The luxury watchmaker reported total sales of $159.3 million for the second quarter, compared to $160.4 million in the prior year quarter. There was a sales decline in both US and international markets.
As a result, total net income plunged to $3.72 million or $0.16 per share in the July quarter from $8.05 million or $0.36 per share in the same period last year. For the full fiscal year, the management expects sales to be in the range of $665 million to $675 million.
Efraim Grinberg, chief executive officer of Movado, said, “While increased marketing investment coupled with our initiatives to enhance retail performance drove improvement in our sales trend from the first quarter, second-quarter sales and earnings were below our expectations due to the challenging consumer spending environment compounded by increased expenses to support future growth.”
