Movado Group announced on Thursday net sales for the third quarter fell 11.2% to $187.7 million, on the back of declines in the U.S. firm’s wholesale customers’ brick-and-mortar stores, online retail and Movado company stores.
The Paramus, New Jersey-based watches group said U.S. net sales decreased 12.3%, while international net sales decreased 10.4%, compared to the third quarter of last year.
For the three months ending October 31, net income was $17.4 million, or $0.77 per diluted share, compared to net income of $29.3 million, or $1.28 per diluted share, last year.
“For the third quarter, our results were impacted by the challenging retail environment in our largest markets, the United States and Europe,” said Efraim Grinberg, chairman and chief executive officer.
“Notwithstanding this, the quarter saw us continue to advance our strategic priorities and invest in our brands while preparing for the all-important holiday selling season. Importantly, the strength of our balance sheet, with $201.0 million of cash at quarter-end and no debt, allowed us to remain flexible as we continued to navigate the difficult backdrop.”
As a result of the lacklustre third quarter, Movado lowered its full-year guidance on the continued challenging environment. It now expects fiscal 2024 net sales to be in a range of approximately $665 million to $675 million, as compared to its previous expectation for net sales in the range of $690 million to $700 million.
“That said, we believe we are well positioned to capitalize on the holiday season with compelling newness across our watch and jewelry brands,” continued Grinberg.
“We are particularly enthusiastic about the refreshed branding and advertising campaign in support of the Movado brand. Overall, we see significant opportunity ahead for Movado Group as we update our strategies to address the evolving landscape in the fashion watch category. We remain committed to continuing to drive long-term profitable growth.”
Copyright © 2023 FashionNetwork.com All rights reserved.