Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Jeff Blaeser – Morgan Joseph
Jeff Blaeser – Morgan Joseph
Quick question on gross margins, I would estimate that the Movado line has probably one of the stronger gross margins and licenses lower due to the royalty costs, was product mix somewhat of a relative drag and if so were there other aspects that offset that with the strong year-over-year gross margin increase?
Richard Cote
As you know the gross margin for the quarter was slightly above 64% which reverses a comparable number of under 63% last year so good growth in the gross margin as a percent of sales but your comments are correct that obviously Movado is one of our stronger gross margin products and with the accessible luxury category being impacted, that margin was held back as a result of the mix impact. So therefore, it would have been a little bit stronger and part of that is benefited because of the strength of our licensed brands and the strength of the European business that we have.
Jeff Blaeser – Morgan Joseph
On the ERP system moving into Q1 of next year, will the cost move into that quarter as well or still in this fiscal year?
Richard Cote
As you know we have three components built into that 20%, $0.20 negative impact that we have. Obviously with ERP there will be some shift but we’ll talk to that later on in the year as we have a better handle around all three of those cost components and the impact they will have and we will disclose that once we have a better feel as to the total of those three components.
Operator
Your next question comes from the line of Kristine Koerber – JMP Securities
Kristine Koerber – JMP Securities
Looking at the international markets, was there strength across the board, I guess what I’m trying to figure out, were there any pockets of weakness or is international still holding up quite well?
Efraim Grinberg
We are seeing good resiliency internationally, although you are starting to see some pockets of weakness even in the first quarter a little bit in Spain which is probably the hardest hit market in Europe right now and there probably are some concerns in the UK as well. But we’ve seen fairly good strength across Europe but they also are getting higher energy costs now as well.
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