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
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)
@heriethpaul and @gracebol have a moment on the @victoriassecret fashion show 2017. See every look from the runway on WWD.com. Link in bio. (📷: @giovanni_giannoni_photo) #wwdfashion #victoriassecret #VSFashionShow
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia