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Movado Group's Revenue Flat, Profit -51% in 1Q

May 27, 2015 7:52 AM   By Ronen Shnidman
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RAPAPORT... The Movado Group reported that its sales were flat year on year at $120.4 million during the first quarter that ended on April 30.  The company  said that the lack of sales growth was due primarily to the impact of fluctuating exchange rates between the dollar and the Swiss franc and euro. Sales during the quarter rose 5 percent on a constant-exchange-rate basis, according to the company. Profit fell 51 percent to $3.6 million, based primarily on a $2.7 million pre-tax charge related to operating efficiency initiatives and other items implemented in early on.

Movado group said that the negative impact of unfavorable foreign-currency-exchange rates on sales was partially offset by improvements in channel and product mix.

"Our solid first-quarter results represent the strength of the Movado Group brand portfolio as well as our ability to succeed in a weaker retail environment and mitigate the impact of dramatic foreign-exchange-rate changes," said Rick Coté, the vice chairman and chief operating officer of the Movado Group. "To deal with these factors, we have implemented selective price increases, streamlined certain aspects of our business to provide greater operating efficiencies and are focusing on sourcing improvement opportunities in our supply chain organization.”

Tags: euro, Exchange rate, Movado, Ronen Shnidman, Swiss france, swiss watch
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