Movado Group Inc shares fell more than 10% Thursday morning after the watch retailer’s declining sales led to a downward revision in guidance.
The company posted third-quarter net sales of $187.7 million, down more than 11% from the year-ago quarter. US net sales dropped 12% over the same period.
Adjusted net earnings were $0.78 per share, compared to $1.31 per share a year earlier.
“For the third quarter, our results were impacted by the challenging retail environment in our largest markets, the United States and Europe,” CEO Efraim Grinberg said in a statement.
“Notwithstanding this, the quarter saw us continue to advance our strategic priorities and invest in our brands while preparing for the all-important holiday selling season.”
Looking ahead, Movado projects fiscal 2024 earnings of $1.85 to $2 per share, down from prior guidance of $2.15 to $2.25 per share. The company’s net sales guidance is $665 million to $675 million, compared to previous expectations of $690 million to $700 million.
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