Movado Group Inc. reported that net sales in the second quarter of fiscal 2009 fell 7 percent to $129.7 million. Net income for the luxury watch company fell 34 percent to $8.1 million for the period, ended July 31.
Gross profit for the second quarter was $83.9 million, or 64.7 percent of sales, compared to $83.3 million, or 59.8 percent of sales last year. Operating profit was $11.1 million and included a $2.2 million charge related to the implementation of the company’s expense reduction plan. Excluding this charge, adjusted operating profit was $13.3 million versus $16.3 million in the year-ago period.
“While our second quarter results reflect the continued challenging macroeconomic environment, the decisive actions we’ve taken to reduce expenses and improve productivity are designed to position our company to emerge quickly and even stronger than before, as the economy recovers,” said Efraim Grinberg, Movado president and chief executive officer.
He added, “The importance of branding is paramount in today’s consumer spending environment and we will continue to strongly support and differentiate each of our brands with exciting new product introductions and bold new image-building advertising campaigns.”
Movado Group, Inc. designs, sources, and distributes Movado, Ebel, Concord, ESQ, Coach, Tommy Hilfiger, HUGO BOSS, Juicy Couture, and Lacoste watches worldwide; and operates Movado boutiques and company stores in the United States.