Movado Group, a leading watches group headquartered in Paramus, New Jersey, has announced a decline of 11.2% in net sales for the third quarter, amounting to $187.7 million. This drop is largely attributed to a decrease in sales across various channels, including physical stores of wholesale customers, online retail, and Movado company stores. The decline in sales was witnessed both domestically, with a 12.3% decrease in net sales in the United States, and internationally, with a 10.4% decrease compared to the same quarter in the previous year.

In terms of net income, Movado Group recorded $17.4 million, or $0.77 per diluted share, for the three months ending October 31. This is a significant decrease from the $29.3 million, or $1.28 per diluted share, earned during the same period last year.

Efraim Grinberg, Chairman and CEO of Movado Group, acknowledged the challenging retail environment in both the United States and Europe as major factors contributing to the decline in sales. Despite these hurdles, Grinberg emphasized the company’s commitment to advancing its strategic priorities and investing in its brands. Movado Group is optimistic about the upcoming holiday season and has highlighted the introduction of a refreshed branding and advertising campaign for the Movado brand.

However, due to the lackluster performance in the third quarter, Movado Group has revised its full-year guidance downwards. The company now anticipates net sales for fiscal 2024 to be in the range of approximately $665 million to $675 million, as opposed to the previous guidance of $690 million to $700 million.

Grinberg maintains confidence in Movado Group’s ability to capitalize on the holiday season and believes there are significant opportunities for long-term profitable growth. The company is actively updating its strategies to adapt to the changing landscape in the fashion watch category. With a strong balance sheet consisting of $201.0 million in cash and no debt, Movado Group has the flexibility to navigate challenging market conditions and pursue its goals.

Helpful links:
1. Movado Official Website
2. Global Luxury Watch Sales Statistics