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Movado Group Inc – ‘10-Q’ for 4/30/00

On: Wednesday, 6/14/00, at 4:14pm ET · For: 4/30/00 · Accession #: 950123-0-5776 · File #: 0-22378

  As Of                Filer                Filing    For·On·As Docs:Size              Issuer               Agent

 6/14/00  Movado Group Inc                  10-Q        4/30/00    3:156K                                   RR Donnelley/FA

Quarterly Report — Form 10-Q
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-Q        Movado Group                                          14     59K 
 2: EX-10.1     Lease Agreement                                       45    166K 
 3: EX-27       Financial Data Schedule                                1      6K

10-Q — Movado Group
Document Table of Contents

Page	(sequential)	\|	(alphabetic)	Top
			Alternative Formats (Word, et al.) Exhibits and Reports on Form 8-K Forward Looking Statements Management's Discussion and Analysis of Financial Condition and Results of Operations
1	1st Page - Filing Submission
8	Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
"	Forward Looking Statements
12	Item 6. Exhibits and Reports on Form 8-K

10-Q 1st Page of 14 TOC ↑Top Previous Next ↓Bottom Just 1st
 

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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

------------------------

FORM 10-Q 
------------------------

[X]             QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)                
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED APRIL 30, 2000 

[ ]            TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)                
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM          TO          
COMMISSION FILE NUMBER 0-22378

MOVADO GROUP, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

                                                                [Download Table]
                                                                            

                NEW YORK                                      13-2595932    
      (STATE OR OTHER JURISDICTION                          (IRS EMPLOYER   
   OF INCORPORATION OR ORGANIZATION)                     IDENTIFICATION NO.)
125 CHUBB AVENUE, LYNDHURST, NEW JERSEY                         07071       
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)                      (ZIP CODE)    

REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE (201) 460-4800 

 Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of   
1934 during the preceding 12 months (or for such shorter period that the        
Registrant was required to file such reports), and (2) has been subject to such 
filing requirements for the past 90 days.  Yes [X] No [ ]                       

   Indicate the number of shares outstanding of each of the Issuer's classes
of Common Stock, as of the latest practicable date.                             

  As of May 24, 2000 the Registrant had 3,509,733 shares of Class A Common
Stock, par value $0.01 per share, outstanding and 9,505,298 shares of Common    
Stock, par value $0.01 per share, outstanding.                                  

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MOVADO GROUP, INC.

INDEX TO QUARTERLY REPORT ON FORM 10-Q
APRIL 30, 2000

                                                                [Download Table]

                                                                                Page
                                                                                ----
                                                                                    
Part I  Financial Information                                                       

        Item 1.    Consolidated Balance Sheets at April 30, 2000, January 31,       
                   2000 and April 30, 1999                                       3  

                   Consolidated Statements of Operations  for the three months      
                   ended April 30, 2000 and 1999                                 4  

                   Consolidated Statements of Cash Flows for the three months       
                   ended April 30, 2000 and 1999                                 5  

                   Notes to Consolidated Financial Statements                    6  

        Item 2.    Management's Discussion and Analysis of Financial Condition      
                   and Results of Operations                                     8  

Part II Other Information                                                           

        Item 6.    Exhibits and Reports on Form 8-K                             12  

Signatures                                                                      13  

Exhibit Index                                                                   14  

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PART 1 - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS

MOVADO GROUP, INC.
 CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
 (Unaudited)

                                                        [Enlarge/Download Table]

                                                                APRIL 30,       JANUARY 31,     APRIL 30, 
                                                                  2000             2000           1999    
                                                             ---------------  --------------  ------------
                                                                                                          
ASSETS                                                                                                    
------                                                                                                    

Current assets:                                                                                           
     Cash and cash equivalents                                      $20,122         $26,615       $37,614 
     Trade receivables, net                                         100,256         103,795       109,431 
     Inventories                                                     86,708          77,075       119,757 
     Other current assets                                            22,931          19,341        22,787 
                                                             ---------------  --------------  ------------
         Total current assets                                       230,017         226,826       289,589 

