EXHIBIT 99.2
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The following unaudited pro forma Balance Sheet and Statements of
Income set forth the financial condition of Movado Group, Inc. and its
subsidiaries at October 31, 1998 (unaudited) and results of operations for the
nine months then ended and for the fiscal year ended January 31, 1998
(unaudited) after giving effect to the disposition of the Piaget brand as if
such disposition occurred at the beginning of such periods. Piaget brand
expenses reflect only those expenses that are directly attributable to the brand
and do not include general allocations. The unaudited pro forma statements of
income are not necessarily indicative of either the results of operations that
would have occurred had the dispositions actually occurred at the beginning of
the periods presented or the future results of the now separate entities.
MOVADO GROUP, INC.
Pro Forma Balance Sheet
OCTOBER 31, 1998
UNAUDITED
($000's)
As Piaget Pro forma Pro forma
Reported Brand Adjustments Results
-------- ------ ----------- ---------
Cash $ 5,469 $ 5,469
Trade, receivables, net 138,076 $ 7,961 130,115
Inventories 121,551 15,225 106,326
Other 20,749 20,749
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CURRENT ASSETS 285,845 23,186 262,659
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Plant, property and equipment, net 23,451 1,300 22,151
Other assets 11,460 1,169 10,291
TOTAL ASSETS $320,756 $25,655 $295,201
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As Piaget Pro forma Pro forma
Reported Brand Adjustments Results
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Loans payable to banks $ 53,611 $25,519 (d) $27,992
Current portion of long-term debt 5,000 5,000
Accounts Payable 15,733 15,733
Accrued Liabilities 26,021 36 25,985
Deferred and current income taxes payable 9,560 9,560
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CURRENT LIABILITIES 109,925 25,655 84,270
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Long-term debt 35,000 35,000
Deferred & noncurrent foreign income taxes 5,950 5,950
Other liabilities 1,863 1,863
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TOTAL LIABILITIES 152,739 25,655 127,083
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Common stock 129 129
Capital in excess of par value 64,872 64,872
Retained earnings 100,965 $ 0 (a) 100,965
Accumulated other comprehensive income 4,497 4,497
Treasury stock (2,445) (2,445)
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TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $320,756 $25,555 $ 0 $295,201
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MOVADO GROUP, INC.
Pro Forma Statement of Income
For the Nine Months Ended October 31, 1998
Unaudited
($000's)
As Piaget Pro forma Pro forma
Reported Brand Adjustments Results
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Net Sales $208,039 $11,152 $196,887
Cost of Sales 86,272 6,644 79,628
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Gross Profit 121,767 4,508 117,259
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Selling, general and administrative expenses 97,633 3,538 94,095
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Operating Income 24,134 970 23,164
Net interest expense 3,951 $1,244 (b) 2,707
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Income before income taxes 20,183 970 1,244 20,457
Provision for income taxes 4,642 223 497 4,916
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Net Income $ 15,541 $ 747 $ 747 $ 15,541
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Net income per share--Basic: $1.21 $1.21
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Net income per share--Diluted: $1.17 $1.17
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MOVADO GROUP, INC.
Pro Forma Statements of Income
For the fiscal year ended January 31, 1998
Unaudited
($000's)
As Piaget Pro forma Pro forma
Reported Brand Adjustments Results
-------- ------ ----------- ---------
Net Sales $237,005 $18,156 $218,849
Cost of Sales 97,456 12,127 85,328
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Gross Profit 139,549 6,029 133,520
Selling, general and administrative expenses 113,593 5,425 108,168
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Operating Income 25,956 604 25,353
Net interest expense 5,383 $1,651 (b) 3,732
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Income before income taxes 20,573 604 1,651 21,620
Provision for income taxes 4,731 139 660(c) 5,252
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Net Income $ 15,842 $ 465 $ 991 16,368
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Net income per share--Basic: $1.35 $1.39
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Net income per share--Diluted: $1.29 $1.34
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Notes to unaudited pro forma statements (unaudited):
(a) - Represents the net effect of the lost income of the Piaget brand offset
by the net income related to assumed interest savings.
(b) - Represents the assumed interest savings computed as the net book value of
the asset reduction at an assumed 6.5% average borrowing costs.
(c) - Income reductions were tax effected at the company's effective rate of
23% in both periods presented. Interest savings have been tax effected at
40% as the interest is primarily in the U.S.
(d) - Net asset reduction is assumed to be used to pay short-term bank
borrowing.