Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |||
Jan. 31, 2014 | Jul. 31, 2013 | Mar. 19, 2014 | Mar. 19, 2014 | |
Common Stock | Class A Common Stock | |||
Document Type | '10-K | ' | ' | ' |
Amendment Flag | 'false | ' | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' | ' |
Document Period End Date | 31-Jan-14 | ' | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' | ' |
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 | ' | $663,213,000 | ' | ' |
Entity Common Stock, Shares Outstanding | ' | ' | 18,616,238 | 6,638,262 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 |
Net sales | $570,255 | $505,478 | $468,117 |
Cost of sales | 264,994 | 227,596 | 211,772 |
Gross profit | 305,261 | 277,882 | 256,345 |
Selling, general and administrative | 237,519 | 228,536 | 222,782 |
Operating income | 67,742 | 49,346 | 33,563 |
Other income, net (Note 16) | 1,526 | ' | 747 |
Interest expense | -436 | -434 | -1,277 |
Interest income | 86 | 144 | 199 |
Income before income taxes | 68,918 | 49,056 | 33,232 |
Provision for / (benefit) of income taxes (Note 7) | 17,373 | -8,812 | 604 |
Net income | 51,545 | 57,868 | 32,628 |
Less: Net income attributed to noncontrolling interests | 668 | 785 | 633 |
Net income attributed to Movado Group, Inc. | $50,877 | $57,083 | $31,995 |
Basic income per share: | ' | ' | ' |
Weighted basic average shares outstanding | 25,506 | 25,267 | 24,926 |
Net income per share attributed to Movado Group, Inc. | $1.99 | $2.26 | $1.28 |
Diluted income per share: | ' | ' | ' |
Weighted diluted average shares outstanding | 25,849 | 25,664 | 25,141 |
Net income per share attributed to Movado Group, Inc. | $1.97 | $2.22 | $1.27 |
Dividends paid per share | $0.26 | $1.45 | $0.12 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | |||
Comprehensive income, net of taxes: | ' | ' | ' | |||
Net income including noncontrolling interests | $51,545 | $57,868 | $32,628 | |||
Net unrealized gain / (loss) on investments net of tax of $77, $66, $0, respectively | 213 | -19 | -47 | |||
Net change in effective portion of hedging contracts | ' | 990 | -851 | |||
Foreign currency translation adjustments | 1,234 | [1] | 3,448 | [1] | 5,714 | [1] |
Comprehensive income including noncontrolling interests | 52,992 | 62,287 | 37,444 | |||
Less: Comprehensive income attributable to noncontrolling interests | 684 | 855 | 555 | |||
Total comprehensive income attributable to Movado Group, Inc. | $52,308 | $61,432 | $36,889 | |||
[1] | The currency translation adjustment is not adjusted for income taxes to the extent that they relate to permanent investments in international subsidiaries. |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (PARENTHETICAL) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 |
Net unrealized (loss) / gain on investments, net of tax | $77 | $66 | $0 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Jan. 31, 2014 | Jan. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $157,659 | $167,889 |
Short term investments | 33,099 | ' |
Trade receivables | 68,683 | 61,398 |
Inventories | 181,305 | 167,256 |
Other current assets | 44,564 | 37,556 |
Total current assets | 485,310 | 434,099 |
Property, plant and equipment, net | 47,796 | 44,501 |
Deferred income taxes | 14,891 | 22,749 |
Other non-current assets | 30,613 | 25,013 |
Total assets | 578,610 | 526,362 |
Current liabilities: | ' | ' |
Accounts payable | 33,598 | 22,075 |
Accrued liabilities | 29,118 | 34,794 |
Accrued payroll and benefits | 14,455 | 16,342 |
Deferred and current income taxes payable | 6,422 | 275 |
Total current liabilities | 83,593 | 73,486 |
Deferred and non-current income taxes payable | 3,518 | 5,637 |
Other non-current liabilities | 25,509 | 21,547 |
Total liabilities | 112,620 | 100,670 |
Commitments and contingencies (Notes 8 and 9) | ' | ' |
Equity: | ' | ' |
Preferred Stock, $0.01 par value, 5,000,000 shares authorized; no shares issued | ' | ' |
Capital in excess of par value | 165,342 | 159,696 |
Retained earnings | 316,334 | 272,094 |
Accumulated other comprehensive income | 103,702 | 102,271 |
Treasury Stock, 7,945,419 and 7,634,649 shares at cost, respectively | -122,406 | -110,701 |
Total Movado Group, Inc. shareholdersb equity | 463,304 | 423,690 |
Noncontrolling interests | 2,686 | 2,002 |
Total equity | 465,990 | 425,692 |
Total liabilities and equity | 578,610 | 526,362 |
Common Stock | ' | ' |
Equity: | ' | ' |
Common Stock | 266 | 264 |
Class A Common Stock | ' | ' |
Equity: | ' | ' |
Common Stock | $66 | $66 |
CONSOLIDATED_BALANCE_SHEETS_PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) (USD $) | Jan. 31, 2014 | Jan. 31, 2013 |
Preferred Stock, par value | $0.01 | $0.01 |
Preferred Stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred Stock, shares issued | ' | ' |
Treasury Stock, shares | 7,945,419 | 7,634,649 |
Common Stock | ' | ' |
Common Stock, par value | $0.01 | $0.01 |
Common Stock, shares authorized | 100,000,000 | 100,000,000 |
Common Stock, shares issued | 26,643,108 | 26,440,975 |
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 | 6,638,262 | 6,632,967 |
Common Stock, shares outstanding | 6,638,262 | 6,632,967 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 |
Cash flows from operating activities: | ' | ' | ' |
Net income including noncontrolling interests | $51,545 | $57,868 | $32,628 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 12,233 | 10,608 | 11,408 |
Write-down of inventories | 5,586 | 2,621 | 1,772 |
Foreign currency transactional losses | 1,403 | 511 | ' |
Deferred income taxes | 4,169 | -16,161 | -8,691 |
Gain on sale of asset held for sale | -1,526 | ' | -747 |
Stock-based compensation | 3,787 | 2,888 | 1,675 |
Excess (tax benefit) from stock-based compensation | -915 | -1,657 | -214 |
Stock donation | ' | 2,653 | ' |
Changes in assets and liabilities: | ' | ' | ' |
Trade receivables | -7,304 | -766 | -3,086 |
Inventories | -19,077 | -2,371 | 19,152 |
Other current assets | -5,141 | -5,332 | 6,820 |
Accounts payable | 11,581 | -11,728 | 11,783 |
Accrued liabilities | -4,171 | -3,153 | 7,733 |
Accrued payroll and benefits | -1,887 | 1,519 | 6,512 |
Income taxes payable | 7,054 | 1,161 | -280 |
Other non-current assets | -5,752 | -3,112 | -819 |
Other non-current liabilities | 2,931 | 3,232 | 416 |
Net cash provided by operating activities | 54,516 | 38,781 | 86,062 |
Cash flows from investing activities: | ' | ' | ' |
Capital expenditures | -16,707 | -15,978 | -8,170 |
Trademarks | -285 | -285 | -203 |
Short term investments | -33,099 | ' | ' |
Proceeds from asset held for sale | 2,196 | ' | 1,165 |
Net cash (used in) investing activities | -47,895 | -16,263 | -7,208 |
Cash flows from financing activities: | ' | ' | ' |
Stock options exercised and other changes | -305 | 1,575 | 1,373 |
Excess tax benefit from stock-based compensation | 915 | 1,657 | 214 |
Stock repurchase | -10,488 | ' | ' |
Purchase of incremental ownership of U.K. joint venture | ' | -4,689 | ' |
Distribution of noncontrolling interests earnings | ' | -234 | -127 |
Dividends paid | -6,637 | -36,684 | -2,985 |
Net cash (used in) financing activities | -16,515 | -38,375 | -1,525 |
Effect of exchange rate changes on cash and cash equivalents | -336 | 1,545 | 1,856 |
Net (decrease) / increase in cash and cash equivalents | -10,230 | -14,312 | 79,185 |
Cash and cash equivalents at beginning of year | 167,889 | 182,201 | 103,016 |
Cash and cash equivalents at end of year | $157,659 | $167,889 | $182,201 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (USD $) | Total | Preferred Stock | Common Stock | Class A Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock | Noncontrolling Interest | |
In Thousands | ||||||||||
Beginning Balance at Jan. 31, 2011 | $356,479 | ' | $259 | $66 | $149,492 | $222,685 | $93,028 | ($111,331) | $2,280 | |
Net income | 32,628 | ' | ' | ' | ' | 31,995 | ' | ' | 633 | |
Dividends (0.12 per share ,1.45 per share and 0.26 per share for 2012, 2013 and 2014 respectively | -2,985 | ' | ' | ' | ' | -2,985 | ' | ' | ' | |
Stock options exercised, net of tax of ($0, $1,657 and $ 915 for 2012, 2013 and 2014 respectively) | 1,549 | ' | 2 | ' | 2,125 | ' | ' | -578 | ' | |
Supplemental executive retirement plan | 39 | ' | ' | ' | 39 | ' | ' | ' | ' | |
Stock-based compensation expense | 1,675 | ' | ' | ' | 1,675 | ' | ' | ' | ' | |
Net unrealized loss on investments net of tax of $0, $66, $77, respectively | -47 | ' | ' | ' | ' | ' | -47 | ' | ' | |
Net change in effective portion of hedging contracts | -851 | ' | ' | ' | ' | ' | -851 | ' | ' | |
Foreign currency translation adjustments | [1] | 5,714 | ' | ' | ' | ' | ' | 5,792 | ' | -78 |
Distribution of noncontrolling interests earnings | -127 | ' | ' | ' | ' | ' | ' | ' | -127 | |
Ending Balance at Jan. 31, 2012 | 394,074 | ' | 261 | 66 | 153,331 | 251,695 | 97,922 | -111,909 | 2,708 | |
Net income | 57,868 | ' | ' | ' | ' | 57,083 | ' | ' | 785 | |
Dividends (0.12 per share ,1.45 per share and 0.26 per share for 2012, 2013 and 2014 respectively | -36,684 | ' | ' | ' | ' | -36,684 | ' | ' | ' | |
Stock options exercised, net of tax of ($0, $1,657 and $ 915 for 2012, 2013 and 2014 respectively) | 3,142 | ' | 3 | ' | 4,600 | ' | ' | -1,461 | ' | |
Supplemental executive retirement plan | 91 | ' | ' | ' | 91 | ' | ' | ' | ' | |
Stock-based compensation expense | 2,888 | ' | ' | ' | 2,888 | ' | ' | ' | ' | |
Net unrealized loss on investments net of tax of $0, $66, $77, respectively | -19 | ' | ' | ' | ' | ' | -19 | ' | ' | |
Net change in effective portion of hedging contracts | 990 | ' | ' | ' | ' | ' | 990 | ' | ' | |
Foreign currency translation adjustments | [1] | 3,448 | ' | ' | ' | ' | ' | 3,378 | ' | 70 |
Distribution of noncontrolling interests earnings | -234 | ' | ' | ' | ' | ' | ' | ' | -234 | |
Stock donation | 4,817 | ' | ' | ' | 2,148 | ' | ' | 2,669 | ' | |
Joint venture incremental share purchase | -4,689 | ' | ' | ' | -3,362 | ' | ' | ' | -1,327 | |
Ending Balance at Jan. 31, 2013 | 425,692 | ' | 264 | 66 | 159,696 | 272,094 | 102,271 | -110,701 | 2,002 | |
Net income | 51,545 | ' | ' | ' | ' | 50,877 | ' | ' | 668 | |
Dividends (0.12 per share ,1.45 per share and 0.26 per share for 2012, 2013 and 2014 respectively | -6,637 | ' | ' | ' | ' | -6,637 | ' | ' | ' | |
Stock options exercised, net of tax of ($0, $1,657 and $ 915 for 2012, 2013 and 2014 respectively) | 610 | ' | 2 | ' | 1,825 | ' | ' | -1,217 | ' | |
Supplemental executive retirement plan | 34 | ' | ' | ' | 34 | ' | ' | ' | ' | |
Stock-based compensation expense | 3,787 | ' | ' | ' | 3,787 | ' | ' | ' | ' | |
Net unrealized loss on investments net of tax of $0, $66, $77, respectively | 213 | ' | ' | ' | ' | ' | 213 | ' | ' | |
Foreign currency translation adjustments | [1] | 1,234 | ' | ' | ' | ' | ' | 1,218 | ' | 16 |
Stock repurchase | -10,488 | ' | ' | ' | ' | ' | ' | -10,488 | ' | |
Ending Balance at Jan. 31, 2014 | $465,990 | ' | $266 | $66 | $165,342 | $316,334 | $103,702 | ($122,406) | $2,686 | |
[1] | The currency translation adjustment is not adjusted for income taxes to the extent that they relate to permanent investments in international subsidiaries. |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (PARENTHETICAL) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 |
Dividends per share | $0.26 | $1.45 | $0.12 |
Stock options exercised, net of tax | $915 | $1,657 | $0 |
Net unrealized (loss) / gain on investments, net of tax | 77 | 66 | 0 |
Net change in effective portion of hedging contracts, net of tax | ' | $0 | $0 |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | |||||||||||
Jan. 31, 2014 | ||||||||||||
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 2014, the Company marketed ten distinctive brands of watches: Coach, Concord, Ebel, ESQ, Scuderia Ferrari, HUGO BOSS, Juicy Couture, Lacoste, Movado, and Tommy Hilfiger, which compete in most segments of the watch market. | ||||||||||||
Movado (with the exception of Movado BOLD), Ebel and Concord watches are manufactured in Switzerland by independent third party assemblers with some in-house assembly in La Chaux-de-Fonds, Switzerland. All Movado, ESQ, Ebel and Concord watches are manufactured using Swiss movements. All the Company’s products are manufactured using components obtained from third party suppliers. ESQ and Movado BOLD watches are manufactured by independent contractors in Asia using Swiss movements. Coach, Tommy Hilfiger, HUGO BOSS, Juicy Couture, Lacoste and Scuderia Ferrari watches are manufactured by independent contractors in Asia. | ||||||||||||
In addition to its sales to trade customers and independent distributors, the Company also operates outlet stores throughout the United States, through which it sells 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 and majority-owned joint ventures. Intercompany transactions and balances have been eliminated. | ||||||||||||
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. Actual results could differ from those estimates. The Company uses estimates when accounting for sales discounts, allowances and incentives, warranties, income taxes, depreciation, amortization, inventory write-downs, stock-based compensation, contingencies, impairments and asset and liability valuations. | ||||||||||||
Reclassification | ||||||||||||
Certain reclassifications were made to prior years’ financial statement amounts and related note disclosures to conform to the fiscal 2014. In fiscal 2013 and 2012 certain assets were reclassified from accounts receivable to inventory and certain accrued liabilities were reclassified to accrued payroll and benefits to conform to the fiscal 2014 presentation. | ||||||||||||
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 statement of operations accounts at average exchange rates for the year. 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 sheet in Accumulated Other Comprehensive Income. The balance of the foreign currency translation adjustment, included in Accumulated Other Comprehensive Income, was $103.4 million and $102.2 million as of January 31, 2014 and 2013, respectively. | ||||||||||||
Cash and Cash Equivalents | ||||||||||||
Cash equivalents include all highly liquid investments with original maturities at date of purchase of three months or less. | ||||||||||||
Short Term Investments | ||||||||||||
Short term investments are classified as held to maturity and consist entirely of six month time deposits. At the time of purchase, management determines the appropriate classification of these investments and re-evaluates such designation of each balance sheet date. | ||||||||||||
Trade Receivables | ||||||||||||
Trade receivables as shown on the consolidated balance sheets are net of allowances. The allowance for doubtful accounts is determined through an analysis of the aging of accounts receivable, assessments of collectability based on historic 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, except ESQ, 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 $23.1 million, $20.0 million and $18.7 million at January 31, 2014, 2013 and 2012, respectively. In fiscal 2014, the Company recorded return reserves of $4.9 million, for anticipated returns which resulted from the Company’s decision to reduce the presence of ESQ Movado in certain retail doors while expanding the Movado brand offering. In fiscal 2013, the Company recorded a charge of $4.9 million related to the repositioning of the Coach watch brand from a collection priced to be sold in a department store’s fine watch department to one suitable for sale in the fashion watch department. The allowance represented the Company’s estimated cost of the aggregate sales allowance to Coach watch retailers affected by the repositioning. | ||||||||||||
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, 2014, except for those accounts provided for in the reserve 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. | ||||||||||||
Inventories | ||||||||||||
The Company valued its inventory at the lower of cost or market. Effective February 1, 2011, the Company changed its method of valuing its U.S. inventories to the average cost method. With this change, all of the Company’s inventories were valued using the average cost method. The Company believes that the average cost method of inventory valuation is preferable because (1) it permits the Company to use a single method of accounting for all of the Company’s U.S. and international inventories, (2) it aligns costing with the Company’s forecasting and procurement decisions, and (3) since a number of the Company’s key competitors use the average cost method, it improves comparability of the Company’s financial statements. The Company performed 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. When management determines that finished product is unsaleable or that it is impractical to build the excess components into watches for sale, a charge is recorded to value those products and components at the lower of cost or market. | ||||||||||||
In the fourth quarter of fiscal 2014, the Company recorded inventory reserves of $2.6 million related to the write down of ESQ Movado excess watch inventory, as a result of the Company’s decision to reduce the presence of ESQ Movado while expanding the Movado brand offering in certain retail doors. | ||||||||||||
Property, Plant and Equipment | ||||||||||||
Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation of buildings is amortized using the straight-line method based on the useful life of 40 years. Depreciation of furniture and equipment is provided using the straight-line method based on the estimated useful lives of assets, which range from four to ten years. Computer software is amortized using the straight-line method over the useful life of five to ten years. Leasehold improvements are amortized using the straight-line method over the lesser of the term of the lease or the estimated useful life of the leasehold improvement. Design fees and tooling costs are amortized using the straight-line method based on the useful life of three years. Upon the disposition of property, plant and equipment, the accumulated depreciation is deducted from the original cost and any gain or loss is reflected in current earnings. | ||||||||||||
Intangibles | ||||||||||||
Intangible assets consist primarily of trademarks and are recorded at cost. Trademarks are amortized over ten years. At January 31, 2014 and 2013, intangible assets at cost were $13.0 million and $12.7 million, respectively, and related accumulated amortization of intangibles was $11.6 million and $11.2 million, respectively. Amortization expense for fiscal 2014, 2013 and 2012 was $0.4 million, $0.5 million and $0.6 million, respectively. | ||||||||||||
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 assets with their estimated future undiscounted cash flows. If it is determined that an impairment loss has occurred, the loss is recognized during that period. The impairment loss is calculated as the difference between asset carrying values and the fair value of the long-lived assets. | ||||||||||||
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 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. Such amounts are amortized as a reduction of rent expense over the life of the related lease. | ||||||||||||
Capitalized Software Costs | ||||||||||||
The Company capitalizes certain computer software costs after technological feasibility has been established. The costs are amortized utilizing the straight-line method over the economic lives of the related products ranging from five to seven years. | ||||||||||||
Derivative Financial Instruments | ||||||||||||
The Company accounts for its derivative financial instruments in accordance with guidance which requires that an entity recognize all derivatives as either assets or liabilities in the statement of financial condition and measure those instruments at fair value. A significant portion of the Company’s purchases are denominated in Swiss francs. The Company reduces its exposure to the Swiss franc exchange rate risk through a hedging program. Under the hedging program, the Company manages most of its foreign currency exposures on a consolidated basis, which allows it to net certain exposures and take advantage of natural offsets. In the event these exposures do not offset, the Company uses various derivative financial instruments to further reduce the net exposures to currency fluctuations, predominately forward and option contracts. When entered into, the Company designates and documents these derivative instruments as a cash flow hedge of a specific underlying exposure, as well as the risk management objectives and strategies for undertaking the hedge transactions. Changes in the fair value of a derivative that is designated and documented as a cash flow hedge and is highly effective, are recorded in other comprehensive income until the underlying transaction affects earnings, and then are later reclassified into earnings in the same account as the hedged transaction. The Company formally assesses, both at the inception and at each financial quarter thereafter, the effectiveness of the derivative instrument hedging the underlying forecasted cash flow transaction. Any ineffectiveness related to the derivative financial instruments’ change in fair value will be recognized in the period in which the ineffectiveness was calculated. | ||||||||||||
The Company uses forward exchange contracts to offset its exposure to certain foreign currency receivables and liabilities. These forward contracts are not qualified hedges and, therefore, changes in the fair value of these derivatives are recognized in earnings, thereby offsetting the current earnings effect of the related foreign currency receivables and liabilities. | ||||||||||||
The Company’s risk management policy includes net investment hedging of the Company’s Swiss franc-denominated investment in its wholly-owned subsidiaries located in Switzerland using purchased foreign currency options under certain limitations. When entered into for this purpose, the Company designates and documents the derivative instrument as a net investment hedge of a specific underlying exposure, as well as the risk management objectives and strategies for undertaking the hedge transactions. Changes in the fair value of a derivative that is designated and documented as a net investment hedge are recorded in other comprehensive income in the same manner as the cumulative translation adjustment of the Company’s Swiss franc-denominated investment. The Company formally assesses, both at the inception and at each financial quarter thereafter, the effectiveness of the derivative instrument hedging the net investment. | ||||||||||||
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 | ||||||||||||
In the wholesale segment, the Company recognizes its revenues upon transfer of title and risk of loss in accordance with its FOB shipping point terms of sale and after the sales price is fixed and determinable and collectability is reasonably assured. In the retail segment, transfer of title and risk of loss occurs at the time of register receipt. The Company records estimates for sales returns, 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 historical analysis, customer agreements and/or currently known factors that arise in the normal course of business. While returns have historically been within the Company’s expectations and the provisions established, future return rates may differ from those experienced in the past. In the event that returns are authorized at a rate significantly higher than the Company’s historic rate, the resulting returns could have an adverse impact on its operating results for the period in which such results materialize. | ||||||||||||
In the fourth quarter of fiscal 2014, the Company recorded a pre-tax charge of $7.8 million to sales, for anticipated returns which resulted from the Company’s decision to reduce the presence of ESQ Movado while expanding the Movado brand offering in certain retail doors. During the fourth quarter of fiscal 2013, the Company recorded a charge of $4.9 million related to the repositioning of the Coach watch brand from a collection priced to be sold in a department store’s fine watch department to one suitable for sale in the fashion watch department. The charge represented the Company’s estimated cost of the aggregate sales allowance to Coach watch retailers affected by the repositioning. | ||||||||||||
Cost of Sales | ||||||||||||
Cost of sales of the Company’s products consist primarily of component costs, royalties, depreciation, amortization, assembly costs and unit overhead costs associated with the Company’s supply chain operations in Switzerland and Asia. The Company’s supply chain operations consist of logistics management of assembly operations and product sourcing in Switzerland and Asia and minor assembly in Switzerland. Through productivity improvement efforts, the Company has controlled the level of overhead costs and maintained flexibility in its cost structure by outsourcing a significant portion of its component and assembly requirements. | ||||||||||||
