45,002 — Excess tax deficiencies from stock-based compensation (118 ) 1,094 — Other permanent differences (1,759 ) 978 979 Other, net 346 42 (149 ) Total provision for income taxes $ 162 $ 57,367 $ 16,315 |
Schedule of Reconciliation of Beginning and Ending Amounts of Gross Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits (exclusive of interest) for the fiscal years ended January 31, 2019, 2018 and 2017 are as follows (in thousands): 2019 2018 2017 Beginning balance $ 2,354 $ 2,619 $ 2,481 Tax positions taken in the current year 234 180 142 Tax positions taken in prior years (774 ) 148 — Lapse of statute of limitations (122 ) (630 ) — Settlements (236 ) (149 ) — Non-U.S. currency exchange fluctuations (105 ) 186 (4 ) Ending balance $ 1,351 $ 2,354 $ 2,619 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Schedule of Component of Accumulated Other Comprehensive Income (Loss) | The accumulated balances at January 31, related to each component of accumulated other comprehensive income (loss) are as follows (in thousands): 2019 2018 2017 Foreign currency translation adjustments $ 80,808 $ 100,190 $ 76,569 Available-for-sale securities 119 191 197 Hedging contracts — (38 ) 14 Unrecognized prior service cost related to defined benefit pension plan (420 ) — — Total accumulated other comprehensive loss $ 80,507 $ 100,343 $ 76,780 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Net Sales Disaggregated by Customer Type | The following table presents the Company’s net sales disaggregated by customer type. Sales and usage-based taxes are excluded from net sales (in thousands). Fiscal Year Ended Customer Type January 31, 2019 Wholesale $ 532,565 Direct to consumer 142,439 After-sales service 4,563 Net Sales $ 679,567 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Weighted Average Assumptions Used for Calculation of Fair Value of Stock Options Granted | The table below presents the weighted average assumptions used with the Black-Scholes option-pricing model for the calculation of the fair value of stock options granted during the fiscal years ended January 31, 2018 and 2017. There were no stock options granted during the fiscal year ended Fiscal Year Ended January 31, 2018 2017 Expected volatility 46.16 % 47.81 % Expected life in years 6.0 6.0 Risk-free interest rates 1.93 % 1.42 % Dividend rate 1.51 % 1.01 % Weighted average fair value per option at date of grant $ 9.15 $ 11.17 |
Schedule of Stock Option Plan | The following table summarizes the Company’s stock option plan as of January 31, 2019 and changes during each of the fiscal years in the three-year period ended January 31, 2019: Outstanding Options Weighted Average Exercise Price per Option Option Price Per Share Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value $(000) Options outstanding at January 31, 2016 (374,377 options exercisable) 699,600 $ 30.41 Granted 200,346 $ 26.97 Exercised (40,588 ) $ 25.68 Cancelled — $ — Options outstanding at January 31, 2017 (482,255 options exercisable) 859,358 $ 29.83 Granted 161,205 $ 23.35 Exercised (85,600 ) $ 23.18 Cancelled (173,262 ) $ 30.21 Options outstanding at January 31, 2018 (394,455 options exercisable) 761,701 $ 29.12 $ 21.03-$45.02 6.3 $ 2,291 Granted — $ — Exercised (189,941 ) $ 30.77 $ 22.04-$42.12 Cancelled (5,500 ) $ 42.12 $ 42.12 Options outstanding at January 31, 2019 566,260 $ 28.43 $ 23.35-$42.12 6.2 $ 2,654 Exercisable at January 31, 2019 264,244 $ 31.89 4.4 $ 675 Expected to vest at January 31, 2019 296,611 $ 25.42 7.8 $ 1,950 |
Schedule of Information Related to Stock Option Activity | The table below presents information related to stock option activity for the years ended January 31, 2019, 2018 and 2017: Fiscal Year Ended January 31, 2019 2018 2017 (in thousands) Total fair value of stock options exercised $ 1,912 $ 454 $ 212 Total fair value of stock options vested $ 803 $ 1,275 $ 2,021 |
Schedule of Non-vested Stock Options | A summary of the Company’s non-vested stock options at January 31, 2019 and changes during fiscal 2019 are presented below: Shares Weight Average Grant Date Fair Value Non-vested stock options: Non-vested at January 31,2018 367,246 $ 10.62 Vested (65,230 ) $ 12.31 Non-vested at January 31,2019 302,016 $ 10.25 |
Schedule of Transactions for Restricted Stock Units Under Plan | Transactions for stock award units under the Plan since fiscal 2016 are summarized as follows: Number of Stock Award Units Weighted- Average Grant Date Fair Value Weighted- Average Remaining Contractual Term (years) Aggregate Intrinsic Value ($(000's) January 31, 2016 374,598 $ 33.83 Units granted 187,777 $ 27.76 Units vested (170,010 ) $ 31.85 Units forfeited (11,207 ) $ 34.50 January 31, 2017 381,158 $ 31.71 Units granted 133,245 $ 23.31 Units vested (115,574 ) $ 39.44 Units forfeited (56,059 ) $ 30.27 January 31, 2018 342,770 $ 26.07 Units granted 228,310 $ 39.22 Units vested (112,170 ) $ 27.60 Units forfeited (11,888 ) $ 30.82 Units outstanding at January 31, 2019 447,022 $ 32.27 1.4 $ 14,282 |
Pension and Retirement Saving_2
Pension and Retirement Savings Plan (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Components of Net Periodic Pension Costs | The components of the net periodic pension costs for the fiscal year ended January 31, 2019 are as follows: (Amounts in thousands) 2019 Service cost $ 93 Interest cost 25 Expected return on assets (25 ) Amortization of prior service costs 6 Net Periodic Pension Cost $ 99 |
Reconciliation of Change in Benefit Obligation, Change in Plan Assets and Net Amount Recognized in Consolidated Balance Sheets | A reconciliation of the change in benefit obligation, the change in plan assets and the net amount recognized in the consolidated balance sheets shown below (based on a January 31 measurement date): (Amounts in thousands) 2019 Change in benefit obligation: Pension benefit obligation at 12/31/2018 $ 34,088 Service cost 93 Interest cost 25 Benefit and expense payments (81 ) Employee contributions 70 Foreign currency exchange rate impact (441 ) Pension benefit obligation at end of year 33,754 Change in plan assets: Fair value of plan assets at 12/31/2018 $ 33,538 Company contributions 105 Benefit and expense payments (81 ) Actual return on plan assets 25 Employee contributions 70 Foreign currency exchange rate impact (434 ) Fair value of plan assets at end of year 33,223 Funded status - consolidated $ (531 ) Amounts recognized in the consolidated balance sheets consist of: Other long-term liabilities $ 531 Amounts recognized in accumulated other comprehensive (loss): Prior service cost 537 Tax effect (117 ) Net amount recognized, after tax $ 420 Accumulated benefit obligation $ 30,083 |
Weighted-average Assumptions Used to Calculate Benefit Obligations and Net Periodic Benefit Cost | The weighted‑average assumptions that were used to determine the Company’s benefit obligations as of the measurement date (January 31) and that were used to determine the Company’s net periodic benefit cost were as follows: 2019 Discount rate 0.90 % Salary progression rate 1.10 % Expected long-term rate of return on plan assets 0.90 % |
Schedule of Expected Benefit Payments of Pension Plans | The Company expects the following benefit payments to be paid out for the fiscal years indicated. The expected benefit payments are based on the same assumptions used to measure the Company’s benefit obligation at January 31, 2019 and include estimated future employee service. The Company does not expect any plan assets to be returned to it during the fiscal year ending January 31, 2020. Payments from the pension plan are made from the plan assets. Fiscal Year ending January 31, (in thousands) 2020 $ 696 2021 709 2022 717 2023 727 2024 740 2025-2030 3,783 |
Cost Savings Initiatives (Table
Cost Savings Initiatives (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Restructuring And Related Activities [Abstract] | |
Summary of Costs Related to Cost Savings Initiatives | A summary rollforward of costs related to the cost savings initiatives is as follows (in thousands): Severance and payroll related (1) Fixed assets (1) Other (1) Occupancy Charges (1) Total Fiscal 2018 Charges (2) $ 5,630 $ 5,166 $ 2,692 $ 99 $ 13,587 Cash payments (5,895 ) — (1,847 ) (34 ) (7,776 ) Non-cash adjustments 1,124 (5,166 ) — — (4,042 ) Foreign exchange 72 — 74 9 155 Accrued balance at January 31, 2018 931 — 919 74 1,924 Cash payments (601 ) — (589 ) (45 ) (1,235 ) Non-cash adjustments (3) (30 ) — (251 ) — (281 ) Foreign exchange — — (52 ) (4 ) (56 ) Accrued balance at January 31, 2019 $ 300 $ — $ 27 $ 25 $ 352 (1) The total severance and payroll related charges of $5.6 million include $4.3 million in SG&A and $1.3 million in Cost of Sales in the Consolidated Statement of Operations for the fiscal year ended January 31, 2018. The fixed assets charges of $5.2 million, other charges of $2.7 million and occupancy charges of $0.1 million are included in SG&A in the Consolidated Statement of Operations for the fiscal year ended January 31, 2018. These accrued balances are located in accrued liabilities in the Company’s Consolidated Balance Sheets. (2) The United States and International locations of the Watch and Accessory Brands segment include a pre-tax charge of $3.9 million and $9.7 million, respectively, for the fiscal year ended January 31, 2018. (3) Non-cash adjustments during fiscal 2019 relate to a change in estimate for severance and other. The United States and International locations of the Watch and Accessory Brands segment include pre-tax income of approximately $43,000 and $238,000 respectively. |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Segment Reporting [Abstract] | |
Operating Segment Data | Operating Segment Data as of and for the Fiscal Year Ended January 31, (in thousands): Net Sales 2019 2018 2017 Watch and Accessory Brands: Owned brands category $ 263,904 $ 204,897 $ 205,396 Licensed brands category 320,911 277,323 265,137 After-sales service and all other 11,061 9,862 13,911 Total Watch and Accessory Brands 595,876 492,082 484,444 Company Stores 83,691 75,871 68,308 Consolidated total $ 679,567 $ 567,953 $ 552,752 Operating Income (1) (2) (3) (4) (5) 2019 2018 2017 Watch and Accessory Brands $ 45,194 $ 28,296 $ 41,773 Company Stores 17,003 14,904 12,208 Consolidated total $ 62,197 $ 43,200 $ 53,981 Total Assets Capital Expenditures 2019 2018 2019 2018 2017 Watch and Accessory Brands $ 735,244 $ 621,965 $ 6,508 $ 3,133 $ 5,666 Company Stores 24,457 23,415 4,127 2,677 254 Consolidated total $ 759,701 $ 645,380 $ 10,635 $ 5,810 $ 5,920 Depreciation and Amortization 2019 2018 2017 Watch and Accessory Brands $ 12,446 $ 11,765 $ 9,875 Company Stores 1,719 1,692 1,632 Consolidated total $ 14,165 $ 13,457 $ 11,507 |
