Movado Group Reports Decline In Sales And Income For Q2 2009

The Movado Group Inc., owner of such luxury watch brands as Ebel, Movado, and Concord, has indicated that net sales in the 2009 fiscal year second quarter experienced a decline of 7 percent, to $129.7 million.  Meanwhile, net income dropped 34 percent to a figure of $8.1 million in the period which concluded on July 31st.

Second quarter gross profit ended up at $83.9 million, or 64.7% of sales, in contrast to the $83.3million/59.8% sales from the year before.  Adjusted operating profit came in at $13.3 million, which excludes a $2.2 million charge the group incurred while putting into effect an expense reduction strategy.  Operating profit in the previous year's period was $16.3 million.  

"While our second quarter results reflect the continued challenging macroeconomic environment, the decisive actions we've taken to reduce expenses and improve productivity are designed to position our company to emerge quickly and even stronger than before, as the economy recovers," stated Efraim Grinberg, President and CEO of the Movado Group.

"The importance of branding is paramount in today's consumer spending environment and we will continue to strongly support and differentiate each of our brands with exciting new product introductions and bold new image-building advertising
campaigns."

Source: JCK