Movado Group Posts $22.8 Million 4Q Loss

Net sales declined nearly 18 percent to $460.9 million from $559.6 million.

Also, Movado eliminated its quarterly dividend and warned it is not in compliance with one of its financial covenants.

The company expects lower sales through the first half of fiscal 2010, with improvement later in the year as retailers replenish inventory to prepare for the holidays.

Movado expects to be "slightly profitable" in fiscal 2010, excluding unusual items. The company anticipates a loss around $1 per share during the first half of the year, but said gains during the second half of 2010 will help offset this loss.

Shares of the company declined 78 cents, or 9.4 percent, to $7.53 in afternoon trading.