Geographic Segment Data | Geographic Location Data as of and for the Fiscal Year Ended January 31, (in thousands): Net Sales (6) Operating (Loss) / Income (1) (2) (3) (4) (5) (6) (7) (8) 2019 2018 2017 2019 2018 2017 United States $ 308,420 $ 260,606 $ 296,311 $ (3,856 ) $ (629 ) $ 16,917 International 371,147 307,347 256,441 66,053 43,829 37,064 Consolidated total $ 679,567 $ 567,953 $ 552,752 $ 62,197 $ 43,200 $ 53,981 Total Assets Property, Plant and Equipment, Net 2019 2018 2019 2018 United States $ 328,014 $ 188,346 $ 17,030 $ 16,570 International 431,687 457,034 9,037 8,101 Consolidated total $ 759,701 $ 645,380 $ 26,067 $ 24,671 (1) Fiscal 2019 Watch and Accessory Brands and United States and International operating (loss) / income included a charge of $2.9 million related to the amortization of intangible assets associated with the Olivia Burton brand. Fiscal 2018 United States and International operating (loss) / income included a charge of $6.8 million related to transaction charges and the amortization of acquisition accounting adjustments associated with the purchase of the Olivia Burton brand. (2) Fiscal 2019 Watch and Accessory Brands and United States and International operating (loss) / income included a charge of $14.3 million related to transaction charges and the amortization of acquisition accounting adjustments associated with the purchase of the MVMT brand. (3) Fiscal 2019 Watch and Accessory Brands and United States and International operating (loss) / income included a charge of $0.3 million as part of the Company’s cost savings initiatives. as part of the Company’s cost savings initiatives. (4) Fiscal 2017 Watch and Accessory Brands and United States operating income included a pre-tax charge of $1.8 million, as a result of the immediate vesting of stock awards and certain other compensation related to the announcement of the retirement of the Company’s former Vice Chairman and Chief Operating Officer, in fiscal 2018. (5) Fiscal 2017 Watch and Accessory Brands and United States and International operating income included a $4.0 million charge as a result of actions taken by the Company in fiscal 2017 to achieve greater operating efficiencies and streamline its operations. (6) The United States and International net sales are net of intercompany sales of $319.5 million, $268.1 million and $289.2 million for the fiscal years ended January 31, 2019, 2018 and 2017, respectively. (7) The United States operating income included $43.5 million, $25.2 million and $26.3 million of unallocated corporate expenses for the fiscal years ended January 31, 2019, 2018 and 2017, respectively. (8) The International operating income included $53.8 million, $41.5 million and $40.0 million of certain intercompany profits related to the Company’s supply chain operations for the fiscal years ended January 31, 2019, 2018 and 2017, respectively. |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Unaudited Selected Interim Operating Results | The following table presents unaudited selected interim operating results of the Company for fiscal 2019 and 2018 (in thousands, except per share amounts): Quarter 1 st 2 nd 3 rd 4 th Fiscal 2019 Net sales $ 127,149 $ 144,093 $ 208,949 $ 199,376 Gross profit $ 67,524 $ 77,834 $ 113,364 $ 110,636 Income before income taxes $ 7,974 $ 12,755 $ 24,105 $ 16,899 Net income attributable to Movado Group, Inc. $ 8,115 $ 9,140 $ 26,922 $ 17,447 Basic income per share: Net income attributable to Movado Group, Inc. $ 0.35 $ 0.39 $ 1.16 $ 0.75 Diluted income per share: Net income attributable to Movado Group, Inc. $ 0.35 $ 0.39 $ 1.14 $ 0.74 Fiscal 2018 Net sales $ 99,265 $ 128,781 $ 190,693 $ 149,214 Gross profit $ 49,137 $ 66,126 $ 104,070 $ 78,745 (Loss)/income before income taxes $ (3,882 ) $ 8,056 $ 24,850 $ 13,118 Net (loss) income attributable to Movado Group, Inc. $ (4,159 ) $ 5,482 $ 17,360 $ (33,908 ) Basic income per share: Net (loss) income attributable to Movado Group, Inc. $ (0.18 ) $ 0.24 $ 0.75 $ (1.47 ) Diluted income per share: Net (loss) income attributable to Movado Group, Inc. $ (0.18 ) $ 0.24 $ 0.75 $ (1.47 ) |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Details) | Oct. 01, 2018 | Jan. 31, 2019USD ($)Store | Oct. 31, 2018USD ($) | Jul. 31, 2018USD ($) | Apr. 30, 2018USD ($) | Jan. 31, 2018USD ($) | Oct. 31, 2017USD ($) | Jul. 31, 2017USD ($) | Apr. 30, 2017USD ($) | Dec. 31, 2017 | Jan. 31, 2019USD ($)StoreCustomershares | Jan. 31, 2018USD ($)Customershares | Jan. 31, 2017USD ($)Customershares | Jan. 31, 2016USD ($) | ||||
Significant Accounting Policies [Line Items] | ||||||||||||||||||
Number of outlet stores | Store | 37 | 37 | ||||||||||||||||
Maturity date | 3 months | |||||||||||||||||
Accounts receivable, net of doubtful accounts, returns and allowances | $ 23,800,000 | $ 21,600,000 | $ 23,800,000 | $ 21,600,000 | $ 18,900,000 | |||||||||||||
Additional accounts receivables and allowances recorded in non-current assets | 2,200,000 | 2,300,000 | 2,200,000 | 2,300,000 | 2,200,000 | |||||||||||||
Accounts receivable net of co operative advertising allowances | 9,400,000 | 9,400,000 | 9,400,000 | 9,400,000 | 7,800,000 | |||||||||||||
Goodwill, impairment charge | 0 | 0 | ||||||||||||||||
Long-lived assets, impairment charge | 0 | 0 | ||||||||||||||||
Marketing expenses | 108,200,000 | 73,100,000 | 75,700,000 | |||||||||||||||
Shipping and handling customers charges | 199,376,000 | $ 208,949,000 | $ 144,093,000 | $ 127,149,000 | 149,214,000 | $ 190,693,000 | $ 128,781,000 | $ 99,265,000 | 679,567,000 | [1] | 567,953,000 | [1] | 552,752,000 | [1] | ||||
Shipping, handling and transportation costs | $ 310,209,000 | $ 269,875,000 | $ 257,935,000 | |||||||||||||||
Corporate income tax rate | 35.00% | 21.00% | 33.80% | 35.00% | ||||||||||||||
Dilutive common stock equivalents were excluded from the computation of diluted earnings per share | shares | 81,185 | 795,644 | 785,190 | |||||||||||||||
Stock Award Units | ||||||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||||||
Stock awards cliff-vested period | 3 years | |||||||||||||||||
Stock Options | ||||||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||||||
Dilutive common stock equivalents were excluded from the computation of diluted earnings per share | shares | 198,804 | |||||||||||||||||
Other Current Assets | ||||||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||||||
Prepaid advertising cost | 5,400,000 | 6,100,000 | $ 5,400,000 | $ 6,100,000 | ||||||||||||||
Other Non-Current Assets | ||||||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||||||
Prepaid advertising cost | 1,500,000 | $ 1,700,000 | $ 1,500,000 | 1,700,000 | ||||||||||||||
Tommy Hilfiger Watches | ||||||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||||||
Warranty period | 10 years | |||||||||||||||||
Movado Watch Cases And Bracelets | ||||||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||||||
Warranty period | 5 years | |||||||||||||||||
Shipping and Handling | ||||||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||||||
Shipping and handling customers charges | 2,200,000 | $ 1,800,000 | $ 1,900,000 | |||||||||||||||
Shipping, handling and transportation costs | $ 9,800,000 | $ 5,200,000 | $ 5,600,000 | |||||||||||||||
ASC 606 | ||||||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||||||
Contract costs to obtain or fulfill | $ 0 | $ 0 | ||||||||||||||||
Minimum | ||||||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||||||
Warranty period | 2 years | |||||||||||||||||
Maximum | ||||||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||||||
Warranty period | 3 years | |||||||||||||||||
Trademarks and Developed Technology | Minimum | ||||||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||||||
Intangible Asset, Useful Life | 3 years | |||||||||||||||||
Trademarks and Developed Technology | Maximum | ||||||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||||||
Intangible Asset, Useful Life | 10 years | |||||||||||||||||
Customer Concentration Risk | Net Sales | ||||||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||||||
Number of customer accounted for more than 10% of net sales | Customer | 0 | 0 | 0 | |||||||||||||||
Concentration risk, percentage | 10.00% | 10.00% | 10.00% | |||||||||||||||
Customer Concentration Risk | Account Receivable | ||||||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||||||
Concentration risk, percentage | 10.00% | 10.00% | ||||||||||||||||
Number of customer accounted for more than 10% of account receivable | Customer | 0 | 0 | ||||||||||||||||
United States | ||||||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||||||
Number of outlet stores | Store | 43 | 43 | ||||||||||||||||
Shipping and handling customers charges | [1] | $ 308,420,000 | $ 260,606,000 | $ 296,311,000 | ||||||||||||||
Canada | ||||||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||||||
Number of outlet stores | Store | 1 | 1 | ||||||||||||||||
MVMT Watches, Inc. | ||||||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||||||
Business acquisition, date of acquisition | Oct. 1, 2018 | |||||||||||||||||
MVMT Watches, Inc. | Other Current Liabilities | ||||||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||||||
Business Combination, insider rewards loyalty program liabilities | $ 300,000 | $ 300,000 | ||||||||||||||||
[1] | The United States and International net sales are net of intercompany sales of $319.5 million, $268.1 million and $289.2 million for the fiscal years ended January 31, 2019, 2018 and 2017, respectively. |
Significant Accounting Polici_5
Significant Accounting Policies - Schedule of Warranty Liability, Included in Accrued Liabilities in Consolidated Balance Sheets and Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Schedule of warranty liability | |||
Balance, beginning of year | $ 3,288 | $ 2,728 | $ 2,556 |
Provision charged to operations | 2,249 | 2,845 | 2,092 |
Settlements made | (2,834) | (2,285) | (1,920) |
Balance, end of year | $ 2,703 | $ 3,288 | $ 2,728 |
Significant Accounting Polici_6
Significant Accounting Policies - Schedule of Number of Shares Used in Calculating Basic and Diluted Earnings (Loss) Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Weighted average common shares outstanding: | |||
Basic | 23,197 | 23,073 | 23,070 |
Effect of dilutive securities: | |||
Options to purchase shares of common stock | 403 | 197 | |
Diluted | 23,600 | 23,073 | 23,267 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements - Additional Information (Details) - ASU 2016-02 - Subsequent Event $ in Millions | Feb. 01, 2019USD ($) |
Minimum | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Lease, right-of-use assets | $ 80 |
Lease liabilities | 80 |
Maximum | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Lease, right-of-use assets | 100 |
Lease liabilities | $ 100 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) € in Millions, £ in Millions | Dec. 03, 2018USD ($) | Dec. 03, 2018EUR (€) | Oct. 01, 2018USD ($)ContingentPayment | Jul. 03, 2017USD ($) | Jul. 03, 2017GBP (£) | Jan. 31, 2019USD ($) | Jan. 31, 2018USD ($) | Jan. 31, 2019USD ($) | Jan. 31, 2018USD ($) | |||||
Business Acquisition [Line Items] | ||||||||||||||
Business acquisition, net of cash acquired | $ 97,882,000 | $ 78,991,000 | ||||||||||||
Goodwill | $ 136,033,000 | $ 60,269,000 | 136,033,000 | 60,269,000 | ||||||||||
Impairment charge of goodwill | 0 | 0 | ||||||||||||
Watch and Accessory Brands | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Expenses primarily related to transaction costs and adjustments in acquisition accounting | 6,800,000 | |||||||||||||
City Time Distribucion, S.L.U | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Percentage of ownership control | 51.00% | 51.00% | ||||||||||||
Business acquisition, net of cash acquired | $ 4,800,000 | € 4.2 | ||||||||||||
Goodwill | [1] | 2,851,000 | 2,851,000 | |||||||||||
MVMT Watches, Inc. | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Business acquisition, net of cash acquired | $ 108,400,000 | |||||||||||||
