LAUNCH OF COACH WATCH LINE HELPS BOOST MOVADO NET BACK IN THE BLACK
NEW YORK — Movado Group Inc. turned a profit in the first quarter, powered by a stronger than expected launch of Coach watches and solid performance by its core brands.
In the three months ended April 30, Movado, based in Lyndhurst, N.J., earned $148,000, or 1 cent a share, against a year-ago loss of $260,000.
Sales climbed 19.3 percent to $41.7 million from $34.9 million.
Efraim Grinberg, chairman, said the company began shipping its new Coach line in the quarter, and opened its first two Movado boutiques. He noted the launch exceeded expectations, and the new Movado boutiques with the expanded product offerings — including jewelry and personal and home accessories — are performing well, as are the Movado, Concord and ESQ brands.
Grinberg said the Coach launch will continue in the second quarter, when distribution will be expanded to select department stores, and noted the Movado boutiques should help build visibility for the brand.
In addition to designing, manufacturing and distributing Movado, Concord, Coach and ESQ watches, Movado is the exclusive distributor of Swiss-manufactured Piaget and Corum watches in the U.S., Canada, Central America and the Caribbean.