SourcingApr 29, 2024
De Beers to Move Auction HQ from Singapore to BotswanaSales will be paused while the relocation takes place over the next few months.
FinancialsMar 21, 2017
Movado to Take More ‘Conservative’ Outlook This Year
With slow sales amid a challenging environment and retailers scaling back on inventory, the company is eliminating positions as it implements cost-saving initiatives.
Though sales were down in fiscal 2017, the company noted a number of successful launches that helped buoy the business, like that of the Esperanza collection. Pictured here is the Women’s Esperanza watch in a yellow gold PVD-finished stainless steel case ($1,295).
Paramus, N.J.--Movado Group said that sales were down in the fourth quarter and full year amid a challenging retail environment, noting that it is eliminating positions in the company as part of a cost-saving initiative.
Anticipating a continued difficult retail environment, shift to e-commerce and a sluggish fashion watch market in in the U.S., the company said it is taking a “more conservative view” for fiscal 2018.
In its earnings results released Monday, the company said sales decreased 12 percent in the U.S. in the fourth quarter ended Jan. 31, and by 9 percent in the region in the full fiscal year.
The “bright spot” for the watch company during the holiday season was its U.S. outlet business, it said, reporting a 7 percent increase there in the fourth quarter.
Globally, net sales were down 9 percent to $130.8 million in the fourth quarter, while operating income was down from $11.5 million in the year-earlier period to $7.4 million this year. Net income was $5.2 million in the three-month period, compared with $7.9 million last year.
In the full-year, net sales decreased 7 percent on a worldwide basis to $552.8 million, compared with $594.9 million in fiscal 2016.
Operating income for fiscal 2017 was $54 million, compared with operating income of $70.1 million in fiscal 2016, and net income was down from $45.1 million in the prior-year period to $35.1 million.
While the company noted a number of successful launches during the past year--such as its Ultra Slim designs across licensed brand portfolios and Movado collection as well as the launch of the Movado Esperanza collection--CEO Efraim Grinberg said in the earnings conference call that the watch category continues to be impacted by decreased traffic to retail partners combined with the introduction of wearables.
“We believe that the digital shift--consumers moving to purchasing on their smartphones and the consumption of digital media--has accelerated greatly over the last 18 months,” he said.
Given these shifts, the company is putting its digital initiative at the top of its priority list, reallocating a much larger portion of marketing dollars into the digital space and accelerating e-commerce growth.
The company also noted in its results that it was struggling from a difficult holiday season from its retail partners and their increased focus on inventory management amid slower store traffic.
As such, it is going to implement a number of “cost-savings initiatives” to
Editors' Picks
Sponsored by
reduce costs and improve profitability, including a decrease in the company’s workforce, primarily impacting its North American and Swiss operations.
Movado said it eliminated 70 positions in the U.S. last week and is in the process of executing a similar program in Switzerland.
Movado said it expects to realize about $12 million of savings in fiscal 2018 from these cost-saving initiatives.
The company also has a few new projects on the docket, including a long-term global partnership with fashion brand Rebecca Minkoff, which will lead to a collaboration on the design, development, distribution and marketing of a line of watches. The collection will launch in North America this summer.
Movado also recently announced a partnership with Google to launch Movado Connect, a smartwatch which will be powered by Android Wear 2.0. The watch is one of the first designed specifically for the platform, the company said, and will launch this fall, introducing five men’s styles starting at $495.
For fiscal 2018, the company anticipates net sales to be in the range of $515 million and $530 million and operating income to be between $50 million and $55 million. Net income, meanwhile, is expected to be approximately $33 million to $36.3 million.
Editor’s Note: This story was updated on March 21 to include the number of positions reduced in the U.S. supplied by Movado Group after the story already was published.
Movado said it eliminated 70 positions in the U.S. last week and is in the process of executing a similar program in Switzerland.
Movado said it expects to realize about $12 million of savings in fiscal 2018 from these cost-saving initiatives.
The company also has a few new projects on the docket, including a long-term global partnership with fashion brand Rebecca Minkoff, which will lead to a collaboration on the design, development, distribution and marketing of a line of watches. The collection will launch in North America this summer.
Movado also recently announced a partnership with Google to launch Movado Connect, a smartwatch which will be powered by Android Wear 2.0. The watch is one of the first designed specifically for the platform, the company said, and will launch this fall, introducing five men’s styles starting at $495.
For fiscal 2018, the company anticipates net sales to be in the range of $515 million and $530 million and operating income to be between $50 million and $55 million. Net income, meanwhile, is expected to be approximately $33 million to $36.3 million.
Editor’s Note: This story was updated on March 21 to include the number of positions reduced in the U.S. supplied by Movado Group after the story already was published.
More on Financials
The Latest
CollectionsApr 29, 2024
Simone I. Smith Mixes Denim and Diamonds in New Collection“SIS x MISA Denim and Diamonds” is a collaboration between the designer and celebrity stylist Misa Hylton.
