MOVADO GROUP INC

Previous wording

The following is a discussion of the results of operations for the three months ended April 30, 2024 compared to the three months ended April 30, 2023, along with a discussion of the changes in financial condition during the first three months of fiscal 2025. The Company’s results of operations for the first three months of fiscal 2025 should not be deemed indicative of the results that the Company will experience for the full year of fiscal 2025. See “Recent Developments and Initiatives” above. See also “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended January 31, 2024 filed with the Securities and Exchange Commission on March 26, 2024.

Current wording

Company’s results of operations for the first six months of fiscal 2025 should not be deemed indicative of the results that the Company will experience for the full year of fiscal 2025. See “Recent Developments and Initiatives” above. See also “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended January 31, 2024 filed with the Securities and Exchange Commission on March 26, 2024.

Previous wording

Net sales for the three months ended April 30, 2024 were $136.7 million, representing an $8.2 million or 5.7% decrease from the prior year period. This decrease is attributable to the Watch and Accessory Brands segment and the Company Stores segment. For the three months ended April 30, 2024, fluctuations in foreign currency exchange rates positively impacted net sales by $0.6 million when compared to the prior year period. Excluding this $0.6 million impact, net sales would have decreased by 6.1% as compared to the prior year period.

Current wording

Net sales for the three months ended July 31, 2024 were $159.3 million, representing a $1.1 million or 0.7% decrease from the prior year period. This decrease is attributable to the Company Stores segment and, to a lesser extent, the Watch and Accessory Brands segment. For the three months ended July 31, 2024, fluctuations in foreign currency exchange rates negatively impacted net sales by $0.6 million when compared to the prior year period. Excluding this $0.6 million impact, net sales would have decreased by 0.3% as compared to the prior year period.

Previous wording

Net sales for the three months ended April 30, 2024 in the Watch and Accessory Brands segment were $119.4 million, below the prior year period by $6.2 million, or 4.9%. The decrease in net sales was primarily due to decreased volumes resulting from lower demand in the Company's wholesale customers in both the United States and International locations, partially offset by an increase in online retail in the United States locations and the positive impact of fluctuations in foreign exchange rates.

Current wording

Net sales for the three months ended July 31, 2024 in the Watch and Accessory Brands segment were $133.9 million, below the prior year period by $0.2 million, or 0.1%. The decrease in net sales was primarily due to unfavorable sales mix in the Company's wholesale customers, mainly in the International locations, and the negative impact of fluctuations in foreign exchange rates, partially offset by an increase in online retail in the United States locations.

Previous wording

Net sales for the three months ended April 30, 2024 in the International locations of the Watch and Accessory Brands segment were $80.3 million, below the prior year by $4.5 million, or 5.3%, which included fluctuations in foreign currency exchange rates that positively impacted net sales by $0.6 million when compared to the prior year period. The decrease in net sales was across most brands in both the owned and licensed brand categories primarily due to decreased volumes resulting from lower demand in the Company's wholesale customers, partially offset by the positive impact of fluctuations in foreign currency exchange rates. The net sales decrease recorded in the owned brands category was $2.4 million, or 18.4%, due to net sales decreases across all regions. The net sales decrease in the licensed brands category was $4.0 million, or 5.6%, primarily due to net sales decreases in the Americas (excluding the United States) and Asia, partially offset by net sales increases in the Middle East and Europe.

Current wording

Net sales for the three months ended July 31, 2024 in the International locations of the Watch and Accessory Brands segment were $87.4 million, below the prior year by $0.8 million, or 0.9%, which included fluctuations in foreign currency exchange rates that negatively impacted net sales by $0.6 million when compared to the prior year period. The decrease in net sales was primarily due to unfavorable sales mix in the Company's wholesale customers and the negative impact of fluctuations in foreign exchange rates. The net sales decrease recorded in the owned brands category was $2.4 million, or 18.1%, due to net sales decreases across all regions. The net sales increase recorded in the licensed brands category was $0.9 million, or 1.2%, primarily due to net sales increases in the Americas (excluding the United States), Europe and Asia, partially offset by a net sales decrease in the Middle East.