Business acquisition, date of acquisition | Oct. 1, 2018 | |||||||||||||
Business acquisition, purchase price initial payment before tax benefits | $ 100,000,000 | |||||||||||||
Business acquisition, number of future contingent payments | ContingentPayment | 2 | |||||||||||||
Business acquisition, cash acquired | $ 3,800,000 | |||||||||||||
Inventories step-up adjustment | $ 700,000 | |||||||||||||
Inventories step-up adjustment amortization period | 5 months | |||||||||||||
Business combination recognized intangible assets | $ 28,928,000 | |||||||||||||
Business acquisition, escrow amount settled | 1,400,000 | 1,400,000 | ||||||||||||
Business acquisition, contingent consideration arrangements, description | If the costs to settle the contingencies exceed the escrowed balances, the additional | |||||||||||||
Business acquisition, non-current liability | $ 16,500,000 | 16,700,000 | 16,700,000 | |||||||||||
Business acquisition, non-current liability allocated to purchase price | 14,500,000 | |||||||||||||
Business combination, non-current liability allocated to deferred compensation expense | 2,000,000 | |||||||||||||
Possible outcomes for contingent consideration, minimum | 0 | |||||||||||||
Possible outcomes for contingent consideration, maximum | 100,000,000 | |||||||||||||
Goodwill | $ 77,542,000 | 77,542,000 | [2] | 77,542,000 | [2] | |||||||||
Amortization of goodwill | 15 years | |||||||||||||
Net sales since acquisition date | 39,800,000 | |||||||||||||
Operating income since acquisition date | 600,000 | |||||||||||||
MVMT Watches, Inc. | Operating Income | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Business acquisition, increase of liability | 200,000 | |||||||||||||
MVMT Watches, Inc. | Other non-current assets | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Business acquisition, other non-current assets related to escrow amounts | $ 6,500,000 | |||||||||||||
MVMT Watches, Inc. | Other non-current liabilities | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Business acquisition, preacquisition contingencies related to escrow amounts | 6,500,000 | |||||||||||||
MVMT Watches, Inc. | Trade Name | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Business combination recognized intangible assets | $ 24,700,000 | |||||||||||||
Intangible asset amortization period | 10 years | |||||||||||||
MVMT Watches, Inc. | Customer Relationships | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Business combination recognized intangible assets | $ 4,200,000 | |||||||||||||
Intangible asset amortization period | 10 years | |||||||||||||
MVMT Watches, Inc. | Watch and Accessory Brands | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Expenses primarily related to transaction costs and adjustments in acquisition accounting | 14,300,000 | |||||||||||||
MVMT Watches, Inc. | U.S. and International Location | Watch and Accessory Brands | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Expenses primarily related to transaction costs and adjustments in acquisition accounting | 14,400,000 | |||||||||||||
MVMT Watches, Inc. | Maximum | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Business acquisition, additional purchase price future contingent payments before tax benefits | $ 100,000,000 | |||||||||||||
JLB Brands Ltd | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Business acquisition, net of cash acquired | $ 79,000,000 | £ 60.7 | ||||||||||||
Business acquisition, cash acquired | 5,900,000 | 4.5 | ||||||||||||
Inventories step-up adjustment | 800,000 | |||||||||||||
Business combination recognized intangible assets | 21,415,000 | |||||||||||||
Goodwill | 55,322,000 | $ 55,640,000 | [3] | 60,269,000 | [3] | 55,640,000 | [3] | 60,269,000 | [3] | |||||
Net sales since acquisition date | 17,800,000 | |||||||||||||
Operating income since acquisition date | $ 5,300,000 | |||||||||||||
Business acquisition, purchase price in cash subject to working capital and other closing adjustments | 78,200,000 | £ 60 | ||||||||||||
Business acquisition, debt assumed | $ 0 | |||||||||||||
Inventories step-up adjustment expensed over sell-through cycle | 3 months | 3 months | ||||||||||||
JLB Brands Ltd | Trade Name | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Business combination recognized intangible assets | $ 12,800,000 | |||||||||||||
Intangible asset amortization period | 10 years | 10 years | ||||||||||||
JLB Brands Ltd | Customer Relationships | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Business combination recognized intangible assets | $ 8,600,000 | |||||||||||||
Intangible asset amortization period | 6 years | 6 years | ||||||||||||
JLB Brands Ltd | U.S. and International Location | Watch and Accessory Brands | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Expenses primarily related to transaction costs and adjustments in acquisition accounting | $ 2,900,000 | $ 6,800,000 | ||||||||||||
[1] | Goodwill associated with City Time is included in the International location of the Watch and Accessory Brands segment. | |||||||||||||
[2] | Goodwill associated with the MVMT brand is included in the United States location of the Watch and Accessory Brands segment. | |||||||||||||
[3] | Goodwill associated with JLB is included in the International location of the Watch and Accessory Brands segment. |
Acquisitions - Summary of Fair
Acquisitions - Summary of Fair Value of Assets Acquired and Liabilities Assumed at Acquisition Date (Details) - USD ($) $ in Thousands | Jan. 31, 2019 | Oct. 01, 2018 | Jan. 31, 2018 | Jul. 03, 2017 | ||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 136,033 | $ 60,269 | ||||
MVMT Watches, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Cash and cash equivalents | $ 3,848 | |||||
Trade receivables, net | 370 | |||||
Inventories | 14,552 | |||||
Prepaid expenses and other current assets | 2,325 | |||||
Property, plant and equipment, net | 179 | |||||
Other non-current assets | 6,500 | |||||
Goodwill | 77,542 | [1] | 77,542 | |||
Trade name and other intangibles | 28,928 | |||||
Total assets acquired | 134,244 | |||||
Accounts payable | 5,982 | |||||
Accrued liabilities | 9,018 | |||||
Other non-current liabilities | 7,064 | |||||
Total liabilities assumed | 22,064 | |||||
Total purchase price | $ 112,180 | |||||
JLB Brands Ltd | ||||||
Business Acquisition [Line Items] | ||||||
Cash and cash equivalents | $ 5,909 | |||||
Trade receivables, net | 3,106 | |||||
Inventories | 4,164 | |||||
Prepaid expenses and other current assets | 913 | |||||
Property, plant and equipment, net | 131 | |||||
Goodwill | $ 55,640 | [2] | $ 60,269 | [2] | 55,322 | |
Trade name and other intangibles | 21,415 | |||||
Total assets acquired | 90,960 | |||||
Accounts payable | 608 | |||||
Accrued liabilities | 844 | |||||
Income taxes payable | 643 | |||||
Deferred and non-current income taxes payable | 3,965 | |||||
Total liabilities assumed | 6,060 | |||||
Total purchase price | $ 84,900 | |||||
[1] | Goodwill associated with the MVMT brand is included in the United States location of the Watch and Accessory Brands segment. | |||||
[2] | Goodwill associated with JLB is included in the International location of the Watch and Accessory Brands segment. |
Acquisitions - Summary of Unaud
Acquisitions - Summary of Unaudited Pro Forma Information (Details) - MVMT Watches, Inc. - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | ||
Business Acquisition [Line Items] | |||
Net sales | $ 712,587 | $ 639,319 | |
Net income / (loss) attributable to Movado Croup, Inc | [1] | $ 64,118 | $ (21,519) |
Net income / (loss) per share attributable to Movado Group, Inc., Basic | $ 2.76 | $ (0.93) | |
Net income / (loss) per share attributable to Movado Group, Inc., Diluted | $ 2.72 | $ (0.93) | |
[1] | Includes non-recurring transaction costs of $7.0 million associated with the acquisition. |
Acquisitions - Summary of Una_2
Acquisitions - Summary of Unaudited Pro Forma Information (Parenthetical) (Details) $ in Millions | Jan. 31, 2018USD ($) |
Business Acquisition Pro Forma Information [Abstract] | |
Non-recurring transaction costs | $ 7 |
Acquisitions - Summary of Chang
Acquisitions - Summary of Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | ||
Business Combination Segment Allocation [Line Items] | |||
Beginning Balance | $ 60,269 | ||
Foreign exchange impact | (4,611) | $ 4,947 | |
Ending Balance | 136,033 | 60,269 | |
JLB Brands Ltd | |||
Business Combination Segment Allocation [Line Items] | |||
Beginning Balance | [1] | 60,269 | |
Acquisition | [1] | 55,322 | |
Foreign exchange impact | [1] | (4,629) | 4,947 |
Ending Balance | [1] | 55,640 | $ 60,269 |
MVMT Watches, Inc. | |||
Business Combination Segment Allocation [Line Items] | |||
Acquisition | [2] | 77,542 | |
Ending Balance | [2] | 77,542 | |
City Time Distribucion, S.L.U | |||
Business Combination Segment Allocation [Line Items] | |||
Acquisition | [3] | 2,833 | |
Foreign exchange impact | [3] | 18 | |
Ending Balance | [3] | $ 2,851 | |
[1] | Goodwill associated with JLB is included in the International location of the Watch and Accessory Brands segment. | ||
[2] | Goodwill associated with the MVMT brand is included in the United States location of the Watch and Accessory Brands segment. | ||
[3] | Goodwill associated with City Time is included in the International location of the Watch and Accessory Brands segment. |
Acquisitions - Summary of Cha_2
Acquisitions - Summary of Changes in Carrying Amount of Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | ||
Business Acquisition [Line Items] | ||||
Beginning Balance | $ 23,124 | $ 1,633 | $ 1,490 | |
Amortization | (4,351) | (2,091) | (420) | |
Additions | 492 | 556 | 328 | |
Foreign exchange impact | (1,682) | 1,611 | 235 | |
Ending Balance | 48,183 | 23,124 | 1,633 | |
JLB Brands Ltd | ||||
Business Acquisition [Line Items] | ||||
Acquisition | 21,415 | |||
MVMT Watches, Inc. | ||||
Business Acquisition [Line Items] | ||||
Acquisition | 28,928 | |||
City Time Distribucion, S.L.U | ||||
Business Acquisition [Line Items] | ||||
Acquisition | 1,672 | |||
Trade names | ||||
Business Acquisition [Line Items] | ||||
Beginning Balance | 13,096 | |||
Amortization | (2,126) | (781) | ||
Foreign exchange impact | (899) | 1,080 | ||
Ending Balance | 34,771 | 13,096 | ||
Trade names | JLB Brands Ltd | ||||
Business Acquisition [Line Items] | ||||
Acquisition | 12,797 | |||
Trade names | MVMT Watches, Inc. | ||||
Business Acquisition [Line Items] | ||||
Acquisition | 24,700 | |||
Customer Relationships | ||||
Business Acquisition [Line Items] | ||||
Beginning Balance | 8,457 | |||
Amortization | (1,628) | (876) | ||
Foreign exchange impact | (520) | 715 | ||
Ending Balance | 12,181 | 8,457 | ||
Customer Relationships | JLB Brands Ltd | ||||
Business Acquisition [Line Items] | ||||
Acquisition | 8,618 | |||
Customer Relationships | MVMT Watches, Inc. | ||||
Business Acquisition [Line Items] | ||||
Acquisition | 4,200 | |||
Customer Relationships | City Time Distribucion, S.L.U | ||||
Business Acquisition [Line Items] | ||||
Acquisition | 1,672 | |||
Other | ||||
Business Acquisition [Line Items] | ||||
Beginning Balance | [1] | 1,571 | 1,633 | 1,490 |
Amortization | [1] | (597) | (434) | (420) |
Additions | [1] | 492 | 556 | 328 |
Foreign exchange impact | [1] | (263) | (184) | 235 |
Ending Balance | [1] | 1,231 | $ 1,571 | $ 1,633 |
Other | MVMT Watches, Inc. | ||||
