Earnings

Return to Article

Movado Group Posts 1Q Loss As Sales Drop A Third

The Associated Press

PARAMUS, N.J. (AP) — Movado Group Inc. said Tuesday it lost $9 million in its fiscal first quarter as sales fell by a third because consumers spent less amid the recession.

The watch maker lost 37 cents per share in the quarter that ended April 30, better than the 48 cent per share loss that analysts had expected. That compares to a profit of $1.2 million, or 5 cents per share, a year earlier.

Revenue fell 33 percent to $67.6 million, matching an estimate from analysts polled by Thomson Reuters, from $101.4 million a year earlier.

The Paramus, N.J.-based company also said it expected to earn 50 cents per share in fiscal 2010, an improvement over its 9 cent per share loss in fiscal 2009. In a statement, Movado said its 2010 estimate depends on an improvement in sales.

Analysts polled by Thomson Reuters expect the company to lose 9 cents per share in fiscal 2010. Those estimates typically exclude one-time costs.

The company sells watches under brands such as Movado, Ebel, ESQ, Coach, Hugo Boss, Lacoste and others.

Movado shares rose $1.09, or 13 percent, to $9.19 in premarket trading. They have traded in a 52-week range of $4.65 to $26.17.