Dec 4, 2008
Movado posts weak Q3 results; cuts '09 earnings view
Dec 4, 2008
Dec 4 (Reuters) - Watch-maker Movado Group Inc posted a quarterly profit that was well below Street estimates, hurt by a fall in retail sales, and cut its fiscal year earnings outlook.
Net profit for the third quarter, declined about 41 percent to $15.7 million from the year-ago quarter.
The company said it now expects 2009 adjusted earnings to range between 85 cents and $1.05 a share, down from its earlier view of about $1.65 to $1.72 per share, based on its year-to-date results and the further deterioration that continues to take place in the macroeconomic environment.
Last month, rival, Fossil Inc posted third-quarter earnings that topped analyst expectations, but cut its fourth quarter views, responding to the current economic recession.
Movado, which announced a restructuring plan in August, said it expects to initiate further actions to achieve an additional $25 million to $30 million in annual cost savings, a substantial portion of which is expected to be realized in fiscal 2010.
Shares of Paramus, New Jersey-based Movado closed at $13.56 Wednesday on the New York Stock Exchange.
For the alerts, please click. (Reporting by Antonita Madonna Devotta in Bangalore; Editing by Jarshad Kakkrakandy)
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