Business Acquisition [Line Items] | ||||
Acquisition | [1] | $ 28 | ||
[1] | Other includes fees paid related to trademarks and non-compete agreement related to Olivia Burton brand. |
Acquisitions - Summary of Weigh
Acquisitions - Summary of Weighted Average Amortization Periods Over Straight-Line Basis (Details) | 12 Months Ended |
Jan. 31, 2019 | |
Trade names | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Weighted average amortization periods | 10 years |
Customer Relationships | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Weighted average amortization periods | 7 years |
Other | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Weighted average amortization periods | 7 years |
Acquisitions - Summary of Estim
Acquisitions - Summary of Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands | Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 |
Business Combinations [Abstract] | ||||
2020 | $ 6,149 | |||
2021 | 6,036 | |||
2022 | 5,971 | |||
2023 | 5,942 | |||
2024 | 5,071 | |||
Thereafter | 19,014 | |||
Total estimated future amortization expense | $ 48,183 | $ 23,124 | $ 1,633 | $ 1,490 |
Inventories - Components of Inv
Inventories - Components of Inventories (Details) - USD ($) $ in Thousands | Jan. 31, 2019 | Jan. 31, 2018 |
Inventory Net [Abstract] | ||
Finished goods | $ 123,947 | $ 112,712 |
Component parts | 39,752 | 37,404 |
Work-in-process | 1,612 | 1,560 |
Inventories | $ 165,311 | $ 151,676 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 125,756 | $ 117,929 |
Less: Accumulated depreciation and amortization | (99,689) | (93,258) |
Property, plant and equipment, net | 26,067 | 24,671 |
Land and buildings | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,176 | 1,610 |
Property, plant and equipment, Estimated Useful Lives | 40 years for buildings | |
Furniture and equipment | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 52,314 | 48,748 |
Furniture and equipment | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated Useful Lives | 4 years | |
Furniture and equipment | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated Useful Lives | 10 years | |
Computer software | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 33,289 | 32,359 |
Computer software | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated Useful Lives | 5 years | |
Computer software | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, Estimated Useful Lives | 10 years | |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 36,727 | 32,814 |
Property, plant and equipment, Estimated Useful Lives | Lesser of lease term or useful life | |
Design fees and tooling costs | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 2,250 | $ 2,398 |
Property, plant and equipment, Estimated Useful Lives | 3 years |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization | $ 14,165 | $ 13,457 | $ 11,507 |
Amortization expense | 4,351 | 2,091 | 420 |
Property, Plant and Equipment | |||
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization | 9,400 | 11,800 | 11,900 |
Computer software | |||
Property Plant And Equipment [Line Items] | |||
Amortization expense | $ 3,200 | $ 3,600 | $ 3,500 |
Debt and Lines of Credit - Addi
Debt and Lines of Credit - Additional Information (Details) | Oct. 12, 2018USD ($) | Oct. 11, 2018 | Feb. 28, 2018USD ($) | Dec. 31, 2019 | Jan. 31, 2019USD ($)BankSubsidiary | Jan. 31, 2018USD ($)BankSubsidiary | Jan. 31, 2017USD ($) | Jan. 31, 2019CHF (SFr)BankSubsidiary | Jan. 31, 2018CHF (SFr)BankSubsidiary |
Debt Instrument [Line Items] | |||||||||
Repayment of outstanding debt | $ 25,000,000 | $ 5,000,000 | $ 13,000,000 | ||||||
Cash paid for interest | 500,000 | 1,200,000 | $ 1,100,000 | ||||||
Credit Agreement Due on October 12, 2023 | |||||||||
Debt Instrument [Line Items] | |||||||||
Amendment fees incurred and capitalized | 700,000 | ||||||||
Payment for unamortized fees | $ 300,000 | ||||||||
Amortization period | 60 months | ||||||||
Unsecured Debt | Swiss subsidiary | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 7,000,000 | 6,500,000 | SFr 6,500,000 | SFr 6,500,000 | |||||
Outstanding borrowing amount | 0 | 0 | |||||||
Revolving Credit Facility | Secured Debt | Credit Agreement Due on October 12, 2023 | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 100,000,000 | ||||||||
Uncommitted increase to borrowing capacity | $ 50,000,000 | ||||||||
Credit facility matures date | Oct. 12, 2023 | ||||||||
Loan drawn under the facility | 50,300,000 | 25,000,000 | SFr 50,000,000 | ||||||
Line of credit facility remaining borrowing capacity | 49,400,000 | 74,700,000 | |||||||
Repayment of outstanding debt | $ 25,000,000 | ||||||||
Weighted average borrowing amount | $ 15,800,000 | $ 29,300,000 | |||||||
Weighted average interest rate | 1.25% | 2.64% | 1.25% | 2.64% | |||||
Revolving Credit Facility | Secured Debt | Credit Agreement Due on October 12, 2023 | Minimum | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Applicable margin rate | 1.25% | 1.00% | 1.25% | ||||||
Revolving Credit Facility | Secured Debt | Credit Agreement Due on October 12, 2023 | Minimum | Base Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Applicable margin rate | 0.25% | 0.00% | 0.25% | ||||||
Revolving Credit Facility | Secured Debt | Credit Agreement Due on October 12, 2023 | Maximum | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Applicable margin rate | 1.75% | 1.75% | |||||||
Revolving Credit Facility | Secured Debt | Credit Agreement Due on October 12, 2023 | Maximum | Base Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Applicable margin rate | 0.75% | 0.75% | |||||||
Letter of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility matures date | May 31, 2019 | ||||||||
Outstanding borrowing amount | $ 300,000 | $ 300,000 | |||||||
Letter of Credit | Secured Debt | Credit Agreement Due on October 12, 2023 | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 15,000,000 | ||||||||
Letter of Credit | Unsecured Debt | Swiss subsidiary | |||||||||
Debt Instrument [Line Items] | |||||||||
Number of European banks guaranteed obligations to third parties | Bank | 2 | 2 | 2 | 2 | |||||
Number of foreign subsidiaries under guaranteed obligation | Subsidiary | 2 | 2 | 2 | 2 | |||||
Guaranteed obligations to third parties | $ 1,200,000 | $ 1,200,000 | |||||||
Restricted deposit relates to lease agreement | $ 600,000 | $ 500,000 | |||||||
Swingline | Secured Debt | Credit Agreement Due on October 12, 2023 | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | 25,000,000 | ||||||||
Swiss Borrowers | Secured Debt | Credit Agreement Due on October 12, 2023 | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 75,000,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) | 12 Months Ended | |||||
Jan. 31, 2019USD ($) | Jan. 31, 2018USD ($) | Jan. 31, 2017USD ($) | Jan. 31, 2019EUR (€) | Jan. 31, 2019GBP (£) | Jan. 31, 2019CHF (SFr) | |
Derivatives Fair Value [Line Items] | ||||||
Maximum length of time hedged in cash flow hedge | 12 months | |||||
Amounts reclassified from accumulated other comprehensive income (loss) | $ 360 | $ (926) | $ 371 | |||
Net Unrealized Income (Loss) On Hedging Contracts | ||||||
Derivatives Fair Value [Line Items] | ||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 400,000 | (900,000) | ||||
Accumulated other comprehensive income, tax expense (benefit) | $ 100,000 | $ (200,000) | ||||
Foreign Exchange Forward | ||||||
Derivatives Fair Value [Line Items] | ||||||
Net forward contracts hedging portfolio | € 8,300,000 | £ 400,000 | SFr 33,000,000 | |||
Maximum | ||||||
Derivatives Fair Value [Line Items] | ||||||
Expiry dates ranging | Jul. 10, 2019 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Fair Value and Presentation of Derivatives (Details) - USD ($) $ in Thousands | Jan. 31, 2019 | Jan. 31, 2018 |
Not Designated as Hedging Instrument | ||
Derivatives Fair Value [Line Items] | ||
Asset Derivatives | $ 22 | $ 544 |
Liability Derivatives | 156 | 2 |
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Other Current Assets | ||
Derivatives Fair Value [Line Items] | ||
Asset Derivatives | 22 | 544 |
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Accrued Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Liability Derivatives | $ 156 | 2 |
Designated as Hedging Instrument | ||
Derivatives Fair Value [Line Items] | ||
Liability Derivatives | 44 | |
Designated as Hedging Instrument | Foreign Exchange Contracts | Accrued Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Liability Derivatives | $ 44 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jan. 31, 2019 | Jan. 31, 2018 |
Assets: | ||
Total assets measured at fair value | $ 39,384 | $ 40,554 |
Liabilities: | ||
Total liabilities measured at fair value | 55,044 | 38,623 |
Level 1 | ||
Assets: | ||
Total assets measured at fair value | 39,362 | 40,010 |
Liabilities: | ||
Total liabilities measured at fair value | 38,170 | 38,577 |
Level 2 | ||
Assets: | ||
Total assets measured at fair value | 22 | 544 |
Liabilities: | ||
Total liabilities measured at fair value | 156 | 46 |
Level 3 | ||
Liabilities: | ||
Total liabilities measured at fair value | 16,718 | |
Other Current Assets | Available-for-sale securities | ||
Assets: | ||
Total assets measured at fair value | 177 | 275 |
Other Current Assets | Short-term investment | ||
Assets: | ||
Total assets measured at fair value | 155 | 164 |
Other Current Assets | Hedge derivatives-Assets | ||
Assets: | ||
Total assets measured at fair value | 22 | 544 |
Other Current Assets | Level 1 | Available-for-sale securities | ||
Assets: | ||
Total assets measured at fair value | 177 | 275 |
Other Current Assets | Level 1 | Short-term investment | ||
Assets: | ||
Total assets measured at fair value | 155 | 164 |
Other Current Assets | Level 2 | Hedge derivatives-Assets | ||
Assets: | ||
Total assets measured at fair value | 22 | 544 |
Other non-current assets | SERP assets - employer | ||
Assets: | ||
Total assets measured at fair value | 860 | 994 |
Other non-current assets | SERP assets - employee | ||
Assets: | ||
Total assets measured at fair value | 38,170 | 38,577 |
Other non-current assets | Level 1 | SERP assets - employer | ||
Assets: | ||
Total assets measured at fair value | 860 | 994 |
Other non-current assets | Level 1 | SERP assets - employee | ||
Assets: | ||
Total assets measured at fair value | 38,170 | 38,577 |
Other non-current liabilities | SERP liabilities - employee | ||
Liabilities: | ||
Total liabilities measured at fair value | 38,170 | 38,577 |
Other non-current liabilities | Contingent Purchase Price Liability | ||
Liabilities: | ||
Total liabilities measured at fair value | 16,718 | |
Other non-current liabilities | Level 1 | SERP liabilities - employee | ||
Liabilities: | ||
Total liabilities measured at fair value | 38,170 | 38,577 |
Other non-current liabilities | Level 3 | Contingent Purchase Price Liability | ||
Liabilities: | ||
Total liabilities measured at fair value | 16,718 | |
Accrued Liabilities | Hedge derivatives-Liabilities | ||
Liabilities: | ||
Total liabilities measured at fair value | 156 | 46 |
Accrued Liabilities | Level 2 | Hedge derivatives-Liabilities | ||
Liabilities: | ||
Total liabilities measured at fair value | $ 156 | $ 46 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2017 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Other than temporary impairment charge on investment | $ 1,282,000 | |