Previous wording

Net sales for the three months ended April 30, 2024 in the Company Stores segment were $17.3 million, $2.1 million or 10.7% below the prior year period. The net sales decrease was primarily due to sales mix in the Company stores and, to a lesser extent, a decrease in sales from the Company's online outlet store at www.movadocompanystore.com. As of April 30, 2024 and 2023, the Company operated 55 retail outlet locations.

Current wording

Net sales for the three months ended July 31, 2024 in the Company Stores segment were $25.4 million, $0.9 million or 3.4% below the prior year period. The net sales decrease was primarily due to unfavorable sales mix in the Company stores, partially offset by an increase in sales from the Company's online outlet store at www.movadocompanystore.com. As of July 31, 2024 and 2023, the Company operated 56 and 55 retail outlet locations, respectively.

Previous wording

SG&A expenses for the three months ended April 30, 2024 were $72.2 million, representing an increase from the prior year period of $1.1 million, or 1.5%. The increase in SG&A expenses was primarily due to an increase in payroll related expenses of $1.3 million partially offset by a decrease of $0.3 million in amortization expense related to certain intangible assets being fully amortized. For the three months ended April 30, 2024, fluctuations in foreign currency rates related to the foreign subsidiaries unfavorably impacted SG&A expenses by $0.2 million when compared to the prior year period.

Current wording

SG&A expenses for the three months ended July 31, 2024 were $83.3 million, representing an increase from the prior year period of $3.7 million, or 4.6%. The increase in SG&A expenses was primarily due to higher marketing expenses of $5.0 million, partially offset by a decrease in performance-based compensation of $0.9 million and a decrease of $0.2 million in amortization expense related to certain intangible assets being fully amortized. For the three months ended July 31, 2024, fluctuations in foreign currency rates related to the foreign subsidiaries favorably impacted SG&A expenses by $0.3 million when compared to the prior year period.

Previous wording

In the United States locations of the Watch and Accessory Brands segment, for the three months ended April 30, 2024, the Company recorded an operating loss of $9.5 million which includes unallocated corporate expenses of $10.9 million. For the three months ended April 30, 2023 the Company recorded an operating loss of $9.0 million in the United States locations of the Watch and Accessory Brands segment which included unallocated corporate expenses of $11.4 million. The increase in operating loss was the result of an increase in SG&A expenses of $0.4 million combined with a decrease in gross profit of $0.1 million when compared to the prior year period. The increase in SG&A expenses of $0.4 million was primarily due to an increase in payroll related expenses of $0.6 million. The decrease in gross profit of $0.1 million was primarily the result of lower net sales, partially offset by a higher gross margin percentage primarily due to the favorable impact of sales mix and lower shipping costs, partially offset by the decreased leveraging of certain fixed costs as a result of lower sales.

Current wording

In the United States locations of the Watch and Accessory Brands segment, for the three months ended July 31, 2024, the Company recorded an operating loss of $8.6 million which includes unallocated corporate expenses of $7.2 million. For the three months ended July 31, 2023 the Company recorded an operating loss of $10.4 million in the United States locations of the Watch and Accessory Brands segment which included unallocated corporate expenses of $10.2 million. The decrease in operating loss was the result of an increase in gross profit of $1.6 million combined with a decrease in SG&A expenses of $0.2 million when compared to the prior year period. The increase in gross profit of $1.6 million was primarily the result of higher net sales combined with a higher gross margin percentage primarily due to the favorable impact of sales mix. The decrease in SG&A expenses of $0.2 million was primarily due to a decrease in performance-based compensation and payroll related expenses of $1.5 million offset by higher marketing expenses of $1.5 million.