Cost of sales of the Company’s products includes costs for raw material and components, as well as labor for assembly of finished goods, all of which can be impacted by inflation. While inflation in costs has negatively impacted gross margin percentage, this effect has not been material to the Company’s results of operations for the periods presented in this report. A significant increase in these costs due to inflation could have a material adverse effect on the Company’s future results of operations. While the Company may seek to offset the negative inflationary impact on these costs with price increases on its products, its ability to effectively do so will depend on the extent it can pass on price increases and still remain competitive in the marketplace. | ||||||||||||
In the fourth quarter of fiscal 2014, gross margin was impacted by a $7.5 million pre-tax charge related to anticipated ESQ Movado watch brand returns and the write down of ESQ Movado excess watch inventory. This charge resulted from the Company’s decision to reduce the presence of ESQ Movado while expanding the Movado brand offering in certain retail doors. The Company expects to reallocate certain of the ESQ Movado retail space in the second quarter of fiscal 2015 to drive incremental sales of its more productive Movado brand watch families, and will continue to offer ESQ Movado in select retail locations as well as its direct-to-consumer outlet stores and Movado.com. | ||||||||||||
In calendar years 2010 through 2012, drawback claims were filed with U.S. Customs & Border Protection (“CBP”) to recover duty payments made by the Company in calendar years 2008 through 2011. The drawback claims concerned duty paid on watches that were subsequently exported from the United States. A number of drawback claims filed on behalf of the Company were denied by CBP in calendar year 2012 and an administrative protest was filed requesting reconsideration of the denials. This protest was approved and as a result in the fourth quarter of fiscal 2014 the Company recorded and received a net pre-tax refund in the amount of $2.5 million. The Company does not anticipate receipt of any additional refunds related to this matter nor does the Company anticipate return of any of these refunds to CBP. | ||||||||||||
In the fourth quarter of fiscal 2012, the Company recorded a sale of certain mechanical movements that had been written down in the previous year. As a result, the Company recorded a pre-tax net profit of $2.3 million related to those movements. | ||||||||||||
Since a substantial amount of the Company’s product costs are incurred in Swiss francs, fluctuations in the U.S. dollar/Swiss franc exchange rate can impact the Company’s cost of goods sold and, therefore, its gross margins. The Company reduces its exposure to the Swiss franc exchange rate risk through a hedging program. Under the hedging program, the Company manages most of its foreign currency exposures on a consolidated basis, which allows it to net certain exposures and take advantage of natural offsets. In the event these exposures do not offset, the Company has the ability to hedge its Swiss franc purchases using a combination of forward contracts and purchased currency options. The Company’s hedging program mitigated the exchange rate fluctuations on product costs and gross margins for fiscal years 2014, 2013 and 2012. | ||||||||||||
Selling, General and Administrative (“SG&A”) Expenses | ||||||||||||
The Company’s SG&A expenses consist primarily of marketing, selling, distribution, general and administrative expenses. In fiscal 2014, the Company recorded a $2.0 million pre-tax charge related to donations made to the Movado Group Foundation. In fiscal 2014, the Company also recorded a $0.8 million pre-tax charge related to the write-down of excess displays and point of sales materials, as a result of the Company’s decision to reduce the presence of ESQ Movado while expanding the Movado brand offering in certain retail doors. In fiscal 2013 and 2012, the Company recorded a $3.0 million pre-tax charge related to donations made to the Movado Group Foundation. | ||||||||||||
Annual 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 various forms of media advertising, digital advertising and co-operative advertising with customers and distributors and other point-of-sale marketing and promotion spending. For fiscal 2014, 2013 and 2012, the Company increased its investment in marketing and advertising in order to elevate its connection to consumers and better position its brands in the marketplace. | ||||||||||||
Selling expenses consist primarily of salaries, sales commissions, sales force travel and related expenses, depreciation and amortization, expenses associated with Baselworld, the annual watch and jewelry trade show, 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 related 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 and leasehold improvements, patent and trademark expenses 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. If such costs were to substantially exceed estimates, this could have an adverse effect on the Company’s operating results. | ||||||||||||
Warranty liability for the fiscal years ended January 31, 2014, 2013 and 2012 was as follows (in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance, beginning of year | $ | 2,584 | $ | 2,309 | $ | 2,149 | ||||||
Provision charged to operations | 2,660 | 2,584 | 2,309 | |||||||||
Settlements made | (2,584 | ) | (2,309 | ) | (2,149 | ) | ||||||
Balance, end of year | $ | 2,660 | $ | 2,584 | $ | 2,309 | ||||||
Pre-opening Costs | ||||||||||||
Costs associated with the opening of retail stores, including pre-opening rent, 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, 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 2014, 2013 and 2012 amounted to $74.4 million, $68.2 million and $64.2 million, respectively. | ||||||||||||
Included in the other current assets in the consolidated balance sheets as of January 31, 2014 and 2013 are prepaid advertising costs of $0.9 million and $0.8 million, respectively. These prepaid costs represent advertising costs paid to licensors in advance, pursuant to the Company’s licensing agreements and sponsorships. | ||||||||||||
Shipping and Handling Costs | ||||||||||||
Amounts charged to customers for shipping and handling are $2.6 million, $2.5 million and $2.1 million for fiscal years 2014, 2013 and 2012, respectively. The costs related to shipping and handling are $6.6 million, $5.9 million and $5.7 million for fiscal years 2014, 2013 and 2012, respectively. These amounts incurred by the Company related to shipping and handling are included in net sales and cost of goods sold. | ||||||||||||
Income Taxes | ||||||||||||
The Company 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 the Company operates, and applies 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 on de-recognition, classification, interest and penalties, accounting in interim periods, disclosures and transitions. | ||||||||||||
Earnings Per Share | ||||||||||||
The Company presents net income 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 weighted-average number of shares outstanding for basic earnings per share were approximately 25,506,000, 25,267,000 and 24,926,000 for fiscal 2014, 2013 and 2012, respectively. For the years ended January 31, 2014, 2013 and 2012, the number of shares outstanding for diluted earnings per share were approximately 25,849,000, 25,664,000 and 25,141,000, respectively. For the years ended January 31, 2014, 2013 and 2012, the number of shares outstanding for diluted earnings per share were increased by approximately 343,000, 397,000 and 215,000 due to potentially dilutive common stock equivalents issuable under the Company’s stock compensation plans. | ||||||||||||
For the years ended January 31, 2014, 2013 and 2012 approximately 85,000, 276,000, and 593,000, respectively, of potentially dilutive common stock equivalents were excluded from the computation of dilutive earnings per share because their effect would have been antidilutive. | ||||||||||||
Stock-Based Compensation | ||||||||||||
Under the accounting guidance for share-based payments, 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 the yield on the grant date of U.S. Treasury constant maturities with a maturity date closest to 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. | ||||||||||||
Compensation expense for equity instruments is accrued based on the estimated number of instruments for which the requisite service is expected to be rendered and expensed on a straight-line basis over the vesting term. | ||||||||||||
See Note 10 to the Company’s Consolidated Financial Statements for further information regarding stock-based compensation. |
Inventories
Inventories | 12 Months Ended | |||||||
Jan. 31, 2014 | ||||||||
Inventories | ' | |||||||
NOTE 2 – INVENTORIES | ||||||||
Inventories consisted of the following (in thousands): | ||||||||
As of January 31, | ||||||||
2014 | 2013 | |||||||
Finished goods | $ | 118,308 | $ | 104,732 | ||||
Component parts | 55,138 | 53,061 | ||||||
Work-in-process | 7,859 | 9,463 | ||||||
$ | 181,305 | $ | 167,256 | |||||
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | |||||||
Jan. 31, 2014 | ||||||||
Property, Plant and Equipment | ' | |||||||
NOTE 3 – PROPERTY, PLANT AND EQUIPMENT | ||||||||
Property, plant and equipment at January 31, at cost, consisted of the following (in thousands): | ||||||||
As of January 31, | ||||||||
2014 | 2013 | |||||||
Land and buildings | $ | 1,682 | $ | 1,676 | ||||
Furniture and equipment | 62,028 | 56,153 | ||||||
Computer software | 28,585 | 44,260 | ||||||
Leasehold improvements | 28,898 | 24,365 | ||||||
Design fees and tooling costs | 3,182 | 2,742 | ||||||
124,375 | 129,196 | |||||||
Less: accumulated depreciation | 76,579 | 84,695 | ||||||
$ | 47,796 | $ | 44,501 | |||||
Depreciation and amortization expense from operations related to property, plant and equipment for fiscal 2014, 2013 and 2012 was $11.8 million, $10.0 million and $9.9 million, respectively, which includes computer software amortization expense for fiscal 2014, 2013 and 2012 of $3.8 million, $3.2 million and $3.1 million, respectively. | ||||||||
Debt_and_Lines_of_Credit
Debt and Lines of Credit | 12 Months Ended |
Jan. 31, 2014 | |
Debt and Lines of Credit | ' |
NOTE 4 – DEBT AND LINES OF CREDIT | |
On July 17, 2009, the Company, together with Movado Group Delaware Holdings Corporation, Movado Retail Group, Inc. and Movado LLC (together with the Company, the “Borrowers”), each a wholly-owned domestic subsidiary of the Company, entered into an Amended and Restated Loan and Security Agreement (the “Original Loan Agreement”) with Bank of America, N.A. and Bank Leumi USA, as lenders (“Lenders”), and Bank of America, N.A., as agent (in such capacity, the “Agent”). The parties amended the Original Loan Agreement by entering into Amendment No. 1 thereto (“First Amendment”) on April 5, 2011 and Amendment No. 2 thereto (“Second Amendment”) on March 12, 2012 (the Original Loan Agreement, as so amended, the “Loan Agreement”). The Loan Agreement provides for a $25.0 million asset based senior secured revolving credit facility (the “Facility”), including a $15.0 million letter of credit subfacility, and provides that Borrowers are entitled to request that Lenders increase the Facility up to $50 million subject to any additional terms and conditions the parties may agree upon. The maturity date of the Facility is March 12, 2015. | |
Availability under the Facility is determined by reference to a borrowing base which is based on the sum of a percentage of eligible accounts receivable and eligible inventory of the Borrowers. $10.0 million in availability is blocked unless the Borrowers have achieved for the most recently ended four fiscal quarter periods a consolidated fixed charge coverage ratio of at least 1.25 to 1.0 with domestic EBITDA greater than $10.0 million. The Borrowers are not currently subject to the availability block. The availability block, if applicable, will be reduced by the amount by which the borrowing base exceeds $25.0 million, up to a maximum reduction of $5.0 million. Availability under the Facility may be further reduced by certain reserves established by the Agent in its good faith credit judgment. The Second Amendment reduced the Lenders’ total commitment under the Loan Agreement from $55 million to $25 million and consequently availability was correspondingly reduced. As of January 31, 2014, total availability under the Facility, giving effect to an availability block of $0, no outstanding borrowings and the letters of credit outstanding under the subfacility, was $20.4 million. | |
The initial applicable margin for LIBOR rate loans was 4.25% and for base rate loans was 3.25%. After July 17, 2010, the applicable margins decreased or increased by 0.25% per annum from the initial applicable margins depending on whether average availability for the most recently completed fiscal quarter was either greater than $12.5 million, or was $5.0 million or less, respectively. The First Amendment reduced the applicable margins for both LIBOR rate loans and base rate loans by 1.25% and the Second Amendment further reduced the applicable margins by 0.75%. Accordingly, as of January 31, 2014 and based on current availability, the applicable margins were 2.00% and 1.00% for LIBOR and base rate loans, respectively. | |
After the date (the “Block Release Date”) when availability under the Facility is no longer subject to any blocked amount, if borrowing availability is less than $12.5 million, the Borrowers will be subject to a minimum fixed charge coverage ratio until such time as borrowing availability has been greater than $12.5 million for at least 90 consecutive days. | |
After the Block Release Date, cash dominion will be imposed if borrowing availability is less than $10.0 million and will continue until such time as borrowing availability has been greater than $10.0 million for at least 45 consecutive days. As of January 31, 2014, the Borrowers were not subject to cash dominion, nor do the Borrowers expect to be subject to such a requirement in the foreseeable future. | |
The Loan Agreement contains additional affirmative and negative covenants binding on the Borrowers and their subsidiaries that are customary for asset based facilities, including, but not limited to, restrictions and limitations on the incurrence of debt for borrowed money and liens, dispositions of assets, capital expenditures, dividends and other payments in respect of equity interests, the making of loans and equity investments, prepayments of subordinated and certain other debt, mergers, consolidations, liquidations and dissolutions, and transactions with affiliates. The Loan Agreement permits Borrowers to pay distributions as dividends and make share repurchases up to an aggregate of $150.0 million (less the amount of any charitable donations made by the Company which are permitted up to an aggregate amount of $14 million) and make acquisitions up to an aggregate of $50.0 million, as long as, at the time of such transaction, either (A) Borrowers have cash assets of at least $60.0 million with no revolver loans outstanding, or (B) (i) the consolidated fixed charge coverage ratio is at least 1.25 to 1.00, (ii) availability is greater than $12.5 million and (iii) positive EBITDA plus repatriated cash dividends minus restricted payments are greater than $0. The Company, as of January 31, 2014, was in compliance with these financial covenants and, therefore, is permitted to pay dividends. The Company presently expects that it will be able to pay any dividends declared through the remaining term of the Facility. | |
The Loan Agreement contains events of default that are customary for facilities of this type, including, but not limited to, nonpayment of principal, interest, fees and other amounts when due, failure of any representation or warranty to be true in any material respect when made or deemed made, violation of covenants, cross default, material judgments, material ERISA liability, bankruptcy events, material loss of collateral in excess of insured amounts, asserted or actual revocation or invalidity of the loan documents, change of control and events or circumstances having a material adverse effect. The borrowings under the Facility are joint and several obligations of the Borrowers and also cross-guaranteed by each Borrower. In addition, the Borrowers’ obligations under the Facility are secured by first priority liens, subject to permitted liens, on substantially all of the Borrowers’ U.S. assets (other than certain excluded assets). | |
A Swiss subsidiary of the Company maintains unsecured lines of credit with an unspecified length of time with a Swiss bank. As of January 31, 2014, these lines of credit totaled 5 million Swiss francs with a dollar equivalent of $5.5 million. As of January 31, 2013, these lines of credit totaled 10 million Swiss francs with dollar equivalents of $11.0 million. As of January 31, 2014 and 2013, there were no borrowings against these lines. As of January 31, 2014, two European banks and a Canadian bank have guaranteed obligations to third parties on behalf of three of the Company’s foreign subsidiaries in the amount equivalent to $1.5 million in various foreign currencies. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended | |||||||||||||||||||
Jan. 31, 2014 | ||||||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||||
NOTE 5 – DERIVATIVE FINANCIAL INSTRUMENTS | ||||||||||||||||||||
The Company accounts for its derivative financial instruments in accordance with guidance which requires that an entity recognize all derivatives as either assets or liabilities in the statement of financial position and measure those instruments at fair value. A significant portion of the Company’s purchases are denominated in Swiss francs. The Company reduces its exposure to the Swiss franc exchange rate risk through a hedging program. Under the hedging program, the Company manages most of its foreign currency exposures on a consolidated basis, which allows it to net certain exposures and take advantage of natural offsets. In the event these exposures do not offset, the Company uses various derivative financial instruments to further reduce the net exposures to currency fluctuations, predominately forward and option contracts. When entered into, the Company designates and documents these derivative instruments as a cash flow hedge of a specific underlying exposure, as well as the risk management objectives and strategies for undertaking the hedge transactions. Changes in the fair value of a derivative that is designated and documented as a cash flow hedge and is highly effective, are recorded in other comprehensive income until the underlying transaction affects earnings, and then are later reclassified into earnings in the same account as the hedged transaction. The Company formally assesses, both at the inception and at each financial quarter thereafter, the effectiveness of the derivative instrument hedging the underlying forecasted cash flow transaction. Any ineffectiveness related to the derivative financial instruments’ change in fair value will be recognized in the Consolidated Statements of Operations in the period in which the ineffectiveness was calculated. | ||||||||||||||||||||
The Company uses forward exchange contracts to offset its exposure to certain foreign currency receivables and liabilities. These forward contracts are not designated as qualified hedges and, therefore, changes in the fair value of these derivatives are recognized into cost of sales, thereby offsetting the current earnings effect of the related foreign currency receivables and liabilities. | ||||||||||||||||||||
All of the Company’s derivative instruments have liquid markets to assess fair value. The Company does not enter into any derivative instruments for trading purposes. | ||||||||||||||||||||
As of January 31, 2014, the Company’s entire net forward contracts hedging portfolio consisted of 48 million Swiss francs equivalent with various expiry dates ranging through July 17, 2014. | ||||||||||||||||||||
The following table summarizes the fair value and presentation in the Consolidated Balance Sheets for derivatives as of January 31, 2014 and 2013 (in thousands): | ||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||
Balance | 2014 | 2013 | Balance | 2014 | 2013 | |||||||||||||||
Sheet | Fair | Fair | Sheet | Fair | Fair | |||||||||||||||
Location | Value | Value | Location | Value | Value | |||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||
Foreign Exchange Contracts | Other Current | $ | 403 | $ | 876 | Accrued | $ | 173 | $ | 2 | ||||||||||
Assets | Liabilities | |||||||||||||||||||
Total Derivative Instruments | $ | 403 | $ | 876 | $ | 173 | $ | 2 | ||||||||||||
As of January 31, 2014 and 2013, the balance of deferred net gains/losses on derivative financial instruments documented as cash flow hedges included in accumulated other comprehensive income (“AOCI”) was $0. As of January 31, 2012, the balance of deferred net losses on derivative financial instruments documented as cash flow hedges included in accumulated other comprehensive income was $1.0 million in net losses, net of tax of $1.0 million. The Company’s sell through of inventory purchased in Swiss francs will primarily cause the amount in AOCI to affect cost of goods sold. The maximum length of time the Company hedges its exposure to the fluctuation in future cash flows for forecasted transactions is 24 months. For the year ended January 31, 2014 and 2013 there were no reclassifications from AOCI to earnings. For the year ended January 31, 2012 the Company reclassified from AOCI to earnings $0.9 million of net gains, net of tax of $0. | ||||||||||||||||||||
During fiscal 2014, 2013, and 2012, the Company recorded no charges related to its assessment of the effectiveness of its derivative hedge portfolio because of the high degree of effectiveness between the hedging instrument and the underlying exposure being hedged. Changes in the contracts’ fair value due to spot-forward differences are excluded from the designated hedge relationship. The Company records these transactions in cost of sales of the Consolidated Statements of Operations. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||||
Jan. 31, 2014 | ||||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||
NOTE 6 - FAIR VALUE MEASUREMENTS | ||||||||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Accounting guidance establishes a fair value hierarchy which prioritizes the inputs used in measuring fair value into three broad levels as follows: | ||||||||||||||||||
· | Level 1 - Quoted prices in active markets for identical assets or liabilities. | |||||||||||||||||
· | Level 2 - Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly. | |||||||||||||||||
· | Level 3 - Unobservable inputs based on the Company’s assumptions. | |||||||||||||||||
The 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, 2014 and 2013 (in thousands): | ||||||||||||||||||
Fair Value at January 31, 2014 | ||||||||||||||||||
Balance Sheet Location | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | ||||||||||||||||||
Available-for-sale securities | Other current assets | $ | 576 | $ | — | $ | — | $ | 576 | |||||||||
Time deposits | Short-term investments | 33,099 | 33,099 | |||||||||||||||
SERP assets - employer | Other non-current assets | 1,117 | — | — | 1,117 | |||||||||||||
SERP assets - employee | Other non-current assets | 20,854 | — | — | 20,854 | |||||||||||||
Hedge derivatives | Other current assets | — | 403 | — | 403 | |||||||||||||
Total | $ | 55,646 | $ | 403 | $ | — | $ | 56,049 | ||||||||||
Liabilities: | ||||||||||||||||||
SERP liabilities - employee | Other non-current liabilities | $ | 20,854 | $ | — | $ | — | $ | 20,854 | |||||||||
Hedge derivatives | Accrued liabilities | — | 173 | — | 173 | |||||||||||||
Total | $ | 20,854 | $ | 173 | $ | — | $ | 21,027 | ||||||||||
Fair Value at January 31, 2013 | ||||||||||||||||||
Balance Sheet Location | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | ||||||||||||||||||
Available-for-sale securities | Other current assets | $ | 285 | $ | — | $ | — | $ | 285 | |||||||||
SERP assets - employer | Other non-current assets | 783 | — | — | 783 | |||||||||||||
SERP assets - employee | Other non-current assets | 17,637 | — | — | 17,637 | |||||||||||||
Hedge derivatives | Other current assets | — | 876 | — | 876 | |||||||||||||
Total | $ | 18,705 | $ | 876 | $ | — | $ | 19,581 | ||||||||||
Liabilities: | ||||||||||||||||||
SERP liabilities - employee | Other non-current liabilities | $ | 17,637 | $ | — | $ | — | $ | 17,637 | |||||||||
Hedge derivatives | Accrued liabilities | — | 2 | — | 2 | |||||||||||||
Total | $ | 17,637 | $ | 2 | $ | — | $ | 17,639 | ||||||||||
