Dec 4, 2008
Movado posts weak Q3 results; cuts '09 earnings view
Dec 4, 2008
Dec 4 (Reuters) - Watch-maker Movado Group Inc posted a quarterly profit that was well below Street estimates, hurt by a fall in retail sales, and cut its fiscal year earnings outlook.
Net profit for the third quarter, declined about 41 percent to $15.7 million from the year-ago quarter.
The company said it now expects 2009 adjusted earnings to range between 85 cents and $1.05 a share, down from its earlier view of about $1.65 to $1.72 per share, based on its year-to-date results and the further deterioration that continues to take place in the macroeconomic environment.
The company which distributes watch brands like Concord, Ebel, Tommy Hilfiger and Hugo Boss, forecast revenue of $470 million to $480 million for the fiscal year.
Last month, rival, Fossil Inc posted third-quarter earnings that topped analyst expectations, but cut its fourth quarter views, responding to the current economic recession.
Movado, which announced a restructuring plan in August, said it expects to initiate further actions to achieve an additional $25 million to $30 million in annual cost savings, a substantial portion of which is expected to be realized in fiscal 2010.
Shares of Paramus, New Jersey-based Movado closed at $13.56 Wednesday on the New York Stock Exchange.
For the alerts, please click. (Reporting by Antonita Madonna Devotta in Bangalore; Editing by Jarshad Kakkrakandy)
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