Previous wording

The Company recorded operating income of $0.5 million and $2.1 million in the Company Stores segment for the three months ended April 30, 2024 and 2023, respectively. The decrease in operating income of $1.6 million was primarily related to a decrease in gross profit of $1.1 million, mainly due to lower sales, partially offset by a higher gross margin percentage, and higher SG&A expenses of $0.5 million primarily due to an increase in payroll related expenses of $0.4 million. As of April 30, 2024, and 2023, the Company Stores segment operated 55 retail outlet locations.

Current wording

The Company recorded operating income of $3.7 million and $5.1 million in the Company Stores segment for the three months ended July 31, 2024 and 2023, respectively. The decrease in operating income of $1.4 million was primarily related to a decrease in gross profit of $1.0 million, mainly due to lower sales combined with a lower gross margin percentage, and higher SG&A expenses of $0.4 million primarily due to higher marketing expenses of $0.2 million and an increase in payroll related expenses of $0.2 million. As of July 31, 2024, and 2023, the Company Stores segment operated 56 and 55 retail outlet locations, respectively.

Previous wording

The Company recorded an income tax provision of $2.3 million and $2.5 million for the three months ended April 30, 2024 and 2023, respectively.

Current wording

The Company recorded an income tax provision of $0.9 million and $2.9 million for the three months ended July 31, 2024 and 2023, respectively.

Previous wording

The Company recorded net income attributable to Movado Group, Inc. of $2.9 million and $9.1 million for the three months ended April 30, 2024 and 2023, respectively.

Current wording

The Company recorded net income attributable to Movado Group, Inc. of $3.7 million and $8.0 million for the three months ended July 31, 2024 and 2023, respectively.

Previous wording

Net sales for the three months ended April 30, 2024 in the United States locations of the Watch and Accessory Brands segment were $39.1 million, below the prior year period by $1.6 million, or 4.0%, resulting primarily from decreased volumes due to lower demand in the Company's wholesale customers, mainly in the owned brands category, partially offset by an increase in online retail. The net sales recorded in the owned brands category decreased $2.8 million, or 8.7%, partially offset by an increase in net sales recorded in the licensed brand category of $0.2 million, or 2.0%.

Current wording

Net sales for the six months ended July 31, 2024 in the United States locations of the Watch and Accessory Brands segment were $85.6 million, below the prior year period by $1.0 million, or 1.2%, resulting primarily from decreased volumes due to lower demand in the Company's wholesale customers, partially offset by an increase in online retail. The net sales recorded in the owned brands category decreased $3.8 million, or 5.6%, partially offset by an increase in net sales recorded in the licensed brand category of $1.4 million, or 7.9%.

Previous wording

Gross profit for the three months ended April 30, 2024 was $75.5 million or 55.3% of net sales as compared to $82.0 million or 56.6% of net sales in the prior year period. The decrease in gross profit of $6.5 million was primarily due to lower net sales combined with a lower gross margin percentage. The decrease in the gross margin percentage of approximately 130 basis points for the three months ended April 30, 2024 reflected an unfavorable impact of sales mix of approximately 70 basis points, the decreased leveraging of certain fixed costs as a result of lower sales of approximately 60 basis points and a negative impact of fluctuations in foreign exchange rates of approximately 10 basis points, partially offset by decreased shipping costs of approximately 10 basis points.

Current wording

Gross profit for the six months ended July 31, 2024 was $161.9 million or 54.7% of net sales as compared to $171.3 million or 56.1% of net sales in the prior year period. The decrease in gross profit of $9.4 million was primarily due to lower net sales combined with a lower gross margin percentage. The decrease in the gross margin percentage of approximately 140 basis points for the six months ended July 31, 2024 reflected an unfavorable impact of sales mix of approximately 110 basis points, the decreased leveraging of certain fixed costs as a result of lower sales of approximately 30 basis points and a negative impact of fluctuations in foreign exchange rates of approximately 10 basis points, partially offset by decreased shipping costs of approximately 10 basis points.