Plant, property and equipment, net                                   27,462          27,593        25,297 
Other assets                                                         13,476          12,767        12,433 
                                                             ---------------  --------------  ------------
                                                                   $270,955        $267,186      $327,319 
                                                             ===============  ==============  ============
LIABILITIES AND SHAREHOLDERS' EQUITY                                                                      
------------------------------------                                                                      

Current liabilities:                                                                                      
     Loans payable to banks                                         $33,565         $13,500       $45,226 
     Current portion of long-term debt                                5,000           5,000         5,000 
     Accounts payable                                                15,888          17,562        24,333 
     Accrued liabilities                                             17,140          26,602        20,920 
     Deferred and current taxes payable                               6,254           5,432         9,221 
                                                             ---------------  --------------  ------------
         Total current liabilities                                   77,847          68,096       104,700 

Long-term debt                                                       45,000          45,000        55,000 
Deferred and non-current foreign income taxes                         4,277           5,105         5,471 
Other liabilities                                                     1,220           1,170         1,648 
                                                             ---------------  --------------  ------------
         Total liabilities                                          128,344         119,371       166,819 
                                                             ---------------  --------------  ------------

Shareholders' equity:                                                                                     
     Preferred Stock, $0.01 par value,                                                                    
         5,000,000 shares authorized; no shares issued                    -               -             - 
     Common Stock, $0.01 par value,                                                                       
         20,000,000 shares authorized;  9,505,298,                                                        
         9,496,529 and  9,448,938 shares                                                                  
         issued, respectively                                            95              95            94 
     Class A Common Stock, $0.01 par value,                                                               
         10,000,000 shares authorized; 3,509,733,                                                         
         3,509,733 and 3,517,000 shares issued                                                            
         and outstanding, respectively                                   35              35            35 
     Capital in excess of par value                                  66,122          66,113        65,229 
     Retained earnings                                              118,149         118,615       110,134 
     Accumulated other comprehensive income                        (18,985)        (16,462)      (10,292) 
     Treasury stock, 1,043,690, 920,690 and 238,519 shares,                                               
     respectively, at cost                                         (22,805)        (20,581)       (4,700) 
                                                             ---------------  --------------  ------------
                                                                    142,611         147,815       160,500 
                                                             ---------------  --------------  ------------
                                                                   $270,955        $267,186      $327,319 
                                                             ===============  ==============  ============

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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MOVADO GROUP, INC.
 CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
 (Unaudited)

                                                        [Enlarge/Download Table]

                                                                THREE MONTHS ENDED APRIL 30,                   
                                              -----------------------------------------------------------------
                                                                       2000                               1999 
                                                                       ----                               ---- 

                                                                                                               
Net sales                                                           $53,339                            $47,653 

Costs and expenses:                                                                                            
     Cost of sales                                                   21,298                             18,618 
     Selling, general and administrative                             31,045                             27,039 
                                              ------------------------------      -----------------------------

Operating income                                                        996                              1,996 

Net interest expense                                                  1,226                              1,147 

Gain on disposition of business                                           -                              4,752 
                                              ------------------------------      -----------------------------

(Loss) income before income taxes                                     (230)                              5,601 

(Benefit from) provision for income taxes                              (57)                              1,289 
                                              ------------------------------      -----------------------------

Net (loss) income                                                     (173)                             $4,312 
                                              ==============================      =============================

Basic (loss) income per share                                       ($0.01)                              $0.34 
                                              ==============================      =============================

Diluted (loss) income per share                                     ($0.01)                              $0.33 
                                              ==============================      =============================

Dividends declared per share                                         $0.025                             $0.025 
                                              ==============================      =============================

Average shares outstanding                                           11,981                             12,771 

Dilutive effect of stock options                                        207                                394 
                                              ------------------------------      -----------------------------

Average shares outstanding assuming dilution                         12,188                             13,165 
                                              ==============================      =============================

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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MOVADO GROUP, INC.
 CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
 (Unaudited)

