Headquartered in Paramus, NJ, Movado Group (MOV - Free Report) is one of the world’s premier watchmakers, designing, manufacturing, and distributing high-end timepieces and fashion watches. Its brand portfolio includes Coach, Tommy Hilfiger, Hugo Boss, Concord, and Movado.
Shares Slump on Underwhelming Q3 Earnings
Non-GAAP earnings came in at 82 cents per share, well below our consensus estimate of $1.03. Revenue fell 1.6% year-over-year to $205.6 million; analysts expected sales of $220 million.
Movado’s Q3 performance was hurt by declining sales and increasing marketing investments, and lowered its full-year revenue outlook as a result.
Analysts have turned bearish on Movado, with one cutting estimates in the last 60 days for fiscal 2019.
Earnings are expected to see double-digit negative growth for the year, and the Zacks Consensus Estimate has dropped 64 cents for that same time period from $2.27 to $1.63 per share.This sentiment has stretched into 2021, though sales growth is expected to be positive.
MOV is now a Zacks Rank #5 (Strong Sell).
Shares of the watchmaker are down almost 36% since January, and the stock took a major hit after its Q3 earnings release; MOV plunged 24.6% in the wake of the report. The S&P 500 is up about 28% this year in comparison.
Movado has been impacted by currency headwinds and the underperforming watch category and overall retail environment. It now expects fiscal 2020 revenue to fall between $690 million to $700 million compared to the previous range of $725 million and $740 million.
Investors who are interested in adding a Retail-Jewelry peer to their portfolio could take a look at Zacks Rank #2 (Buy) ranked Signet Jewelers (SIG - Free Report) , which is seeing positive estimate revisions for fiscal 2020.
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