Movado Group Posts $22.8 Million 4Q Loss

PARAMUS, N.J. (AP) — Movado Group Inc. said Thursday it eliminated its quarterly dividend and posted a fourth-quarter loss because of one-time charges and a tough economy that crimped demand for the company's watches.

For the period ended Jan. 31, the company posted a loss of $22.8 million, or 92 cents, after earnings of $19.6 million, or 72 cents per share, a year ago.

Sales declined 32 percent to $94 million from $138.6 million.

When adjusted to exclude charges for cost-reduction plans and other items, the company recorded a loss of $10.5 million, or 42 cents per share.

"We are operating in the most challenging economic environment that I have seen in my 30 years in the watch industry," said Chief Executive Efraim Grinberg.

For the year, profit dropped to $2.3 million, or 9 cents per share, compared with $60.8 million, or $2.23 per share, a year ago.

Adjusted fiscal 2009 earnings were $14.2 million, or 55 cents per share.