The fair values of the Company’s available-for-sale securities are based on quoted prices. Time deposits are classified as short-term investments and held at original maturity. The hedge derivatives are entered into by the Company principally to reduce its exposure to the Swiss franc exchange rate risk. Fair values of the Company’s hedge derivatives are calculated based on quoted foreign exchange rates, quoted interest rates and market volatility factors. The assets related to the Company’s defined contribution supplemental executive retirement plan (“SERP”) consist of both employer (employee unvested) and employee assets which are invested in investment funds with fair values calculated based on quoted market prices. The SERP liability represents the Company’s liability to the employees in the plan for their vested balances. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||||||
Jan. 31, 2014 | ||||||||||||||||
Income Taxes | ' | |||||||||||||||
NOTE 7 - INCOME TAXES | ||||||||||||||||
The provision/(benefit) for income taxes for the fiscal years ended January 31, 2014, 2013 and 2012 consists of the following components (in thousands): | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Current: | ||||||||||||||||
U.S. Federal | $ | 7,296 | $ | 2,365 | $ | 382 | ||||||||||
U.S. State and Local | 866 | 499 | 141 | |||||||||||||
Non-U.S. | 5,043 | 3,559 | 8,202 | |||||||||||||
13,205 | 6,423 | 8,725 | ||||||||||||||
Noncurrent: | ||||||||||||||||
U.S. Federal | -1,640 | 56 | (1,396 | ) | ||||||||||||
Non-U.S. | 988 | 498 | 851 | |||||||||||||
-652 | 554 | (545 | ) | |||||||||||||
Deferred: | ||||||||||||||||
U.S. Federal | 1,823 | (18,197 | ) | — | ||||||||||||
U.S. State and Local | (888 | ) | (495 | ) | — | |||||||||||
Non-U.S. | 3,885 | 2,903 | (7,576 | ) | ||||||||||||
4,820 | (15,789 | ) | (7,576 | ) | ||||||||||||
Provision / (benefit) for income taxes | $ | 17,373 | $ | (8,812 | ) | $ | 604 | |||||||||
Income before taxes for U.S. operations was $26.6 million, $11.7 million, and $2.8 million for periods ended January 31, 2014, 2013 and 2012, respectively. Income before taxes for non-U.S. operations was $42.3 million, $37.4 million, and $30.4 million for periods ended January 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||
Significant components of the Company’s deferred income tax assets and liabilities as of January 31, 2014 and 2013 are as follows (in thousands): | ||||||||||||||||
2014 Deferred Taxes | 2013 Deferred Taxes | |||||||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||||
Net operating loss carryforwards | $ | 9,797 | $ | — | $ | 16,119 | $ | — | ||||||||
Inventory | 4,294 | — | 6,155 | — | ||||||||||||
Unprocessed returns | 3,364 | — | 2,143 | — | ||||||||||||
Receivables allowance | 1,254 | 230 | 1,256 | 275 | ||||||||||||
Deferred compensation | 10,988 | — | 9,760 | — | ||||||||||||
Foreign tax credits | — | — | 4,204 | — | ||||||||||||
Unrepatriated earnings | — | 2,724 | — | 2,724 | ||||||||||||
Capital loss carryforwards | 1,292 | — | 1,464 | — | ||||||||||||
Depreciation/amortization | 4,205 | 2,286 | 5,592 | 3,053 | ||||||||||||
Other provisions/accruals | 2,788 | — | 2,567 | — | ||||||||||||
Miscellaneous | 738 | — | 611 | — | ||||||||||||
38,720 | 5,240 | 49,871 | 6,052 | |||||||||||||
Valuation allowance | (7,798 | ) | — | (11,491 | ) | — | ||||||||||
Total deferred tax assets and liabilities | $ | 30,922 | $ | 5,240 | $ | 38,380 | $ | 6,052 | ||||||||
As of January 31, 2014, the Company had total foreign net operating loss carryforwards of approximately $34.6 million, which are available to offset foreign taxable income in future years. $20.8 million of these carryforwards were incurred in Switzerland. At January 31, 2014, the balance of the deferred tax asset valuation allowance relating to the Company’s Switzerland entities was $1.9 million, principally to reserve for operating loss carryforwards for which future projected taxable income is not sufficient to realize the benefit of the deferred tax asset. | ||||||||||||||||
The remaining foreign tax losses of $13.8 million are primarily related to the Company’s operations in Germany and Canada. A full valuation allowance has been established on the deferred tax assets resulting from all of these losses due to the Company’s assessment that it is not more-likely-than-not the deferred tax assets will be utilized. | ||||||||||||||||
As of January 31, 2014, the Company had no U.S. federal net operating loss carryforwards. The recognition of windfall tax benefits from stock-based compensation deducted on the tax return is prohibited until realized through a reduction of income tax payable. Windfall tax benefits totaling $0.9 million were recorded in additional paid-in-capital during fiscal 2014. The Company also has an estimated apportioned $16.9 million in U.S. state net operating loss carryforwards. A partial valuation allowance has been maintained on the deferred tax assets due to the Company’s assessment that it is more-likely-than-not that a portion of the losses will not be utilized within expiration periods ranging from 2 to 20 years. | ||||||||||||||||
At January 31, 2014, the Company’s net U.S. deferred tax assets amounted to $20.8 million, against which a valuation allowance of $1.4 million has been established. The Company bases its estimate of deferred tax assets and liabilities on current tax laws, tax rates and the difference between the financial statement basis and the tax basis of the underlying assets and liabilities. The realization of deferred tax assets depends on the Company’s ability to generate future income. Under U.S. GAAP, deferred tax assets are to be reduced by a valuation allowance if based on the weight of available positive and negative evidence, it is more-likely-than-not that all or some portion of the deferred tax assets will not be realized. In the third quarter of fiscal 2010, the Company determined that it was appropriate to record a full valuation allowance against its net deferred tax assets in the United States, primarily due to the Company’s domestic loss position in recent years. At that time, expectation of future income was not sufficient to overcome such negative evidence, and although the Company believed it would ultimately utilize the underlying tax benefits within the statutory limits, in fiscal 2010, the Company recognized a non-cash deferred tax expense of $21.4 million, as a result of recording this valuation allowance. In the third quarter of fiscal 2013, the Company concluded, based upon all available evidence, that it was more likely than not that its domestic consolidated group would have sufficient future taxable income to realize its net deferred tax assets. As a result, the Company reversed the major portion of the valuation allowance, resulting in a non-cash deferred tax benefit of $19.4 million. In reaching its conclusion relating to this significant judgment, the Company considered both negative and positive evidence. Positive evidence included the three year cumulative profit position as of October 31, 2012 as well as domestic projections of future taxable income, positive Company results and the continued positive trend experienced by the retail industry during calendar 2012. The Company maintained a valuation allowance only against state tax loss carryforwards due to uncertainty in utilizing the losses prior to expiry. While the Company believes the assumptions included in its projections of future taxable income for the domestic consolidated group are reasonable, if the actual results vary from expected results due to unforeseen changes in the worldwide economy or retail industry, or other factors, the Company may need to make future adjustments to the valuation allowance for all, or a portion, of the net deferred tax assets. In the fourth quarter of fiscal 2014 and 2013, the Company recognized a non-cash deferred tax benefit of $1.2 million and $0.4 million as a result of the partial release of the valuation allowance against the deferred tax assets for state tax losses. In addition, in the fourth quarter of fiscal 2013, the Company recorded a deferred tax asset of approximately $1.4 million for domestic capital losses, with a full valuation allowance due to no expectation of future domestic capital gains sufficient to utilize the future tax benefit. While the Company believes the assumptions included in its projections of future taxable income for the domestic consolidated group are reasonable, if the actual results vary from expected results due to unforeseen changes in the worldwide economy or retail industry, or other factors, the Company may need to make future adjustments to the valuation allowance for all, or a portion, of the net deferred tax assets. | ||||||||||||||||
Management will continue to evaluate the appropriate level of 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 / (benefit) for income taxes differs from the amount determined by applying the U.S. federal statutory rate as follows (in thousands): | ||||||||||||||||
Fiscal Year Ended January 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Provision / (benefit) for income taxes at the U.S. statutory rate | $ | 24,121 | $ | 17,169 | $ | 11,631 | ||||||||||
Lower effective foreign income tax rate | (6,950 | ) | (6,006 | ) | (4,952 | ) | ||||||||||
Change in valuation allowance | (996 | ) | (19,526 | ) | (13,922 | ) | ||||||||||
U.S. tax provided on earnings of foreign subsidiaries | 580 | 109 | 4,369 | |||||||||||||
Change in liabilities for uncertain tax positions, net | -652 | 554 | (545 | ) | ||||||||||||
State and local taxes, net of federal benefit | 719 | 607 | 84 | |||||||||||||
Foreign legal reorganizations | — | (1,902 | ) | — | ||||||||||||
Foreign tax settlement | — | — | 4,302 | |||||||||||||
Other, net | 551 | 183 | (363 | ) | ||||||||||||
Total provision / (benefit) for income taxes | $ | 17,373 | $ | (8,812 | ) | $ | 604 | |||||||||
At January 31, 2013, the Company recorded $1.9 million net tax benefit related to the reorganization of business operations in Japan and the UK. At January 31, 2012, the Company recorded $4.3 million in accrued liabilities on the Company’s Consolidated Balance Sheets for a Swiss withholding tax liability and a corresponding charge to income tax expense pursuant to management agreements reached during the fourth quarter of fiscal 2012 to settle with the Swiss federal tax authorities and to close several audits through fiscal 2010. Prior to the fourth quarter of fiscal 2012, due to facts and circumstances, management did not believe that settlement was probable. In the fourth quarter of fiscal 2012, the Company concluded, based upon all available evidence, that it was more likely than not its Swiss subsidiary would have sufficient future taxable income to realize its net deferred tax asset. As a result, the Company reversed the full $10.3 million valuation allowance as a credit to income tax expense on January 31, 2012. | ||||||||||||||||
The Company performs a quarterly assessment reviewing its global cash projections and investment needs, considers such factors as projected future results, continued need for investment in the overseas business as well as cash needs in the U.S., among other countries. During fiscal 2014 and 2013, the Company has identified all current year foreign subsidiary earnings as permanently reinvested. This assertion differs from assertions made in fiscal 2012. The decision to make this change was due to improvement in economic conditions and a decrease in cash requirements in the U.S. market, offset by increased requirements for cash to fund business expansion efforts in the Asian and European markets. | ||||||||||||||||
During fiscal 2012, as part of the same quarterly assessment process, the Company identified 75% of that year’s net income of one of the Company’s Hong Kong subsidiaries, as well as 75% of that year’s net income of one of the Company’s Swiss subsidiaries for repatriation. As a result, a provision of approximately $2.3 million was made for federal income tax, net of foreign tax credits, for the future remittance of approximately $10.3 million of that year’s earnings. 25% of that year’s earnings was identified as required by the local subsidiaries for normal working capital needs. During fiscal 2014, 2013 and 2012, no cash was repatriated. | ||||||||||||||||
No provision has been made for federal income or withholding taxes which may be payable on the remittance of undistributed retained earnings of foreign subsidiaries approximating $213.7 million at January 31, 2014, as those earnings are considered permanently reinvested. It is not practicable to estimate the amount of tax that may be payable on the eventual distribution of these earnings. | ||||||||||||||||
The effective tax rate for fiscal 2014 was 25.2%, primarily as a result of foreign profits being taxed in lower taxing jurisdictions and the release of liabilities for uncertain tax positions as a result of favorable U.S. and foreign audit settlements partially offset by no tax being realized on certain foreign net operating losses. The effective tax rate for fiscal 2013 was -18%, primarily as a result of the release of the majority of a valuation allowance against net deferred tax assets in the United States, and the net tax benefit related to foreign legal reorganizations in Japan and the UK. The effective tax rate for fiscal 2012 was 1.8%, primarily as a result of the release of a valuation allowance against net deferred tax assets in Switzerland, partially offset by the accrual of a Swiss withholding tax settlement and the continued recording of other valuation allowances, most notably the valuation allowance against net U.S. deferred tax assets, and the tax accrued on the repatriation of foreign earnings. | ||||||||||||||||
The Internal Revenue Service (“IRS”) commenced examination in October 2009 of the Company’s consolidated U.S. federal income tax return for fiscal 2009, as required by the Joint Committee on Taxation (“JCT”) as a result of the Company filing, in May 2009, a tax loss carryback claim exceeding $2.0 million. The scope of the audit was subsequently increased to also include the fiscal 2010 income tax return due to the filing of a similar carryback claim. The final audit report was received during the third quarter of fiscal 2012; no material adjustments were made. The IRS commenced examination in May 2012 of the Company’s consolidated U.S. federal income tax return for fiscal 2011. The audit was closed in January 2013 and resulted in no changes. | ||||||||||||||||
A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits (exclusive of interest) for January 31, 2014, 2013 and 2012 are as follows (in thousands): | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Beginning balance | $ | 3,602 | $ | 3,216 | $ | 4,835 | ||||||||||
Additions for tax positions of prior years | 959 | 475 | 901 | |||||||||||||
Lapse of statute of limitations | (1,214 | ) | (98 | ) | (2,491 | ) | ||||||||||
Settlements | (605 | ) | (51 | ) | — | |||||||||||
Tax rate changes | — | — | (30 | ) | ||||||||||||
Foreign currency exchange fluctuations | -2 | 60 | 1 | |||||||||||||
Ending balance | $ | 2,740 | $ | 3,602 | $ | 3,216 | ||||||||||
Included in the balances at January 31, 2014, January 31, 2013 and January 31, 2012 are $2.6 million, $3.0 million, and $2.5 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 in income tax expense. As of January 31, 2014, January 31, 2013 and January 31, 2012, the Company had $0.6 million, $1.5 million and $1.3 million of accrued interest (net of tax benefit) related to unrecognized tax benefits. During fiscal years 2014, 2013 and 2012, the Company accrued $0.1 million, $0.2 million and $0.3 million of interest (net of tax benefit). | ||||||||||||||||
The Company conducts business globally and, as a result, files income tax returns in the U.S. federal jurisdiction and various states, local and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities in many countries, including such major jurisdictions as Switzerland, Hong Kong, Germany, Canada and the United States. The Company, with few exceptions, is no longer subject to income tax examinations by tax authorities in state, local and foreign taxing jurisdictions for years before the fiscal year ended January 31, 2010. |
Leases
Leases | 12 Months Ended | |||
Jan. 31, 2014 | ||||
Leases | ' | |||
NOTE 8 – LEASES | ||||
The Company leases office, distribution, retail and manufacturing facilities, and office equipment under operating leases, which expire at various dates through January 2026. 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 approximately $13.0 million, $13.5 million and $12.0 million in fiscal 2014, 2013 and 2012, respectively. | ||||
Minimum annual rentals under noncancelable operating leases as of January 31, 2014, which do not include real estate taxes and operating costs, are as follows (in thousands): | ||||
Fiscal Year Ending January 31, | ||||
2015 | $ | 10,659 | ||
2016 | 10,397 | |||
2017 | 8,899 | |||
2018 | 6,804 | |||
2019 | 4,242 | |||
Thereafter | 4,593 | |||
$ | 45,594 | |||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 31, 2014 | |
Commitments and Contingencies | ' |
NOTE 9 – COMMITMENTS AND CONTINGENCIES | |
At January 31, 2014, the Company had outstanding letters of credit totaling $4.6 million with expiration dates through June 3, 2014 compared to $4.6 million with expiration dates through April 30, 2014 as of January 31, 2013. One bank in the domestic bank group has issued irrevocable standby letters of credit in connection with a trademark license agreement, retail and operating facility leases to various landlords and for Canadian payroll to the Royal Bank of Canada. | |
As of January 31, 2014 and 2013, two European banks and a Canadian bank have guaranteed obligations to third parties on behalf of three of the Company’s foreign subsidiaries in the amount equivalent to $1.5 million and $2.3 million in various foreign currencies, respectively. | |
As of January 31, 2013, a bank in Dubai also had guaranteed obligations to third parties on behalf of one of the Company’s foreign subsidiaries in the amount equivalent to $0.1 million in foreign currency. | |
Pursuant to the Company’s agreements with its licensors, the Company is required to pay minimum royalties and advertising. As of January 31, 2014, the total amount of the Company’s minimum commitments related to its license agreements was $132.5 million. | |
The Company had outstanding purchase obligations of $60.3 million with suppliers at the end of fiscal 2014 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. | |
The Company is involved from time to time in legal claims involving trademarks and other intellectual property, contracts, employee relations and other matters incidental to the Company’s business. Although the outcome of such matters cannot be determined with certainty, the Company’s general counsel and management believe that the final outcome would not have a material effect on the Company’s consolidated financial position, results of operations or cash flows. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||||||
NOTE 10 – STOCK-BASED COMPENSATION | |||||||||||||||||||||
Effective concurrently with the consummation of the Company’s public offering in the fourth quarter of fiscal 1994, the Board of Directors and the shareholders of the Company approved the adoption of the Movado Group, Inc. 1993 Employee Stock Option Plan (the “Employee Stock Option Plan”) for the benefit of certain officers, directors and key employees of the Company. The Employee Stock Option Plan was amended in fiscal 1997 and restated as the Movado Group, Inc. 1996 Stock Incentive Plan (the “1996 Plan”). Under the 1996 Plan, as amended and restated as of April 8, 2004 and as further 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 outside directors, has the authority to grant incentive stock options and nonqualified stock options, as well as stock appreciation rights and stock awards, to purchase up to 11,000,000 shares of common stock. Options granted to participants under the Plan generally become exercisable in equal installments over three or five years and remain exercisable until the tenth anniversary of the date of grant. The option price may not be less than the fair market value of the stock at the time the options are granted. | |||||||||||||||||||||
Under the accounting guidance for share based payments, the Company utilizes the Black-Scholes option-pricing model which requires certain assumptions to 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 which the stock option is expected to be outstanding until it is exercised. The risk free interest rate is the yield on the grant date of U.S. Treasury constant maturities with a maturity date closest to 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 expected annualized dividend during the expected term of the option. | |||||||||||||||||||||
The weighted-average assumptions used with the Black-Scholes option-pricing model for the calculation of the fair value of stock option grants during fiscal 2014 were: expected term of 5.0 years; risk-free interest rate of 0.72%; expected volatility of 62.12% and dividend yield of 1.28%. The weighted-average grant date fair value of options granted during the fiscal year ended January 31, 2014 was $14.40. The weighted-average assumptions used with the Black-Scholes option-pricing model for the calculation of the fair value of stock option grants during fiscal 2013 were: expected term of 5.2 years; risk-free interest rate of 0.92%; expected volatility of 61.5% and dividend yield of 2.01%. The weighted-average grant date fair value of options granted during the fiscal year ended January 31, 2013 was $12.03. There were no stock option grants during fiscal 2012. | |||||||||||||||||||||
Total compensation expense for stock option grants recognized during the fiscal years ended January 31, 2014, 2013 and 2012 was approximately $0.8 million, net of tax of $0.5 million and $0.4 million, net of tax of $0.3 million and $0.1 million, net of tax of $0, respectively. Expense related to stock option compensation is recognized on a straight-line basis over the vesting term. As of January 31, 2014, there was approximately $2.4 million of unrecognized compensation cost related to unvested stock options. These costs are expected to be recognized over a weighted-average period of 1.8 years. Total cash received for stock option exercises during the fiscal year ended January 31, 2014 amounted to approximately $0.9 million. The windfall tax benefit realized on these exercises was approximately $0.2 million. | |||||||||||||||||||||
Transactions for stock options under the Plan since fiscal 2011 are summarized as follows: | |||||||||||||||||||||
Outstanding | Weighted- | ||||||||||||||||||||
Options | Average | ||||||||||||||||||||
Exercise Price | |||||||||||||||||||||
January 31, 2011 | 1,128,263 | $ | 18.42 | ||||||||||||||||||
Options exercised | (143,961 | ) | $ | 12.11 | |||||||||||||||||
Options cancelled | (289,320 | ) | $ | 18.43 | |||||||||||||||||
January 31, 2012 | 694,982 | $ | 19.55 | ||||||||||||||||||
Options granted | 258,600 | $ | 26.59 | ||||||||||||||||||
Options exercised | (392,093 | ) | $ | 16.88 | |||||||||||||||||
January 31, 2013 | 561,489 | $ | 24.67 | ||||||||||||||||||
Options granted | 106,440 | $ | 30.34 | ||||||||||||||||||
Options exercised | (52,023 | ) | $ | 17.54 | |||||||||||||||||
Options cancelled | -16,500 | $ | 26.59 | ||||||||||||||||||
January 31, 2014 | 599,406 | $ | 26.24 | ||||||||||||||||||
The total intrinsic value of stock options exercised for the fiscal years ended January 31, 2014, 2013 and 2012 was approximately $1.1 million, $6.3 million and $0.8 million, respectively. The total fair value of the stock options vested for the fiscal years ended January 31, 2014, 2013 and 2012 was approximately $0.1 million, $0.1 million and $0.3 million, respectively. | |||||||||||||||||||||
The following table summarizes outstanding and exercisable stock options as of January 31, 2014: | |||||||||||||||||||||
Range of Exercise Prices | Number | Weighted- | Weighted- | Number | Weighted- | ||||||||||||||||
Outstanding | Average | Average | Exercisable | Average | |||||||||||||||||
Remaining | Exercise Price | Exercise Price | |||||||||||||||||||
Contractual | |||||||||||||||||||||
Life (years) | |||||||||||||||||||||
$12.03 - $15.02 | 6,500 | 0.6 | $ | 14.6 | 6,500 | $ | 14.6 | ||||||||||||||
$15.03 - $18.02 | 8,066 | 0.6 | $ | 16.84 | 8,066 | $ | 16.84 | ||||||||||||||
$18.03 - $21.02 | 56,050 | 2.1 | $ | 18.74 | 56,050 | $ | 18.74 | ||||||||||||||
$21.03 - $24.02 | 108,750 | 4.2 | $ | 22.27 | 108,750 | $ | 22.27 | ||||||||||||||
$24.03 - $27.02 | 242,100 | 8.2 | $ | 26.59 | - | $ | - | ||||||||||||||
$27.03 - $32.92 | 177,940 | 6.8 | $ | 31.38 | 71,500 | $ | 32.92 | ||||||||||||||
599,406 | 5 | $ | 26.24 | 250,866 | $ | 24.14 | |||||||||||||||
The total intrinsic value of outstanding stock options as of January 31, 2014, 2013 and 2012 was approximately $6.9 million, $6.7 million and $0.8 million, respectively. The total intrinsic value of exercisable stock options as of January 31, 2014, 2013 and 2012 was approximately $3.4 million, $4.0 million and $0.8 million, respectively. | |||||||||||||||||||||
Under the Plan, the Company has the ability to grant stock awards to employees. Stock awards generally vest three to five years from the date of grant. Expense for these grants is recognized on a straight-line basis over the vesting period. The fair value of stock awards is equal to the closing price of the Company’s publicly-traded common stock on the grant date. | |||||||||||||||||||||