Cost method investments, carrying value | $ 0 | |
Transfers into level 1 to level 2, assets | $ 0 | |
Transfers into level 2 to level 1, assets | 0 | |
Transfers into level 1 to level 2, liabilities | 0 | |
Transfers into level 2 to level 1, liabilities | 0 | |
Transfers into level 3, assets | 0 | |
Transfers out of level 3, assets | 0 | |
Transfers into level 3, liabilities | 0 | |
Transfers out of level 3, liabilities | $ 0 | |
Short-term investment | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Fair value, investment | The fair value of the short-term investment, which is a guaranteed investment certificate, is based on its purchase price plus one half of a percent calculated annually |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Change in Level 3 Contingent Purchase Price Liability (Details) - Level 3 - Contingent Purchase Price Liability $ in Thousands | 12 Months Ended |
Jan. 31, 2019USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Acquisition of MVMT | $ 16,500 |
Adjustments included in earnings | 218 |
Ending balance | $ 16,718 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | Oct. 01, 2018USD ($)ContingentPayment | Dec. 31, 2016USD ($) | Jan. 31, 2019USD ($) | Jan. 31, 2018USD ($) | Jan. 31, 2017USD ($) |
Loss Contingencies [Line Items] | |||||
Amount of minimum commitments related to license agreements and endorsement agreements | $ 144,300,000 | ||||
Operating lease expiration period | 2030-06 | ||||
Operating leases rent expense | $ 20,200,000 | $ 17,800,000 | $ 14,200,000 | ||
Outstanding purchase obligations with supplier | $ 60,800,000 | ||||
Transition tax payable due to enactment of 2017 tax act | $ 28,200,000 | ||||
Payment of transition tax installments period | 8 years | ||||
Lawsuit filing date | October 23, 2018 | ||||
Underpaid duty charges due to alternative duty methodology | $ 5,100,000 | ||||
Underpaid duty methodology period covered by statute of limitation | 5 years | ||||
MVMT Watches, Inc. | |||||
Loss Contingencies [Line Items] | |||||
Business acquisition, number of future contingent payments | ContingentPayment | 2 | ||||
MVMT Watches, Inc. | Maximum | |||||
Loss Contingencies [Line Items] | |||||
Business acquisition, additional purchase price future contingent payments before tax benefits | $ 100,000,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Minimum Annual Rentals Under Noncancelable Operating Leases (Details) $ in Thousands | Jan. 31, 2019USD ($) |
Minimum annual rentals under non-cancelable operating leases | |
2020 | $ 14,036 |
2021 | 11,325 |
2022 | 10,135 |
2023 | 8,279 |
2024 | 7,683 |
Thereafter | 35,020 |
Total operating leases | $ 86,478 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Income Tax Contingency [Line Items] | ||||
Corporate income tax rate | 35.00% | 21.00% | 33.80% | 35.00% |
Percentage of undistributed foreign earnings | 15.50% | |||
Percentage of all other earnings | 8.00% | |||
Provisional tax expense | $ 45,000 | |||
Payment of transition tax installments period | 8 years | |||
Transition tax payable due to enactment of 2017 tax act | $ 28,200 | |||
Amount of estimated foreign earnings | 279,900 | |||
Provisional amount of deferred tax assets and liabilities | 8,300 | |||
Unremitted foreign earnings | 236,800 | |||
Provisional change to deferred taxes related to withholding and U.S. state income taxes | 8,500 | |||
Reduction of deferred tax liability, unremitted foreign earnings | $ 8,000 | |||
Cash paid for income taxes | $ 9,500 | $ 20,400 | $ 22,800 | |
Effective tax rate for continuing operations | 0.30% | 136.10% | 31.70% | |
Income tax benefit from foreign operations | $ 0 | |||
Income tax expense (benefit) | $ 162 | $ 57,367 | 16,315 | |
Tax expense (benefits) recorded in additional paid in capital | 300 | |||
Unrecognized tax benefits which would impact the Company's effective tax rate | 1,200 | 2,300 | 2,600 | |
Accrued interest (net of tax benefit) and penalties related to unrecognized tax benefits | 700 | 800 | 700 | |
Interest (net of tax benefit) and penalties | 0 | 100 | $ 100 | |
Wind Fall Tax Benefit | ||||
Income Tax Contingency [Line Items] | ||||
Income tax expense (benefit) | (100) | (100) | ||
Shortfall Tax Expenses | ||||
Income Tax Contingency [Line Items] | ||||
Income tax expense (benefit) | 1,100 | $ 1,100 | ||
Domestic Country | ||||
Income Tax Contingency [Line Items] | ||||
Operating Loss carryforwards | 0 | |||
State and Local Jurisdiction | ||||
Income Tax Contingency [Line Items] | ||||
Operating Loss carryforwards | 4,700 | |||
Foreign Tax Authority | ||||
Income Tax Contingency [Line Items] | ||||
Operating Loss carryforwards | 37,100 | |||
Operating loss carryforwards, valuation allowance | 5,300 | |||
Swiss subsidiary | ||||
Income Tax Contingency [Line Items] | ||||
Operating Loss carryforwards | $ 14,300 | |||
Minimum | ||||
Income Tax Contingency [Line Items] | ||||
Expiration periods | 1 year | |||
Maximum | ||||
Income Tax Contingency [Line Items] | ||||
Measurement period | 1 year | |||
Expiration periods | 10 years |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income before Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
U.S. income before taxes | $ 6,795 | $ 11,731 | $ 26,299 | ||||||||
Non-U.S. income before taxes | 54,938 | 30,411 | 25,155 | ||||||||
Income before income taxes | $ 16,899 | $ 24,105 | $ 12,755 | $ 7,974 | $ 13,118 | $ 24,850 | $ 8,056 | $ (3,882) | $ 61,733 | $ 42,142 | $ 51,454 |
Income Taxes - Schedule of In_2
Income Taxes - Schedule of Income Taxes Provision (Benefit) for Continuing Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Current: | |||
U.S. Federal | $ 6,665 | $ 31,599 | $ 14,079 |
U.S. State and Local | 3,556 | 960 | 1,117 |
Non-U.S. | 8,775 | 7,145 | 5,091 |
Total current | 18,996 | 39,704 | 20,287 |
Deferred: | |||
U.S. Federal | (12,706) | 16,671 | (4,231) |
U.S. State and Local | (2,339) | 622 | (167) |
Non-U.S. | (3,789) | 370 | 426 |
Total deferred | (18,834) | 17,663 | (3,972) |
Provision for income taxes | $ 162 | $ 57,367 | $ 16,315 |
Income Taxes - Schedule of Sign
Income Taxes - Schedule of Significant Components of Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2019 | Jan. 31, 2018 |
Deferred Taxes Assets | ||
Net operating loss carryforwards, Assets | $ 9,738 | $ 10,589 |
Inventory, Assets | 1,848 | 2,199 |
Unprocessed returns, Assets | 980 | 955 |
Receivables allowances, Assets | 336 | 227 |
Deferred compensation, Assets | 14,953 | 12,985 |
Other provisions/accruals, Assets | 1,498 | 63 |
Deferred occupancy costs, Assets | 1,222 | |
Miscellaneous, Assets | 271 | |
Total, Assets | 30,846 | 27,018 |
Valuation allowance, Assets | (5,257) | (8,960) |
Total deferred tax assets and liabilities | 25,589 | 18,058 |
Deferred Taxes Liabilities | ||
Unrepatriated earnings, Liabilities | 3,540 | 11,690 |
Depreciation / amortization, Liabilities | 1,212 | 4,440 |
Miscellaneous, Liabilities | 199 | |
Total, Liabilities | 4,752 | 16,329 |
Total deferred tax assets and liabilities | $ 4,752 | $ 16,329 |
Income Taxes - Schedule of In_3
Income Taxes - Schedule of Income Taxes Provision for Continuing Operations by Applying U.S. Federal Statutory Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Schedule of income taxes provision / (benefit) for continuing operations by applying U.S. federal statutory rate | |||
Provision for income taxes at the U.S. statutory rate | $ 12,964 | $ 14,248 | $ 18,009 |
Lower effective non-U.S. income tax rate | (1,303) | (4,378) | (4,725) |
Change in valuation allowance | (2,138) | 136 | 828 |
U.S. tax provided on earnings of non-U.S. subsidiaries | 541 | ||
Change in liabilities for uncertain tax positions, net | (1,346) | (381) | 215 |
State and local taxes, net of federal benefit | 962 | 626 | 617 |
Impact of 2017 Tax Act | (7,446) | 45,002 | |
Excess tax deficiencies from stock-based compensation | (118) | 1,094 | |
Other permanent differences | (1,759) | 978 | 979 |
Other, net | 346 | 42 | (149) |
Provision for income taxes | $ 162 | $ 57,367 | $ 16,315 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Beginning and Ending Amounts of Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Schedule of reconciliation of beginning and ending amounts of gross unrecognized tax benefits | |||
Beginning balance | $ 2,354 | $ 2,619 | $ 2,481 |
Tax positions taken in the current year | 234 | 180 | 142 |
Increase in tax positions taken in prior years | 148 | ||
Release in tax positions taken in prior years | (774) | ||
Lapse of statute of limitations | (122) | (630) | |
Settlements | (236) | (149) | |
Non-U.S. currency exchange fluctuations | (105) | 186 | (4) |
Ending balance | $ 1,351 | $ 2,354 | $ 2,619 |
Treasury Stock - Additional Inf
Treasury Stock - Additional Information (Details) - USD ($) | Aug. 29, 2017 | Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | Aug. 29, 2017 | Mar. 31, 2016 |
Equity Class Of Treasury Stock [Line Items] | ||||||
Stock repurchase program, total cost of shares repurchased | $ 7,418,000 | $ 3,631,000 | $ 3,864,000 | |||
Movado Group Foundation | ||||||
Equity Class Of Treasury Stock [Line Items] | ||||||
Stock repurchase program, total cost of shares repurchased | $ 1,100,000 | $ 1,000,000 | ||||
Stock repurchase program, number of shares repurchased | 40,000 | 35,000 | ||||
Stock repurchase program, average per share price of shares repurchased | $ 27.13 | $ 29.03 | ||||
Existing Share Repurchase Program | ||||||
Equity Class Of Treasury Stock [Line Items] | ||||||
Stock repurchase program, number of shares authorized | $ 50,000,000 | $ 50,000,000 | ||||
Stock repurchase program, total cost of shares repurchased | $ 7,400,000 | |||||
Stock repurchase program expiration date | Aug. 29, 2020 | |||||
Stock repurchase program, number of shares repurchased | 200,088 | |||||
Stock repurchase program, average per share price of shares repurchased | $ 37.08 | |||||
Stock repurchase program, remaining authorized repurchase amount | $ 40,600,000 | |||||
Previously Authorized Repurchase Plan | ||||||
Equity Class Of Treasury Stock [Line Items] | ||||||
Stock repurchase program, number of shares authorized | $ 50,000,000 | |||||
Stock repurchase program, total cost of shares repurchased | $ 3,600,000 | $ 3,900,000 | $ 5,500,000 | |||
Stock repurchase program, number of shares repurchased | 140,507 | 157,499 | ||||
Stock repurchase program, average per share price of shares repurchased | $ 25.84 | $ 24.54 | ||||
Surrender of Shares by Employee | ||||||
Equity Class Of Treasury Stock [Line Items] | ||||||
Stock repurchase program, number of shares repurchased | 21,733 | 36,843 | 47,310 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Component of Accumulated Other Comprehensive Income (loss) (Details) - USD ($) $ in Thousands | Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |||
Foreign currency translation adjustments | $ 80,808 | $ 100,190 | $ 76,569 |
Available-for-sale securities | 119 | 191 | 197 |
Hedging contracts | (38) | 14 | |
Unrecognized prior service cost related to defined benefit pension plan | (420) | ||
Total accumulated other comprehensive loss | $ 80,507 | $ 100,343 | $ 76,780 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |||
Amounts reclassified from accumulated other comprehensive income (loss) | $ 360 | $ (926) | $ 371 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - ASU 2014-09 | 12 Months Ended |
