By Michelle Graff
michelle.graff@nationaljeweler.com
One of four new watches in the limited edition Alexi x Movado collection, which features pictures taken by photographer Alexi Lubomirski on Movado’s iconic Museum dial. Movado released the collection, which features vegan watch straps and recycled packaging, earlier this year.
Paramus, N.J.—Movado Group weathered another tough quarter, recording a double-digit slide in both net sales and net income.

The New Jersey-based watchmaker and distributor reported Tuesday that third quarter net sales declined 17 percent year-over-year to $169.9 million, compared with $205.6 million in the same period last year.

On a constant-exchange-rate basis sales were down 19 percent year-over-year.

Europe, a key market for the company’s brands, and e-commerce were the bright spots, with sales of Movado-brand watches increasing 159 percent on the company’s own digital platform and the websites of its wholesale partners.

Gross profit improved, totaling $92.5 million, or 54.4 percent of net sales, as compared with $110.1 million, or 53.5 percent of net sales in the previous year.

Net income, however, declined, totaling $14.8 million, down from $17.8 million in the same period last year.

Movado’s sales were stronger in the third quarter than they were in the second—when net sales fell 44 percent—with Q3 results exceeding the company’s expectations.

It has been cutting costs amid the economic hardships brought on by the pandemic, announcing in July a restructuring plan that includes employee layoffs and tightly managing operating expenses and inventory levels, which are down 12 percent year-over-year.


Chairman and CEO Efraim Grinberg said in the company’s third quarter earnings release it is “encouraged” to see demand for its watches increasing despite the global economic environment that continues to be impacted by COVID-19.

He noted while there is uncertainty around the duration and trajectory of the second wave of the coronavirus, Movado is well-positioned for the holiday season due to the strength of its brands, focus on innovation and marketing campaigns.

Year-to-date, sales are down 36 percent to $328.1 million.

The company has recorded a net loss of $141.8 million, compared with net income of $39.2 million in the first nine months of the previous year.

Movado is not providing guidance for fiscal year 2021 given the uncertainty brought about by COVID-19.


Get the Daily News >
National Jeweler

Fine Jewelry Industry News

Since 1906, National Jeweler has been the must-read news source for smart jewelry professionals--jewelry retailers, designers, buyers, manufacturers, and suppliers. From market analysis to emerging jewelry trends, we cover the important industry topics vital to the everyday success of jewelry professionals worldwide. National Jeweler delivers the most urgent jewelry news necessary for running your day-to-day jewelry business here, and via our daily e-newsletter, website and other specialty publications, such as "The State of the Majors." National Jeweler is published by Jewelers of America, the leading nonprofit jewelry association in the United States.