Previous wording

For the three months ended April 30, 2024, the Company recorded operating income of $2.9 million in the Watch and Accessory Brands segment which includes $10.9 million of unallocated corporate expenses as well as $14.2 million of certain intercompany profits related to the Company’s supply chain operations. For the three months ended April 30, 2023, the Company recorded operating income of $8.8 million in the Watch and Accessory Brands segment which included $11.4 million of unallocated corporate expenses as well as $17.3 million of certain intercompany profits related to the Company’s supply chain operations. The decrease in operating income was the result of a decrease in gross profit of $5.4 million combined with higher SG&A expenses of $0.5 million when compared to the prior year period. The decrease in gross profit was primarily the result of lower net sales combined with a lower gross margin percentage primarily due to an unfavorable impact of sales mix, the decreased leveraging of certain fixed costs as a result of lower sales and a negative impact of fluctuations in foreign exchange rates, partially offset by lower shipping costs. The increase in SG&A expenses of $0.5 million was primarily due to an increase in payroll related expenses of $0.9 million partially offset by a decrease of $0.3 million in amortization expense related to certain intangible assets being fully amortized.

Current wording

For the six months ended July 31, 2024 the Company recorded operating income of $2.2 million in the Watch and Accessory Brands segment which includes $18.1 million of unallocated corporate expenses as well as $28.3 million of certain intercompany profits related to the Company’s supply chain operations. For the six months ended July 31, 2023, the Company recorded operating income of $13.4 million in the Watch and Accessory Brands segment which included $21.7 million of unallocated corporate expenses as well as $32.5 million of certain intercompany profits related to the Company’s supply chain operations. The decrease in operating income was the result of a decrease in gross profit of $7.3 million combined with higher SG&A expenses of $3.9 million when compared to the prior year period. The decrease in gross profit was primarily the result of lower net sales combined with a lower gross margin percentage primarily due to an unfavorable impact of sales mix, the decreased leveraging of certain fixed costs as a result of lower sales and a negative impact of fluctuations in foreign exchange rates, partially offset by lower shipping costs. The increase in SG&A expenses of $3.9 million was primarily due to the following factors: higher marketing expenses of $5.0 million and an increase in payroll related expenses of $1.3 million. These increases in SG&A expenses were partially offset by a decrease in performance-based compensation of $1.5 million and decrease of $0.6 million in amortization expense related to certain intangible assets being fully amortized.

Previous wording

In the International locations of the Watch and Accessory Brands segment, for the three months ended April 30, 2024, the Company recorded operating income of $12.4 million which includes $14.2 million of certain intercompany profits related to the Company’s International supply chain operations. For the three months ended April 30, 2023 the Company recorded operating income of $17.8 million in the International locations of the Watch and Accessory Brands segment which included $17.3 million of certain intercompany profits related to the Company’s supply chain operations. The decrease in operating income was the result of lower gross profit of $5.3 million combined with higher SG&A expenses of $0.1 million. The decrease in gross profit of $5.3 million was primarily the result of lower net sales, combined with a lower gross margin percentage primarily due to an unfavorable impact of sales mix, the decreased leveraging of certain fixed costs as a result of lower sales and a negative impact of fluctuations in foreign exchange rates, partially offset by lower shipping costs. The increase in SG&A expenses of $0.1 million was primarily due to an increase in payroll related expenses of $0.3 million offset by a decrease of $0.3 million in amortization expense related to certain intangible assets being fully amortized.