Jan. 31, 2019USD ($) | |
Disaggregation Of Revenue [Line Items] | |
Cumulative effect on retained earnings | $ 700,000 |
Contract costs to obtain or fulfill | $ 0 |
Practical expedients and exemptions, financing component [true/false] | true |
Revenue - Additional Informat_2
Revenue - Additional Information 1 (Details) | Jan. 31, 2019 |
ASU 2014-09 | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-02-01 | |
Disaggregation Of Revenue [Line Items] | |
Revenue recognition, cloud service and app update estimated period | 2 years |
Revenue - Summary of Net Sales
Revenue - Summary of Net Sales Disaggregated by Customer Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2019 | Jan. 31, 2018 | [1] | Jan. 31, 2017 | [1] | ||
Disaggregation Of Revenue [Line Items] | ||||||||||||||
Net sales | $ 199,376 | $ 208,949 | $ 144,093 | $ 127,149 | $ 149,214 | $ 190,693 | $ 128,781 | $ 99,265 | $ 679,567 | [1] | $ 567,953 | $ 552,752 | ||
Wholesale | ||||||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||||||
Net sales | 532,565 | |||||||||||||
Direct to consumer | ||||||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||||||
Net sales | 142,439 | |||||||||||||
After-sales service | ||||||||||||||
Disaggregation Of Revenue [Line Items] | ||||||||||||||
Net sales | $ 4,563 | |||||||||||||
[1] | The United States and International net sales are net of intercompany sales of $319.5 million, $268.1 million and $289.2 million for the fiscal years ended January 31, 2019, 2018 and 2017, respectively. |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Millions | Apr. 04, 2013 | Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock options granted | 0 | 161,205 | 200,346 | |
Compensation expense | $ 0.8 | $ 0.5 | $ 1.3 | |
Compensation expense, net of tax | 0.2 | 0.3 | 0.8 | |
Unrecognized compensation cost related to unvested stock options | $ 0.6 | |||
Weighted-average period | 7 months 6 days | |||
Cash received for stock option exercises | $ 5.9 | 2 | 1 | |
Realized tax provision | $ 0.2 | |||
Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares issued percentage of target number of underlying stock award units | 0.00% | |||
Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares issued percentage of target number of underlying stock award units | 150.00% | |||
Stock Award Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock awards cliff-vested period | 3 years | |||
Compensation expense | $ 3.8 | 1.8 | 3.2 | |
Compensation expense, net of tax | $ 1.2 | 1.1 | 2 | |
Weighted-average period | 2 years 4 months 24 days | |||
Unrecognized compensation cost | $ 7.8 | |||
Fair value of stock award units vested | 3.1 | 2.6 | 4.8 | |
Fair value of unvested stock award units | 14.3 | $ 10.5 | $ 10.3 | |
Realized tax expense on vested stock awards | $ 0.3 | |||
Employee Stock Option Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of common stock shares | 11,000,000 | |||
Options granted to participants exercisable period | 3 years | |||
Stock awards cliff-vested period | 3 years |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Weighted Average Assumptions Used for Calculation of Fair Value of Stock Options Granted (Details) - $ / shares | 12 Months Ended | |
Jan. 31, 2018 | Jan. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Expected volatility | 46.16% | 47.81% |
Expected life in years | 6 years | 6 years |
Risk-free interest rates | 1.93% | 1.42% |
Dividend rate | 1.51% | 1.01% |
Weighted average fair value per option at date of grant | $ 9.15 | $ 11.17 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Stock Option Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Schedule of stock option plan | |||
Outstanding Option Beginning Balance | 761,701 | 859,358 | 699,600 |
Granted | 0 | 161,205 | 200,346 |
Exercised | (189,941) | (85,600) | (40,588) |
Cancelled | (5,500) | (173,262) | |
Outstanding Option Ending Balance | 566,260 | 761,701 | 859,358 |
Exercisable | 264,244 | 394,455 | 482,255 |
Expected to vest | 296,611 | ||
Weighted Average Exercise Price per Option, Beginning Balance | $ 29.12 | $ 29.83 | $ 30.41 |
Granted, Weighted Average Exercise Price per Option | 23.35 | 26.97 | |
Exercised. Weighted Average Exercise Price per Option | 30.77 | 23.18 | 25.68 |
Cancelled, Weighted Average Exercise Price per Option | 42.12 | 30.21 | |
Weighted Average Exercise Price per Option, Ending Balance | 28.43 | $ 29.12 | $ 29.83 |
Exercisable, Weighted Average Exercise Price per Option | 31.89 | ||
Expected to vest, Weighted Average Exercise Price per Option | 25.42 | ||
Option Price Per Share, Cancelled | $ 42.12 | ||
Options outstanding, Weighted Average Remaining Contractual Term (years) | 6 years 2 months 12 days | 6 years 3 months 18 days | |
Exercisable, Weighted Average Remaining Contractual Term (years) | 4 years 4 months 24 days | ||
Expected to vest, Weighted Average Remaining Contractual Term (years) | 7 years 9 months 18 days | ||
Options outstanding, Aggregate Intrinsic Value | $ 2,654 | $ 2,291 | |
Exercisable, Aggregate Intrinsic Value | 675 | ||
Expected to vest, Aggregate Intrinsic Value | $ 1,950 | ||
Minimum | |||
Schedule of stock option plan | |||
Option Price Per Share, Beginning Balance | $ 21.03 | ||
Option Price Per Share, Exercised | 22.04 | ||
Option Price Per Share, Ending Balance | 23.35 | $ 21.03 | |
Maximum | |||
Schedule of stock option plan | |||
Option Price Per Share, Beginning Balance | 45.02 | ||
Option Price Per Share, Exercised | 42.12 | ||
Option Price Per Share, Ending Balance | $ 42.12 | $ 45.02 |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of Stock Option Plan (Parenthetical) (Details) - shares | Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Exercisable | 264,244 | 394,455 | 482,255 | 374,377 |
Stock-Based Compensation - Sc_4
Stock-Based Compensation - Schedule of Information Related to Stock Option Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Total fair value of stock options exercised | $ 1,912 | $ 454 | $ 212 |
Total fair value of stock options vested | $ 803 | $ 1,275 | $ 2,021 |
Stock-Based Compensation - Sc_5
Stock-Based Compensation - Schedule of Non-vested Stock Options (Details) | 12 Months Ended |
Jan. 31, 2019$ / sharesshares | |
Non-vested stock options: | |
Non-vested, Shares, Beginning Balance | shares | 367,246 |
Vested, Shares | shares | (65,230) |
Non-vested, Shares, Ending Balance | shares | 302,016 |
Non-vested stock options: | |
Non-vested, Weight Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 10.62 |
Vested, Weight Average Grant Date Fair Value | $ / shares | 12.31 |
Non-vested, Weight Average Grant Date Fair Value, Ending Balance | $ / shares | $ 10.25 |
Stock-Based Compensation - Sc_6
Stock-Based Compensation - Schedule of Transactions for Restricted Stock Units Under Plan (Details) - Stock Award Units - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Number of Stock Award Units | |||
Stock Award Units, Beginning Balance | 342,770 | 381,158 | 374,598 |
Units granted | 228,310 | 133,245 | 187,777 |
Units vested | (112,170) | (115,574) | (170,010) |
Units forfeited | (11,888) | (56,059) | (11,207) |
Stock Award Units, Ending Balance | 447,022 | 342,770 | 381,158 |
Weighted Average Grant Date Fair Value | |||
Weighted Average Grant Date Fair Value, Beginning Balance | $ 26.07 | $ 31.71 | $ 33.83 |
Units granted, Weighted Average Grant Date Fair Value | 39.22 | 23.31 | 27.76 |
Units vested, Weighted Average Grant Date Fair Value | 27.60 | 39.44 | 31.85 |
Units forfeited, Weighted Average Grant Date Fair Value | 30.82 | 30.27 | 34.50 |
Weighted Average Grant Date Fair Value Ending Balance | $ 32.27 | $ 26.07 | $ 31.71 |
Weighted-Average Remaining Contractual Term (years) | |||
Units outstanding, Weighted-Average Remaining Contractual Term (years) | 1 year 4 months 24 days | ||
Aggregate Intrinsic Value | |||
Units outstanding, Aggregate Intrinsic Value | $ 14,282 |
Pension and Retirement Saving_3
Pension and Retirement Savings Plan - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Contributions and expenses of administering the other defined contribution plans | $ 0.6 | $ 2 | $ 2.1 |
Estimated prior service cost to be amortized in next fiscal year from accumulated other comprehensive income into net periodic pension cost | 0.1 | ||
Swiss | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected future contribution to defined benefit plan | $ 1.3 | ||
SERP | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan employers matching contribution, vesting period | 5 years | ||
Company's contribution to defined contribution plans | $ 0.7 | 0.6 | 0.9 |
Defined contribution plan, description | The Company makes a matching contribution, up to either 5% or 10% of the executive’s salary, which vests in equal annual installments over five years. | ||
Common Stock | SERP | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of company's matching contribution with respect to each participant's contribution | 20.00% | ||
Former Vice Chairman and Chief Operating Officer | SERP | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Compensation related expenses associated with retirement | $ 0.3 | ||
401(k) Savings Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of company's matching contribution with respect to each participant's contribution | 50.00% | ||
Percentage of matching contribution with respect to each participant's contribution | 1.00% | ||
Maximum percentage contribution by employee | 6.00% | ||
Percentage of company's maximum matching contribution | 3.00% | ||
Defined contribution plan employers matching contribution, vesting period | 3 years | ||
Company's contribution to defined contribution plans | $ 1.1 | $ 1.1 | $ 1 |
Pension and Retirement Saving_4
Pension and Retirement Savings Plan - Components of Net Periodic Pension Costs (Details) $ in Thousands | 12 Months Ended |
Jan. 31, 2019USD ($) | |
Defined Benefit Plan Net Periodic Benefit Cost [Abstract] | |
Service cost | $ 93 |
Interest cost | 25 |
Expected return on assets | (25) |
Amortization of prior service costs | 6 |
Net Periodic Pension Cost | $ 99 |
Pension and Retirement Saving_5
Pension and Retirement Savings Plan - Reconciliation of Change in Benefit Obligation, Change in Plan Assets and Net Amount Recognized in Consolidated Balance Sheets (Details) $ in Thousands | 12 Months Ended |
Jan. 31, 2019USD ($) | |
Change in benefit obligation: | |
Pension benefit obligation at 12/31/2018 | $ 34,088 |
Service cost | 93 |
Interest cost | 25 |
Benefit and expense payments | (81) |
Employee contributions | 70 |
Foreign currency exchange rate impact | (441) |
Pension benefit obligation at end of year | 33,754 |
Change in plan assets: | |
Fair value of plan assets at 12/31/2018 | 33,538 |
Company contributions | 105 |
Benefit and expense payments | (81) |
Actual return on plan assets | 25 |
Employee contributions | 70 |
Foreign currency exchange rate impact | (434) |
Fair value of plan assets at end of year | 33,223 |
Funded status - consolidated | (531) |
Amounts recognized in the consolidated balance sheets consist of: | |
Other long-term liabilities | 531 |
Amounts recognized in accumulated other comprehensive (loss): | |
Prior service cost | 537 |
Tax effect | (117) |
Net amount recognized, after tax | 420 |
Accumulated benefit obligation | $ 30,083 |
Pension and Retirement Saving_6