For fiscal years 2014, 2013 and 2012, compensation expense for stock awards was approximately $1.6 million, net of tax of $0.9 million, $1.4 million, net of tax of $0.8 and $1.6 million, net of tax of $0, respectively. Current accounting guidance requires forfeitures to be estimated at the time of grant in order to estimate the amount of share-based awards that will ultimately vest and thus, current period compensation expense has been adjusted for estimated forfeitures based on historical data. As of January 31, 2014, there was approximately $3.9 million of unrecognized compensation cost related to unvested stock awards. These costs are expected to be recognized over a weighted-average period of 2.0 years. | |||||||||||||||||||||
Transactions for stock award units under the Plan since fiscal 2011 are summarized as follows: | |||||||||||||||||||||
Number of | Weighted- | ||||||||||||||||||||
Average Grant | |||||||||||||||||||||
Stock Award | Date Fair Value | ||||||||||||||||||||
Units | |||||||||||||||||||||
January 31, 2011 | 245,238 | $ | 13.23 | ||||||||||||||||||
Units granted | 135,612 | $ | 16.55 | ||||||||||||||||||
Units vested | (67,074 | ) | $ | 15.86 | |||||||||||||||||
Units forfeited | (16,507 | ) | $ | 13.77 | |||||||||||||||||
January 31, 2012 | 297,269 | $ | 14.12 | ||||||||||||||||||
Units granted | 85,765 | $ | 26.59 | ||||||||||||||||||
Units vested | (30,445 | ) | $ | 15.37 | |||||||||||||||||
Units forfeited | (9,208 | ) | $ | 15.12 | |||||||||||||||||
January 31, 2013 | 343,381 | $ | 17.1 | ||||||||||||||||||
Units granted | 140,922 | $ | 31.33 | ||||||||||||||||||
Units vested | (147,552 | ) | $ | 14.55 | |||||||||||||||||
Units forfeited | (33,581 | ) | $ | 18.17 | |||||||||||||||||
January 31, 2014 | 303,170 | $ | 24.84 | ||||||||||||||||||
Upon the vesting of a stock award, shares equal to the number of underlying stock award units are issued from the pool of authorized shares. The total intrinsic value of stock award units that vested during fiscal 2014, 2013 and 2012 was approximately $4.7 million, $0.8 million, and $1.0 million, respectively. The windfall tax benefits realized on the vested stock awards for fiscal 2014 were $0.7 million. The weighted-average grant date fair values for stock awards for fiscal 2014, 2013, and 2012 were $31.33, $26.59, and $16.55, respectively. Outstanding stock award units had a total intrinsic value of approximately $11.4 million, $12.6 million, and $5.5 million for fiscal 2014, 2013 and 2012, respectively. | |||||||||||||||||||||
Other_Employee_Benefits_Plans
Other Employee Benefits Plans | 12 Months Ended |
Jan. 31, 2014 | |
Other Employee Benefits Plans | ' |
NOTE 11 – OTHER EMPLOYEE BENEFIT PLANS | |
The Company maintains an Employee Savings Plan under Section 401(k) of the Internal Revenue Code. In addition, the Company maintains defined contribution employee benefit plans for its employees located in Switzerland. Company contributions and expenses of administering the plans amounted to $3.3 million, $3.4 million and $3.3 million in fiscal 2014, 2013 and 2012, respectively. | |
The Company maintains a defined contribution SERP. The SERP provides eligible executives with supplemental pension benefits in addition to amounts received under the Company’s other retirement plan. The Company makes a matching contribution which vests equally over five years. | |
During fiscal 2014, 2013 and 2012, the Company recorded an expense related to the SERP of $0.4 million, $0.4 million and $0.4 million, respectively. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 12 Months Ended | ||||||||||||||
Jan. 31, 2014 | |||||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||||
NOTE 12 – ACCUMULATED OTHER COMPREHENSIVE INCOME | |||||||||||||||
The components of accumulated other comprehensive income at January 31, consisted of the following (in thousands): | |||||||||||||||
Currency Translation | Net Unrealized Gain | Net Unrealized Income | Accumulated Other | ||||||||||||
Adjustments | on Investments | On Hedging Contracts | Comprehensive | ||||||||||||
Income | |||||||||||||||
Balance, January 31, 2013 | $ | 102,220 | $ | 50 | $ | 1 | $ | 102,271 | |||||||
Other comprehensive income before reclassifications | 1,135 | 213 | - | 1,348 | |||||||||||
Amounts reclassified from accumulated other comprehensive income | 83 | - | - | 83 | |||||||||||
Net current-period other comprehensive income | 1,218 | 213 | - | 1,431 | |||||||||||
As of January 31, 2014 | $ | 103,438 | $ | 263 | $ | 1 | $ | 103,702 | |||||||
Currency Translation | Net Unrealized | Net Unrealized (Loss) / Income | Accumulated Other | ||||||||||||
Adjustments | On Hedging Contracts | Comprehensive | |||||||||||||
Gain | |||||||||||||||
on Investments | Income | ||||||||||||||
Balance, January 31, 2012 | $ | 98,842 | $ | 69 | $ | (989 | ) | $ | 97,922 | ||||||
Other comprehensive income / (loss) before reclassifications | 3,378 | -19 | 990 | 4,349 | |||||||||||
Amounts reclassified from accumulated other comprehensive income | - | - | - | - | |||||||||||
Net current-period other comprehensive income / (loss) | 3,378 | -19 | 990 | 4,349 | |||||||||||
As of January 31, 2013 | $ | 102,220 | $ | 50 | $ | 1 | $ | 102,271 | |||||||
Segment_Information
Segment Information | 12 Months Ended | |||||||||||||||||||||||
Jan. 31, 2014 | ||||||||||||||||||||||||
Segment Information | ' | |||||||||||||||||||||||
NOTE 13 – SEGMENT INFORMATION | ||||||||||||||||||||||||
The Company follows accounting guidance related to disclosures about segments of an enterprise and related information. This guidance requires disclosure of segment data based on how management makes decisions about allocating resources to segments and measuring their performance. | ||||||||||||||||||||||||
The Company conducts its business in two operating segments: Wholesale and Retail. The Company’s Wholesale segment includes the designing, manufacturing and distribution of quality watches, in addition to revenue generated from after sales service activities and shipping. The retail segment includes the Company’s outlet stores. | ||||||||||||||||||||||||
The Company divides its business into two major geographic locations: United States operations, and International, which includes the results of all other Company operations. The allocation of geographic revenue is based upon the location of the customer. The Company’s international operations are principally conducted in Europe, the Americas (excluding the United States), Asia and the Middle East which accounted for 18.5%, 12.4%, 8.1% and 7.8%, respectively, of the Company’s total net sales for fiscal 2014. For fiscal 2013, the Company’s international operations were principally conducted in Europe, the Americas (excluding the United States), Asia and the Middle East which accounted for 17.1%, 12.0%, 9.4% and 7.3%, respectively, of the Company’s total net sales. For fiscal 2012, the Company’s international operations were principally conducted in Europe, the Americas (excluding the United States), Asia, and the Middle East which accounted for 20.9%, 10.0%, 9.9% and 6.9%, respectively, of the Company’s total net sales. Substantially all of the Company’s international assets are located in Switzerland and Asia. | ||||||||||||||||||||||||
Operating Segment Data as of and for the Fiscal Year Ended January 31, (in thousands): | ||||||||||||||||||||||||
Net Sales (1) (2) (3) (8) | Operating Income (Loss) | |||||||||||||||||||||||
(2) (3) (4) (5) (6) (7) | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Wholesale | $ | 510,990 | $ | 449,289 | $ | 412,825 | $ | 55,241 | $ | 38,045 | $ | 24,668 | ||||||||||||
Retail | 59,265 | 56,189 | 55,292 | 12,501 | 11,301 | 8,895 | ||||||||||||||||||
Consolidated total | $ | 570,255 | $ | 505,478 | $ | 468,117 | $ | 67,742 | $ | 49,346 | $ | 33,563 | ||||||||||||
Total Assets | Capital Expenditures | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Wholesale | $ | 558,266 | $ | 507,672 | $ | 15,280 | $ | 13,348 | $ | 7,444 | ||||||||||||||
Retail | 20,344 | 18,690 | 1,427 | 2,630 | 726 | |||||||||||||||||||
Consolidated total | $ | 578,610 | $ | 526,362 | $ | 16,707 | $ | 15,978 | $ | 8,170 | ||||||||||||||
Depreciation and Amortization | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Wholesale | $ | 10,965 | $ | 9,513 | $ | 10,148 | ||||||||||||||||||
Retail | 1,268 | 1,095 | 1,260 | |||||||||||||||||||||
Consolidated total | $ | 12,233 | $ | 10,608 | $ | 11,408 | ||||||||||||||||||
Geographic Location Data as of and for the Fiscal Year Ended January 31, (in thousands): | ||||||||||||||||||||||||
Net Sales (1) (2) (3) (8) | Operating Income (Loss) | |||||||||||||||||||||||
(2) (3) (4) (5) (6) (7) | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
United States | $ | 303,095 | $ | 263,551 | $ | 234,991 | $ | 11,036 | $ | 2,171 | $ | (6,069 | ) | |||||||||||
International | 267,160 | 241,927 | 233,126 | 56,706 | 47,175 | 39,632 | ||||||||||||||||||
Consolidated total | $ | 570,255 | $ | 505,478 | $ | 468,117 | $ | 67,742 | $ | 49,346 | $ | 33,563 | ||||||||||||
Total Assets | Long-Lived Assets | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
United States | $ | 239,890 | $ | 208,273 | $ | 25,943 | $ | 26,682 | ||||||||||||||||
International | 338,720 | 318,089 | 21,853 | 17,819 | ||||||||||||||||||||
Consolidated total | $ | 578,610 | $ | 526,362 | $ | 47,796 | $ | 44,501 | ||||||||||||||||
-1 | Fiscal 2014 Wholesale and United States net sales included a $7.8 million sales reserve, for anticipated returns resulted from the Company’s decision to reduce the presence of ESQ Movado while expanding the Movado brand offering in certain retail doors. | |||||||||||||||||||||||
-2 | Fiscal 2013 Wholesale, United States and International net sales included a sales allowance of $4.9 million, $3.1 million and $1.8 million, respectively, related to the repositioning of the Coach watch brand. | |||||||||||||||||||||||
-3 | Fiscal 2012 Wholesale and International net sales included a $3.0 million sale of certain proprietary watch movements. | |||||||||||||||||||||||
-4 | Fiscal 2014 Wholesale and United States operating income included a charge of $8.3 million related to its strategy to reduce the presence of ESQ Movado while expanding the Movado brand offering in certain retail doors. The $8.3 million charge consists of anticipated sales returns from select customers, inventory reserves and writes down of excess displays and point of sale materials related to this strategy. | |||||||||||||||||||||||
-5 | Fiscal 2014 Wholesale and United States operating income included a $2.0 million donation to the Movado Group Foundation. | |||||||||||||||||||||||
-6 | Fiscal 2014 Wholesale and United States operating income included $2.5 million duty refund received relating to payments made by the Company in calendar years 2008 through 2011 for drawback claims filed with U.S. Customs & Border Protection. | |||||||||||||||||||||||
-7 | Fiscal 2013 and 2012 Wholesale and United States operating income (loss) included a $3.0 million donation to the Movado Group Foundation. | |||||||||||||||||||||||
-8 | The United States and International net sales are net of intercompany sales of $338.6 million, $269.3 million and $223.3 million for the years ended January 31, 2014, 2013 and 2012, respectively. |
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | |||||||||||||||
Jan. 31, 2014 | ||||||||||||||||
Quarterly Financial Data (Unaudited) | ' | |||||||||||||||
NOTE 14 - QUARTERLY FINANCIAL DATA (UNAUDITED) | ||||||||||||||||
The following table presents unaudited selected interim operating results of the Company for fiscal 2014 and 2013 (in thousands, except per share amounts): | ||||||||||||||||
Quarter | ||||||||||||||||
1st | 2nd | 3rd | 4th | |||||||||||||
Fiscal 2014 | ||||||||||||||||
Net sales (1) | $ | 110,010 | $ | 138,301 | $ | 189,685 | $ | 132,259 | ||||||||
Gross profit (3) | $ | 59,919 | $ | 74,818 | $ | 101,270 | $ | 69,254 | ||||||||
Income before income taxes (3)(4)(6) | $ | 11,489 | $ | 16,941 | $ | 33,984 | $ | 6,504 | ||||||||
Net income (3)(4)(6)(7) | $ | 8,179 | $ | 12,654 | $ | 23,414 | $ | 7,297 | ||||||||
Net income attributed to Movado Group, Inc. (3)(4)(6)(7) | $ | 8,210 | $ | 12,454 | $ | 23,019 | $ | 7,193 | ||||||||
Basic income per share: | ||||||||||||||||
Net income attributed to Movado Group, Inc. | $ | 0.32 | $ | 0.49 | $ | 0.9 | $ | 0.28 | ||||||||
Diluted income per share: | ||||||||||||||||
Net income attributed to Movado Group, Inc. | $ | 0.32 | $ | 0.48 | $ | 0.89 | $ | 0.28 | ||||||||
Fiscal 2013 | ||||||||||||||||
Net sales (2) | $ | 103,655 | $ | 118,027 | $ | 160,202 | $ | 123,594 | ||||||||
Gross profit (2) | $ | 59,025 | $ | 65,758 | $ | 90,419 | $ | 62,680 | ||||||||
Income before income taxes (2)(5) | $ | 8,359 | $ | 10,678 | $ | 24,987 | $ | 5,032 | ||||||||
Net income (2)(5)(8)(9) | $ | 6,761 | $ | 8,154 | $ | 34,853 | $ | 8,100 | ||||||||
Net income attributed to Movado Group, Inc. (2)(5)(8)(9) | $ | 6,633 | $ | 8,058 | $ | 34,473 | $ | 7,919 | ||||||||
Basic income per share: | ||||||||||||||||
Net income attributed to Movado Group, Inc. | $ | 0.26 | $ | 0.32 | $ | 1.36 | $ | 0.31 | ||||||||
Diluted income per share: | ||||||||||||||||
Net income attributed to Movado Group, Inc. | $ | 0.26 | $ | 0.32 | $ | 1.34 | $ | 0.31 | ||||||||
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. | ||||||||||||||||
-1 | Net sales in the fourth quarter of fiscal 2014 includes a pre-tax charge of $7.8 million for anticipated returns in fiscal 2015, as a result of the Company’s decision to reduce the presence of ESQ Movado while expanding the Movado brand offering in certain retail doors. | |||||||||||||||
-2 | Net sales in the fourth quarter of fiscal 2013 includes a sales allowance of $4.9 million related to the repositioning of the Coach watch brand. | |||||||||||||||
-3 | Gross profit in the fourth quarter of fiscal 2014 includes a $2.5 million pre-tax duty refund received relating to payments made by the Company in calendar years 2008 through 2011 for drawback claims filed with U.S. Customs and Border Protection and a $7.5 million pre-tax charge related to the anticipated ESQ Movado product returns and the write down of ESQ Movado excess inventory. This charge resulted from the Company’s decision to reduce the presence of ESQ Movado while expanding the Movado brand offering in certain retail doors. | |||||||||||||||
-4 | Income before income taxes in the fourth quarter of fiscal 2014 includes a $2.0 million donation to the Movado Group Foundation recorded in SG&A expenses and a $0.8 million pre-tax charge to SG&A expenses, related to the write down of excess displays and point of sale materials, as a result of the Company’s decision to reduce the presence of ESQ Movado while expanding the Movado brand offering in certain retail doors. | |||||||||||||||
-5 | Income before income taxes in the third quarter of fiscal 2013 includes a $3.0 million donation to the Movado Group Foundation recorded in SG&A expenses. | |||||||||||||||
-6 | Income before income taxes in the first quarter of fiscal 2014 consists of a pre-tax gain of $1.5 million recorded in other income, related to the sale of a building. | |||||||||||||||
-7 | Net income in the second quarter of 2014 includes a benefit of $1.0 million related to U.S. and foreign tax settlements and the release of uncertain tax positions. | |||||||||||||||
-8 | Net income in the third quarter of fiscal 2013 includes a tax benefit of $19.4 million attributable to the reversal of a majority of the U.S. valuation allowance. | |||||||||||||||
-9 | Net income in the fourth quarter of fiscal 2013 includes a tax benefit of $0.8 million attributable to the reversal of a valuation allowance on the U.S. net deferred tax assets and includes the net tax benefit related to foreign business restructurings in Japan and the UK. |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 12 Months Ended | |||||||||||
Jan. 31, 2014 | ||||||||||||
Supplemental Cash Flow Information | ' | |||||||||||
NOTE 15 - SUPPLEMENTAL CASH FLOW INFORMATION | ||||||||||||
The following is provided as supplemental information to the consolidated statements of cash flows (in thousands): | ||||||||||||
Fiscal Year Ended January 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Cash paid during the year for: | ||||||||||||
Interest | $ | 282 | $ | 212 | $ | 353 | ||||||
Income taxes paid / (received) (1) | $ | 8,013 | $ | 6,520 | $ | 5,190 | ||||||
-1 | Fiscal 2014, 2013 and 2012 income taxes paid / (received) includes payments of $8.1 million, $6.8 million and $5.6 million taxes paid, respectively. |
Other_Income
Other Income | 12 Months Ended |
Jan. 31, 2014 | |
Other Income | ' |
NOTE 16 – OTHER INCOME | |
Other income for the twelve months ended January 31, 2014 consisted of a $1.5 million pre-tax gain on the sale of a building. The Company received cash proceeds from the sale of $2.2 million in the first quarter of fiscal year 2014. Prior to the sale, the building had been classified as an asset held for sale in other current assets. Other income for the year ended January 31, 2012 consisted of $0.7 million of pre-tax gain on the sale of a building which was completed in the second quarter. The Company received cash proceeds from the sale of $1.2 million. The building had been classified as an asset held for sale in other current assets. |
Net_Income_Attributable_to_Mov
Net Income Attributable to Movado Group, Inc. and Transfers to Noncontrolling Interest | 12 Months Ended | |||||||||||
Jan. 31, 2014 | ||||||||||||
Net Income Attributable to Movado Group, Inc. and Transfers to Noncontrolling Interest | ' | |||||||||||
NOTE 17 – NET INCOME ATTRIBUTABLE TO MOVADO GROUP, INC. AND TRANSFERS TO NONCONTROLLING INTEREST | ||||||||||||
For Fiscal Year Ended January 31, | ||||||||||||
(in thousands) | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net income attributable to Movado Group, Inc. | $ | 50,877 | $ | 57,083 | $ | 31,995 | ||||||
Transfers to the noncontrolling interest | ||||||||||||
Decrease in Movado Group, Inc.’s paid in capital for purchase of 39% of MGS common shares | - | (3,362 | ) | — | ||||||||
Net transfers to noncontrolling interest | - | (3,362 | ) | — | ||||||||
Change from net income attributable to Movado Group, Inc. and transfers to noncontrolling interest | $ | 50,877 | $ | 53,721 | $ | 31,995 | ||||||
In the U.K., the Company signed a joint venture agreement (the “JV Agreement”) on May 11, 2007, with Swico Limited (“Swico”), an English company with established distribution, marketing and sales operations in the U.K. Swico had been the Company’s exclusive distributor of HUGO BOSS watches in the U.K. since 2005. Under the JV Agreement, the Company and Swico controlled 51% and 49%, respectively, of MGS Distribution Limited, an English company (“MGS”) responsible for the marketing, distribution and sale in the U.K. of the Company’s licensed brands. On January 30, 2013, a mutual agreement was reached by the Company and Swico to terminate the JV Agreement. This resulted in the Company acquiring additional shares in MGS from Swico, thereby increasing its ownership interest in MGS to 90%. Henceforth the Company manages MGS as a wholly owned subsidiary, with Swico continuing to provide logistical support and after-sale service for the brands distributed by MGS in the U.K. which, in addition to the Company’s licensed brands, also includes Movado and Ebel watches. | ||||||||||||
Treasury_Stock
Treasury Stock | 12 Months Ended |
Jan. 31, 2014 | |
Treasury Stock | ' |
NOTE 18 – TREASURY STOCK | |
On March 20, 2013, the Board approved a share repurchase program under which the Company may purchase up to $50 million of its outstanding common stock from time to time, depending on market conditions, share price and other factors. This authorization expires on January 31, 2016, and the Company may purchase shares of its common stock through open market purchases, block trades or otherwise. The shares will be purchased primarily to mitigate the dilutive impact of equity grants during the course of the next few years. Therefore, the Company does not expect the share repurchase program to have a significant impact on the weighted average of shares outstanding. During the twelve months ended January 31, 2014, the Company repurchased a total of 272,533 shares of common stock at a total cost of approximately $10.5 million or an average of $38.48 per share, which included 27,000 shares repurchased from the Movado Group Foundation at a total cost of approximately $1.1 million or $39.21 average per share. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 12 Months Ended |
Jan. 31, 2014 | |
Recent Accounting Pronouncements | ' |
NOTE 19 – RECENT ACCOUNTING PRONOUNCEMENTS | |
In February 2013, the FASB issued ASU No. 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” ASU No. 2013-02 requires presentation of reclassification adjustments from each component of accumulated other comprehensive income either in a single note or parenthetically on the face of the financial statements, for those amounts required to be reclassified into net income in their entirety in the same reporting period. For amounts that are not required to be reclassified in their entirety in the same reporting period, cross-reference to other disclosures is required. As permitted under ASU 2013-02, the Company has adopted to present reclassification adjustments from each component of accumulated other comprehensive income within a single note to the financial statements. | |
In September 2013, the Internal Revenue Service and the United State Treasury Department issued final tax regulations that provided guidance regarding the deduction and capitalization of expenditures related to tangible property. The Company does not expect the final tax regulations to have a material impact on its financial statements. |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||||||
Valuation and Qualifying Accounts | ' | ||||||||||||||||||||
Schedule II | |||||||||||||||||||||
MOVADO GROUP, INC. | |||||||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Description | Balance at | Net provision | Currency | Net write-offs | Balance at | ||||||||||||||||
beginning | charged to | revaluation | end of year | ||||||||||||||||||
of year | operations | ||||||||||||||||||||
Year ended January 31, 2014: | |||||||||||||||||||||
Doubtful accounts | $ | 4,356 | $ | 612 | $ | -27 | $ | (1,626 | ) | $ | 3,315 | ||||||||||
Returns (1) | 7,448 | 15,457 | (63 | ) | (6,519 | ) | 16,323 | ||||||||||||||
Other sales allowances | 8,205 | 5,189 | -52 | (9,880 | ) | 3,462 | |||||||||||||||
Total | $ | 20,009 | $ | 21,258 | $ | -142 | $ | (18,025 | ) | $ | 23,100 | ||||||||||
Year ended January 31, 2013: | |||||||||||||||||||||
Doubtful accounts | $ | 7,741 | $ | — | $ | 46 | $ | (3,431 | ) | $ | 4,356 | ||||||||||
Returns | 8,353 | 18,246 | (15 | ) | (19,136 | ) | 7,448 | ||||||||||||||
Other sales allowances (2) | 2,664 | 10,223 | 28 | (4,710 | ) | 8,205 | |||||||||||||||
Total | $ | 18,758 | $ | 28,469 | $ | 59 | $ | (27,277 | ) | $ | 20,009 | ||||||||||
Year ended January 31, 2012: | |||||||||||||||||||||
Doubtful accounts | $ | 8,494 | $ | 847 | $ | 8 | $ | (1,608 | ) | $ | 7,741 | ||||||||||
Returns | 7,960 | 16,946 | 8 | (16,561 | ) | 8,353 | |||||||||||||||
Other sales allowances | 1,974 | 3,961 | (16 | ) | (3,255 | ) | 2,664 | ||||||||||||||
Total | $ | 18,428 | $ | 21,754 | $ | — | $ | (21,424 | ) | $ | 18,758 | ||||||||||
-1 | In fiscal 2014, net provision and the ending balance for returns includes a $7.8 million sales reserve, for anticipated returns in fiscal 2015 which resulted from the Company’s decision to reduce the presence of ESQ Movado while expanding the Movado brand offering in certain retail doors. | ||||||||||||||||||||
-2 | In fiscal 2013, net provision and the ending balance for other allowances includes a sales allowance of $4.9 million related to the repositioning of the Coach watch. | ||||||||||||||||||||
Description | Balance at | Net provision | Currency | Adjustments | Balance at | ||||||||||||||||
beginning of | charged to | revaluation | end of year | ||||||||||||||||||
year | operations | ||||||||||||||||||||
Year ended January 31, 2014: | |||||||||||||||||||||
Deferred tax asset valuation (1) | $ | 11,491 | $ | — | $ | (201 | ) | $ | (3,492 | ) | $ | 7,798 | |||||||||
Year ended January 31, 2013: | |||||||||||||||||||||
Deferred tax asset valuation (2) | $ | 32,856 | $ | — | $ | (375 | ) | $ | (20,990 | ) | $ | 11,491 | |||||||||
Year ended January 31, 2012: | |||||||||||||||||||||
Deferred tax asset valuation (3) | $ | 46,929 | $ | — | $ | 367 | $ | (14,440 | ) | $ | 32,856 | ||||||||||
(1)The detail of adjustments is as follows: | (2)The detail of adjustments is as follows: | ||||||||||||||||||||
Prior year adjustments and tax rate changes | $ | 238 | Expired tax losses | $ | (208 | ) | |||||||||||||||
Reversal due to merger / liquidations | (2,302 | ) | Prior year adjustments and tax rate changes | (23 | ) | ||||||||||||||||
P&L adjustments | (1,428) | OCI Adjustments | (942 | ) | |||||||||||||||||
$ | -3,492 | P&L Adjustments | (19,817 | ) | |||||||||||||||||