Current wording

In the International locations of the Watch and Accessory Brands segment, for the six months ended July 31, 2024, the Company recorded operating income of $20.3 million which includes $28.3 million of certain intercompany profits related to the Company’s International supply chain operations. For the six months ended July 31, 2023 the Company recorded operating income of $32.8 million in the International locations of the Watch and Accessory Brands segment which included $32.5 million of certain intercompany profits related to the Company’s supply chain operations. The decrease in operating income was the result of lower gross profit of $8.8 million combined with higher SG&A expenses of $3.7 million. The decrease in gross profit of $8.8 million was primarily the result of lower net sales, combined with a lower gross margin percentage primarily due to an unfavorable impact of sales mix, the decreased leveraging of certain fixed costs as a result of lower sales and a negative impact of fluctuations in foreign exchange rates, partially offset by lower shipping costs. The increase in SG&A expenses of $3.7 million was primarily due was primarily due to the following factors: higher marketing expenses of $4.2 million and an increase in payroll related expenses of $0.7 million. These increases in SG&A expenses were partially offset by a decrease of $0.6 million in amortization expense related to certain intangible assets being fully amortized and a decrease in performance-based compensation of $0.1 million.

Previous wording

For the three months ended April 30, 2023, the Company recorded other income, net of $1.0 million primarily due to interest income, partially offset by a $0.5 million impairment related to an equity investment in a consumer products company that sold its business and assets in which the Company expects to receive little or no return on its investment.

Current wording

For the six months ended July 31, 2023, the Company recorded other income, net of $2.6 million primarily due to interest income, partially offset by a $0.5 million impairment related to an equity investment in a consumer products company that sold its business and assets in a transaction that yielded little return for equity holders.

Previous wording

The effective tax rate was 42.9% and 21.5% for the three months ended April 30, 2024 and 2023, respectively. The significant components of the effective tax rate changed primarily due to a limitation on a portion of the foreign tax credits and deductions related to the tax on GILTI and no tax benefit being recognized on certain foreign losses.

Current wording

The effective tax rate was 31.9% and 23.7% for the six months ended July 31, 2024 and 2023, respectively. The significant components of the effective tax rate changed primarily due to a limitation on a portion of the foreign tax credits and deductions related to the tax on GILTI and an increase in valuation allowances against certain foreign losses.

Previous wording

At April 30, 2024 and April 30, 2023, the Company had $225.4 million and $198.3 million, respectively, of cash and cash equivalents. Of this total, $155.5 million and $117.9 million, respectively, consisted of cash and cash equivalents at the Company's foreign subsidiaries.

Current wording

At July 31, 2024 and July 31, 2023, the Company had $198.3 million and $218.9 million, respectively, of cash and cash equivalents. Of this total, $142.4 million and $133.8 million, respectively, consisted of cash and cash equivalents at the Company's foreign subsidiaries.

Previous wording

At April 30, 2024 the Company had working capital of $410.3 million as compared to $409.4 million at April 30, 2023. The increase in working capital was primarily the result of an increase in cash, a decrease in income taxes payable and an increase in trade receivables, partially offset by a decrease in inventories and an increase in accounts payable. The Company defines working capital as the difference between current assets and current liabilities.

Current wording

At July 31, 2024 the Company had working capital of $405.0 million as compared to $412.7 million at July 31, 2023. The decrease in working capital was primarily the result of a decrease in cash and an increase in accounts payable, partially offset by an increase in trade receivables and a decrease in income taxes payable. The Company defines working capital as the difference between current assets and current liabilities.

Previous wording

The Company had $18.1 million of cash used in operating activities for the three months ended April 30, 2024 as compared to $21.5 million of cash used in operating activities for the three months ended April 30, 2023. Cash used in operating activities for the three months ended April 30, 2024 included net income of $3.1 million, positively adjusted by $3.5 million related to non-cash items. Cash used in operating activities for the three months ended April 30, 2024 included a $16.0 million increase in investment in inventories primarily due to timing of receipts to align with sales levels and net tax related payments of $8.8 million primarily due to timing. Cash used in operating activities for the three months ended April 30, 2023 was primarily due to an $11.1 million decrease in income taxes payable, a decrease in accrued payroll of $9.8 million primarily as a result of payments of performance-based compensation, an $8.1 million increase in investment in inventories primarily due to timing of receipts and a $7.9 million decrease in accounts payable primarily as a result of timing of payments.

