MOVADO CUTS PROJECTIONS
Byline: Evan Clark
NEW YORK — Movado Group Inc. trimmed its third-quarter earnings projections to 60 to 65 cents a diluted share — more than a third lower than analysts’ estimates of $1.06 a share.
The Paramus, N.J.-based watch manufacturer also promoted Eugene Karpovich to senior vice president of finance and chief financial officer.
Sales for the third quarter are figured to reach about $90 million. Analyst Joe Gladue with The Chapman Co. noted the stock had held up fairly well over the past several weeks and that the warning resulted from “a combination of the overall decline and the terrorist incidents. It’s not very company specific,” he said.
For the full year ending Jan. 31, Movado is looking for sales of approximately $300 million and earnings per diluted share between $1.35 and $1.45.
President and chief executive officer Efraim Grinberg stated: “Our retail customers have been extremely cautious in their buying practices as they aggressively manage their inventories downward and order closer to selling time.”
Chief operating officer Rick Cote said the firm has “significantly reduced” its infrastructure costs and is managing purchases to minimize economic impact.
In his new role as cfo, Karpovich will report to Cote. He was most recently vice president of financial planning for Movado Group and was previously cfo of the Movado brand. He succeeds Ken Johnson, who left the firm.