Sep 3, 2009
Movado second quarter profit plunges 94%
Sep 3, 2009
Sept 3 (Reuters) - Watch-maker Movado Group Inc (MOV.N) posted a 94 percent slump in quarterly profit as margins fell and it recorded an interest expense charge.
Movado Master - Photo: www.movado.com
The company, which distributes watch brands like Concord, Tommy Hilfiger and Hugo Boss, posted second-quarter net income of $528,000, or 2 cents a share, compared with $8.1 million, or 32 cents a share, a year ago.
Movado earned 6 cents a share, excluding a $1.3 million pre-tax charge in interest expense related to the refinancing and repayment of former credit and note agreements.
Sales fell 31 percent to $89.7 million. Gross profit was 58.7 percent of sales, compared with 64.1 percent of sales last year.
Two analysts on average were expecting a loss of 24 cents a share, before special items, on revenue of $91.7 million, according to Reuters Estimates.
Movado said it was maintaining its full-year earnings forecast of about 50 cents a share, including the one-time charge recorded in the second quarter. It expects a high single-digit sales decline for the year.
Last month, rival Fossil Inc (FOSL.O) posted second-quarter earnings that topped analyst expectations and raised its full-year earnings view, but said it saw falling revenue in key segments and warned that a stronger dollar will weigh on third-quarter results.
Shares of Paramus, New Jersey-based Movado closed at $11.47 Wednesday 2 September on the New York Stock Exchange. (Reporting by Anne Pallivathuckal in Bangalore; Editing by Himani Sarkar)
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