                                                        [Enlarge/Download Table]

                                                                                 THREE MONTHS ENDED APRIL 30,                
                                                                   ----------------------------------------------------------
                                                                             2000                            1999            
                                                                             ----                            ----            
                                                                                                                             
Cash flows from operating activities:                                                                                        
   Net (loss) income                                                                  ($173)                          $4,312 
   Adjustments to reconcile net income (loss) to net cash used in                                                            
   operating activities:                                                                                                     
        Depreciation and amortization                                                  1,317                           1,193 
        Deferred and non-current foreign income taxes                                  (663)                             114 
        Provision for losses on accounts receivable                                      227                             265 
        Gain on disposition of business                                                    -                         (4,752) 
        Changes in current assets and liabilities:                                                                           
            Trade receivables                                                          2,664                           (592) 
            Inventories                                                             (10,760)                        (19,371) 
            Other current assets                                                     (5,689)                         (1,380) 
            Accounts payable                                                         (1,315)                        (11,847) 
            Accrued liabilities                                                      (9,026)                         (1,094) 
            Deferred and current taxes payable                                           325                           (554) 
        Decrease in other non-current assets                                             854                           5,730 
        Decrease in other non-current liabilities                                      (177)                           (185) 
                                                                   --------------------------      --------------------------
   Net cash used in operating activities                                            (22,416)                        (28,161) 
                                                                   --------------------------      --------------------------

Cash flows (used for) provided by investing activities:                                                                      
   Capital expenditures                                                              (1,024)                         (3,526) 
   Proceeds from disposition of business                                                   -                          28,409 
   Goodwill, trademarks and other intangibles                                          (168)                           (655) 
                                                                   --------------------------      --------------------------
   Net cash (used in) provided by investing activities                               (1,192)                          24,228 
                                                                   --------------------------      --------------------------

Cash flows from financing activities:                                                                                        
   Repayment of Senior Notes                                                               -                          (5,000)
   Net proceeds from bank borrowings                                                  20,065                          43,058 
   Principal payments under capital leases                                                 -                            (36) 
   Stock options exercised                                                                 7                             125 
   Dividends paid                                                                      (294)                           (319) 
   Purchase of treasury stock                                                        (2,224)                         (1,712) 
                                                                   --------------------------      --------------------------
   Net cash provided by financing activities                                          17,554                          36,116 
                                                                   --------------------------      --------------------------

Effect of exchange rate changes on cash and cash equivalents                           (439)                           (195) 
                                                                   --------------------------      --------------------------

Net (decrease) increase in cash and cash equivalents                                 (6,493)                          31,988 

Cash and cash equivalents at beginning of period                                      26,615                           5,626 
                                                                   --------------------------      --------------------------

Cash and cash equivalents at end of period                                           $20,122                         $37,614 
                                                                   ==========================      ==========================

SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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MOVADO GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

BASIS OF PRESENTATION                                                           

The accompanying unaudited consolidated financial statements have been prepared 
by Movado Group, Inc. (the "Company") in a manner consistent with that used in  
the preparation of the financial statements included in the Company's fiscal    
2000 Annual Report filed on Form 10-K. In the opinion of management, the        
accompanying financial statements reflect all adjustments, consisting of only   
normal and recurring adjustments, necessary for a fair presentation of the      
financial position and results of operations for the periods presented.         
These consolidated financial statements should be read in conjunction with the  
aforementioned annual report.                                                   

NOTE 1 - RECLASSIFICATION                                                       

Certain prior year amounts have been reclassified to conform to the current     
presentation.                                                                   

NOTE 2 - INVENTORIES                                                            

Inventories consist of the following (in thousands):                            

                                                        [Enlarge/Download Table]

                                           APRIL 30,              JANUARY 31,               APRIL 30,       
                                             2000                    2000                     1999          
                                     ---------------------  -----------------------  -----------------------

                                                                                                            
Finished goods                                    $51,838                  $50,565                  $80,076 
Work-in-process and component parts                34,870                   26,510                   39,681 
                                     ---------------------  -----------------------  -----------------------

