Movado Group, Inc (NYSE: MOV) was a big loser in yesterday’s trading session. The stock gapped down and closed the day with a loss of 20.44%. This followed quarterly results that were lower than what analysts were expecting.
From the results, the company recorded a decline of 1.6% to stand at $205.6 million. This is lower than the $208.9 million that it recorded in Q3. The company also recorded a decline in gross profits. Gross profits stood at $110.1 million, which was lower than the $113.4 million that it recorded in Q3. The quarter’s gross profits stand at 53.4% of the company’s gross sales. Comparatively, in Q3 the company gross profits represented 54.3% of net sales.
The company’s operating income also declined. The company reported an operating income of $22.6 million, as compared to $24.1 million in a similar period in 2018. However, the company’s operating expenses dropped to $87.4 million. This was a drop of $1.8 million compared to expenses of $85.8 million in the last fiscal year.
The company CEO, Efraim Grinberg stated that they continue investing heavily in marketing investments that will help drive sales across the company’s brands. He also noted that the decline in revenues was due to challenges in the retail environment. However, he noted that they expect that with the initiatives that the company has put in place, the company will see a turnaround in the holiday season.
Looking at the company’s stock charts, MOV is in a bear run and has been, for the better part of the year. Yesterday’s gap down was indicative of this sustained bear run. In yesterday’s session, volumes were quite high and stood at 1.38 million shares.
About Movado Group Inc
Movado Group Inc designs, manufactures and distributes fine watches for sale in the U.S and globally. The company has its headquarters in Paramus, New Jersey.