Luxury watchmaker Movado Group, Inc. (NYSE: MOV) has reported a decrease in net income for the third quarter of 2023 when its sales declined by 3%. The company also slashed its guidance for fiscal 2023.
Net sales dropped to $211.4 million in the three-month period from $217.7 million in the prior-year quarter. Both the US and international divisions recorded negative growth.
Reflecting the weak top-line performance, third-quarter adjusted earnings dropped to $1.31 per share from $1.36 per share a year earlier. On an unadjusted basis, net income was $30.11 million or $1.28 per share, compared to $31.79 million or $1.33 per share last year.
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Efraim Grinberg, chief executive officer of Movado, said, “the disciplined execution of our strategy led to topline growth in constant currency and solid profitability in an increasingly difficult macro-environment. We maintained a healthy gross margin rate and managed expenses, which drove adjusted operating margin of 18.4% in the quarter.”