Pension and Retirement Savings Plan - Weighted-average Assumptions Used to Calculate Benefit Obligations and Net Periodic Benefit Cost (Details) | 12 Months Ended |
Jan. 31, 2019 | |
Defined Benefit Plan Weighted Average Assumptions Used In Calculating Net Periodic Benefit Cost [Abstract] | |
Discount rate | 0.90% |
Salary progression rate | 1.10% |
Expected long-term rate of return on plan assets | 0.90% |
Pension and Retirement Saving_7
Pension and Retirement Savings Plan - Schedule of Expected Benefit Payments of Pension Plans (Details) $ in Thousands | Jan. 31, 2019USD ($) |
Defined Benefit Plan Estimated Future Benefit Payments [Abstract] | |
2020 | $ 696 |
2021 | 709 |
2022 | 717 |
2023 | 727 |
2024 | 740 |
2025-2030 | $ 3,783 |
Cost Savings Initiatives - Addi
Cost Savings Initiatives - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | ||
Restructuring Cost And Reserve [Line Items] | ||||
Cost savings initiative | $ (281) | $ 13,587 | ||
Accrued liabilities | 44,429 | 32,814 | ||
Cost Savings Initiatives | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Cost savings initiative | 13,587 | [1] | $ 4,000 | |
Accrued liabilities | $ 0 | $ 300 | ||
[1] | The United States and International locations of the Watch and Accessory Brands segment include a pre-tax charge of $3.9 million and $9.7 million, respectively, for the fiscal year ended January 31, 2018. |
Cost Savings Initiatives - Summ
Cost Savings Initiatives - Summary of Costs Related to Cost Savings Initiatives (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | ||||
Restructuring Cost And Reserve [Line Items] | ||||||
Fiscal 2018 Charges | $ (281) | $ 13,587 | ||||
Cost Savings Initiatives | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Accrued balance | 1,924 | |||||
Fiscal 2018 Charges | 13,587 | [1] | $ 4,000 | |||
Cash payments | (1,235) | (7,776) | ||||
Non-cash adjustments | (281) | [2] | (4,042) | |||
Foreign exchange | (56) | 155 | ||||
Accrued balance | 352 | 1,924 | ||||
Cost Savings Initiatives | Severance and Payroll Related | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Accrued balance | [3] | 931 | ||||
Fiscal 2018 Charges | [1],[3] | 5,630 | ||||
Cash payments | [3] | (601) | (5,895) | |||
Non-cash adjustments | [3] | (30) | [2] | 1,124 | ||
Foreign exchange | [3] | 72 | ||||
Accrued balance | [3] | 300 | 931 | |||
Cost Savings Initiatives | Fixed Assets | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Fiscal 2018 Charges | [1],[3] | 5,166 | ||||
Non-cash adjustments | [3] | (5,166) | ||||
Cost Savings Initiatives | Other | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Accrued balance | [3] | 919 | ||||
Fiscal 2018 Charges | [1],[3] | 2,692 | ||||
Cash payments | [3] | (589) | (1,847) | |||
Non-cash adjustments | [2],[3] | (251) | ||||
Foreign exchange | [3] | (52) | 74 | |||
Accrued balance | [3] | 27 | 919 | |||
Cost Savings Initiatives | Occupancy Charges | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Accrued balance | [3] | 74 | ||||
Fiscal 2018 Charges | [1],[3] | 99 | ||||
Cash payments | [3] | (45) | (34) | |||
Foreign exchange | [3] | (4) | 9 | |||
Accrued balance | [3] | $ 25 | $ 74 | |||
[1] | The United States and International locations of the Watch and Accessory Brands segment include a pre-tax charge of $3.9 million and $9.7 million, respectively, for the fiscal year ended January 31, 2018. | |||||
[2] | Non-cash adjustments during fiscal 2019 relate to a change in estimate for severance and other. The United States and International locations of the Watch and Accessory Brands segment include pre-tax income of approximately $43,000 and $238,000 respectively. | |||||
[3] | The total severance and payroll related charges of $5.6 million include $4.3 million in SG&A and $1.3 million in Cost of Sales in the Consolidated Statement of Operations for the fiscal year ended January 31, 2018. The fixed assets charges of $5.2 million, other charges of $2.7 million and occupancy charges of $0.1 million are included in SG&A in the Consolidated Statement of Operations for the fiscal year ended January 31, 2018. These accrued balances are located in accrued liabilities in the Company’s Consolidated Balance Sheets |
Cost Savings Initiatives - Su_2
Cost Savings Initiatives - Summary of Costs Related to Cost Savings Initiatives (Parenthetical) (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Watch and Accessory Brands | |||
Restructuring Cost And Reserve [Line Items] | |||
Pre-tax charges | $ 4,000,000 | ||
Cost Savings Initiatives | United States | Watch and Accessory Brands | |||
Restructuring Cost And Reserve [Line Items] | |||
Pre-tax charges | $ 3,900,000 | ||
Pre-tax income | $ 43,000 | ||
Cost Savings Initiatives | International | Watch and Accessory Brands | |||
Restructuring Cost And Reserve [Line Items] | |||
Pre-tax charges | 300,000 | 9,700,000 | |
Pre-tax income | $ 238,000 | ||
Cost Savings Initiatives | Severance and Payroll Related | |||
Restructuring Cost And Reserve [Line Items] | |||
Pre-tax charges | 5,600,000 | ||
Cost Savings Initiatives | Severance and Payroll Related | SG&A | |||
Restructuring Cost And Reserve [Line Items] | |||
Pre-tax charges | 4,300,000 | ||
Cost Savings Initiatives | Severance and Payroll Related | Cost Of Sales | |||
Restructuring Cost And Reserve [Line Items] | |||
Pre-tax charges | 1,300,000 | ||
Cost Savings Initiatives | Fixed Assets | SG&A | |||
Restructuring Cost And Reserve [Line Items] | |||
Pre-tax charges | 5,200,000 | ||
Cost Savings Initiatives | Other | SG&A | |||
Restructuring Cost And Reserve [Line Items] | |||
Pre-tax charges | 2,700,000 | ||
Cost Savings Initiatives | Occupancy Charges | SG&A | |||
Restructuring Cost And Reserve [Line Items] | |||
Pre-tax charges | $ 100,000 |
Segment and Geographic Inform_3
Segment and Geographic Information - Additional Information (Details) | 12 Months Ended | ||
Jan. 31, 2019SegmentLocation | Jan. 31, 2018 | Jan. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | Segment | 2 | ||
Number of geographic locations | Location | 2 | ||
Geographic Concentration Risk | Europe | Total net sales | |||
Segment Reporting Information [Line Items] | |||
International Operations Contribution | 31.60% | 32.10% | 23.10% |
Geographic Concentration Risk | Americas (excluding the United States) | Total net sales | |||
Segment Reporting Information [Line Items] | |||
International Operations Contribution | 8.80% | 9.20% | 8.90% |
Geographic Concentration Risk | Middle East | Total net sales | |||
Segment Reporting Information [Line Items] | |||
International Operations Contribution | 7.70% | 7.70% | 8.10% |
Geographic Concentration Risk | Asia | Total net sales | |||
Segment Reporting Information [Line Items] | |||
International Operations Contribution | 6.50% | 5.10% | 6.30% |
Segment and Geographic Inform_4
Segment and Geographic Information - Operating Segment Data (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |||||
Operating segment data | |||||||||||||||
Net sales | $ 199,376 | $ 208,949 | $ 144,093 | $ 127,149 | $ 149,214 | $ 190,693 | $ 128,781 | $ 99,265 | $ 679,567 | [1] | $ 567,953 | [1] | $ 552,752 | [1] | |
Operating Income | [1],[2],[3],[4],[5],[6],[7],[8] | 62,197 | 43,200 | 53,981 | |||||||||||
Total Assets | 759,701 | 645,380 | 759,701 | 645,380 | |||||||||||
Capital Expenditures | 10,635 | 5,810 | 5,920 | ||||||||||||
Depreciation and Amortization | 14,165 | 13,457 | 11,507 | ||||||||||||
Watch and Accessory Brands | |||||||||||||||
Operating segment data | |||||||||||||||
Net sales | 595,876 | 492,082 | 484,444 | ||||||||||||
Operating Income | [2],[3],[4],[5],[6] | 45,194 | 28,296 | 41,773 | |||||||||||
Total Assets | 735,244 | 621,965 | 735,244 | 621,965 | |||||||||||
Capital Expenditures | 6,508 | 3,133 | 5,666 | ||||||||||||
Depreciation and Amortization | 12,446 | 11,765 | 9,875 | ||||||||||||
Watch and Accessory Brands | Owned brands category | |||||||||||||||
Operating segment data | |||||||||||||||
Net sales | 263,904 | 204,897 | 205,396 | ||||||||||||
Watch and Accessory Brands | Licensed brands category | |||||||||||||||
Operating segment data | |||||||||||||||
Net sales | 320,911 | 277,323 | 265,137 | ||||||||||||
Watch and Accessory Brands | After-sales service and all other | |||||||||||||||
Operating segment data | |||||||||||||||
Net sales | 11,061 | 9,862 | 13,911 | ||||||||||||
Company Stores | |||||||||||||||
Operating segment data | |||||||||||||||
Net sales | 83,691 | 75,871 | 68,308 | ||||||||||||
Operating Income | [2],[3],[4],[5],[6] | 17,003 | 14,904 | 12,208 | |||||||||||
Total Assets | $ 24,457 | $ 23,415 | 24,457 | 23,415 | |||||||||||
Capital Expenditures | 4,127 | 2,677 | 254 | ||||||||||||
Depreciation and Amortization | $ 1,719 | $ 1,692 | $ 1,632 | ||||||||||||
[1] | The United States and International net sales are net of intercompany sales of $319.5 million, $268.1 million and $289.2 million for the fiscal years ended January 31, 2019, 2018 and 2017, respectively. | ||||||||||||||
[2] | Fiscal 2017 Watch and Accessory Brands and United States and International operating income included a $4.0 million charge as a result of actions taken by the Company in fiscal 2017 to achieve greater operating efficiencies and streamline its operations. | ||||||||||||||
[3] | Fiscal 2017 Watch and Accessory Brands and United States operating income included a pre-tax charge of $1.8 million, as a result of the immediate vesting of stock awards and certain other compensation related to the announcement of the retirement of the Company’s former Vice Chairman and Chief Operating Officer, in fiscal 2018. | ||||||||||||||
[4] | Fiscal 2019 Watch and Accessory Brands and United States and International operating (loss) / income included a charge of $0.3 million as part of the Company’s cost savings initiatives. The United States and International locations of the Watch and Accessory Brands segment include a pre-tax charge of $3.9 million and $9.7 million, respectively, for the fiscal year ended January 31, 2018 as part of the Company’s cost savings initiatives. In fiscal 2018, the Company took actions to better align its global infrastructure with the current business environment by consolidating certain operations and streamlining functions to reduce costs and improve profitability. Also, in light of the changing retail landscape and the growing importance of digital marketing and online sales, the Company decided to cease its participation in the Baselworld Watch and Jewelry Show. | ||||||||||||||
[5] | Fiscal 2019 Watch and Accessory Brands and United States and International operating (loss) / income included a charge of $14.3 million related to transaction charges and the amortization of acquisition accounting adjustments associated with the purchase of the MVMT brand. | ||||||||||||||
[6] | Fiscal 2019 Watch and Accessory Brands and United States and International operating (loss) / income included a charge of $2.9 million related to the amortization of intangible assets associated with the Olivia Burton brand. Fiscal 2018 Watch and Accessory Brands and United States and International operating (loss) / income included a charge of $6.8 million related to transaction charges and the amortization of acquisition accounting adjustments associated with the purchase of the Olivia Burton brand. | ||||||||||||||
[7] | The International operating income included $53.8 million, $41.5 million and $40.0 million of certain intercompany profits related to the Company’s supply chain operations for the fiscal years ended January 31, 2019, 2018 and 2017, respectively. | ||||||||||||||