$ | (20,990 | ) | |||||||||||||||||||
(3)The detail of adjustments is as follows: | |||||||||||||||||||||
Expired tax losses | $ | (329 | ) | ||||||||||||||||||
Prior year adjustments and tax rate changes | (304 | ) | |||||||||||||||||||
OCI Adjustments | 332 | ||||||||||||||||||||
P&L Adjustments | (14,139 | ) | |||||||||||||||||||
$ | (14,440 | ) | |||||||||||||||||||
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||||
Jan. 31, 2014 | ||||||||||||
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 2014, the Company marketed ten distinctive brands of watches: Coach, Concord, Ebel, ESQ, Scuderia Ferrari, HUGO BOSS, Juicy Couture, Lacoste, Movado, and Tommy Hilfiger, which compete in most segments of the watch market. | ||||||||||||
Movado (with the exception of Movado BOLD), Ebel and Concord watches are manufactured in Switzerland by independent third party assemblers with some in-house assembly in La Chaux-de-Fonds, Switzerland. All Movado, ESQ, Ebel and Concord watches are manufactured using Swiss movements. All the Company’s products are manufactured using components obtained from third party suppliers. ESQ and Movado BOLD watches are manufactured by independent contractors in Asia using Swiss movements. Coach, Tommy Hilfiger, HUGO BOSS, Juicy Couture, Lacoste and Scuderia Ferrari watches are manufactured by independent contractors in Asia. | ||||||||||||
In addition to its sales to trade customers and independent distributors, the Company also operates outlet stores throughout the United States, through which it sells 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 and majority-owned joint ventures. Intercompany transactions and balances have been eliminated. | ||||||||||||
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. Actual results could differ from those estimates. The Company uses estimates when accounting for sales discounts, allowances and incentives, warranties, income taxes, depreciation, amortization, inventory write-downs, stock-based compensation, contingencies, impairments and asset and liability valuations. | ||||||||||||
Reclassification | ' | |||||||||||
Reclassification | ||||||||||||
Certain reclassifications were made to prior years’ financial statement amounts and related note disclosures to conform to the fiscal 2014. In fiscal 2013 and 2012 certain assets were reclassified from accounts receivable to inventory and certain accrued liabilities were reclassified to accrued payroll and benefits to conform to the fiscal 2014 presentation. | ||||||||||||
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 statement of operations accounts at average exchange rates for the year. 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 sheet in Accumulated Other Comprehensive Income. The balance of the foreign currency translation adjustment, included in Accumulated Other Comprehensive Income, was $103.4 million and $102.2 million as of January 31, 2014 and 2013, respectively. | ||||||||||||
Cash and Cash Equivalents | ' | |||||||||||
Cash and Cash Equivalents | ||||||||||||
Cash equivalents include all highly liquid investments with original maturities at date of purchase of three months or less. | ||||||||||||
Short-Term Investments | ' | |||||||||||
Short Term Investments | ||||||||||||
Short term investments are classified as held to maturity and consist entirely of six month time deposits. At the time of purchase, management determines the appropriate classification of these investments and re-evaluates such designation of each balance sheet date. | ||||||||||||
Trade Receivables | ' | |||||||||||
Trade Receivables | ||||||||||||
Trade receivables as shown on the consolidated balance sheets are net of allowances. The allowance for doubtful accounts is determined through an analysis of the aging of accounts receivable, assessments of collectability based on historic 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, except ESQ, 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 $23.1 million, $20.0 million and $18.7 million at January 31, 2014, 2013 and 2012, respectively. In fiscal 2014, the Company recorded return reserves of $4.9 million, for anticipated returns which resulted from the Company’s decision to reduce the presence of ESQ Movado in certain retail doors while expanding the Movado brand offering. In fiscal 2013, the Company recorded a charge of $4.9 million related to the repositioning of the Coach watch brand from a collection priced to be sold in a department store’s fine watch department to one suitable for sale in the fashion watch department. The allowance represented the Company’s estimated cost of the aggregate sales allowance to Coach watch retailers affected by the repositioning. | ||||||||||||
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, 2014, except for those accounts provided for in the reserve 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. | ||||||||||||
Inventories | ' | |||||||||||
Inventories | ||||||||||||
The Company valued its inventory at the lower of cost or market. Effective February 1, 2011, the Company changed its method of valuing its U.S. inventories to the average cost method. With this change, all of the Company’s inventories were valued using the average cost method. The Company believes that the average cost method of inventory valuation is preferable because (1) it permits the Company to use a single method of accounting for all of the Company’s U.S. and international inventories, (2) it aligns costing with the Company’s forecasting and procurement decisions, and (3) since a number of the Company’s key competitors use the average cost method, it improves comparability of the Company’s financial statements. The Company performed 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. When management determines that finished product is unsaleable or that it is impractical to build the excess components into watches for sale, a charge is recorded to value those products and components at the lower of cost or market. | ||||||||||||
In the fourth quarter of fiscal 2014, the Company recorded inventory reserves of $2.6 million related to the write down of ESQ Movado excess watch inventory, as a result of the Company’s decision to reduce the presence of ESQ Movado while expanding the Movado brand offering in certain retail doors. | ||||||||||||
Property, Plant and Equipment | ' | |||||||||||
Property, Plant and Equipment | ||||||||||||
Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation of buildings is amortized using the straight-line method based on the useful life of 40 years. Depreciation of furniture and equipment is provided using the straight-line method based on the estimated useful lives of assets, which range from four to ten years. Computer software is amortized using the straight-line method over the useful life of five to ten years. Leasehold improvements are amortized using the straight-line method over the lesser of the term of the lease or the estimated useful life of the leasehold improvement. Design fees and tooling costs are amortized using the straight-line method based on the useful life of three years. Upon the disposition of property, plant and equipment, the accumulated depreciation is deducted from the original cost and any gain or loss is reflected in current earnings. | ||||||||||||
Intangibles | ' | |||||||||||
Intangibles | ||||||||||||
Intangible assets consist primarily of trademarks and are recorded at cost. Trademarks are amortized over ten years. At January 31, 2014 and 2013, intangible assets at cost were $13.0 million and $12.7 million, respectively, and related accumulated amortization of intangibles was $11.6 million and $11.2 million, respectively. Amortization expense for fiscal 2014, 2013 and 2012 was $0.4 million, $0.5 million and $0.6 million, respectively. | ||||||||||||
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 assets with their estimated future undiscounted cash flows. If it is determined that an impairment loss has occurred, the loss is recognized during that period. The impairment loss is calculated as the difference between asset carrying values and the fair value of the long-lived assets. | ||||||||||||
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 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. Such amounts are amortized as a reduction of rent expense over the life of the related lease. | ||||||||||||
Capitalized Software Costs | ' | |||||||||||
Capitalized Software Costs | ||||||||||||
The Company capitalizes certain computer software costs after technological feasibility has been established. The costs are amortized utilizing the straight-line method over the economic lives of the related products ranging from five to seven years. | ||||||||||||
Derivative Financial Instruments | ' | |||||||||||
Derivative Financial Instruments | ||||||||||||
The Company accounts for its derivative financial instruments in accordance with guidance which requires that an entity recognize all derivatives as either assets or liabilities in the statement of financial condition and measure those instruments at fair value. A significant portion of the Company’s purchases are denominated in Swiss francs. The Company reduces its exposure to the Swiss franc exchange rate risk through a hedging program. Under the hedging program, the Company manages most of its foreign currency exposures on a consolidated basis, which allows it to net certain exposures and take advantage of natural offsets. In the event these exposures do not offset, the Company uses various derivative financial instruments to further reduce the net exposures to currency fluctuations, predominately forward and option contracts. When entered into, the Company designates and documents these derivative instruments as a cash flow hedge of a specific underlying exposure, as well as the risk management objectives and strategies for undertaking the hedge transactions. Changes in the fair value of a derivative that is designated and documented as a cash flow hedge and is highly effective, are recorded in other comprehensive income until the underlying transaction affects earnings, and then are later reclassified into earnings in the same account as the hedged transaction. The Company formally assesses, both at the inception and at each financial quarter thereafter, the effectiveness of the derivative instrument hedging the underlying forecasted cash flow transaction. Any ineffectiveness related to the derivative financial instruments’ change in fair value will be recognized in the period in which the ineffectiveness was calculated. | ||||||||||||
The Company uses forward exchange contracts to offset its exposure to certain foreign currency receivables and liabilities. These forward contracts are not qualified hedges and, therefore, changes in the fair value of these derivatives are recognized in earnings, thereby offsetting the current earnings effect of the related foreign currency receivables and liabilities. | ||||||||||||
The Company’s risk management policy includes net investment hedging of the Company’s Swiss franc-denominated investment in its wholly-owned subsidiaries located in Switzerland using purchased foreign currency options under certain limitations. When entered into for this purpose, the Company designates and documents the derivative instrument as a net investment hedge of a specific underlying exposure, as well as the risk management objectives and strategies for undertaking the hedge transactions. Changes in the fair value of a derivative that is designated and documented as a net investment hedge are recorded in other comprehensive income in the same manner as the cumulative translation adjustment of the Company’s Swiss franc-denominated investment. The Company formally assesses, both at the inception and at each financial quarter thereafter, the effectiveness of the derivative instrument hedging the net investment. | ||||||||||||
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 | ||||||||||||
In the wholesale segment, the Company recognizes its revenues upon transfer of title and risk of loss in accordance with its FOB shipping point terms of sale and after the sales price is fixed and determinable and collectability is reasonably assured. In the retail segment, transfer of title and risk of loss occurs at the time of register receipt. The Company records estimates for sales returns, 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 historical analysis, customer agreements and/or currently known factors that arise in the normal course of business. While returns have historically been within the Company’s expectations and the provisions established, future return rates may differ from those experienced in the past. In the event that returns are authorized at a rate significantly higher than the Company’s historic rate, the resulting returns could have an adverse impact on its operating results for the period in which such results materialize. | ||||||||||||
In the fourth quarter of fiscal 2014, the Company recorded a pre-tax charge of $7.8 million to sales, for anticipated returns which resulted from the Company’s decision to reduce the presence of ESQ Movado while expanding the Movado brand offering in certain retail doors. During the fourth quarter of fiscal 2013, the Company recorded a charge of $4.9 million related to the repositioning of the Coach watch brand from a collection priced to be sold in a department store’s fine watch department to one suitable for sale in the fashion watch department. The charge represented the Company’s estimated cost of the aggregate sales allowance to Coach watch retailers affected by the repositioning. | ||||||||||||
Cost of Sales | ' | |||||||||||
Cost of Sales | ||||||||||||
Cost of sales of the Company’s products consist primarily of component costs, royalties, depreciation, amortization, assembly costs and unit overhead costs associated with the Company’s supply chain operations in Switzerland and Asia. The Company’s supply chain operations consist of logistics management of assembly operations and product sourcing in Switzerland and Asia and minor assembly in Switzerland. Through productivity improvement efforts, the Company has controlled the level of overhead costs and maintained flexibility in its cost structure by outsourcing a significant portion of its component and assembly requirements. | ||||||||||||
Cost of sales of the Company’s products includes costs for raw material and components, as well as labor for assembly of finished goods, all of which can be impacted by inflation. While inflation in costs has negatively impacted gross margin percentage, this effect has not been material to the Company’s results of operations for the periods presented in this report. A significant increase in these costs due to inflation could have a material adverse effect on the Company’s future results of operations. While the Company may seek to offset the negative inflationary impact on these costs with price increases on its products, its ability to effectively do so will depend on the extent it can pass on price increases and still remain competitive in the marketplace. | ||||||||||||
In the fourth quarter of fiscal 2014, gross margin was impacted by a $7.5 million pre-tax charge related to anticipated ESQ Movado watch brand returns and the write down of ESQ Movado excess watch inventory. This charge resulted from the Company’s decision to reduce the presence of ESQ Movado while expanding the Movado brand offering in certain retail doors. The Company expects to reallocate certain of the ESQ Movado retail space in the second quarter of fiscal 2015 to drive incremental sales of its more productive Movado brand watch families, and will continue to offer ESQ Movado in select retail locations as well as its direct-to-consumer outlet stores and Movado.com. | ||||||||||||
In calendar years 2010 through 2012, drawback claims were filed with U.S. Customs & Border Protection (“CBP”) to recover duty payments made by the Company in calendar years 2008 through 2011. The drawback claims concerned duty paid on watches that were subsequently exported from the United States. A number of drawback claims filed on behalf of the Company were denied by CBP in calendar year 2012 and an administrative protest was filed requesting reconsideration of the denials. This protest was approved and as a result in the fourth quarter of fiscal 2014 the Company recorded and received a net pre-tax refund in the amount of $2.5 million. The Company does not anticipate receipt of any additional refunds related to this matter nor does the Company anticipate return of any of these refunds to CBP. | ||||||||||||
In the fourth quarter of fiscal 2012, the Company recorded a sale of certain mechanical movements that had been written down in the previous year. As a result, the Company recorded a pre-tax net profit of $2.3 million related to those movements. | ||||||||||||
Since a substantial amount of the Company’s product costs are incurred in Swiss francs, fluctuations in the U.S. dollar/Swiss franc exchange rate can impact the Company’s cost of goods sold and, therefore, its gross margins. The Company reduces its exposure to the Swiss franc exchange rate risk through a hedging program. Under the hedging program, the Company manages most of its foreign currency exposures on a consolidated basis, which allows it to net certain exposures and take advantage of natural offsets. In the event these exposures do not offset, the Company has the ability to hedge its Swiss franc purchases using a combination of forward contracts and purchased currency options. The Company’s hedging program mitigated the exchange rate fluctuations on product costs and gross margins for fiscal years 2014, 2013 and 2012. | ||||||||||||
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. In fiscal 2014, the Company recorded a $2.0 million pre-tax charge related to donations made to the Movado Group Foundation. In fiscal 2014, the Company also recorded a $0.8 million pre-tax charge related to the write-down of excess displays and point of sales materials, as a result of the Company’s decision to reduce the presence of ESQ Movado while expanding the Movado brand offering in certain retail doors. In fiscal 2013 and 2012, the Company recorded a $3.0 million pre-tax charge related to donations made to the Movado Group Foundation. | ||||||||||||
Annual 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 various forms of media advertising, digital advertising and co-operative advertising with customers and distributors and other point-of-sale marketing and promotion spending. For fiscal 2014, 2013 and 2012, the Company increased its investment in marketing and advertising in order to elevate its connection to consumers and better position its brands in the marketplace. | ||||||||||||
Selling expenses consist primarily of salaries, sales commissions, sales force travel and related expenses, depreciation and amortization, expenses associated with Baselworld, the annual watch and jewelry trade show, 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 related 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 and leasehold improvements, patent and trademark expenses 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. If such costs were to substantially exceed estimates, this could have an adverse effect on the Company’s operating results. | ||||||||||||
Warranty liability for the fiscal years ended January 31, 2014, 2013 and 2012 was as follows (in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance, beginning of year | $ | 2,584 | $ | 2,309 | $ | 2,149 | ||||||
Provision charged to operations | 2,660 | 2,584 | 2,309 | |||||||||
Settlements made | (2,584 | ) | (2,309 | ) | (2,149 | ) | ||||||
Balance, end of year | $ | 2,660 | $ | 2,584 | $ | 2,309 | ||||||
Pre-opening Costs | ' | |||||||||||
Pre-opening Costs | ||||||||||||
Costs associated with the opening of retail stores, including pre-opening rent, 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, 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 2014, 2013 and 2012 amounted to $74.4 million, $68.2 million and $64.2 million, respectively. | ||||||||||||
Included in the other current assets in the consolidated balance sheets as of January 31, 2014 and 2013 are prepaid advertising costs of $0.9 million and $0.8 million, respectively. These prepaid costs represent advertising costs paid to licensors in advance, pursuant to the Company’s licensing agreements and sponsorships. | ||||||||||||
Shipping and Handling Costs | ' | |||||||||||
Shipping and Handling Costs | ||||||||||||
Amounts charged to customers for shipping and handling are $2.6 million, $2.5 million and $2.1 million for fiscal years 2014, 2013 and 2012, respectively. The costs related to shipping and handling are $6.6 million, $5.9 million and $5.7 million for fiscal years 2014, 2013 and 2012, respectively. These amounts incurred by the Company related to shipping and handling are included in net sales and cost of goods sold. | ||||||||||||
Income Taxes | ' | |||||||||||
Income Taxes | ||||||||||||
The Company 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 the Company operates, and applies 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 on de-recognition, classification, interest and penalties, accounting in interim periods, disclosures and transitions. | ||||||||||||
Earnings Per Share | ' | |||||||||||
Earnings Per Share | ||||||||||||
The Company presents net income 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 weighted-average number of shares outstanding for basic earnings per share were approximately 25,506,000, 25,267,000 and 24,926,000 for fiscal 2014, 2013 and 2012, respectively. For the years ended January 31, 2014, 2013 and 2012, the number of shares outstanding for diluted earnings per share were approximately 25,849,000, 25,664,000 and 25,141,000, respectively. For the years ended January 31, 2014, 2013 and 2012, the number of shares outstanding for diluted earnings per share were increased by approximately 343,000, 397,000 and 215,000 due to potentially dilutive common stock equivalents issuable under the Company’s stock compensation plans. | ||||||||||||
For the years ended January 31, 2014, 2013 and 2012 approximately 85,000, 276,000, and 593,000, respectively, of potentially dilutive common stock equivalents were excluded from the computation of dilutive earnings per share because their effect would have been antidilutive. | ||||||||||||
Stock-Based Compensation | ' | |||||||||||
Stock-Based Compensation | ||||||||||||
Under the accounting guidance for share-based payments, 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 the yield on the grant date of U.S. Treasury constant maturities with a maturity date closest to 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. | ||||||||||||
Compensation expense for equity instruments is accrued based on the estimated number of instruments for which the requisite service is expected to be rendered and expensed on a straight-line basis over the vesting term. | ||||||||||||
See Note 10 to the Company’s Consolidated Financial Statements for further information regarding stock-based compensation. |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||
Jan. 31, 2014 | ||||||||||||
Schedule of warranty liability | ' | |||||||||||
Warranty liability for the fiscal years ended January 31, 2014, 2013 and 2012 was as follows (in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance, beginning of year | $ | 2,584 | $ | 2,309 | $ | 2,149 | ||||||
Provision charged to operations | 2,660 | 2,584 | 2,309 | |||||||||
Settlements made | (2,584 | ) | (2,309 | ) | (2,149 | ) | ||||||
Balance, end of year | $ | 2,660 | $ | 2,584 | $ | 2,309 | ||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
Jan. 31, 2014 | ||||||||
Components of Inventories | ' | |||||||
Inventories consisted of the following (in thousands): | ||||||||
As of January 31, | ||||||||
2014 | 2013 | |||||||
Finished goods | $ | 118,308 | $ | 104,732 | ||||
Component parts | 55,138 | 53,061 | ||||||
Work-in-process | 7,859 | 9,463 | ||||||
$ | 181,305 | $ | 167,256 | |||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | |||||||
Jan. 31, 2014 | ||||||||
Schedule of Property, Plant and Equipment | ' | |||||||
Property, plant and equipment at January 31, at cost, consisted of the following (in thousands): | ||||||||
As of January 31, | ||||||||
2014 | 2013 | |||||||
Land and buildings | $ | 1,682 | $ | 1,676 | ||||
Furniture and equipment | 62,028 | 56,153 | ||||||
Computer software | 28,585 | 44,260 | ||||||
Leasehold improvements | 28,898 | 24,365 | ||||||
Design fees and tooling costs | 3,182 | 2,742 | ||||||
124,375 | 129,196 | |||||||
Less: accumulated depreciation | 76,579 | 84,695 | ||||||
$ | 47,796 | $ | 44,501 | |||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||||||
Jan. 31, 2014 | ||||||||||||||||||||
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, 2014 and 2013 (in thousands): | ||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||
Balance | 2014 | 2013 | Balance | 2014 | 2013 | |||||||||||||||
Sheet | Fair | Fair | Sheet | Fair | Fair | |||||||||||||||
