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Slightly worse quarter   It could have been better

Movado Group CEO not satisfied but has plan

Movado GroupMovado Group announced preliminary third quarter sales, operating profit and earnings per share, and provided an updated outlook for its fiscal year ending January 31, 2015.

The company expects to report full results for its third quarter of fiscal 2015 on November 25, 2014.

READ MORE Movado Group profit rises 58% in Q2

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.

I am disappointed in our third quarter performance.
Efraim Grinberg, chairman and CEO
"For fiscal 2015, our net sales are now expected to increase by approximately 1% to 2% and operating profit is expected to be down approximately 7% to 10% as compared to last fiscal year. Our brand portfolio remains strong as does our balance sheet.

"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."

$590
million is expected to be generated in sales.
For fiscal 2015, the company now anticipates that net sales will increase approximately 1% to 2% to a range of $585 million to $590 million, operating profit will be approximately $68 million to $70 million and earnings per diluted share will be in the range of $1.80 to $1.85, assuming a 31% effective tax rate, excluding any unusual items.

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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