A new addition to the “Heirloom” collection, this one-of-a-kind piece features 32 custom-cut gemstones.
Movado Group Sees Flat Q2 Sales
The company said fashion watches and licensed brands were down in the United States.
Paramus, N.J.--Movado Group said net sales were almost flat in the second quarter and down in the first-half of the year in its latest earnings report released Tuesday.
In the second quarter, sales were $128.8 million compared to $128.1 the year prior, an increase of less than 1 percent.
Gross profit was $66.1 million, or 51 percent of sales, compared to $70.3 million, or 55 percent of sales, in the second quarter last year, while operating expenses decreased 4 percent to $57.8 million and operating income was down from $10.1 million in the year-earlier period to $8.3 million.
CEO Efraim Grinberg said the U.S. retail environment was challenging for the company during the period, but noted it was offset by particularly strong growth in net sales in Latin America, Europe and Asia.
During a conference call Tuesday morning, Grinberg said that the U.S. presented a challenge for fashion watches especially. Licensed brands also were down in the region, posting a 26 percent decrease in the U.S.
Movado company stores, however, grew 5 percent overall, and the wholesale business was up 8 percent.
Grinberg added that the launch of its Movado Connect smartwatch was “very well received” by retail partners and will be available in stores beginning Sept. 1.
During the first quarter, Movado focused on streamlining operations to reduce costs and operate more efficiently and faster, Grinberg said, continuing a move it started near the end of the last fiscal year. It also continued to focus on growing its digital footprint, particularly through social media platforms.
Overall, in the first six months of fiscal 2018, net sales were down 6 percent to $228 million.
Operating income in the first half was $4.7 million, compared with $15.5 million in the first-half last year, and gross profit was 51 percent of sales at $115.3 million, compared with $131.6 million, or 54 percent of sales, in the prior year.
The company said that it is updating its outlook for the full fiscal year 2018 to reflect the acquisition of the Olivia Burton brand.
Movado said that since the brand is performing “in line with (its) expectations” and they are seeing “initial success with the integration as the brand continues to resonate with its core millennial customer,” it now anticipates that net sales will be in the range of $530 to $545 million and operating income will be approximately $53 to $58 million in the
In addition to growing Olivia Burton globally, the company also will focus on expanding other new business initiatives, including Rebecca Minkoff and Movado Connect watches, and increasing its direct-to-consumer business.
Later this year, they also will extend the Movado Heritage line with several new models and new retail partners, Grinberg said.
The Latest
Last month in Dallas, David Walton pushed another jeweler, David Ettinger, who later died.
The move will allow the manufacturing company to offer a more “diverse and comprehensive” range of products.
With Ho Brothers, you can unlock your brand's true potential and offer customers the personalized jewelry experiences they desire.
From now through mid-May, GIA will be offering the reports at a 50 percent discount.
De Beers’ rough diamond sales were down 18 percent year-over-year in its latest round of sales.
Sponsored by the Las Vegas Antique Jewelry & Watch Show
For over 30 years, JA has advocated for the industry, fought against harmful legislation and backed measures that help jewelry businesses.
The Patek Philippe expert will serve as personal curator for the brand-focused company.
The 553-square-foot shop is aboard the Carnival Jubilee cruise ship.
NDC filed a complaint against Skydiamond for use of phrases like “diamonds made entirely from the sky.”
John Carter received the AGS’s highest honor Tuesday afternoon at Conclave in Austin, Texas.
B&D Sales and Service held a ribbon-cutting event for its new location in Cranston, Rhode Island.
It’s ultra-feminine and filled with gold, pearls, and soft pastels.
Emily Highet Morgan and Emily Bennett have joined the agency’s team.
Its updated book for mountings is also now available.
She has been with the organization since 2010, most recently serving as its chief officer of PR and industry relations.
Joyce’s Jewelry sued the bank after cybercriminals drained its accounts of nearly $1.6 million through a series of wire transfers.
He is remembered by loved ones for his loyalty, integrity, and kindness.
Hosted by Freeman’s | Hindman, the sale will take place May 7-8.
The auction house said all 24 timepieces offered in its underground sale of rare and avant-garde watches quickly found buyers.
From lab-grown diamonds and AI to the inevitable Taylor Swift mention, here are some of Conclave’s most intriguing educational offerings.
From cybersecurity liability to trade show coverage, insurance experts share tips on how to build the right policy.
The charm is a modern rendition of the evil eye amulet that has been worn for thousands of years.
Ahead of its trade show next month, TJS awarded free registration and accommodations to one jewelry professional and three students.
By the end of this year, SRK’s diamond manufacturing complexes will achieve net zero emissions, one of an impressive array of achievements.
Members can still sell lab-grown stones, it said, but only natural gems are allowed on the show floor.