NEW YORK (
is surging after it narrowed its first-quarter loss and said it will shutter its boutique stores.
The watchmaker will focus on selling its merchandise instead through wholesale channels and outlet stores. Movado expects to incur charges of about $21.6 million over the year as a result of the closures.
The boutique unit, which will close by June 30, was expected to hurt full-year revenue by $30 million.
In the first quarter, Movado recorded a loss of $10.7 million, or 43 cents a share, compared with a loss of $9.9 million, or 41 cents a share. Excluding items, it posted a loss of 19 cents a share, significantly less than analysts' estimates of a loss 43 cents a share.
Movado's revenue jumped 17% to $78.9 million.
Shares of Movado are soaring 16% to $12.85 in afternoon trading.
--Reported by Jeanine Poggi in New York.
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