Marc Lichtenfeld
Movado will launch Juicy Couture watches in the fall. Juicy is a fast-growing upscale brand that fits well into Movado's portfolio. The company will also introduce Lacoste brand watches next spring.
Several of Movado's other brands showed excellent sales in the fourth quarter. ESQ, Tommy Hilfiger and Coach all saw double-digit gains, while Ebel's sales rose over 40% and was a profitable line for the first time in years. Movado boutiques should help financial performance as well. The company plans to add three more stores this year, and that should bring the business unit into the black for the first time. Any increase in sales at the boutiques has potential to boost the bottom line even more, as margins are higher at the company-owned stores. Nothing in the earnings release or conference call changed my thesis on the stock. With shares coming off of the "Mad Money" spike, investors with at least a 12-month time frame have another opportunity to get into Movado.
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