Current wording

The Company had $35.9 million of cash used in operating activities for the six months ended July 31, 2024 as compared to $9.2 million of cash provided by operating activities for the six months ended July 31, 2023. Cash used in operating activities for the six months ended July 31, 2024 included net income of $6.9 million, positively adjusted by $9.3 million related to non-cash items. Cash used in operating activities for the six months ended July 31, 2024 included a $31.4 million increase in investment in inventories primarily due to timing of receipts to align with sales levels, a $6.9 million increase in trade receivables due to timing of sales during the quarter and increases in net payments related to taxes, other current assets, accrued liabilities and accrued payroll and benefits totaling $17.6 million primarily due to timing. Cash provided by operating activities for the six months ended July 31, 2023 included net income of $17.5 million, positively adjusted by $10.5 million related to non-cash items. Cash provided by operating activities for the six months ended July 31, 2023 included a $6.9 million decrease in investment in inventories primarily due to timing of receipts to align with sales levels, partially offset by a change in income taxes of $18.1 million primarily due to timing of payments and a decrease in accrued payroll and benefits of $6.5 million primarily as a result of payments of performance-based compensation.

Previous wording

Cash used in investing activities was $4.8 million for the three months ended April 30, 2024 as compared to cash used in investing activities of $2.9 million for the three months ended April 30, 2023. The cash used in the three months ended April 30, 2024 was primarily related to $3.1 million of long-term investments and capital expenditures of $1.6 million primarily due to shop-in-shops and construction in progress mainly related to Company stores. Cash used in investing activities for the three months ended April 30, 2023 was primarily due to $2.3 million of capital expenditures and $0.6 million of long-term investments.

Current wording

Cash used in investing activities was $8.3 million for the six months ended July 31, 2024 as compared to cash used in investing activities of $6.1 million for the six months ended July 31, 2023. The cash used in the six months ended July 31, 2024 was primarily related to $4.3 million of long-term investments and capital expenditures of $3.9 million primarily due to construction in progress mainly related to Company stores and shop-in-shops. Cash used in investing activities for the six months ended July 31, 2023 included $4.6 million of capital expenditures and $1.4 million of long-term investments.

Previous wording

Cash used in financing activities was $9.9 million for the three months ended April 30, 2024 as compared to cash used in financing activities of $30.3 million for the three months ended April 30, 2023. The cash used in the three months ended April 30, 2024 included $7.8 million in dividends paid, $1.1 million in stock repurchased in the open market and $1.0 million of shares repurchased as a result of the surrender of shares in connection with the vesting of certain stock awards. The cash used in the three months ended April 30, 2023 included $29.9 million in dividends paid, which included a special cash dividend of $1.00 per share, and $0.4 million in stock repurchased in the open market.

Current wording

Cash used in financing activities was $17.7 million for the six months ended July 31, 2024 as compared to cash used in financing activities of $38.2 million for the six months ended July 31, 2023. The cash used in the six months ended July 31, 2024 included $15.5 million in dividends paid, $1.1 million in stock repurchased in the open market and $1.1 million of shares repurchased as a result of the surrender of shares by employees in connection with the vesting of certain stock awards. Cash used in financing activities for the six months ended July 31, 2023 included $37.7 million in dividends paid, which included a special cash dividend of $1.00 per share, and $0.4 million in stock repurchased in the open market.

Previous wording

The Company and its U.S. and Swiss subsidiaries (collectively, the "Borrowers") are parties to an Amended and Restated Credit Agreement originally dated October 12, 2018 (as subsequently amended, the “Credit Agreement”) with the lenders party thereto and Bank of America, N.A. as administrative agent (in such capacity, the “Agent”). The Credit Agreement provides for a $100.0 million senior secured revolving credit facility (the “Facility”) and has a maturity date of October 28, 2026. The Facility includes a $15.0 million letter of credit subfacility, a $25.0 million swingline subfacility and a $75.0 million sublimit for borrowings by the Swiss Borrower, with provisions for uncommitted increases to the Facility of up to $50.0 million in the aggregate subject to customary terms and conditions. The Credit Agreement contains affirmative and negative covenants binding on the Company and its subsidiaries that are customary for credit facilities of this type, including, but not limited to, restrictions and limitations on the incurrence of debt and liens, dispositions of assets, capital expenditures, dividends and other payments in respect of equity interests, the making of loans and equity investments, mergers, consolidations, liquidations and dissolutions, and transactions with affiliates (in each case, subject to various exceptions).

