Movado Is Out of Sync With Consumers - TheStreet

(Updates with comments from Movado's CEO on Movado's inventory issues.)

PARAMUS, N.J. (

TheStreet

) -- Has

Movado

(MOV) - Get Report

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.

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