Movado Group CEO not satisfied but has plan
The company expects to report full results for its third quarter of fiscal 2015 on November 25, 2014.
Efraim Grinberg, chairman and chief executive officer, stated, "I am disappointed in our third quarter performance and our expectations for this trend to continue into the fourth quarter, which combined has caused us to reduce guidance for the full year.
"We have strong plans in place for the upcoming holiday season that should continue to drive increased sell-through at retail. As we begin planning for next year, we are confident that we will return to sustainable profitable growth."
For the fourth quarter, the company anticipates net sales of $132 million to $137 million, operating profit of $6.5 million to $8.5 million and earnings per diluted share in the range of $0.18 to $0.23. The operating profit is impacted due to continued investment in brand building and growth initiatives despite lower sales growth.
The company also anticipates recording a $3.0 million one-time pre-tax charge related to operating savings initiatives in either the fourth quarter of fiscal 2015 or early in fiscal 2016. ■
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