Current wording

Bank of America, N.A. as administrative agent (in such capacity, the “Agent”). The Credit Agreement provides for a $100.0 million senior secured revolving credit facility (the “Facility”) and has a maturity date of October 28, 2026. The Facility includes a $15.0 million letter of credit subfacility, a $25.0 million swingline subfacility and a $75.0 million sublimit for borrowings by the Swiss Borrower, with provisions for uncommitted increases to the Facility of up to $50.0 million in the aggregate subject to customary terms and conditions. The Credit Agreement contains affirmative and negative covenants binding on the Company and its subsidiaries that are customary for credit facilities of this type, including, but not limited to, restrictions and limitations on the incurrence of debt and liens, dispositions of assets, capital expenditures, dividends and other payments in respect of equity interests, the making of loans and equity investments, mergers, consolidations, liquidations and dissolutions, and transactions with affiliates (in each case, subject to various exceptions).

Previous wording

The Company had weighted average borrowings under the Facility of zero during both the three months ended April 30, 2024 and 2023.

Current wording

The Company had weighted average borrowings under the Facility of zero during both the three and six months ended July 31, 2024 and 2023, respectively.

Previous wording

The Company's Swiss subsidiary maintains unsecured lines of credit with a Swiss bank that are subject to repayment upon demand. As of April 30, 2024, and 2023, these lines of credit totaled 6.5 million Swiss Francs for both periods, with a dollar equivalent of $7.1 million and $7.3 million, respectively. As of April 30, 2024, and 2023, there were no borrowings against these lines. As of April 30, 2024 and 2023, two European banks had guaranteed obligations to third parties on behalf of two of the Company’s foreign subsidiaries in the dollar equivalent of $1.3 million, for both periods, in various foreign currencies, of which $0.7 million and $0.6 million, respectively, was a restricted deposit as it relates to lease agreements.

Current wording

The Company's Swiss subsidiary maintains unsecured lines of credit with a Swiss bank that are subject to repayment upon demand. As of July 31, 2024, and 2023, these lines of credit totaled 6.5 million Swiss Francs for both periods, with a dollar equivalent of $7.4 million and $7.5 million, respectively. As of July 31, 2024, and 2023, there were no borrowings against these lines. As of July 31, 2024 and 2023, two European banks had guaranteed obligations to third parties on behalf of two of the Company’s foreign subsidiaries in the dollar equivalent of $1.4 million and $2.0 million, respectively, in various foreign currencies, of which $0.7 million and $1.4 million ($0.5 million was refunded in August 2023), respectively, was a restricted deposit as it relates to lease agreements.

Previous wording

Cash paid for interest, including unused commitments fees and amortization of debt fees, was $0.1 million for both the three month periods ended April 30, 2024 and April 30, 2023.

Current wording

Cash paid for interest, including unused commitments fees, was $0.1 million for both the six month periods ended July 31, 2024 and July 31, 2023, respectively.

Previous wording

From time to time the Company may make minority investments in growth companies in the consumer products sector and other sectors relevant to its business, including certain of the Company's suppliers and customers, as well as in venture capital funds that invest in companies in media, entertainment, information technology and technology-related fields and in digital assets. During fiscal 2022, the Company committed to invest up to $21.5 million in such investments. The Company funded approximately $8.4 million of these commitments through fiscal 2024 and an additional $3.1 million during the first quarter of fiscal 2025 and may be called upon to satisfy capital calls in respect of the remaining $10.0 million in such commitments at any time during a period generally ending ten years after the first capital call in respect of a given commitment. One consumer products company in which the Company made an equity investment in fiscal year 2022 sold its business and assets in the first quarter of fiscal 2024 in a transaction that is expected to yield little or no return for equity holders. As a result, the Company fully impaired its $0.5 million investment in this entity in the first quarter of fiscal 2024.