Location | Value | Value | Location | Value | Value | |||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||
Foreign Exchange Contracts | Other Current | $ | 403 | $ | 876 | Accrued | $ | 173 | $ | 2 | ||||||||||
Assets | Liabilities | |||||||||||||||||||
Total Derivative Instruments | $ | 403 | $ | 876 | $ | 173 | $ | 2 | ||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||||
Jan. 31, 2014 | ||||||||||||||||||
Fair Value Hierarchy for Assets and Liabilities 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, 2014 and 2013 (in thousands): | ||||||||||||||||||
Fair Value at January 31, 2014 | ||||||||||||||||||
Balance Sheet Location | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | ||||||||||||||||||
Available-for-sale securities | Other current assets | $ | 576 | $ | — | $ | — | $ | 576 | |||||||||
Time deposits | Short-term investments | 33,099 | 33,099 | |||||||||||||||
SERP assets - employer | Other non-current assets | 1,117 | — | — | 1,117 | |||||||||||||
SERP assets - employee | Other non-current assets | 20,854 | — | — | 20,854 | |||||||||||||
Hedge derivatives | Other current assets | — | 403 | — | 403 | |||||||||||||
Total | $ | 55,646 | $ | 403 | $ | — | $ | 56,049 | ||||||||||
Liabilities: | ||||||||||||||||||
SERP liabilities - employee | Other non-current liabilities | $ | 20,854 | $ | — | $ | — | $ | 20,854 | |||||||||
Hedge derivatives | Accrued liabilities | — | 173 | — | 173 | |||||||||||||
Total | $ | 20,854 | $ | 173 | $ | — | $ | 21,027 | ||||||||||
Fair Value at January 31, 2013 | ||||||||||||||||||
Balance Sheet Location | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | ||||||||||||||||||
Available-for-sale securities | Other current assets | $ | 285 | $ | — | $ | — | $ | 285 | |||||||||
SERP assets - employer | Other non-current assets | 783 | — | — | 783 | |||||||||||||
SERP assets - employee | Other non-current assets | 17,637 | — | — | 17,637 | |||||||||||||
Hedge derivatives | Other current assets | — | 876 | — | 876 | |||||||||||||
Total | $ | 18,705 | $ | 876 | $ | — | $ | 19,581 | ||||||||||
Liabilities: | ||||||||||||||||||
SERP liabilities - employee | Other non-current liabilities | $ | 17,637 | $ | — | $ | — | $ | 17,637 | |||||||||
Hedge derivatives | Accrued liabilities | — | 2 | — | 2 | |||||||||||||
Total | $ | 17,637 | $ | 2 | $ | — | $ | 17,639 | ||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||||||
Jan. 31, 2014 | ||||||||||||||||
Schedule of income taxes provision for continuing operations | ' | |||||||||||||||
The provision/(benefit) for income taxes for the fiscal years ended January 31, 2014, 2013 and 2012 consists of the following components (in thousands): | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Current: | ||||||||||||||||
U.S. Federal | $ | 7,296 | $ | 2,365 | $ | 382 | ||||||||||
U.S. State and Local | 866 | 499 | 141 | |||||||||||||
Non-U.S. | 5,043 | 3,559 | 8,202 | |||||||||||||
13,205 | 6,423 | 8,725 | ||||||||||||||
Noncurrent: | ||||||||||||||||
U.S. Federal | -1,640 | 56 | (1,396 | ) | ||||||||||||
Non-U.S. | 988 | 498 | 851 | |||||||||||||
-652 | 554 | (545 | ) | |||||||||||||
Deferred: | ||||||||||||||||
U.S. Federal | 1,823 | (18,197 | ) | — | ||||||||||||
U.S. State and Local | (888 | ) | (495 | ) | — | |||||||||||
Non-U.S. | 3,885 | 2,903 | (7,576 | ) | ||||||||||||
4,820 | (15,789 | ) | (7,576 | ) | ||||||||||||
Provision / (benefit) for income taxes | $ | 17,373 | $ | (8,812 | ) | $ | 604 | |||||||||
Schedule of Significant components of deferred income tax assets and liabilities | ' | |||||||||||||||
Significant components of the Company’s deferred income tax assets and liabilities as of January 31, 2014 and 2013 are as follows (in thousands): | ||||||||||||||||
2014 Deferred Taxes | 2013 Deferred Taxes | |||||||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||||
Net operating loss carryforwards | $ | 9,797 | $ | — | $ | 16,119 | $ | — | ||||||||
Inventory | 4,294 | — | 6,155 | — | ||||||||||||
Unprocessed returns | 3,364 | — | 2,143 | — | ||||||||||||
Receivables allowance | 1,254 | 230 | 1,256 | 275 | ||||||||||||
Deferred compensation | 10,988 | — | 9,760 | — | ||||||||||||
Foreign tax credits | — | — | 4,204 | — | ||||||||||||
Unrepatriated earnings | — | 2,724 | — | 2,724 | ||||||||||||
Capital loss carryforwards | 1,292 | — | 1,464 | — | ||||||||||||
Depreciation/amortization | 4,205 | 2,286 | 5,592 | 3,053 | ||||||||||||
Other provisions/accruals | 2,788 | — | 2,567 | — | ||||||||||||
Miscellaneous | 738 | — | 611 | — | ||||||||||||
38,720 | 5,240 | 49,871 | 6,052 | |||||||||||||
Valuation allowance | (7,798 | ) | — | (11,491 | ) | — | ||||||||||
Total deferred tax assets and liabilities | $ | 30,922 | $ | 5,240 | $ | 38,380 | $ | 6,052 | ||||||||
Schedule of income taxes provision / (benefit) for continuing operations by applying U.S. federal statutory rate | ' | |||||||||||||||
The provision / (benefit) for income taxes differs from the amount determined by applying the U.S. federal statutory rate as follows (in thousands): | ||||||||||||||||
Fiscal Year Ended January 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Provision / (benefit) for income taxes at the U.S. statutory rate | $ | 24,121 | $ | 17,169 | $ | 11,631 | ||||||||||
Lower effective foreign income tax rate | (6,950 | ) | (6,006 | ) | (4,952 | ) | ||||||||||
Change in valuation allowance | (996 | ) | (19,526 | ) | (13,922 | ) | ||||||||||
U.S. tax provided on earnings of foreign subsidiaries | 580 | 109 | 4,369 | |||||||||||||
Change in liabilities for uncertain tax positions, net | -652 | 554 | (545 | ) | ||||||||||||
State and local taxes, net of federal benefit | 719 | 607 | 84 | |||||||||||||
Foreign legal reorganizations | — | (1,902 | ) | — | ||||||||||||
Foreign tax settlement | — | — | 4,302 | |||||||||||||
Other, net | 551 | 183 | (363 | ) | ||||||||||||
Total provision / (benefit) for income taxes | $ | 17,373 | $ | (8,812 | ) | $ | 604 | |||||||||
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 January 31, 2014, 2013 and 2012 are as follows (in thousands): | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Beginning balance | $ | 3,602 | $ | 3,216 | $ | 4,835 | ||||||||||
Additions for tax positions of prior years | 959 | 475 | 901 | |||||||||||||
Lapse of statute of limitations | (1,214 | ) | (98 | ) | (2,491 | ) | ||||||||||
Settlements | (605 | ) | (51 | ) | — | |||||||||||
Tax rate changes | — | — | (30 | ) | ||||||||||||
Foreign currency exchange fluctuations | -2 | 60 | 1 | |||||||||||||
Ending balance | $ | 2,740 | $ | 3,602 | $ | 3,216 | ||||||||||
Leases_Tables
Leases (Tables) | 12 Months Ended | |||
Jan. 31, 2014 | ||||
Schedule of minimum annual rentals under no cancelable operating leases | ' | |||
Minimum annual rentals under noncancelable operating leases as of January 31, 2014, which do not include real estate taxes and operating costs, are as follows (in thousands): | ||||
Fiscal Year Ending January 31, | ||||
2015 | $ | 10,659 | ||
2016 | 10,397 | |||
2017 | 8,899 | |||
2018 | 6,804 | |||
2019 | 4,242 | |||
Thereafter | 4,593 | |||
$ | 45,594 | |||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||||||
Schedule of Transactions for Stock Options Under Plan | ' | ||||||||||||||||||||
Transactions for stock options under the Plan since fiscal 2011 are summarized as follows: | |||||||||||||||||||||
Outstanding | Weighted- | ||||||||||||||||||||
Options | Average | ||||||||||||||||||||
Exercise Price | |||||||||||||||||||||
January 31, 2011 | 1,128,263 | $ | 18.42 | ||||||||||||||||||
Options exercised | (143,961 | ) | $ | 12.11 | |||||||||||||||||
Options cancelled | (289,320 | ) | $ | 18.43 | |||||||||||||||||
January 31, 2012 | 694,982 | $ | 19.55 | ||||||||||||||||||
Options granted | 258,600 | $ | 26.59 | ||||||||||||||||||
Options exercised | (392,093 | ) | $ | 16.88 | |||||||||||||||||
January 31, 2013 | 561,489 | $ | 24.67 | ||||||||||||||||||
Options granted | 106,440 | $ | 30.34 | ||||||||||||||||||
Options exercised | (52,023 | ) | $ | 17.54 | |||||||||||||||||
Options cancelled | -16,500 | $ | 26.59 | ||||||||||||||||||
January 31, 2014 | 599,406 | $ | 26.24 | ||||||||||||||||||
Schedule of Outstanding and Exercisable Stock Options | ' | ||||||||||||||||||||
The following table summarizes outstanding and exercisable stock options as of January 31, 2014: | |||||||||||||||||||||
Range of Exercise Prices | Number | Weighted- | Weighted- | Number | Weighted- | ||||||||||||||||
Outstanding | Average | Average | Exercisable | Average | |||||||||||||||||
Remaining | Exercise Price | Exercise Price | |||||||||||||||||||
Contractual | |||||||||||||||||||||
Life (years) | |||||||||||||||||||||
$12.03 - $15.02 | 6,500 | 0.6 | $ | 14.6 | 6,500 | $ | 14.6 | ||||||||||||||
$15.03 - $18.02 | 8,066 | 0.6 | $ | 16.84 | 8,066 | $ | 16.84 | ||||||||||||||
$18.03 - $21.02 | 56,050 | 2.1 | $ | 18.74 | 56,050 | $ | 18.74 | ||||||||||||||
$21.03 - $24.02 | 108,750 | 4.2 | $ | 22.27 | 108,750 | $ | 22.27 | ||||||||||||||
$24.03 - $27.02 | 242,100 | 8.2 | $ | 26.59 | - | $ | - | ||||||||||||||
$27.03 - $32.92 | 177,940 | 6.8 | $ | 31.38 | 71,500 | $ | 32.92 | ||||||||||||||
599,406 | 5 | $ | 26.24 | 250,866 | $ | 24.14 | |||||||||||||||
Schedule of Transactions for Restricted Stock Units Under Plan | ' | ||||||||||||||||||||
Transactions for stock award units under the Plan since fiscal 2011 are summarized as follows: | |||||||||||||||||||||
Number of | Weighted- | ||||||||||||||||||||
Average Grant | |||||||||||||||||||||
Stock Award | Date Fair Value | ||||||||||||||||||||
Units | |||||||||||||||||||||
January 31, 2011 | 245,238 | $ | 13.23 | ||||||||||||||||||
Units granted | 135,612 | $ | 16.55 | ||||||||||||||||||
Units vested | (67,074 | ) | $ | 15.86 | |||||||||||||||||
Units forfeited | (16,507 | ) | $ | 13.77 | |||||||||||||||||
January 31, 2012 | 297,269 | $ | 14.12 | ||||||||||||||||||
Units granted | 85,765 | $ | 26.59 | ||||||||||||||||||
Units vested | (30,445 | ) | $ | 15.37 | |||||||||||||||||
Units forfeited | (9,208 | ) | $ | 15.12 | |||||||||||||||||
January 31, 2013 | 343,381 | $ | 17.1 | ||||||||||||||||||
Units granted | 140,922 | $ | 31.33 | ||||||||||||||||||
Units vested | (147,552 | ) | $ | 14.55 | |||||||||||||||||
Units forfeited | (33,581 | ) | $ | 18.17 | |||||||||||||||||
January 31, 2014 | 303,170 | $ | 24.84 | ||||||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | ||||||||||||||
Jan. 31, 2014 | |||||||||||||||
Schedule of Components of Accumulated Other Comprehensive Income | ' | ||||||||||||||
The components of accumulated other comprehensive income at January 31, consisted of the following (in thousands): | |||||||||||||||
Currency Translation | Net Unrealized Gain | Net Unrealized Income | Accumulated Other | ||||||||||||
Adjustments | on Investments | On Hedging Contracts | Comprehensive | ||||||||||||
Income | |||||||||||||||
Balance, January 31, 2013 | $ | 102,220 | $ | 50 | $ | 1 | $ | 102,271 | |||||||
Other comprehensive income before reclassifications | 1,135 | 213 | - | 1,348 | |||||||||||
Amounts reclassified from accumulated other comprehensive income | 83 | - | - | 83 | |||||||||||
Net current-period other comprehensive income | 1,218 | 213 | - | 1,431 | |||||||||||
As of January 31, 2014 | $ | 103,438 | $ | 263 | $ | 1 | $ | 103,702 | |||||||
Currency Translation | Net Unrealized | Net Unrealized (Loss) / Income | Accumulated Other | ||||||||||||
Adjustments | On Hedging Contracts | Comprehensive | |||||||||||||
Gain | |||||||||||||||
on Investments | Income | ||||||||||||||
Balance, January 31, 2012 | $ | 98,842 | $ | 69 | $ | (989 | ) | $ | 97,922 | ||||||
Other comprehensive income / (loss) before reclassifications | 3,378 | -19 | 990 | 4,349 | |||||||||||
Amounts reclassified from accumulated other comprehensive income | - | - | - | - | |||||||||||
Net current-period other comprehensive income / (loss) | 3,378 | -19 | 990 | 4,349 | |||||||||||
As of January 31, 2013 | $ | 102,220 | $ | 50 | $ | 1 | $ | 102,271 | |||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||||||||||||||||
Jan. 31, 2014 | ||||||||||||||||||||||||
Operating Segment Data | ' | |||||||||||||||||||||||
Operating Segment Data as of and for the Fiscal Year Ended January 31, (in thousands): | ||||||||||||||||||||||||
Net Sales (1) (2) (3) (8) | Operating Income (Loss) | |||||||||||||||||||||||
(2) (3) (4) (5) (6) (7) | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Wholesale | $ | 510,990 | $ | 449,289 | $ | 412,825 | $ | 55,241 | $ | 38,045 | $ | 24,668 | ||||||||||||
Retail | 59,265 | 56,189 | 55,292 | 12,501 | 11,301 | 8,895 | ||||||||||||||||||
Consolidated total | $ | 570,255 | $ | 505,478 | $ | 468,117 | $ | 67,742 | $ | 49,346 | $ | 33,563 | ||||||||||||
Total Assets | Capital Expenditures | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Wholesale | $ | 558,266 | $ | 507,672 | $ | 15,280 | $ | 13,348 | $ | 7,444 | ||||||||||||||
Retail | 20,344 | 18,690 | 1,427 | 2,630 | 726 | |||||||||||||||||||
Consolidated total | $ | 578,610 | $ | 526,362 | $ | 16,707 | $ | 15,978 | $ | 8,170 | ||||||||||||||
Depreciation and Amortization | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Wholesale | $ | 10,965 | $ | 9,513 | $ | 10,148 | ||||||||||||||||||
Retail | 1,268 | 1,095 | 1,260 | |||||||||||||||||||||
Consolidated total | $ | 12,233 | $ | 10,608 | $ | 11,408 | ||||||||||||||||||
Geographic Segment Data | ' | |||||||||||||||||||||||
Geographic Location Data as of and for the Fiscal Year Ended January 31, (in thousands): | ||||||||||||||||||||||||
Net Sales (1) (2) (3) (8) | Operating Income (Loss) | |||||||||||||||||||||||
(2) (3) (4) (5) (6) (7) | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
United States | $ | 303,095 | $ | 263,551 | $ | 234,991 | $ | 11,036 | $ | 2,171 | $ | (6,069 | ) | |||||||||||
International | 267,160 | 241,927 | 233,126 | 56,706 | 47,175 | 39,632 | ||||||||||||||||||
Consolidated total | $ | 570,255 | $ | 505,478 | $ | 468,117 | $ | 67,742 | $ | 49,346 | $ | 33,563 | ||||||||||||
Total Assets | Long-Lived Assets | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
United States | $ | 239,890 | $ | 208,273 | $ | 25,943 | $ | 26,682 | ||||||||||||||||
International | 338,720 | 318,089 | 21,853 | 17,819 | ||||||||||||||||||||
Consolidated total | $ | 578,610 | $ | 526,362 | $ | 47,796 | $ | 44,501 | ||||||||||||||||
-1 | Fiscal 2014 Wholesale and United States net sales included a $7.8 million sales reserve, for anticipated returns resulted from the Company’s decision to reduce the presence of ESQ Movado while expanding the Movado brand offering in certain retail doors. | |||||||||||||||||||||||
-2 | Fiscal 2013 Wholesale, United States and International net sales included a sales allowance of $4.9 million, $3.1 million and $1.8 million, respectively, related to the repositioning of the Coach watch brand. | |||||||||||||||||||||||
-3 | Fiscal 2012 Wholesale and International net sales included a $3.0 million sale of certain proprietary watch movements. | |||||||||||||||||||||||
-4 | Fiscal 2014 Wholesale and United States operating income included a charge of $8.3 million related to its strategy to reduce the presence of ESQ Movado while expanding the Movado brand offering in certain retail doors. The $8.3 million charge consists of anticipated sales returns from select customers, inventory reserves and writes down of excess displays and point of sale materials related to this strategy. | |||||||||||||||||||||||
-5 | Fiscal 2014 Wholesale and United States operating income included a $2.0 million donation to the Movado Group Foundation. | |||||||||||||||||||||||
-6 | Fiscal 2014 Wholesale and United States operating income included $2.5 million duty refund received relating to payments made by the Company in calendar years 2008 through 2011 for drawback claims filed with U.S. Customs & Border Protection. | |||||||||||||||||||||||
-7 | Fiscal 2013 and 2012 Wholesale and United States operating income (loss) included a $3.0 million donation to the Movado Group Foundation. | |||||||||||||||||||||||
-8 | The United States and International net sales are net of intercompany sales of $338.6 million, $269.3 million and $223.3 million for the years ended January 31, 2014, 2013 and 2012, respectively. |
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Jan. 31, 2014 | ||||||||||||||||
Schedule of Unaudited Selected Interim Operating Results | ' | |||||||||||||||
The following table presents unaudited selected interim operating results of the Company for fiscal 2014 and 2013 (in thousands, except per share amounts): | ||||||||||||||||
Quarter | ||||||||||||||||
1st | 2nd | 3rd | 4th | |||||||||||||
Fiscal 2014 | ||||||||||||||||
Net sales (1) | $ | 110,010 | $ | 138,301 | $ | 189,685 | $ | 132,259 | ||||||||
Gross profit (3) | $ | 59,919 | $ | 74,818 | $ | 101,270 | $ | 69,254 | ||||||||
Income before income taxes (3)(4)(6) | $ | 11,489 | $ | 16,941 | $ | 33,984 | $ | 6,504 | ||||||||
Net income (3)(4)(6)(7) | $ | 8,179 | $ | 12,654 | $ | 23,414 | $ | 7,297 | ||||||||
Net income attributed to Movado Group, Inc. (3)(4)(6)(7) | $ | 8,210 | $ | 12,454 | $ | 23,019 | $ | 7,193 | ||||||||
Basic income per share: | ||||||||||||||||
Net income attributed to Movado Group, Inc. | $ | 0.32 | $ | 0.49 | $ | 0.9 | $ | 0.28 | ||||||||
Diluted income per share: | ||||||||||||||||
Net income attributed to Movado Group, Inc. | $ | 0.32 | $ | 0.48 | $ | 0.89 | $ | 0.28 | ||||||||
Fiscal 2013 | ||||||||||||||||
Net sales (2) | $ | 103,655 | $ | 118,027 | $ | 160,202 | $ | 123,594 | ||||||||
Gross profit (2) | $ | 59,025 | $ | 65,758 | $ | 90,419 | $ | 62,680 | ||||||||
Income before income taxes (2)(5) | $ | 8,359 | $ | 10,678 | $ | 24,987 | $ | 5,032 | ||||||||
Net income (2)(5)(8)(9) | $ | 6,761 | $ | 8,154 | $ | 34,853 | $ | 8,100 | ||||||||
Net income attributed to Movado Group, Inc. (2)(5)(8)(9) | $ | 6,633 | $ | 8,058 | $ | 34,473 | $ | 7,919 | ||||||||
Basic income per share: | ||||||||||||||||
Net income attributed to Movado Group, Inc. | $ | 0.26 | $ | 0.32 | $ | 1.36 | $ | 0.31 | ||||||||
Diluted income per share: | ||||||||||||||||
Net income attributed to Movado Group, Inc. | $ | 0.26 | $ | 0.32 | $ | 1.34 | $ | 0.31 | ||||||||
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. | ||||||||||||||||
-1 | Net sales in the fourth quarter of fiscal 2014 includes a pre-tax charge of $7.8 million for anticipated returns in fiscal 2015, as a result of the Company’s decision to reduce the presence of ESQ Movado while expanding the Movado brand offering in certain retail doors. | |||||||||||||||
-2 | Net sales in the fourth quarter of fiscal 2013 includes a sales allowance of $4.9 million related to the repositioning of the Coach watch brand. | |||||||||||||||
-3 | Gross profit in the fourth quarter of fiscal 2014 includes a $2.5 million pre-tax duty refund received relating to payments made by the Company in calendar years 2008 through 2011 for drawback claims filed with U.S. Customs and Border Protection and a $7.5 million pre-tax charge related to the anticipated ESQ Movado product returns and the write down of ESQ Movado excess inventory. This charge resulted from the Company’s decision to reduce the presence of ESQ Movado while expanding the Movado brand offering in certain retail doors. | |||||||||||||||
-4 | Income before income taxes in the fourth quarter of fiscal 2014 includes a $2.0 million donation to the Movado Group Foundation recorded in SG&A expenses and a $0.8 million pre-tax charge to SG&A expenses, related to the write down of excess displays and point of sale materials, as a result of the Company’s decision to reduce the presence of ESQ Movado while expanding the Movado brand offering in certain retail doors. | |||||||||||||||
-5 | Income before income taxes in the third quarter of fiscal 2013 includes a $3.0 million donation to the Movado Group Foundation recorded in SG&A expenses. | |||||||||||||||
-6 | Income before income taxes in the first quarter of fiscal 2014 consists of a pre-tax gain of $1.5 million recorded in other income, related to the sale of a building. | |||||||||||||||
-7 | Net income in the second quarter of 2014 includes a benefit of $1.0 million related to U.S. and foreign tax settlements and the release of uncertain tax positions. | |||||||||||||||
-8 | Net income in the third quarter of fiscal 2013 includes a tax benefit of $19.4 million attributable to the reversal of a majority of the U.S. valuation allowance. | |||||||||||||||
-9 | Net income in the fourth quarter of fiscal 2013 includes a tax benefit of $0.8 million attributable to the reversal of a valuation allowance on the U.S. net deferred tax assets and includes the net tax benefit related to foreign business restructurings in Japan and the UK. |
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 12 Months Ended | |||||||||||
Jan. 31, 2014 | ||||||||||||
Schedule of Supplemental Information to Consolidated Statements of Cash Flows | ' | |||||||||||
The following is provided as supplemental information to the consolidated statements of cash flows (in thousands): | ||||||||||||
Fiscal Year Ended January 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Cash paid during the year for: | ||||||||||||
Interest | $ | 282 | $ | 212 | $ | 353 | ||||||
Income taxes paid / (received) (1) | $ | 8,013 | $ | 6,520 | $ | 5,190 | ||||||
-1 | Fiscal 2014, 2013 and 2012 income taxes paid / (received) includes payments of $8.1 million, $6.8 million and $5.6 million taxes paid, respectively. |
Net_Income_Attributable_to_Mov1
Net Income Attributable to Movado Group, Inc. and Transfers to Noncontrolling Interest (Tables) | 12 Months Ended | |||||||||||
Jan. 31, 2014 | ||||||||||||
Net Income Attributable to Movado Group, Inc. and Transfers to Noncontrolling Interest | ' | |||||||||||
For Fiscal Year Ended January 31, | ||||||||||||
(in thousands) | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net income attributable to Movado Group, Inc. | $ | 50,877 | $ | 57,083 | $ | 31,995 | ||||||
Transfers to the noncontrolling interest | ||||||||||||
Decrease in Movado Group, Inc.’s paid in capital for purchase of 39% of MGS common shares | - | (3,362 | ) | — | ||||||||
Net transfers to noncontrolling interest | - | (3,362 | ) | — | ||||||||
Change from net income attributable to Movado Group, Inc. and transfers to noncontrolling interest | $ | 50,877 | $ | 53,721 | $ | 31,995 | ||||||
Significant_Accounting_Policie3
Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 |
Schedule of warranty liability | ' | ' | ' |
Balance, beginning of year | $2,584 | $2,309 | $2,149 |
Provision charged to operations | 2,660 | 2,584 | 2,309 |
Settlements made | -2,584 | -2,309 | -2,149 |
Balance, end of year | $2,660 | $2,584 | $2,309 |
Significant_Accounting_Policie4
Significant Accounting Policies (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | ||||
Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | |
Brands | ||||||
Significant Accounting Policies (Textual) [Abstract] | ' | ' | ' | ' | ' | ' |
Number of brand the company marketed | ' | ' | ' | 10 | ' | ' |
Accumulated other comprehensive income | $103,400,000 | $102,200,000 | ' | $103,400,000 | $102,200,000 | ' |
Maturity date | ' | ' | ' | '3 months | ' | ' |
Accounts receivable, net of doubtful accounts, returns and allowances | 23,100,000 | 20,000,000 | 18,700,000 | 23,100,000 | 20,000,000 | 18,700,000 |
Return reserves | ' | ' | ' | 4,900,000 | ' | ' |
Priced charge | ' | 4,900,000 | ' | ' | 4,900,000 | ' |
Inventory reserve related to write-down of inventories | 2,600,000 | ' | ' | 5,586,000 | 2,621,000 | 1,772,000 |
Pre tax charge to sale of anticipated returns | 7,800,000 | ' | ' | ' | ' | ' |
Donation expense | ' | ' | ' | 2,000,000 | 3,000,000 | 3,000,000 |
Pre tax charge related to write down of excess displays and point of sales materials | 800,000 | ' | ' | 800,000 | ' | ' |
Marketing expenses | ' | ' | ' | 74,400,000 | 68,200,000 | 64,200,000 |
Prepaid advertising cost included in other current asset | 900,000 | 800,000 | ' | 900,000 | 800,000 | ' |
Weighted basic average shares outstanding | ' | ' | ' | 25,506,000 | 25,267,000 | 24,926,000 |
Weighted diluted average shares outstanding | ' | ' | ' | 25,849,000 | 25,664,000 | 25,141,000 |
Increase in number of shares outstanding for diluted earnings per share | ' | ' | ' | 343,000 | 397,000 | 215,000 |
Dilutive common stock equivalents were excluded from the computation of dilutive earnings per share | ' | ' | ' | 85,000 | 276,000 | 593,000 |
Pre-tax charge | 7,500,000 | ' | ' | ' | ' | ' |
Net pre tax refund | 2,500,000 | ' | ' | 2,500,000 | ' | ' |
Net pre-tax profit related to sale of mechanical movement | ' | ' | 2,300,000 | ' | ' | ' |
Shipping and handling customers charges | ' | ' | ' | 2,600,000 | 2,500,000 | 2,100,000 |
Shipping, handling and transportation costs | ' | ' | ' | 6,600,000 | 5,900,000 | 5,700,000 |
Intangible assets at cost | 13,000,000 | 12,700,000 | ' | 13,000,000 | 12,700,000 | ' |
Accumulated amortization of intangibles | 11,600,000 | 11,200,000 | ' | 11,600,000 | 11,200,000 | ' |
Amortization expense | ' | ' | ' | $400,000 | $500,000 | $600,000 |
Tommy Hilfiger Watches | ' | ' | ' | ' | ' | ' |
Significant Accounting Policies (Textual) [Abstract] | ' | ' | ' | ' | ' | ' |
Warranty period | ' | ' | ' | '10 years | ' | ' |
