Movado Profit Declines; Slashes Annual Sales Guidance

(RTTNews) - Luxury watchmaker Movado Group, Inc. (MOV) Tuesday reported lower profit in the third quarter, impacted by decline in revenue. The company also cut its full-year revenue outlook.

Profit for the quarter decreased to $29.29 million, or $1.28 per share from $31.41 million, or $1.33 per share in the same quarter a year ago. Excluding one-time items, earnings were $29.83 million or $1.31 per share.

Net sales were down 2.9% year-on-year to $211.4 million. However, on constant currency basis, it increased 3.4% to $225.1 million from $217.7 million last year, due to growth in sales to international wholesale customers and in Movado Company Stores.

Looking forward, Movado has lowered its full-year sales outlook to $740 million-$750 million from the previous outlook of $780 million-$790 million, citing the prevailing foreign exchange headwinds and the uncertain retail environment. Additionally, the company has declared a dividend of $0.35 per share, to be paid on December 16, to shareholders on record as of December 2.