Movado Group, headquartered in Paramus, New Jersey, reveals an 11.2% decline in net sales for Q3, totaling $187.7 million. This downturn is attributed to challenges faced by the U.S. firm in its wholesale customers’ physical stores, online retail, and Movado company stores.
Breaking down the figures, Movado Group notes a 12.3% decrease in U.S. net sales and a 10.4% decrease in international net sales compared to the same period last year. The net income for the quarter ending October 31 stands at $17.4 million, translating to $0.77 per diluted share, in contrast to $29.3 million, or $1.28 per diluted share, in the prior year.
Efraim Grinberg, Chairman and CEO, acknowledges the challenging retail landscape in key markets like the United States and Europe. Despite these headwinds, Movado Group remains committed to advancing strategic priorities, investing in brand initiatives, and preparing for the critical holiday season.
Grinberg highlights the robust balance sheet of Movado Group, boasting $201.0 million in cash at quarter-end and zero debt, providing flexibility in navigating the challenging retail environment.
Given the Q3 performance, Movado Group adjusts its full-year guidance, now expecting fiscal 2024 net sales between approximately $665 million and $675 million, compared to the previous projection of $690 million to $700 million.
Despite the challenges, Grinberg expresses optimism about capitalizing on the holiday season with compelling new offerings across their watch and jewelry brands. Notably, he emphasizes the refreshed branding and advertising campaign for the Movado brand, foreseeing significant opportunities as the company adapts strategies to the evolving fashion watch category landscape.
Movado Group maintains a commitment to drive long-term profitable growth, leveraging resilience and strategic adjustments to navigate dynamic market conditions. Explore Movado’s latest offerings for a stylish holiday season.
