PARAMUS, N.J., Dec. 15 /PRNewswire-FirstCall/ -- Movado Group, Inc.
(NYSE: MOV) announced that it intends to repatriate approximately $150 million
in undistributed foreign earnings under the provisions of the American Jobs
Creation Act (AJCA) of 2004. The Company anticipates repatriating
approximately $150 million depending upon year-end cash balances and the
exchange rate at the time of repatriation. Assuming the Company repatriates
$150 million, a one-time charge will be recorded in the fourth quarter ending
January 31, 2006 for the related tax expense, which is currently estimated to
be $8.0 million, or approximately $0.31 per diluted share. The repatriation
will consist of proceeds from existing off-shore year-end cash and proceeds
drawn from the Company's new Swiss credit facility.
The repatriation provision of the AJCA requires that funds be invested in
qualified investments in the United States. The investments include:
advertising and marketing expenditures, infrastructure and capital
investments, including retail store expansion and renovation, headquarters
expansion, information technology replacements and upgrades, employee hiring
and training, and compensation and benefits for non-executive employees.
Movado Group, Inc. designs, manufactures, and distributes Movado, Ebel,
Concord, ESQ, Coach, Tommy Hilfiger and Hugo Boss watches worldwide, and
operates Movado boutiques and company stores in the United States.
This press release contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. The Company
has tried, whenever possible, to identify these forward-looking statements
using words such as "expects," "anticipates," "believes," "targets," "goals,"
"projects," "intends," "plans," "seeks," "estimates," "projects," "may,"
"will," "should" and similar expressions. Similarly, statements in this press
release that describe the Company's business strategy, outlook, objectives,
plans, intentions or goals are also forward-looking statements. Accordingly,
such forward-looking statements involve known and unknown risks, uncertainties
and other factors that could cause the Company's actual results, performance
or achievements and levels of future dividends to differ materially from those
expressed in, or implied by, these statements. These risks and uncertainties
may include, but are not limited to: the Company's ability to successfully
introduce and sell new products, the Company's ability to successfully
integrate the operations of newly acquired and/or licensed brands without
disruption to its other business activities, changes in consumer demand for
the Company's products, risks relating to the retail industry, import
restrictions, competition, seasonality and the other factors discussed in the
Company's Annual Report on Form 10-K and other filings with the Securities and
Exchange Commission. These statements reflect the Company's current beliefs
and are based upon information currently available to it. Be advised that
developments subsequent to this press release are likely to cause these
statements to become outdated with the passage of time.
SOURCE Movado Group, Inc.
CONTACT: Suzanne Michalek, Director of Corporate Communications of
Movado Group, Inc., +1-201-267-8000;
or Melissa Myron/Rachel Albert, both of
Financial Dynamics, +1-212-850-5600, both for Movado Group, Inc.