Movado Warns Of Disappointing Quarterly Results, Outlook

Movado Group warned on Friday that third-quarter results would miss expectations, citing slowing growth in the overall market for watches and a disappointing performance by certain brands, including Movado in international markets. The company expects a fiscal third-quarter profit of 86 to 87 cents a share, well below the FactSet consensus analyst estimate of $1.13 a share. Sales for the quarter ended Oct. 31 are projected to be $188.6 million to $189.7 million, compared with analyst forecasts of $216.6 million. For the full fiscal year, Movado now expects per-share earnings of $1.80 to $1.85 and revenue of $585 million to $590 million, below analyst estimates of $2.40 and $635.2 million, respectively. The stock, which is still inactive in premarket trade, has lost 12% year to date through Thursday, compared with a 10% gain in the S&P 500.