Movado Watch Cases And Bracelets | ' | ' | ' | ' | ' | ' |
Significant Accounting Policies (Textual) [Abstract] | ' | ' | ' | ' | ' | ' |
Warranty period | ' | ' | ' | '5 years | ' | ' |
Minimum | ' | ' | ' | ' | ' | ' |
Significant Accounting Policies (Textual) [Abstract] | ' | ' | ' | ' | ' | ' |
Warranty period | ' | ' | ' | '2 years | ' | ' |
Maximum | ' | ' | ' | ' | ' | ' |
Significant Accounting Policies (Textual) [Abstract] | ' | ' | ' | ' | ' | ' |
Warranty period | ' | ' | ' | '3 years | ' | ' |
Building | ' | ' | ' | ' | ' | ' |
Significant Accounting Policies (Textual) [Abstract] | ' | ' | ' | ' | ' | ' |
Economic life of computer software products | ' | ' | ' | '40 years | ' | ' |
Furniture and Fixtures | Minimum | ' | ' | ' | ' | ' | ' |
Significant Accounting Policies (Textual) [Abstract] | ' | ' | ' | ' | ' | ' |
Economic life of computer software products | ' | ' | ' | '4 years | ' | ' |
Furniture and Fixtures | Maximum | ' | ' | ' | ' | ' | ' |
Significant Accounting Policies (Textual) [Abstract] | ' | ' | ' | ' | ' | ' |
Economic life of computer software products | ' | ' | ' | '10 years | ' | ' |
Computer software | Minimum | ' | ' | ' | ' | ' | ' |
Significant Accounting Policies (Textual) [Abstract] | ' | ' | ' | ' | ' | ' |
Economic life of computer software products | ' | ' | ' | '5 years | ' | ' |
Computer software | Maximum | ' | ' | ' | ' | ' | ' |
Significant Accounting Policies (Textual) [Abstract] | ' | ' | ' | ' | ' | ' |
Economic life of computer software products | ' | ' | ' | '10 years | ' | ' |
Design Fees and Tooling Cost | ' | ' | ' | ' | ' | ' |
Significant Accounting Policies (Textual) [Abstract] | ' | ' | ' | ' | ' | ' |
Economic life of computer software products | ' | ' | ' | '3 years | ' | ' |
Trademarks | ' | ' | ' | ' | ' | ' |
Significant Accounting Policies (Textual) [Abstract] | ' | ' | ' | ' | ' | ' |
Economic life of computer software products | ' | ' | ' | '10 years | ' | ' |
Capitalized Software Cost | Minimum | ' | ' | ' | ' | ' | ' |
Significant Accounting Policies (Textual) [Abstract] | ' | ' | ' | ' | ' | ' |
Economic life of computer software products | ' | ' | ' | '5 years | ' | ' |
Capitalized Software Cost | Maximum | ' | ' | ' | ' | ' | ' |
Significant Accounting Policies (Textual) [Abstract] | ' | ' | ' | ' | ' | ' |
Economic life of computer software products | ' | ' | ' | '7 years | ' | ' |
Inventories_Details
Inventories (Details) (USD $) | Jan. 31, 2014 | Jan. 31, 2013 |
In Thousands, unless otherwise specified | ||
Components of Inventories | ' | ' |
Finished goods | $118,308 | $104,732 |
Component parts | 55,138 | 53,061 |
Work-in-process | 7,859 | 9,463 |
Inventory Total | $181,305 | $167,256 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details) (USD $) | Jan. 31, 2014 | Jan. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of property, plant and equipment | ' | ' |
Property, plant and equipment, gross | $124,375 | $129,196 |
Less: accumulated depreciation | 76,579 | 84,695 |
Property, plant and equipment, net | 47,796 | 44,501 |
Land and buildings | ' | ' |
Schedule of property, plant and equipment | ' | ' |
Property, plant and equipment, gross | 1,682 | 1,676 |
Furniture and Fixtures | ' | ' |
Schedule of property, plant and equipment | ' | ' |
Property, plant and equipment, gross | 62,028 | 56,153 |
Computer software | ' | ' |
Schedule of property, plant and equipment | ' | ' |
Property, plant and equipment, gross | 28,585 | 44,260 |
Leasehold improvements | ' | ' |
Schedule of property, plant and equipment | ' | ' |
Property, plant and equipment, gross | 28,898 | 24,365 |
Design Fees and Tooling Cost | ' | ' |
Schedule of property, plant and equipment | ' | ' |
Property, plant and equipment, gross | $3,182 | $2,742 |
Property_Plant_and_Equipment_D1
Property, Plant and Equipment (Details Textual) (USD $) | 12 Months Ended | ||
Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | |
Property Plant and Equipment (Textual) [Abstract] | ' | ' | ' |
Depreciation and amortization | $12,233,000 | $10,608,000 | $11,408,000 |
Amortization Expense | 400,000 | 500,000 | 600,000 |
Computer software | ' | ' | ' |
Property Plant and Equipment (Textual) [Abstract] | ' | ' | ' |
Amortization Expense | 3,800,000 | 3,200,000 | 3,100,000 |
Property, Plant and Equipment | ' | ' | ' |
Property Plant and Equipment (Textual) [Abstract] | ' | ' | ' |
Depreciation and amortization | $11,800,000 | $10,000,000 | $9,900,000 |
Debt_and_Lines_of_Credit_Detai
Debt and Lines of Credit (Details Textual) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Mar. 12, 2012 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Mar. 12, 2012 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2013 |
USD ($) | CHF | USD ($) | CHF | Maximum | Minimum | Loan Agreement | Loan Agreement | First Amendment | Second Amendment | Revolving Credit Facility | Revolving Credit Facility | LIBOR | Base Rate Loans | Line of Credit | Line of Credit | |
Subsidiary | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||||||||
Debt and Lines of Credit (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset based senior revolving credit facility | $25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $25 | ' | ' | ' | ' |
Letter of credit sub facility | ' | ' | ' | ' | ' | ' | ' | 15 | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50 | ' | ' | ' | ' | ' |
Fixed charge coverage ratio minimum | ' | ' | ' | ' | ' | ' | 125.00% | ' | ' | ' | 125.00% | ' | ' | ' | ' | ' |
Lenders' commitment under the Loan Agreement | ' | ' | ' | ' | 55 | 25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Applicable margin for LIBOR rate loans | ' | ' | ' | ' | ' | ' | ' | ' | 1.25% | 0.75% | ' | ' | 4.25% | ' | ' | ' |
Decreased or increased in applicable margin rates | ' | ' | ' | ' | 12.5 | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Applicable margins based on current availability for LIBOR rate loans at the end | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | 1.00% | ' | ' |
Availability under loan agreement | ' | ' | ' | ' | 10 | 10 | 12.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share repurchases made by the Borrowers | ' | ' | ' | ' | 150 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition made by the borrowers | ' | ' | ' | ' | 50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt and Lines of Credit (Additional Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility maturity date | 12-Mar-15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount blocked for specific purpose | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Domestic EBITDA | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset based senior revolving credit facility | 25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25 | ' | ' | ' | ' |
Maximum reduction in availability block | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total availability under facility | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding borrowing amount in letters of credit facility | 20.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 |
Application margin for base rate loan | 3.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Decreased or increased in applicable margin | 0.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Time period for imposing minimum fixed charge coverage ratio | '90 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Specified borrowing capacity | 12.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Time limit for imposing fixed charge | '45 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate amount of charitable donations permitted by the company | 14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash assets with the borrowers | 60 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Positive EBITDA | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lines of credit totaled at the end | 5.5 | 5 | 11 | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of subsidiary | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Guaranteed obligations to third parties | 1.5 | ' | 2.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Availability under loan agreement | ' | ' | ' | ' | $10 | $10 | $12.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) (Not Designated as Hedging Instrument, USD $) | Jan. 31, 2014 | Jan. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair value and presentation of derivatives | ' | ' |
Asset Derivatives | $403 | $876 |
Liability Derivatives | 173 | 2 |
Foreign Exchange Contract | Other Current Assets | ' | ' |
Fair value and presentation of derivatives | ' | ' |
Asset Derivatives | 403 | 876 |
Foreign Exchange Contract | Accrued Liabilities | ' | ' |
Fair value and presentation of derivatives | ' | ' |
Liability Derivatives | $173 | $2 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Details Textual) | 12 Months Ended | |||
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | Jan. 31, 2014 |
USD ($) | USD ($) | USD ($) | CHF | |
Derivative Financial Instruments (Textual) [Abstract] | ' | ' | ' | ' |
Net forward contracts hedging portfolio | ' | ' | ' | 48 |
Expiry dates ranging | 17-Jul-14 | ' | ' | ' |
Derivative financial instruments net losses | ' | ' | 1 | ' |
Length of time of the company hedges | '24 months | ' | ' | ' |
Net gains/losses on derivative financial instruments | 0 | 0 | ' | ' |
Tax portion of derivative financial instruments net losses | ' | ' | 1 | ' |
Net gains on derivative financial instruments | 0 | 0 | 0.9 | ' |
Gains on derivative financial instruments, net of tax | ' | ' | 0 | ' |
Charge related to its assessment derivative hedge portfolio | $0 | $0 | $0 | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Jan. 31, 2014 | Jan. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets: | ' | ' |
Short term investments | $33,099 | ' |
Fair Value, Measurements, Recurring | ' | ' |
Assets: | ' | ' |
Total | 56,049 | 19,581 |
Liabilities: | ' | ' |
Total | 21,027 | 17,639 |
Fair Value, Measurements, Recurring | Other Current Assets | ' | ' |
Assets: | ' | ' |
Available-for-sale securities | 576 | 285 |
Hedge derivatives | 403 | 876 |
Fair Value, Measurements, Recurring | Short-term investments | ' | ' |
Assets: | ' | ' |
Short term investments | 33,099 | ' |
Fair Value, Measurements, Recurring | Other non-current assets | ' | ' |
Assets: | ' | ' |
SERP assets - employer | 1,117 | 783 |
SERP assets - employee | 20,854 | 17,637 |
Fair Value, Measurements, Recurring | Other non-current liabilities | ' | ' |
Liabilities: | ' | ' |
SERP liabilities - employee | 20,854 | 17,637 |
Fair Value, Measurements, Recurring | Accrued Liabilities | ' | ' |
Liabilities: | ' | ' |
Hedge derivatives | 173 | 2 |
Fair Value, Measurements, Recurring | Level 1 | ' | ' |
Assets: | ' | ' |
Total | 55,646 | 18,705 |
Liabilities: | ' | ' |
Total | 20,854 | 17,637 |
Fair Value, Measurements, Recurring | Level 1 | Other Current Assets | ' | ' |
Assets: | ' | ' |
Available-for-sale securities | 576 | 285 |
Fair Value, Measurements, Recurring | Level 1 | Short-term investments | ' | ' |
Assets: | ' | ' |
Short term investments | 33,099 | ' |
Fair Value, Measurements, Recurring | Level 1 | Other non-current assets | ' | ' |
Assets: | ' | ' |
SERP assets - employer | 1,117 | 783 |
SERP assets - employee | 20,854 | 17,637 |
Fair Value, Measurements, Recurring | Level 1 | Other non-current liabilities | ' | ' |
Liabilities: | ' | ' |
SERP liabilities - employee | 20,854 | 17,637 |
Fair Value, Measurements, Recurring | Level 2 | ' | ' |
Assets: | ' | ' |
Total | 403 | 876 |
Liabilities: | ' | ' |
Total | 173 | 2 |
Fair Value, Measurements, Recurring | Level 2 | Other Current Assets | ' | ' |
Assets: | ' | ' |
Hedge derivatives | 403 | 876 |
Fair Value, Measurements, Recurring | Level 2 | Accrued Liabilities | ' | ' |
Liabilities: | ' | ' |
Hedge derivatives | $173 | $2 |
Income_Tax_Details
Income Tax (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Oct. 31, 2012 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 |
Current: | ' | ' | ' | ' | ' | ' |
U.S. Federal | ' | ' | ' | $7,296 | $2,365 | $382 |
U.S. State and Local | ' | ' | ' | 866 | 499 | 141 |
Non-U.S. | ' | ' | ' | 5,043 | 3,559 | 8,202 |
Total current | ' | ' | ' | 13,205 | 6,423 | 8,725 |
Noncurrent: | ' | ' | ' | ' | ' | ' |
U.S. Federal | ' | ' | ' | -1,640 | 56 | -1,396 |
Non-U.S. | ' | ' | ' | 988 | 498 | 851 |
Total non current | ' | ' | ' | -652 | 554 | -545 |
Deferred: | ' | ' | ' | ' | ' | ' |
U.S. Federal | ' | 1,400 | ' | 1,823 | -18,197 | ' |
U.S. State and Local | ' | ' | ' | -888 | -495 | ' |
Non-U.S. | ' | ' | ' | 3,885 | 2,903 | -7,576 |
Total deferred | 1,200 | 400 | 19,400 | 4,820 | -15,789 | -7,576 |
Provision / (benefit) for income taxes | ' | ' | ' | $17,373 | ($8,812) | $604 |
Income_Tax_Details_1
Income Tax (Details 1) (USD $) | Jan. 31, 2014 | Jan. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Taxes Assets | ' | ' |
Net operating loss carryforwards | $9,797 | $16,119 |
Inventory | 4,294 | 6,155 |
Unprocessed returns | 3,364 | 2,143 |
Receivables allowance | 1,254 | 1,256 |
Deferred compensation | 10,988 | 9,760 |
Foreign tax credits | ' | 4,204 |
Unrepatriated earnings | ' | ' |
Capital loss carryforwards | 1,292 | 1,464 |
Depreciation/amortization | 4,205 | 5,592 |
Other provisions/accruals | 2,788 | 2,567 |
Miscellaneous | 738 | 611 |
Total | 38,720 | 49,871 |
Valuation allowance | -7,798 | -11,491 |
Total deferred tax (assets) and liabilities | 30,922 | 38,380 |
Deferred Taxes Liabilities | ' | ' |
Net operating loss carryforwards, Liabilities | ' | ' |
Inventory, Liabilities | ' | ' |
Receivables allowance, Liabilities | 230 | 275 |
Deferred compensation, Liabilities | ' | ' |
Foreign tax credits, Liabilities | ' | ' |
Unrepatriated earnings, Liabilities | 2,724 | 2,724 |
Depreciation / amortization, Liabilities | 2,286 | 3,053 |
Other provisions / accruals, Liabilities | ' | ' |
Miscellaneous, Liabilities | ' | ' |
Total, Liabilities | 5,240 | 6,052 |
Total deferred tax assets and (liabilities) | $5,240 | $6,052 |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 |
Schedule of income taxes provision / (benefit) for continuing operations by applying U.S. federal statutory rate | ' | ' | ' |
Provision / (benefit) for income taxes at the U.S. statutory rate | $24,121 | $17,169 | $11,631 |
Lower effective foreign income tax rate | -6,950 | -6,006 | -4,952 |
Change in valuation allowance | -996 | -19,526 | -13,922 |
U.S. tax provided on earnings of foreign subsidiaries | 580 | 109 | 4,369 |
Change in liabilities for uncertain tax positions, net | -652 | 554 | -545 |
State and local taxes, net of federal benefit | 719 | 607 | 84 |
Foreign legal reorganizations | ' | -1,902 | ' |
Foreign tax settlement | ' | ' | 4,302 |
Other, net | 551 | 183 | -363 |
Provision / (benefit) for income taxes | $17,373 | ($8,812) | $604 |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 |
Schedule of reconciliation of beginning and ending amounts of gross unrecognized tax benefits | ' | ' | ' |
Beginning balance | $3,602 | $3,216 | $4,835 |
Additions for tax positions of prior years | 959 | 475 | 901 |
Lapse of statute of limitations | -1,214 | -98 | -2,491 |
Settlements | -605 | -51 | ' |
Tax rate changes | ' | ' | -30 |
Foreign currency exchange fluctuations | -2 | 60 | 1 |
Ending balance | $2,740 | $3,602 | $3,216 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Oct. 31, 2012 | Jan. 31, 2014 | Jan. 31, 2013 | Oct. 31, 2012 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | Jan. 31, 2010 | 31-May-09 | |
Income Taxes (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income before taxes for continuing U.S. operations | ' | ' | ' | ' | $26,600,000 | $11,700,000 | $2,800,000 | ' | ' |
Income before taxes for non-U.S. operations | ' | ' | ' | ' | 42,300,000 | 37,400,000 | 30,400,000 | ' | ' |
Provision has been made for federal income or withholding taxes | ' | 0 | ' | ' | 0 | ' | ' | ' | ' |
Undistributed retained earnings of foreign subsidiaries | ' | 213,700,000 | ' | ' | 213,700,000 | ' | ' | ' | ' |
Effective tax rate for continuing operations | ' | ' | ' | ' | 25.20% | 18.00% | 1.80% | ' | ' |
Tax loss carryback claim | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 |
Unrecognized tax benefits which would impact the Company's effective tax rate | ' | 2,600,000 | 3,000,000 | ' | 2,600,000 | 3,000,000 | 2,500,000 | ' | ' |
Accrued interest (net of tax benefit) related to unrecognized tax benefits | ' | 600,000 | 1,500,000 | ' | 600,000 | 1,500,000 | 1,300,000 | ' | ' |
Interest (net of tax benefit) | ' | ' | ' | ' | 100,000 | 200,000 | 300,000 | ' | ' |
Accrued liabilities | ' | ' | ' | ' | ' | ' | 4,300,000 | ' | ' |
Net tax benefit related to business reorganization | ' | ' | ' | ' | ' | 1,900,000 | ' | ' | ' |
Reversal Of Deferred Tax Assets Valuation Allowance | ' | ' | ' | ' | ' | ' | 10,300,000 | ' | ' |
Provision made for federal income tax | ' | ' | ' | ' | ' | ' | 2,300,000 | ' | ' |
Remittance of current year net earnings of subsidiary | ' | ' | ' | ' | ' | 10,300,000 | ' | ' | ' |
Percentage of earnings require by local subsidiaries | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' |
Cash repatriated | ' | ' | ' | ' | 0 | 0 | 0 | ' | ' |
Operating loss carryforwards | ' | 16,900,000 | ' | ' | 16,900,000 | ' | ' | ' | ' |
Valuation allowance of related deferred tax assets | ' | 7,798,000 | 11,491,000 | ' | 7,798,000 | 11,491,000 | ' | ' | ' |
Tax benefits | ' | ' | ' | ' | 900,000 | ' | ' | ' | ' |
Company's net U.S. deferred tax assets | ' | 30,922,000 | 38,380,000 | ' | 30,922,000 | 38,380,000 | ' | ' | ' |
Non cash deferred tax | ' | ' | ' | ' | ' | ' | ' | 21,400,000 | ' |
Non cash deferred tax benefit | ' | 1,200,000 | 400,000 | 19,400,000 | 4,820,000 | -15,789,000 | -7,576,000 | ' | ' |
Period of cumulative profit | '3 years | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred tax asset | ' | ' | 1,400,000 | ' | 1,823,000 | -18,197,000 | ' | ' | ' |
Minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Taxes (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expiration periods | ' | ' | ' | ' | '2 years | ' | ' | ' | ' |
Maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Taxes (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expiration periods | ' | ' | ' | ' | '20 years | ' | ' | ' | ' |
Foreign Tax Authority | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Taxes (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating loss carryforwards | ' | 34,600,000 | ' | ' | 34,600,000 | ' | ' | ' | ' |
Domestic Country | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Taxes (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Valuation allowance of related deferred tax assets | ' | 1,400,000 | ' | ' | 1,400,000 | ' | ' | ' | ' |
Company's net U.S. deferred tax assets | ' | 20,800,000 | ' | ' | 20,800,000 | ' | ' | ' | ' |
Switzerland | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Taxes (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of net income taken from subsidiaries | ' | ' | ' | ' | ' | ' | 75.00% | ' | ' |
Operating loss carryforwards | ' | 20,800,000 | ' | ' | 20,800,000 | ' | ' | ' | ' |
Hong Kong | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Taxes (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of net income taken from subsidiaries | ' | ' | ' | ' | ' | ' | 75.00% | ' | ' |
Segment Wise Geographical Groups Of Countries Group One | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Taxes (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating loss carryforwards | ' | 13,800,000 | ' | ' | 13,800,000 | ' | ' | ' | ' |
Other Foreign Subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Taxes (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Valuation allowance of related deferred tax assets | ' | $1,900,000 | ' | ' | $1,900,000 | ' | ' | ' | ' |
Leases_Details
Leases (Details) (USD $) | Jan. 31, 2014 |
In Thousands, unless otherwise specified | |
Minimum annual rentals under no cancelable operating leases | ' |
2015 | $10,659 |
2016 | 10,397 |
2017 | 8,899 |
2018 | 6,804 |
2019 | 4,242 |
Thereafter | 4,593 |
Total operating leases | $45,594 |
Leases_Details_Textual
Leases (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 |
Leases (Textual) [Abstract] | ' | ' | ' |
Rent expense from continuing operations | $13 | $13.50 | $12 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details Textual) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Commitments and Contingencies (Textual) [Abstract] | ' | ' |
Number of European banks guaranteed obligations to third parties | 2 | 2 |
Number of foreign subsidiaries under guaranteed obligation | 3 | 3 |
Obligations to third parties in various foreign currencies | $1.50 | $2.30 |
Amount of the company's minimum commitments related to its license agreements | 132.5 | ' |
Outstanding purchase obligations with suppliers | 60.3 | ' |
Dubai Bank | ' | ' |
Commitments and Contingencies (Textual) [Abstract] | ' | ' |
Obligations to third parties in various foreign currencies | ' | 0.1 |
Letter of Credit | ' | ' |
Loss Contingencies [Line Items] | ' | ' |
Outstanding letters of credit | $4.60 | $4.60 |
Expiration date of outstanding letter of credit | 3-Jun-14 | 30-Apr-14 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 12 Months Ended | ||
Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | |
Schedule of transactions for stock options under Plan | ' | ' | ' |
Outstanding Option Beginning Balance | 561,489 | 694,982 | 1,128,263 |
Options granted | 106,440 | 258,600 | ' |
Options exercised | -52,023 | -392,093 | -143,961 |
Options cancelled | -16,500 | ' | -289,320 |
Outstanding Option Ending Balance | 599,406 | 561,489 | 694,982 |
Weighted Average Exercise Price, Beginning Balance | $24.67 | $19.55 | $18.42 |
Options granted, Weighted Average Exercise Price | $30.34 | $26.59 | ' |
Options exercised, Weighted Average Exercise Price | $17.54 | $16.88 | $12.11 |
Options cancelled, Weighted Average Exercise Price | $26.59 | ' | $18.43 |
Weighted Average Exercise Price, Ending Balance | $26.24 | $24.67 | $19.55 |
StockBased_Compensation_Detail1
Stock-Based Compensation (Details 1) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2014 |
Schedule of outstanding and exercisable stock options | ' |
Number Outstanding | 599,406 |
Weighted Average Remaining Contractual Life (years) | '5 years |
Weighted Average Exercise Price | $26.24 |
Number Exercisable | 250,866 |
Weighted Average Exercise Price | $24.14 |
Range One | ' |
Schedule of outstanding and exercisable stock options | ' |
Minimum Range of Exercise Price | $12.03 |
Maximum Range of Exercise Price | $15.02 |
Number Outstanding | 6,500 |
Weighted Average Remaining Contractual Life (years) | '7 months 6 days |
Weighted Average Exercise Price | $14.60 |
Number Exercisable | 6,500 |
Weighted Average Exercise Price | $14.60 |
Range Two | ' |
Schedule of outstanding and exercisable stock options | ' |
Minimum Range of Exercise Price | $15.03 |
Maximum Range of Exercise Price | $18.02 |
Number Outstanding | 8,066 |
Weighted Average Remaining Contractual Life (years) | '7 months 6 days |
Weighted Average Exercise Price | $16.84 |
Number Exercisable | 8,066 |
Weighted Average Exercise Price | $16.84 |
Range Three | ' |
Schedule of outstanding and exercisable stock options | ' |
Minimum Range of Exercise Price | $18.03 |
Maximum Range of Exercise Price | $21.02 |
Number Outstanding | 56,050 |
Weighted Average Remaining Contractual Life (years) | '2 years 1 month 6 days |
Weighted Average Exercise Price | $18.74 |
Number Exercisable | 56,050 |
Weighted Average Exercise Price | $18.74 |
Range Four | ' |
Schedule of outstanding and exercisable stock options | ' |
Minimum Range of Exercise Price | $21.03 |
Maximum Range of Exercise Price | $24.02 |
Number Outstanding | 108,750 |
Weighted Average Remaining Contractual Life (years) | '4 years 2 months 12 days |
Weighted Average Exercise Price | $22.27 |
Number Exercisable | 108,750 |
Weighted Average Exercise Price | $22.27 |
Range Five | ' |
Schedule of outstanding and exercisable stock options | ' |
Minimum Range of Exercise Price | $24.03 |
Maximum Range of Exercise Price | $27.02 |
Number Outstanding | 242,100 |
Weighted Average Remaining Contractual Life (years) | '8 years 2 months 12 days |
Weighted Average Exercise Price | $26.59 |
Number Exercisable | ' |
Weighted Average Exercise Price | ' |
Range Six | ' |
Schedule of outstanding and exercisable stock options | ' |
Minimum Range of Exercise Price | $27.03 |
Maximum Range of Exercise Price | $32.92 |
Number Outstanding | 177,940 |
Weighted Average Remaining Contractual Life (years) | '6 years 9 months 18 days |
Weighted Average Exercise Price | $31.38 |
Number Exercisable | 71,500 |
Weighted Average Exercise Price | $32.92 |
StockBased_Compensation_Detail2
Stock-Based Compensation (Details 2) (Stock Award Units, USD $) | 12 Months Ended | ||
Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | |
Stock Award Units | ' | ' | ' |
Number of Stock Award Units | ' | ' | ' |
Stock Award Units, Beginning Balance | 343,381 | 297,269 | 245,238 |
Units granted | 140,922 | 85,765 | 135,612 |
Units vested | -147,552 | -30,445 | -67,074 |
Units forfeited | -33,581 | -9,208 | -16,507 |
Stock Award Units, Ending Balance | 303,170 | 343,381 | 297,269 |
