(Updates with comments from Movado's CEO on Movado's inventory issues.)
PARAMUS, N.J. (
) -- Has
fallen out of sync with the needs of consumers? Investors seem to think so, as shares of the watchmaker are plummeting a day after it said it swung to a loss in its second quarter and foresees a loss for the year.
Shares are plunging 17% to $8.99 after Movado said it recorded a loss of $20.9 million, or 85 cents a share, compared with a profit of $15.7 million, or 62 cents, in the year-ago period.
Excluding a non-cash tax charge, the company actually earned 12 cents a share, significantly below analysts forecast of 65 cents a share.
Movado was hurt by "higher levels of destocking in the market place," CEO Efraim Grinberg said in a statement. As jewelers tighten inventory, shutter doors and some go out of business, orders for Movado's portfolio of watches are lower.
Revenue dropped 5% to $129 million from $135.8 million last year.
Looking ahead, Movado predicts a full-year loss between 35 cents and 45 cents a share. Analysts forecast a profit of 55 cents.
-- Reported by Jeanine Poggi in New York.
Follow TheStreet.com on
and become a fan on
Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.