IndependentsApr 29, 2024
Venus Jewelers Relocating After 45 YearsThe retailer is moving to a newly designed space in the same shopping center.
Brought to you by
Rio’s Reimagined Podcast: For the Love of JewelersMeet Ben Claus—grand prize winner of For the Love of Jewelers 2023 Fall Design Challenge.
SurveysApr 29, 2024
Mother’s Day Jewelry Spending to Reach $7B, Says NRFGifts that are unique and thoughtful are top of mind this year, according to the annual survey.
Weekly QuizApr 26, 2024
This Week’s QuizTest your jewelry news knowledge by answering these seven questions.
CollectionsApr 26, 2024
Piece of the Week: Jacquie Aiche’s Starry Galaxy NecklaceThe necklace is featured in the brand’s “Rebel Heart” campaign starring Adam Levine and Behati Prinsloo.
Events & AwardsApr 26, 2024
AGS Conclave and GIA Symposium Are ConvergingThe two organizations will host a joint event, “Converge,” in September 2025.
Brought to you by
The Blueprint for Success in Scalable, Personalized Jewelry RetailWith Ho Brothers, you can unlock your brand's true potential and offer customers the personalized jewelry experiences they desire.
SourcingApr 26, 2024
Anglo American Reportedly Shopping De Beers as BHP Eyes Anglo Big changes appear to be on the horizon for the diamond miner and its parent company, Anglo American.
Events & AwardsApr 25, 2024
Alexis Padis Takes Over as AGS Board President Padis succeeds Lisa Bridge, marking the first time the organization has had two women board presidents in a row.
EditorsApr 25, 2024
5 Tips for Creating Fans from the Top (Savannah) Banana Jesse Cole, founder of Fans First Entertainment, shared the “five Es” of building a fan base during his AGS Conclave keynote.
WatchesApr 25, 2024
Audemars Piguet and John Mayer Partner on Limited Edition WatchThe Royal Oak Perpetual Calendar "John Mayer" was celebrated at a star-studded party in LA last week.
SourcingApr 25, 2024
De Beers Lowers Production Guidance for 2024The announcement came as the company reported a 23 percent drop in production in Q1.
MajorsApr 25, 2024
Detroit Lions’ QB Jared Goff Keeps Going to JaredThe three-time Pro Bowler continues to partner with the retailer, donating to a Detroit nonprofit and giving watches to fans.
CrimeApr 24, 2024
Jewelry Crime Declines Significantly, But Dollar Losses Remain High A double-digit drop in the number of in-store crimes was offset by a jump in off-premises attacks, JSA’s 2023 crime report shows.
CollectionsApr 24, 2024
Pippa Small Announces ‘Venus’ CollectionInspired by the Roman goddess of love, the designer looked to the sea for her new collection.
Events & AwardsApr 24, 2024
JCK Industry Fund Announces 2024 Grant RecipientsThe selected nine organizations have outlined their plans for the funds.
SourcingApr 24, 2024
Rio Tinto’s Q1 Production Drops Amid Pause to Honor Lost Colleagues The mining company’s Diavik Diamond Mine lost four employees in a plane crash in January.
WatchesApr 24, 2024
These Are Rolex’s New Watches for 2024 The crown introduced a dozen timepieces in Geneva, including a heavy metal version of its deep-sea divers’ watch.
ColumnistsApr 23, 2024
The Smart Lab: Advanced Email Marketing Strategies for Mother’s DayEmmanuel Raheb recommends digging into demographic data, customizing your store’s communications, and retargeting ahead of May 12.
IndependentsApr 23, 2024
Hannoush Jewelers Opens New Store in New York Located in the town of Queensbury, it features a dedicated bridal section and a Gabriel & Co. store-in-store.
SourcingApr 23, 2024
Lucapa Sells 3 Diamonds for $10.5M in First Lulo Tender of 2024A 203-carat diamond from the alluvial mine in Angola achieved the highest price.
GradingApr 23, 2024
GIA Has a New Book About William RuserRuser was known for his figural jewelry with freshwater pearls and for his celebrity clientele.
CollectionsApr 22, 2024
Jacquie Aiche’s New Campaign Stars Adam Levine, Behati PrinslooThe “Rebel Heart” campaign embodies rebellion, romance, and sensuality, the brand said.
EditorsApr 22, 2024
The 22 Best Quotes from AGS Conclave 2024 Editor-in-Chief Michelle Graff shares the standout moments from the education sessions she attended in Austin last week.
SourcingApr 22, 2024
Virtual Diamond Boutique Rebrands as ‘VDB’The overhaul includes a new logo and enhanced digital marketplace.
MajorsApr 22, 2024
Signet Raises Nearly $9M for St. Jude Children’s Research HospitalThe money will go toward supporting ongoing research and aftercare programs for childhood cancer survivors.
