NEW YORK — Movado Group Inc. came out of a lackluster holiday season with sales down for the quarter and the year and plans to carry out a number of cost-saving measures in 2017, while refocusing the brand on digital and e-commerce.Net sales for the fourth quarter dropped 8.7 percent to $130.8 million and net income fell by about 37 percent to $5.2 million. For 2016 as a whole, net sales fell 7.1 percent to $552.8 million and net income dipped by about 23 percent to $35.1 million.Movado doesn't see things improving during 2017 and anticipates sales falling again to between $515 million and $530 million during the year with net income in the range of $33 million to $36 million.Despite a difficult year and an outlook Movado chairman and chief executive officer Efraim Grinberg characterized as “more conservative,” he said the company delivered “a solid year” that was in line with its previous outlook.Nevertheless, Grinberg noted an acceleration of shoppers buying on their smartphones and consuming digital media over the last 18 months has affected Movado, and the company intends to make a bigger digital presence and e-commerce sales its “number-one priority.”The company's president, Ricardo Quintero, pointed out during a call with analysts that Movado’s web site was its fastest-growing business unit over the last year.Movado has also begun a “cost reduction plan” in an effort to maintain operating profit objectives, which has resulted in a number of unspecified employee positions being eliminated in the U.S. A similar process is set to begin in Switzerland this year.“Eliminating positions is difficult," Grinberg said during the call. “But we felt that it was necessary, in order to operate effectively and profitably in the evolving retail landscape.”Movado expects to realize $12 million in savings next year with the layoffs, and about $15 million a year thereafter.“We are decisive in our commitment to become a leaner, more agile organization, rightsizing to the current operating environment and making smart resource allocations against the biggest opportunities, with a focus on delivering sustainable profitable growth in the long run,” Quintero added.The company is hopeful for the success of a new partnership with Google to develop a Movado smartwatch that will be launched this fall and another deal with Rebecca Minkoff to design a line of private-label watches for the designer.“In the smartwatch space, there is a continued opportunity as technology improves and consumers are able to get the creative designs they desire to deliver the functionality that they are looking for,” Grinberg said.He added that while the increased popularity of smartwatches has certainly been “disruptive to the fashion category,” Movado still believes there are “many opportunities with conventional watches differentiated by great brands and innovative design.”For More on Financial Results, See:Etsy Revenue Continues to Grow, But Losses LingerTailored Brands Shares Drop 27% as Outlook Falls ShortDick’s Sporting Increases Sales With New Stores, But Profits DownRevlon Sales Improve, but Year Ends With LossBurlington Saw Double Digit Profits, Sales Grow in 2016
In honor the @CFDA’s announcement of @iamnaomicampbell receiving the Fashion Icon Award at the 2018 #CFDAAwards, which will take place on June 4, here’s a #tbt of the supermodel on @michaelkors’ runway in 1991. #wwdfashion #wwdarchive (📷: George Chinsee)
“I was making the guacamole when my scout saw me,” says model @stuckinteenage on being discovered just six months ago while working at @chipotlemexicangrill. Since then Williams has signed with @dnamodels, walked in her first show at @calvinklein and landed on the cover of @vogueitalia – a high point of any model’s career. To read @lisajlockwood’s full interview with the model on her experiences thus far, head to WWD.com – link in bio. (📷: George Chinsee)
“I love the idea of dialogue, period. It’s where I’ve always gotten my inspiration from: hearing other women speak, their journeys and their paths,” said @hereisgina, who delivered the keynote speech during @sxsw for @createcultivate in partnership with @fossil. For her two panels, Rodriguez chose female empowering, female-led and female entrepreneurs to focus on. Head to WWD.com to read more about her thoughts on Time’s Up, growing up in a family of women and why we “need a girls’ club.” #wwdeye #sxsw (📷: @jgreenery)
Leading luxury brand are shaking things up to keep up with streetwear. Case in point: the arrival of @mrkimjones as artistic director of @diorhomme. Jones, who succeeds @Kris_Van_Assche, is seen as one of the handful of designers who can actually straddle the luxury and streetwear worlds — which could lead to even more changes at established brands. What could this mean for the rest of the menswear landscape? Head to WWD.com to find out what experts predict #wwdfashion (📷: @franckmura)
“It’s like buying groceries. You’re going to buy the best mango, the best mozzarella, the best things. You have to, or others are going to take it all,” said @gabrielahearst on why she uses only the finest fabrics. Last week, Hearst received her first @cfda nomination for Womenswear Designer of the Year, and earlier this month she opened a permanent showroom in Paris. To read @jessiredale’s interview with the designer and find out why this is shaping up to be a big year for her, head to WWD.com. #wwdfashion (📷: @francoisgoize)
“It’s an interesting thing, playing a younger version of your mother. It’s an interesting concept. I adore my mom and love her in every capacity, but it was just something that had never crossed my mind,” says @anniemstarke on playing a young Joan Castleman in “The Wife.” The same role will be played by her mother Glenn Close. Read more about her growing up in the film industry as the daughter of producer John H. Starke and Close and what she has planned for the future #wwdeye (📷: @nataliamantini)
@asics is launching a new streetwear sneaker inspired by its latest ambassador, @steveaoki. The Hyper-Kenzen x Aoki, which will launch at @footlocker stores exclusively tomorrow, is a slip-on style that incorporates the brand’s proprietary Gel technology through beads integrated into the midsole for comfort and endurance. Read the full story on WWD.com.