Movado first quarter suffers on U.S. retail, wholesale
Movado Group announced on Thursday net sales decreased 11.3% to $144.9 million in the first quarter, as the watchmaker faced declines in its wholesale customers’ physical stores, online retail and Movado company stores.
The Paramus, New Jersey-based company said U.S. sales plummeted 15.7%, as compared to the first quarter of last year, while international sales decreased 8.1%.
Net income for the three months ending April 30 was slashed to $9.1 million, or $0.40 per diluted share, compared to net income of $18.5 million, or $0.79 per diluted share in the prior-year period.
“We began the year in line with our expectations amidst a challenging macro environment and following our best-ever first quarter performance last year. Despite this backdrop, our teams continued to execute against our strategic priorities to maximize the power of our brands with exceptional innovation," said Efraim Grinberg, chairman and chief executive officer.
Looking ahead, the company continues to expect fiscal 2024 net sales to be in a range of approximately $725 million to $750 million.
“As we look ahead, we continue to believe we will face a difficult consumer environment in the U.S. and Europe, our two largest regions. However, we believe we are well positioned to capture the opportunities in the marketplace and will continue to execute with discipline. We are excited about our product innovation pipeline across our owned and licensed brands, and we will continue to invest in support of our teams, regions and brands with continued focus on Movado’s refreshed marketing message as we build on its strength and heritage. We will do all this while controlling costs and leveraging the strength of our balance sheet with $198 million in cash and no debt as of quarter end," added Grinberg.
The first quarter decline comes on the back of a solid fiscal 2023 for the U.S. watch group. In March, Movado Group announced net sales increased 2.7% to $751.9 million for the fiscal year, on growth in its international wholesale business and own stores.
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