Weighted Average Grant Date Fair Value | ' | ' | ' |
Weighted Average Grant Date Fair Value, Beginning Balance | $17.10 | $14.12 | $13.23 |
Units granted, Weighted Average Grant Date Fair Value | $31.33 | $26.59 | $16.55 |
Units vested, Weighted Average Grant Date Fair Value | $14.55 | $15.37 | $15.86 |
Units forfeited, Weighted Average Grant Date Fair Value | $18.17 | $15.12 | $13.77 |
Weighted Average Grant Date Fair Value Ending Balance | $24.84 | $17.10 | $14.12 |
StockBased_Compensation_Detail3
Stock-Based Compensation (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 |
Stock Based Compensation (Textual) [Abstract] | ' | ' | ' |
Number of common stock shares | 11,000,000 | ' | ' |
Expected term | '5 years | '5 years 2 months 12 days | ' |
Risk-free interest rate | 0.72% | 0.92% | ' |
Expected volatility | 62.12% | 61.50% | ' |
Dividend yield | 1.28% | 2.01% | ' |
Weighted-average grant date fair value of options granted | $14.40 | $12.03 | ' |
Stock option grants | 106,440 | 258,600 | ' |
Compensation expense | $0.80 | $0.40 | $0.10 |
Compensation expense, net of tax | 0.5 | 0.3 | 0 |
Unrecognized compensation cost related to unvested stock options | 2.4 | ' | ' |
Weighted-average period | '1 year 9 months 18 days | ' | ' |
Cash received for stock option exercises | 0.9 | ' | ' |
Realized tax benefit | 0.2 | ' | ' |
Intrinsic value of stock options exercised | 1.1 | 6.3 | 0.8 |
Fair value of the stock options vested | 0.1 | 0.1 | 0.3 |
Intrinsic value of outstanding stock options | 6.9 | 6.7 | 0.8 |
Intrinsic value of exercisable stock options | 3.4 | 4 | 0.8 |
Stock Award Units | ' | ' | ' |
Stock Based Compensation (Textual) [Abstract] | ' | ' | ' |
Compensation expense | 1.6 | 1.4 | 1.6 |
Compensation expense, net of tax | 0.9 | 0.8 | 0 |
Weighted-average period | '2 years | ' | ' |
Unrecognized compensation cost | 3.9 | ' | ' |
Intrinsic value of stock award units vested | 4.7 | 0.8 | 1 |
Realized tax benefits on the vested stock awards | 0.7 | ' | ' |
Weighted-average grant date fair values for stock awards | $31.33 | $26.59 | $16.55 |
Intrinsic value outstanding stock award units | $11.40 | $12.60 | $5.50 |
Stock Option | ' | ' | ' |
Stock Based Compensation (Textual) [Abstract] | ' | ' | ' |
Stock option grants | ' | ' | 0 |
Minimum | ' | ' | ' |
Stock Based Compensation (Textual) [Abstract] | ' | ' | ' |
Options granted to participants exercisable period | '3 years | ' | ' |
Minimum | Stock Award Units | ' | ' | ' |
Stock Based Compensation (Textual) [Abstract] | ' | ' | ' |
Stock awards vesting period | '3 years | ' | ' |
Maximum | ' | ' | ' |
Stock Based Compensation (Textual) [Abstract] | ' | ' | ' |
Options granted to participants exercisable period | '5 years | ' | ' |
Maximum | Stock Award Units | ' | ' | ' |
Stock Based Compensation (Textual) [Abstract] | ' | ' | ' |
Stock awards vesting period | '5 years | ' | ' |
Other_Employee_Benefit_Plans_D
Other Employee Benefit Plans (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 |
Other Employee Benefit Plans (Textual) [Abstract] | ' | ' | ' |
Contributions and expenses of administering the Employee benefit plans | $3.30 | $3.40 | $3.30 |
Matching contribution | '5 years | ' | ' |
Expense related to the SERP | $0.40 | $0.40 | $0.40 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Schedule of components of accumulated other comprehensive income | ' | ' |
Beginning Balance | $102,271 | $97,922 |
Other comprehensive income / (loss) before reclassifications | 1,348 | 4,349 |
Amounts reclassified from accumulated other comprehensive income | 83 | ' |
Net current-period other comprehensive income / (loss) | 1,431 | 4,349 |
Ending Balance | 103,702 | 102,271 |
Currency Translation Adjustments | ' | ' |
Schedule of components of accumulated other comprehensive income | ' | ' |
Beginning Balance | 102,220 | 98,842 |
Other comprehensive income / (loss) before reclassifications | 1,135 | 3,378 |
Amounts reclassified from accumulated other comprehensive income | 83 | ' |
Net current-period other comprehensive income / (loss) | 1,218 | 3,378 |
Ending Balance | 103,438 | 102,220 |
Net Unrealized Gain on Investments | ' | ' |
Schedule of components of accumulated other comprehensive income | ' | ' |
Beginning Balance | 50 | 69 |
Other comprehensive income / (loss) before reclassifications | 213 | -19 |
Amounts reclassified from accumulated other comprehensive income | ' | ' |
Net current-period other comprehensive income / (loss) | 213 | -19 |
Ending Balance | 263 | 50 |
Net Unrealized Income / (Loss) On Hedging Contracts | ' | ' |
Schedule of components of accumulated other comprehensive income | ' | ' |
Beginning Balance | 1 | -989 |
Other comprehensive income / (loss) before reclassifications | ' | 990 |
Amounts reclassified from accumulated other comprehensive income | ' | ' |
Net current-period other comprehensive income / (loss) | ' | 990 |
Ending Balance | $1 | $1 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2012 | Apr. 30, 2012 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | ||||||||
Operating segment data | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net Sales | $132,259 | [1] | $189,685 | [1] | $138,301 | [1] | $110,010 | [1] | $123,594 | [2] | $160,202 | [2] | $118,027 | [2] | $103,655 | [2] | $570,255 | $505,478 | $468,117 |
Operating Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 67,742 | 49,346 | 33,563 | ||||||||
Total Assets | 578,610 | ' | ' | ' | 526,362 | ' | ' | ' | 578,610 | 526,362 | ' | ||||||||
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 16,707 | 15,978 | 8,170 | ||||||||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 12,233 | 10,608 | 11,408 | ||||||||
Wholesale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Operating segment data | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 510,990 | 449,289 | 412,825 | ||||||||
Operating Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 55,241 | 38,045 | 24,668 | ||||||||
Total Assets | 558,266 | ' | ' | ' | 507,672 | ' | ' | ' | 558,266 | 507,672 | ' | ||||||||
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 15,280 | 13,348 | 7,444 | ||||||||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 10,965 | 9,513 | 10,148 | ||||||||
Retail | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Operating segment data | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 59,265 | 56,189 | 55,292 | ||||||||
Operating Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 12,501 | 11,301 | 8,895 | ||||||||
Total Assets | 20,344 | ' | ' | ' | 18,690 | ' | ' | ' | 20,344 | 18,690 | ' | ||||||||
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 1,427 | 2,630 | 726 | ||||||||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | $1,268 | $1,095 | $1,260 | ||||||||
[1] | Net sales in the fourth quarter of fiscal 2014 includes a pre-tax charge of $7.8 million for anticipated returns in fiscal 2015, as a result of the Companybs decision to reduce the presence of ESQ Movado while expanding the Movado brand offering in certain retail doors | ||||||||||||||||||
[2] | Net sales in the fourth quarter of fiscal 2013 includes a sales allowance of $4.9 million related to the repositioning of the Coach watch brand. |
Segment_Information_Details_1
Segment Information (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2012 | Apr. 30, 2012 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | ||||||||
Geographic segment data | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net sales | $132,259 | [1] | $189,685 | [1] | $138,301 | [1] | $110,010 | [1] | $123,594 | [2] | $160,202 | [2] | $118,027 | [2] | $103,655 | [2] | $570,255 | $505,478 | $468,117 |
Operating Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 67,742 | 49,346 | 33,563 | ||||||||
Total Assets | 578,610 | ' | ' | ' | 526,362 | ' | ' | ' | 578,610 | 526,362 | ' | ||||||||
Long-Lived Assets | 47,796 | ' | ' | ' | 44,501 | ' | ' | ' | 47,796 | 44,501 | ' | ||||||||
United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Geographic segment data | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 303,095 | 263,551 | 234,991 | ||||||||
Operating Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 11,036 | 2,171 | -6,069 | ||||||||
Total Assets | 239,890 | ' | ' | ' | 208,273 | ' | ' | ' | 239,890 | 208,273 | ' | ||||||||
Long-Lived Assets | 25,943 | ' | ' | ' | 26,682 | ' | ' | ' | 25,943 | 26,682 | ' | ||||||||
International | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Geographic segment data | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 267,160 | 241,927 | 233,126 | ||||||||
Operating Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 56,706 | 47,175 | 39,632 | ||||||||
Total Assets | 338,720 | ' | ' | ' | 318,089 | ' | ' | ' | 338,720 | 318,089 | ' | ||||||||
Long-Lived Assets | $21,853 | ' | ' | ' | $17,819 | ' | ' | ' | $21,853 | $17,819 | ' | ||||||||
[1] | Net sales in the fourth quarter of fiscal 2014 includes a pre-tax charge of $7.8 million for anticipated returns in fiscal 2015, as a result of the Companybs decision to reduce the presence of ESQ Movado while expanding the Movado brand offering in certain retail doors | ||||||||||||||||||
[2] | Net sales in the fourth quarter of fiscal 2013 includes a sales allowance of $4.9 million related to the repositioning of the Coach watch brand. |
Segment_Information_Details_Te
Segment Information (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Jan. 31, 2014 | Oct. 31, 2012 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 |
Segment | |||||
Location | |||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Number of operating segments | ' | ' | 2 | ' | ' |
Number of geographic locations | ' | ' | 2 | ' | ' |
Sales reserve for anticipated returns | ' | ' | $7.80 | ' | ' |
Sales allowance repositioning of the Coach brand | ' | ' | ' | 4.9 | ' |
Donation to Movado Group Foundation | 2 | 3 | ' | ' | ' |
Intercompany sales | ' | ' | 338.6 | 269.3 | 223.3 |
Wholesale | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Sales reserve for anticipated returns | ' | ' | 7.8 | ' | ' |
Sales allowance repositioning of the Coach brand | ' | ' | ' | 4.9 | ' |
Sale of proprietary watch movements | ' | ' | ' | ' | 3 |
Operating income anticipated sales returns | ' | ' | 8.3 | ' | ' |
Donation to Movado Group Foundation | ' | ' | 2 | 3 | 3 |
Duty refund receivables | ' | ' | 2.5 | ' | ' |
Europe | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
International Operations Contribution | ' | ' | 18.50% | 17.10% | 20.90% |
the Americas (excluding the United States) | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
International Operations Contribution | ' | ' | 12.40% | 12.00% | 10.00% |
Asia | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
International Operations Contribution | ' | ' | 8.10% | 9.40% | 9.90% |
Middle East | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
International Operations Contribution | ' | ' | 7.80% | 7.30% | 6.90% |
United States | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Sales reserve for anticipated returns | ' | ' | 7.8 | ' | ' |
Sales allowance repositioning of the Coach brand | ' | ' | ' | 3.1 | ' |
Operating income anticipated sales returns | ' | ' | 8.3 | ' | ' |
Donation to Movado Group Foundation | ' | ' | 2 | 3 | 3 |
Duty refund receivables | ' | ' | 2.5 | ' | ' |
International | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Sales allowance repositioning of the Coach brand | ' | ' | ' | 1.8 | ' |
Sale of proprietary watch movements | ' | ' | ' | ' | $3 |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2012 | Apr. 30, 2012 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | ||||||||
Unaudited selected interim operating results | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net sales | $132,259 | [1] | $189,685 | [1] | $138,301 | [1] | $110,010 | [1] | $123,594 | [2] | $160,202 | [2] | $118,027 | [2] | $103,655 | [2] | $570,255 | $505,478 | $468,117 |
Gross profit | 69,254 | [3] | 101,270 | [3] | 74,818 | [3] | 59,919 | [3] | 62,680 | [2] | 90,419 | [2] | 65,758 | [2] | 59,025 | [2] | 305,261 | 277,882 | 256,345 |
Income before income taxes | 6,504 | [3],[4],[5] | 33,984 | [3],[4],[5] | 16,941 | [3],[4],[5] | 11,489 | [3],[4],[5] | 5,032 | [2],[6] | 24,987 | [2],[6] | 10,678 | [2],[6] | 8,359 | [2],[6] | 68,918 | 49,056 | 33,232 |
Net income including noncontrolling interests | 7,297 | [3],[4],[5],[7] | 23,414 | [3],[4],[5],[7] | 12,654 | [3],[4],[5],[7] | 8,179 | [3],[4],[5],[7] | 8,100 | [2],[6],[8],[9] | 34,853 | [2],[6],[8],[9] | 8,154 | [2],[6],[8],[9] | 6,761 | [2],[6],[8],[9] | 51,545 | 57,868 | 32,628 |
Net income attributed to Movado Group, Inc. | $7,193 | [3],[4],[5],[7] | $23,019 | [3],[4],[5],[7] | $12,454 | [3],[4],[5],[7] | $8,210 | [3],[4],[5],[7] | $7,919 | [2],[6],[8],[9] | $34,473 | [2],[6],[8],[9] | $8,058 | [2],[6],[8],[9] | $6,633 | [2],[6],[8],[9] | $50,877 | $57,083 | $31,995 |
Basic income per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net income attributed to Movado Group, Inc. | $0.28 | $0.90 | $0.49 | $0.32 | $0.31 | $1.36 | $0.32 | $0.26 | $1.99 | $2.26 | $1.28 | ||||||||
Diluted income per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net income attributed to Movado Group, Inc. | $0.28 | $0.89 | $0.48 | $0.32 | $0.31 | $1.34 | $0.32 | $0.26 | $1.97 | $2.22 | $1.27 | ||||||||
[1] | Net sales in the fourth quarter of fiscal 2014 includes a pre-tax charge of $7.8 million for anticipated returns in fiscal 2015, as a result of the Companybs decision to reduce the presence of ESQ Movado while expanding the Movado brand offering in certain retail doors | ||||||||||||||||||
[2] | Net sales in the fourth quarter of fiscal 2013 includes a sales allowance of $4.9 million related to the repositioning of the Coach watch brand. | ||||||||||||||||||
[3] | Gross profit in the fourth quarter of fiscal 2014 includes a $2.5 million pre-tax duty refund received relating to payments made by the Company in calendar years 2008 through 2011 for drawback claims filed with U.S. Customs and Border Protection and a $7.5 million pre-tax charge related to the anticipated ESQ Movado product returns and the write down of ESQ Movado excess inventory. This charge resulted from the Companybs decision to reduce the presence of ESQ Movado while expanding the Movado brand offering in certain retail doors. | ||||||||||||||||||
[4] | Income before income taxes in the fourth quarter of fiscal 2014 includes a $2.0 million donation to the Movado Group Foundation recorded in SG&A expenses and a $0.8 million pre-tax charge to SG&A expenses, related to the write down of excess displays and point of sale materials, as a result of the Companybs decision to reduce the presence of ESQ Movado while expanding the Movado brand offering in certain retail doors | ||||||||||||||||||
[5] | Income before income taxes in the first quarter of fiscal 2014 consists of a pre-tax gain of $1.5 million recorded in other income, related to the sale of a building | ||||||||||||||||||
[6] | Income before income taxes in the third quarter of fiscal 2013 includes a $3.0 million donation to the Movado Group Foundation recorded in SG&A expenses. | ||||||||||||||||||
[7] | Net income in the second quarter of 2014 includes a benefit of $1.0 million related to U.S. and foreign tax settlements and the release of uncertain tax positions. | ||||||||||||||||||
[8] | Net income in the third quarter of fiscal 2013 includes a tax benefit of $19.4 million attributable to the reversal of a majority of the U.S. valuation allowance. | ||||||||||||||||||
[9] | Net income in the fourth quarter of fiscal 2013 includes a tax benefit of $0.8 million attributable to the reversal of a valuation allowance on the U.S. net deferred tax assets and includes the net tax benefit related to foreign business restructurings in Japan and the UK |
Quarterly_Financial_Data_Unaud3
Quarterly Financial Data (Unaudited) (Parenthetical) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||
Jan. 31, 2014 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | |
Pre tax charge to sale of anticipated returns | $7,800,000 | ' | ' | ' | ' | ' | ' | ' |
Priced charge | ' | ' | ' | 4,900,000 | ' | ' | 4,900,000 | ' |
Net pre tax refund | 2,500,000 | ' | ' | ' | ' | 2,500,000 | ' | ' |
Pre-tax charge | 7,500,000 | ' | ' | ' | ' | ' | ' | ' |
Donation to Movado Group Foundation | 2,000,000 | ' | ' | ' | 3,000,000 | ' | ' | ' |
Pre tax charge related to write down of excess displays and point of sales materials | 800,000 | ' | ' | ' | ' | 800,000 | ' | ' |
Other income, net (Note 16) | ' | ' | 1,500,000 | ' | ' | 1,526,000 | ' | 747,000 |
Change in valuation allowance | ' | ' | ' | 800,000 | 19,400,000 | ' | ' | ' |
Benefit related to U.S. and foreign favorable tax settlements and release of uncertain tax positions | ' | $1,000,000 | ' | ' | ' | ' | ' | ' |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 |
Cash paid during the year for: | ' | ' | ' |
Interest | $282 | $212 | $353 |
Income taxes paid / (received) | $8,013 | $6,520 | $5,190 |
Supplemental_Cash_Flow_Informa3
Supplemental Cash Flow Information (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 |
Supplemental Cash Flow Information (Textual) [Abstract] | ' | ' | ' |
Income taxes paid | $8.10 | $6.80 | $5.60 |
Other_Income_Details_Textual
Other Income (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | ||
Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2014 | Jan. 31, 2012 | |
Other Income (Textual) [Abstract] | ' | ' | ' | ' |
Pre-tax gain on the sale of a building | ' | $1,500,000 | $1,526,000 | $747,000 |
Proceeds from the sale of building | $1,200,000 | $2,200,000 | ' | ' |
Net_Income_Attributable_to_Mov2
Net Income Attributable to Movado Group, Inc. and Transfers to Noncontrolling Interest (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2012 | Apr. 30, 2012 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | ||||||||
Schedule of net income attributable to non controlling interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net income attributed to Movado Group, Inc. | $7,193 | [1],[2],[3],[4] | $23,019 | [1],[2],[3],[4] | $12,454 | [1],[2],[3],[4] | $8,210 | [1],[2],[3],[4] | $7,919 | [5],[6],[7],[8] | $34,473 | [5],[6],[7],[8] | $8,058 | [5],[6],[7],[8] | $6,633 | [5],[6],[7],[8] | $50,877 | $57,083 | $31,995 |
Transfers to the noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Decrease in Movado Group, Inc.bs paid in capital for purchase of 39% of MGS common shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3,362 | ' | ||||||||
Net transfers to noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3,362 | ' | ||||||||
Change from net income attributable to Movado Group, Inc. and transfers to noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | $50,877 | $53,721 | $31,995 | ||||||||
[1] | Gross profit in the fourth quarter of fiscal 2014 includes a $2.5 million pre-tax duty refund received relating to payments made by the Company in calendar years 2008 through 2011 for drawback claims filed with U.S. Customs and Border Protection and a $7.5 million pre-tax charge related to the anticipated ESQ Movado product returns and the write down of ESQ Movado excess inventory. This charge resulted from the Companybs decision to reduce the presence of ESQ Movado while expanding the Movado brand offering in certain retail doors. | ||||||||||||||||||
[2] | Income before income taxes in the fourth quarter of fiscal 2014 includes a $2.0 million donation to the Movado Group Foundation recorded in SG&A expenses and a $0.8 million pre-tax charge to SG&A expenses, related to the write down of excess displays and point of sale materials, as a result of the Companybs decision to reduce the presence of ESQ Movado while expanding the Movado brand offering in certain retail doors | ||||||||||||||||||
[3] | Income before income taxes in the first quarter of fiscal 2014 consists of a pre-tax gain of $1.5 million recorded in other income, related to the sale of a building | ||||||||||||||||||
[4] | Net income in the second quarter of 2014 includes a benefit of $1.0 million related to U.S. and foreign tax settlements and the release of uncertain tax positions. | ||||||||||||||||||
[5] | Net sales in the fourth quarter of fiscal 2013 includes a sales allowance of $4.9 million related to the repositioning of the Coach watch brand. | ||||||||||||||||||
[6] | Income before income taxes in the third quarter of fiscal 2013 includes a $3.0 million donation to the Movado Group Foundation recorded in SG&A expenses. | ||||||||||||||||||
[7] | Net income in the third quarter of fiscal 2013 includes a tax benefit of $19.4 million attributable to the reversal of a majority of the U.S. valuation allowance. | ||||||||||||||||||
[8] | Net income in the fourth quarter of fiscal 2013 includes a tax benefit of $0.8 million attributable to the reversal of a valuation allowance on the U.S. net deferred tax assets and includes the net tax benefit related to foreign business restructurings in Japan and the UK |
Net_Income_Attributable_to_Mov3
Net Income Attributable to Movado Group, Inc. and Transfers to Noncontrolling Interest (Details) (Parenthetical) | 12 Months Ended |
Jan. 31, 2014 | |
Schedule of net income attributable to non controlling interest | ' |
Percentage of common shares purchased | 39.00% |
Net_Income_Attributable_to_Mov4
Net Income Attributable to Movado Group, Inc. and Transfers to Noncontrolling Interest (Details Textual) | 12 Months Ended |
Jan. 31, 2014 | |
Schedule Of Equity Method Investments [Line Items] | ' |
Percentage of ownership controlled | 51.00% |
Net Income Attributable to Movado Group Inc. and Transfers to Noncontrolling Interest (Textual) [Abstract] | ' |
Percentage increase in ownership interest | 90.00% |
Co-venturer | ' |
Schedule Of Equity Method Investments [Line Items] | ' |
Percentage of ownership controlled | 49.00% |
Treasury_Stock_Details_Textual
Treasury Stock (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended |
Mar. 20, 2013 | Jan. 31, 2014 | |
Equity Class Of Treasury Stock [Line Items] | ' | ' |
Stock repurchase program, number of shares authorized | $50,000,000 | ' |
Stock repurchase program authorization expires date | ' | 31-Jan-16 |
Stock repurchase program, number of shares repurchased | ' | 272,533 |
Stock repurchase program, total cost of shares repurchased | ' | 10,488,000 |
Stock repurchase program, average per share price of shares repurchased | ' | $38.48 |
Movado Group Foundation | ' | ' |
Equity Class Of Treasury Stock [Line Items] | ' | ' |
Stock repurchase program, number of shares repurchased | ' | 27,000 |
Stock repurchase program, total cost of shares repurchased | ' | $1,100,000 |
Stock repurchase program, average per share price of shares repurchased | ' | $39.21 |
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 |
Valuation and qualifying accounts and reserves | ' | ' | ' |
Balance at beginning of year | $20,009 | $18,758 | $18,428 |
Net provision charged to operations | 21,258 | 28,469 | 21,754 |
Currency revaluation | -142 | 59 | ' |
Net write-offs | -18,025 | -27,277 | -21,424 |
Balance at end of year | 23,100 | 20,009 | 18,758 |
Adjustments | -3,492 | -20,990 | -14,440 |
Doubtful Accounts | ' | ' | ' |
Valuation and qualifying accounts and reserves | ' | ' | ' |
Balance at beginning of year | 4,356 | 7,741 | 8,494 |
Net provision charged to operations | 612 | ' | 847 |
Currency revaluation | -27 | 46 | 8 |
Net write-offs | -1,626 | -3,431 | -1,608 |
Balance at end of year | 3,315 | 4,356 | 7,741 |
Returns | ' | ' | ' |
Valuation and qualifying accounts and reserves | ' | ' | ' |
Balance at beginning of year | 7,448 | 8,353 | 7,960 |
Net provision charged to operations | 15,457 | 18,246 | 16,946 |
Currency revaluation | -63 | -15 | 8 |
Net write-offs | -6,519 | -19,136 | -16,561 |
Balance at end of year | 16,323 | 7,448 | 8,353 |
Other Sales Allowances | ' | ' | ' |
Valuation and qualifying accounts and reserves | ' | ' | ' |
Balance at beginning of year | 8,205 | 2,664 | 1,974 |
Net provision charged to operations | 5,189 | 10,223 | 3,961 |
Currency revaluation | -52 | 28 | -16 |
Net write-offs | -9,880 | -4,710 | -3,255 |
Balance at end of year | 3,462 | 8,205 | 2,664 |
Valuation Allowance of Deferred Tax Assets | ' | ' | ' |
Valuation and qualifying accounts and reserves | ' | ' | ' |
Balance at beginning of year | 11,491 | 32,856 | 46,929 |
Net provision charged to operations | ' | ' | ' |
Currency revaluation | -201 | -375 | 367 |
Balance at end of year | 7,798 | 11,491 | 32,856 |
Adjustments | ($3,492) | ($20,990) | ($14,440) |
Valuation_and_Qualifying_Accou2
Valuation and Qualifying Accounts (Parenthetical) (Details) (USD $) | 12 Months Ended | ||
Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | |
Valuation And Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Sales allowances | ' | $4,900,000 | ' |
Expired tax losses | ' | -208,000 | -329,000 |
Prior year adjustments and tax rate changes | 238,000 | -23,000 | -304,000 |
OCI Adjustments | ' | -942,000 | 332,000 |
Reversal due to merger / liquidations | -2,302,000 | ' | ' |
P&L adjustments | -1,428,000 | -19,817,000 | -14,139,000 |
Adjustments | -3,492,000 | -20,990,000 | -14,440,000 |
Sales reserve for anticipated returns | $7,800,000 | ' | ' |