                                                  $86,708                  $77,075                 $119,757 
                                     =====================  =======================  =======================

NOTE 3 - SUPPLEMENTAL CASH FLOW INFORMATION                                     

The following is provided as supplemental information to the consolidated       
statements of cash flows (in thousands):                                        

                                                                [Download Table]

                                                 THREE MONTHS                
                                                ENDED APRIL 30,              
                                  -------------------------------------------

                                                 2000                   1999 
                                                 ----                   ---- 

                                                                             
Cash paid during the period for:                                             
   Interest                                      $425                 $1,245 
   Income taxes                                $1,557                 $2,058 

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NOTE 4  - COMPREHENSIVE (LOSS) INCOME                                           

The components of comprehensive income for the three months ended April 30, 2000
and 1999 are as follows (in thousands):                                         

                                                        [Enlarge/Download Table]

                                                           2000                     1999 
                                                           ----                     ---- 

                                                                                         
Net (loss) income                                        ($173)                   $4,312 
Foreign currency translation adjustment                 (2,523)                    2,264 
                                         -----------------------  -----------------------
Comprehensive income (loss)                             (2,696)                   $6,576 
                                         =======================  =======================


NOTE 5 - SEGMENT INFORMATION                                                    

In fiscal 1999, the Company adopted SFAS No. 131, "Disclosures about Segments of
an Enterprise and Related Information," which requires reporting certain        
financial information according to the "management approach." This approach     
requires reporting information regarding operating segments on the basis used   
internally by management to evaluate segment performance. The Company conducts  
its business primarily in two operating segments: "Wholesale" and "Other". The  
Company's wholesale segment includes the designing, manufacturing and           
distribution of quality watches. Other includes the Company's retail and service
center operations. Operating segment data as of April 30, 2000 and 1999 are as  
follows (in thousands):                                                         

                                                                [Download Table]

                                NET SALES                   OPERATING PROFIT     
                          2000               1999        2000               1999 
                    ------------------------------  -----------------------------

                                                                                 
Wholesale              $44,794            $41,156      $2,205             $3,016 
Other                    8,545              6,497     (1,209)            (1,020) 
                    ------------------------------  -----------------------------
Consolidated total     $53,339            $47,653        $996             $1,996 
                    ==============================  =============================

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Item 2. Management's Discussion and Analysis of Financial Condition and Results 
of Operations                                                                   

FORWARD LOOKING STATEMENTS                                                      

Statements included under Management's Discussion and Analysis of Financial     
Condition and Results of Operations, in this report, as well as statements in   
future filings by the Company with the Securities and Exchange Commission       
("SEC"), in the Company's press releases and oral statements made by or with the
approval of an authorized executive officer of the Company, which are not       
historical in nature, are intended to be, and are hereby identified as, "forward
looking statements" for purposes of the safe harbor provided by Section 21E of  
the Securities Exchange Act of 1934. The Company cautions readers that forward  
looking statements include, without limitation, those relating to the Company's 
future business prospects, revenues, working capital, liquidity, capital needs, 
plans for future operations, effective tax rates, margins, interest costs, and  
income, as well as assumptions relating to the foregoing. Forward looking       
statements are subject to certain risks and uncertainties, some of which cannot 
be predicted or quantified. Actual results and future events could differ       
materially from those indicated in the forward looking statements due to several
important factors herein identified, among others, and other risks and factors  
identified from time to time in the Company's reports filed with the SEC        
including, without limitation, the following: general economic and business     
conditions which may impact disposable income of consumers, competitive products
and pricing, ability to enforce intellectual property rights, seasonality,      
availability of alternative sources of supply in the case of loss of any        
significant supplier, the Company's dependence on key officers, continued       
availability to the Company of financing and credit on favorable terms and      
success of hedging strategies in respect of currency exchange rate fluctuations.

RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED APRIL 30, 2000 AS COMPARED TO  
THE THREE MONTHS ENDED APRIL 30, 1999.                                          

Net sales: Comparative net sales by product class were as follows:              

                                                                [Download Table]


                                       Three Months Ended April 30,        
                                       2000                    1999        
                                -------------------     -------------------

                                                                           
Concord, Movado, Coach and ESQ                                             
    Domestic                               $34,450                 $32,580 
    International                           10,533                   9,053 
Piaget and Corum                             (160)                   (424) 
Other                                        8,516                   6,444 
                                -------------------     -------------------
Net Sales                                  $53,339                 $47,653 
                                ===================     ===================

Net sales increased by $5.7 million or 11.9% for the three months ended April   
30, 2000 as compared to the three months ended April 30, 1999. Domestic sales of
our core brands increased by $1.9 million or 5.7% and international sales of our
core brands increased by $1.5 million or 16.3%. Domestic sales increases of our 
core brands were led by increases in Movado, ESQ and Coach sales offset by a    
slight decline in sales of our Concord brand. The decline in Concord brand sales
was primarily due to timing of product deliveries from our suppliers.           
International sales increases were led by double-digit growth of our Coach brand
as we continued the ongoing rollout of Coach in our international markets,      
especially the Far East. The Company also experienced strong                    

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growth of our Concord brand in the international markets. International sales   
increases were slightly impaired, due to a decline in average foreign currency  
translation rates in effect for the three months ended April 30, 2000 as        
compared to average translation rates in effect for the three months ended April
30, 1999.                                                                       

Other net sales, which include sales from our Company's outlet stores, the      
Movado Boutiques and our after sales service business, increased by $2.1 million
or 32.2%. Growth in the other sales category was primarily attributable to      
comparable store sales increases in our outlets and Boutiques and new store     
openings. The increases in retail sales were somewhat offset by decreased volume
in our after sales service business, due to the sale of our Piaget and Corum    
distribution businesses.                                                        

Gross Margin. The gross profit for the three months ended April 30, 2000 was    
$32.0 million (60.1% of net sales) as compared to $29.0 million (60.9% of net   
sales) for the three months ended April 30, 1999. Gross margins increased by    
$3.0 million for the quarter ended April 30, 2000, which primarily relates to a 
higher sales volume than in the three months ended April 30, 1999. Gross margins
of 60.1% were approximately consistent with the 60.9% margin achieved for the   
three months ended April 30, 1999.                                              

Selling, General and Administrative. Selling, General and Administrative        
expenses for the quarter were $31.0 million or 58.2% of net sales, a 14.8%      
increase over the $27.0 million or 56.7% of net sales in the first quarter of   
last year. The 14.8% increase was primarily attributable to expenses associated 
with several of the Company's growth initiatives. These include the opening of  
four additional outlet stores, the opening of the Company's fifth Movado        
Boutique, additions to the Company's ESQ and Coach sales staffs in connection   
with the expansion of these brands and addition of personnel in anticipation of 
launching the new Tommy Hilfiger watch line in Spring 2001. The quarter also    
included the costs associated with a global advertising and marketing team which
was developed throughout fiscal 2000 and increased depreciation expense         
associated with our new core information system which went live in the U.S. in  
March 1999.                                                                     

Interest Expense. Net interest expense for the three months ended April 30, 2000
increased $0.1 million or 6.9%. The increase in interest costs over the level of
the prior year period reflects higher interest rates on borrowings under the    
Company's bank lines of credit and a reduction in interest income for the       
quarter due to lower invested cash balances. These factors were substantially   
mitigated by lower average working capital employed in the business (primarily  
inventories) as well as lower interest costs on long-term debt due to the       
repayment of $5.0 million of Senior Notes in February 2000.                     

Income Taxes. The Company recorded a tax benefit of $57,000 for the three months
ended April 30, 2000 as compared to a charge of $1.3 million for the three      
months ended April 30, 1999. Taxes were recorded at a 25% rate for fiscal 2001  
as compared to a 23% rate for fiscal 2000. The Company believes that the near   
term future effective tax rate will be 25%, which reflects the Company's current
expectation that domestic earnings will gradually increase as a percentage of   
the overall earnings mix. However, there can be no assurance of this result as  
it is dependent on a number of factors, including the mix of foreign to domestic
earnings, local statutory tax rates and the Company's ability to utilize net    
operating loss carryforwards in certain jurisdictions.                          