[8] | The United States operating income included $43.5 million, $25.2 million and $26.3 million of unallocated corporate expenses for the fiscal years ended January 31, 2019, 2018 and 2017, respectively. |
Segment and Geographic Inform_5
Segment and Geographic Information - Geographic Location Data (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||||||
Net sales | $ 199,376 | $ 208,949 | $ 144,093 | $ 127,149 | $ 149,214 | $ 190,693 | $ 128,781 | $ 99,265 | $ 679,567 | [1] | $ 567,953 | [1] | $ 552,752 | [1] | |
Operating (Loss) / Income | [1],[2],[3],[4],[5],[6],[7],[8] | 62,197 | 43,200 | 53,981 | |||||||||||
Total Assets | 759,701 | 645,380 | 759,701 | 645,380 | |||||||||||
Property, plant and equipment, net | 26,067 | 24,671 | 26,067 | 24,671 | |||||||||||
United States | |||||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||||||
Net sales | [1] | 308,420 | 260,606 | 296,311 | |||||||||||
Operating (Loss) / Income | [1],[2],[3],[4],[5],[6],[7],[8] | (3,856) | (629) | 16,917 | |||||||||||
Total Assets | 328,014 | 188,346 | 328,014 | 188,346 | |||||||||||
Property, plant and equipment, net | 17,030 | 16,570 | 17,030 | 16,570 | |||||||||||
International | |||||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||||||
Net sales | [1] | 371,147 | 307,347 | 256,441 | |||||||||||
Operating (Loss) / Income | [1],[2],[3],[4],[5],[6],[7],[8] | 66,053 | 43,829 | $ 37,064 | |||||||||||
Total Assets | 431,687 | 457,034 | 431,687 | 457,034 | |||||||||||
Property, plant and equipment, net | $ 9,037 | $ 8,101 | $ 9,037 | $ 8,101 | |||||||||||
[1] | The United States and International net sales are net of intercompany sales of $319.5 million, $268.1 million and $289.2 million for the fiscal years ended January 31, 2019, 2018 and 2017, respectively. | ||||||||||||||
[2] | Fiscal 2017 Watch and Accessory Brands and United States and International operating income included a $4.0 million charge as a result of actions taken by the Company in fiscal 2017 to achieve greater operating efficiencies and streamline its operations. | ||||||||||||||
[3] | Fiscal 2017 Watch and Accessory Brands and United States operating income included a pre-tax charge of $1.8 million, as a result of the immediate vesting of stock awards and certain other compensation related to the announcement of the retirement of the Company’s former Vice Chairman and Chief Operating Officer, in fiscal 2018. | ||||||||||||||
[4] | Fiscal 2019 Watch and Accessory Brands and United States and International operating (loss) / income included a charge of $0.3 million as part of the Company’s cost savings initiatives. The United States and International locations of the Watch and Accessory Brands segment include a pre-tax charge of $3.9 million and $9.7 million, respectively, for the fiscal year ended January 31, 2018 as part of the Company’s cost savings initiatives. In fiscal 2018, the Company took actions to better align its global infrastructure with the current business environment by consolidating certain operations and streamlining functions to reduce costs and improve profitability. Also, in light of the changing retail landscape and the growing importance of digital marketing and online sales, the Company decided to cease its participation in the Baselworld Watch and Jewelry Show. | ||||||||||||||
[5] | Fiscal 2019 Watch and Accessory Brands and United States and International operating (loss) / income included a charge of $14.3 million related to transaction charges and the amortization of acquisition accounting adjustments associated with the purchase of the MVMT brand. | ||||||||||||||
[6] | Fiscal 2019 Watch and Accessory Brands and United States and International operating (loss) / income included a charge of $2.9 million related to the amortization of intangible assets associated with the Olivia Burton brand. Fiscal 2018 Watch and Accessory Brands and United States and International operating (loss) / income included a charge of $6.8 million related to transaction charges and the amortization of acquisition accounting adjustments associated with the purchase of the Olivia Burton brand. | ||||||||||||||
[7] | The International operating income included $53.8 million, $41.5 million and $40.0 million of certain intercompany profits related to the Company’s supply chain operations for the fiscal years ended January 31, 2019, 2018 and 2017, respectively. | ||||||||||||||
[8] | The United States operating income included $43.5 million, $25.2 million and $26.3 million of unallocated corporate expenses for the fiscal years ended January 31, 2019, 2018 and 2017, respectively. |
Segment and Geographic Inform_6
Segment and Geographic Information - Geographic Location Data (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |||||
Segment Reporting Information [Line Items] | |||||||||||||||
Charge related to the amortization of intangible assets | $ 4,351 | $ 2,091 | $ 420 | ||||||||||||
Net sales | $ 199,376 | $ 208,949 | $ 144,093 | $ 127,149 | $ 149,214 | $ 190,693 | $ 128,781 | $ 99,265 | 679,567 | [1] | 567,953 | [1] | 552,752 | [1] | |
Unallocated corporate expenses | 43,500 | 25,200 | 26,300 | ||||||||||||
Profits related to the company's supply chain operations | 53,800 | 41,500 | 40,000 | ||||||||||||
Intersegment Eliminations | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net sales | 319,500 | 268,100 | 289,200 | ||||||||||||
International | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net sales | [1] | 371,147 | 307,347 | 256,441 | |||||||||||
United States | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net sales | [1] | 308,420 | 260,606 | 296,311 | |||||||||||
Watch and Accessory Brands | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Charge related to the amortization of intangible assets | 2,900 | ||||||||||||||
Charge related to transaction charges and the amortization of acquisition accounting adjustments | 6,800 | ||||||||||||||
Operating efficiency initiatives and other items | 4,000 | ||||||||||||||
Net sales | 595,876 | 492,082 | 484,444 | ||||||||||||
Watch and Accessory Brands | United States | Former Vice Chairman and Chief Operating Officer | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Compensation related expenses associated with retirement | $ 1,800 | ||||||||||||||
Watch and Accessory Brands | Cost Savings Initiatives | International | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Operating efficiency initiatives and other items | 300 | 9,700 | |||||||||||||
Watch and Accessory Brands | Cost Savings Initiatives | United States | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Operating efficiency initiatives and other items | $ 3,900 | ||||||||||||||
Watch and Accessory Brands | MVMT Watches, Inc. | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Charge related to transaction charges and the amortization of acquisition accounting adjustments | $ 14,300 | ||||||||||||||
[1] | The United States and International net sales are net of intercompany sales of $319.5 million, $268.1 million and $289.2 million for the fiscal years ended January 31, 2019, 2018 and 2017, respectively. |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) - Schedule of Unaudited Selected Interim Operating Results (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | ||||
Unaudited selected interim operating results | ||||||||||||||
Net sales | $ 199,376 | $ 208,949 | $ 144,093 | $ 127,149 | $ 149,214 | $ 190,693 | $ 128,781 | $ 99,265 | $ 679,567 | [1] | $ 567,953 | [1] | $ 552,752 | [1] |
Gross profit | 110,636 | 113,364 | 77,834 | 67,524 | 78,745 | 104,070 | 66,126 | 49,137 | 369,358 | 298,078 | 294,817 | |||
(Loss)/income before income taxes | 16,899 | 24,105 | 12,755 | 7,974 | 13,118 | 24,850 | 8,056 | (3,882) | 61,733 | 42,142 | 51,454 | |||
Net (loss) income attributable to Movado Group, Inc. | $ 17,447 | $ 26,922 | $ 9,140 | $ 8,115 | $ (33,908) | $ 17,360 | $ 5,482 | $ (4,159) | $ 61,624 | $ (15,225) | $ 35,061 | |||
Basic income per share: | ||||||||||||||
Net (loss) income attributable to Movado Group, Inc. | $ 0.75 | $ 1.16 | $ 0.39 | $ 0.35 | $ (1.47) | $ 0.75 | $ 0.24 | $ (0.18) | $ 2.66 | $ (0.66) | $ 1.52 | |||
Diluted income per share: | ||||||||||||||
Net (loss) income attributable to Movado Group, Inc. | $ 0.74 | $ 1.14 | $ 0.39 | $ 0.35 | $ (1.47) | $ 0.75 | $ 0.24 | $ (0.18) | $ 2.61 | $ (0.66) | $ 1.51 | |||
[1] | The United States and International net sales are net of intercompany sales of $319.5 million, $268.1 million and $289.2 million for the fiscal years ended January 31, 2019, 2018 and 2017, respectively. |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | ||
Valuation and qualifying accounts and reserves | ||||
Balance at beginning of year | $ 32,844 | $ 29,820 | $ 27,398 | |
Net (benefit) / provision charged to operations | 41,998 | 40,816 | 41,279 | |
Currency revaluation | (1,247) | 1,014 | 143 | |
Net write-offs | (42,432) | (38,806) | (39,000) | |
Balance at end of year | 31,163 | 32,844 | 29,820 | |
Doubtful Accounts | ||||
Valuation and qualifying accounts and reserves | ||||
Balance at beginning of year | 4,181 | 5,499 | 4,274 | |
Net (benefit) / provision charged to operations | 2,104 | (176) | 1,739 | |
Currency revaluation | (257) | 289 | 52 | |
Net write-offs | (536) | (1,431) | (566) | |
Balance at end of year | 5,492 | 4,181 | 5,499 | |
Returns | ||||
Valuation and qualifying accounts and reserves | ||||
Balance at beginning of year | 12,359 | 11,648 | 10,856 | |
Net (benefit) / provision charged to operations | 32,710 | [1] | 30,477 | 30,075 |
Currency revaluation | (691) | 288 | 10 | |
Net write-offs | (31,344) | (30,054) | (29,293) | |
Balance at end of year | 13,034 | 12,359 | 11,648 | |
Other Sales Allowances | ||||
Valuation and qualifying accounts and reserves | ||||
Balance at beginning of year | 7,344 | 3,959 | 4,179 | |
Net (benefit) / provision charged to operations | 9,383 | 9,887 | 8,749 | |
Currency revaluation | 20 | 340 | (19) | |
Net write-offs | (9,367) | (6,842) | (8,950) | |
Balance at end of year | 7,380 | 7,344 | 3,959 | |
Deferred Tax Asset Valuation Allowance | ||||
Valuation and qualifying accounts and reserves | ||||
Balance at beginning of year | 8,960 | 8,714 | 8,089 | |
Net (benefit) / provision charged to operations | (2,199) | 628 | 716 | |
Currency revaluation | (319) | 97 | 100 | |
Net write-offs | (1,185) | (479) | (191) | |
Balance at end of year | $ 5,257 | $ 8,960 | $ 8,714 | |
[1] | On February 1, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) using the modified retrospective method and recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening retained earnings. Under the modified retrospective method, the Company recognized in part an increase in reserve for returns with a corresponding reduction of approximately $817,000 to opening retained earnings as the cumulative effect of adopting the new revenue standard. |
Valuation and Qualifying Acco_3
Valuation and Qualifying Accounts (Parenthetical) (Details) - USD ($) | Jan. 31, 2019 | Jan. 31, 2018 |
Valuation And Qualifying Accounts Disclosure [Line Items] | ||
Retained earnings | $ 431,180,000 | $ 388,739,000 |
Returns | ASU 2014-09 | Adjustments | ||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||
Retained earnings | $ (817,000) |