In the second quarter, Movado Group Inc. recorded a double-digit decline in sales as consumer demand for watches remained soft.
According to the company, second quarter net sales totaled $128.1 million, compared with $145.6 million in the second quarter of last year. This makes for a decrease of 12 per cent. Additionally, net income dropped 48 per cent from $12.1 million to $6.3 million.
For the first half of the year, Movado has seen sales decline 9 per cent while net income has totaled $9.6 million, compared with $15.7 million in the same period last year.
Based on these results, Movado is lowering its guidance for the full year. The watch company now expects sales of $550 to $560 million, down from the $565-$580 million it had originally projected.
Movado Group Chairman and CEO Efraim Grinberg notes that while the retail and economic environments have proved challenging, the company’s second quarter performance was consistent with its outlook. Grinberg adds that despite this, both Movado-brand watches and the company’s licensed brands continue to perform well in stores.
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