Current wording

From time to time the Company may make minority investments in growth companies in the consumer products sector and other sectors relevant to its business, including certain of the Company's suppliers and customers, as well as in venture capital funds that invest in companies in media, entertainment, information technology and technology-related fields and in digital assets. During fiscal 2022, the Company committed to invest up to $21.5 million in such investments. The Company funded approximately $8.4 million of these commitments through fiscal 2024 and an additional $4.3 million during the first six months of fiscal 2025 and may be called upon to satisfy capital calls in respect of the remaining $8.8 million in such commitments at any time during a period generally ending ten years after the first capital call in respect of a given commitment. One consumer products company in which the Company made an equity investment in fiscal year 2022 sold its business and assets in the first quarter of fiscal 2024 in a transaction that yielded little return for equity holders. As a result, the Company fully impaired its $0.5 million investment in this entity in the first quarter of fiscal 2024.

Previous wording

The Company paid cash dividends of $0.35 per share, or $7.8 million, during the three months ended April 30, 2024. During the three months ended April 30, 2023, the Company paid a special cash dividend of $1.00 per share, as well as a quarterly cash dividend of $0.35 per share, for a total amount of $29.9 million. Although the Company currently expects to continue to declare cash dividends in the future, the decision of whether to declare any future cash dividend, including the amount of any such dividend and the establishment of record and payment dates, will be determined, in each quarter, by the Board of Directors, in its sole discretion.

Current wording

The Company paid cash dividends of $0.35 per share, or $7.8 million, during the three months ended April 30, 2024 and $0.35 per share, or $7.8 million, during the three months ended July 31, 2024. During the three months ended April 30, 2023, the Company paid a special cash dividend of $1.00 per share, as well as a quarterly cash dividend of $0.35 per share, for a total amount of $29.9 million and $0.35 per share, or $7.7 million, during the three months ended July 31, 2023. Although the Company currently expects to continue to declare cash dividends in the future, the decision of whether to declare any future cash dividend, including the amount of any such dividend and the establishment of record and payment dates, will be determined, in each quarter, by the Board of Directors, in its sole discretion.

Previous wording

On November 23, 2021, the Board approved a share repurchase program under which the Company is authorized to purchase up to $50.0 million of its outstanding common stock through November 23, 2024, depending on market conditions, share price and other factors. Under the share repurchase program, the Company is permitted to purchase shares of its common stock from time to time through open market purchases, repurchase plans, block trades or otherwise. During the three months ended April 30, 2024, the Company repurchased a total of 39,000 shares of its common stock at a total cost of $1.1 million, or an average of $27.85 per share. At April 30, 2024, $16.8 million remains available for purchase under the Company's November 23, 2021 repurchase program. During the three months ended April 30, 2023, the Company repurchased a total of 14,000 shares of its common stock at a total cost of $0.4 million, or an average of $27.24 per share.

Current wording

On November 23, 2021, the Board approved a share repurchase program under which the Company is authorized to purchase up to $50.0 million of its outstanding common stock through November 23, 2024, depending on market conditions, share price and other factors. Under the share repurchase program, the Company is permitted to purchase shares of its common stock from time to time through open market purchases, repurchase plans, block trades or otherwise. During the six months ended July 31, 2024, the Company repurchased a total of 39,000 shares of its common stock at a total cost of $1.1 million, or an average of $27.85 per share. At July 31, 2024, $16.8 million remains available for purchase under the Company's November 23, 2021 repurchase program. During the six months ended July 31, 2023, the Company repurchased a total of 16,000 shares of its common stock at a total cost of $0.4 million, or an average of $27.04 per share.