LIQUIDITY AND FINANCIAL POSITION                                                

Cash flows used in operating activities for the three months ended April 30,    
2000 were $22.4 million as compared to a use of $28.2 million for the three     
months ended April 30, 1999. The reduction in cash used in operating activities 
is the result of lower seasonal inventory build than the prior year. Also       
contributing was a reduction in accounts receivable from year end vs. last April
30 when receivables were flat with the January 31, 1999 year end result.        

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The Company used $1.2 million of cash for investing activities for the three    
months ended April 30, 2000 as compared to generating $24.2 for the three months
ended April 30, 1999. Cash generated from investing activities in the prior year
resulted primarily from the sale of the Piaget distribution business in February
1999 for $28.4 million. Excluding the sale of the Piaget distribution business, 
the Company used $1.2 million in the quarter ended April 30, 2000 as compared to
$4.1 million in the quarter ended April 30, 1999, primarily for capital         
expenditures related to management information systems.                         

Cash used in financing activities amounted to $17.6 million for the three months
ended April 30, 2000 as compared to $36.1 million for the comparable prior year 
period.                                                                         

At April 30, 2000 the Company had two series of Senior Notes outstanding. Senior
Notes due January 31, 2005 which were originally issued in a private placement  
completed in fiscal 1994. These notes have required annual principal payments of
$5.0 million since January 1998. The Company repaid $5.0 million principal      
amount of these notes in the first quarter of fiscal 2000 and is scheduled to   
repay an additional $5.0 million in the fourth quarter of fiscal 2001. At April 
30, 2000, $25 million in principal amount of these notes remained outstanding.  

During fiscal 1999, the Company issued $25 million of Series A Senior Notes     
under a Note Purchase and Private Shelf Agreement dated November 30, 1998. This 
agreement allows for the issuance for up to two years from the date of the      
agreement of Senior Promissory Notes in the aggregate principal amount of up to 
$50 million with maturities up to 12 years from their original date of issuance.
These notes bear interest at 6.90%, mature on October 30, 2010 and are subject  
to annual repayments of $5.0 million commencing October 31, 2006.               

The Company finances it seasonal working capital requirements through borrowings
under its bank lines of credit. The Company borrows from its bank group under   
both a $90 million unsecured revolving line and $31.6 million of annually       
renewable working capital lines of credit. Borrowings under the revolving line  
are governed by a three-year agreement among the Company and its bank group. The
Agreement was originally dated July 23, 1997 and was last amended in March 2000 
to revise certain financial covenants and substantially increase the Company's  
ability to purchase shares under its ongoing share repurchase program. The      
Company is presently in discussions with its bank group regarding a renewal of  
the agreement and expects to complete the renewal by the end of the second      
quarter of fiscal 2001. Due to significant increases in market interest spreads 
since the July 23, 1997 agreement was completed, the Company expects that       
interest spreads contained in the new revolving credit agreement will be        
significantly higher than those contained in the current agreement. The Company 
is also renegotiating its annually renewable working capital lines coincident   
with renewal of the revolving credit facility since these lines are with three  
members of the Company's bank group that are party to the revolving credit      
facility. At April 30, 2000, the Company had $33.5 million of outstanding       
borrowings under its bank lines as compared to $45.2 million at April 30, 1999. 

Under a series of share repurchase authorizations approved by the Board of      
Directors, the Company has maintained a discretionary buy-back program. Current 
year purchases under the repurchase program amounted to $2.2 million as compared
to $1.7 million for the comparable prior year period.                           

