NEW YORK (TheStreet) -- Shares of Movado Group (MOV) - Get Report are falling by 9.06% to $27.59 on heavy trading volume late Thursday morning, after the company posted better-than-expected results for the 2016 fourth quarter, but provided weak guidance for the year.
Before today's opening bell, the Paramus, NJ-based watchmaker reported adjusted earnings of 40 cents per diluted share, topping analysts' estimates by one cent.
Revenue climbed by 7% to $143.3 million, also beating Wall Street's projections of $140.7 million.
However, for fiscal 2017, the company expects earnings per share between $1.85 and $2 on revenue of $585 million to $600 million, which missed analysts' expectations.
Analysts are looking for earnings of $2.27 per share on revenue of $615 million.
The disappointing guidance reflects the company's expectation that the retail environment will "remain challenging."
Additionally, Movado said Chief Operating Officer Rick Coté will retire in June after 16 years with the company. He will remain on the board.
The company said it does not plan on replacing the COO role and "has plans for a smooth transition of Mr. Coté's responsibilities."
About 384,442 of Movado's shares were traded by this morning vs. its average volume of 139,731 shares per day.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C+ on the stock.
The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures.
As a counter to these strengths, the team finds that net income has been generally deteriorating over time.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: MOV