The Company paid dividends of $294,000 as compared to $319,000 for the first    
quarter of fiscal 2001 and fiscal 2000, respectively. The decrease is           
attributable to a reduction in outstanding shares related to the share          
repurchase programs described above.                                            

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Cash and cash equivalents at April 30, 2000 amounted to $20.1 million compared  
to $37.6 million at April 30, 1999. The reduction in cash related primarily to  
the funding of the Company's share repurchase program. Debt to total            
capitalization at April 30, 2000 was 36.9% as compared to 38.6% at April 30,    
1999.                                                                           

The Company expects that capital expenditures in the future will approximate the
average of fiscal 1999 and 1998 levels.                                         

YEAR 2000                                                                       

The Company experienced no significant problems relating to the Year 2000 issue 
in the first quarter of this year. The Company does not foresee any problems for
the remainder of 2000; however, if not all Year 2000 issues have been identified
or foreseen, there can be no assurance that such issues will not materially     
adversely impact the Company's results of operations or adversely affect the    
Company's relationships with customers, vendors, or others.                     

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 PART II - OTHER INFORMATION

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K                                       

(a)     Exhibits                                                

           10.1    Lease agreement dated May 22, 2000 between Forsgate
                      Industrial Complex and Movado Group, Inc. for premises
          located at 105 State Street Moonachie, NJ.

                27      Financial Data Schedule for the three months ended April
                  30, 2000, submitted to the Securities and Exchange
Commission in electronic format.

(b)     Reports on Form 8-K                                     

None                                            

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SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, the    
Registrant has duly caused this report to be signed on its behalf by the        
undersigned thereunto duly authorized.                                          

                                    MOVADO GROUP, INC.
                                    (Registrant)

Dated:  June 14, 2000                       By:   /s/ Kenneth J. Adams          
                                                 -----------------------------
                                    Kenneth J. Adams
                                             Senior Vice President and
                                           Chief Financial Officer
                                                (Chief Financial Officer and
                                                 Principal Accounting Officer)

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 EXHIBIT INDEX

EXHIBIT                                                                         
NUMBER                                 DESCRIPTION                              
------                                 -----------                              

      10.1    Lease agreement dated May 22, 2000 between Forsgate Industrial
                Complex and Movado Group, Inc. for premises located at 105 State
Street Moonachie, NJ.                           

    27      Financial Data Schedule for the three months ended April 30,
            2000, submitted to the Securities and Exchange Commission in
electronic format.                              

14

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Dates Referenced Herein and Documents Incorporated by Reference

		Referenced-On Page
This ‘10-Q’ Filing	Date	First	Last	Other Filings

	10/30/10	10
	10/31/06	10		10-Q
	1/31/05	10		10-K, 5, 5/A
Filed on:	6/14/00	13
	5/24/00	1
	5/22/00	12	14
For Period End:	4/30/00	1	14
	1/31/00	2		10-K
	4/30/99	2	11	10-K, 10-Q
	1/31/99	9		10-K
	11/30/98	10
	7/23/97	10
				List all Filings

4 Subsequent Filings that Reference this Filing

  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 3/26/24  Movado Group Inc.                 10-K        1/31/24  114:17M                                    Donnelley … Solutions/FA
 3/23/23  Movado Group Inc.                 10-K        1/31/23  118:23M                                    Donnelley … Solutions/FA
 3/24/22  Movado Group Inc.                 10-K        1/31/22  119:22M                                    Donnelley … Solutions/FA
 3/25/21  Movado Group Inc.                 10-K        1/31/21  124:22M                                    ActiveDisclosure/FA

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Filing Submission 0000950123-00-005776 – Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

Movado Group Inc – ‘10-Q’ for 4/30/00

On: Wednesday, 6/14/00, at 4:14pm ET · For: 4/30/00 · Accession #: 950123-0-5776 · File #: 0-22378

Quarterly Report — Form 10-QFiling Table of Contents

10-Q — Movado GroupDocument Table of Contents

Dates Referenced Herein and Documents Incorporated by Reference

4 Subsequent Filings that Reference this Filing

Quarterly Report — Form 10-Q
Filing Table of Contents

10-Q — Movado Group
Document Table of Contents