Supplier BulletinApr 24, 2025
Protect Your Customers and Your BusinessSponsored by the Gemological Institute of America
MajorsJul 07, 2020
Movado To Lay Off Employees Amid Restructuring
The layoffs are part of the watch company’s plan to cut costs amid economic hardships brought on by the COVID-19 pandemic.
A Movado Connect 2.0 timepiece. The watch company is laying off an undisclosed number of employees as part of its new restructuring plan.
Paramus, N.J.—Movado Group plans to lay off employees as part of its new restructuring plan, the company announced in a recent 8-K filing with the U.S. Securities and Exchange Commission.
The company declined to disclose the number of employees who will be affected.
CEO Efraim Grinberg said in a statement to National Jeweler: “The moves that we have taken, although painful, will enable the company to be better positioned for the future.”
Affected U.S. employees will receive severance packages, outplacement assistance and extended benefit coverage.
The COVID-19 pandemic “caused unprecedented economic and social hardships,” Grinberg said, adding that “these circumstances have led us to reorganize and streamline our teams in order to sustain and secure long-term growth for the business.”
Back in June, Movado announced organizational changes intended to streamline the company and accelerate its digital initiatives.
Behzad Soltani, the current president of direct-to-consumer and chief digital officer, was promoted to executive vice president, commercial president, and chief technology officer.
Current Chief Financial Officer Sallie DeMarsilis was promoted to executive vice president and chief operating officer while maintaining her role as CFO.
Grinberg said the new management structure will help unify the company’s distribution channels.
The aim of its overall restructuring is to reduce operating expenses and adjust cash flows, Movado said in the 8-K filing.
The plan is expected to cost between $9 million to $12 million in total with the majority of the money, between $8.5 million and $11 million, going toward employee severance and benefits costs and stock-based compensation charges, as per the filing.
Between $500,000 to $1 million will go to “consolidating facilities,” though a Movado spokesperson said the company has closed its locations only temporarily.
The watch company began reopening stores last month and said during a recent earnings call it expected to have 41 of 47 North American locations open by mid-June.
The majority of the restructuring plan is expected to be implemented in the second quarter of the company’s fiscal year, though Movado noted cash severance will be paid out over time so charges will continue into the next fiscal year.
Movado, like so many other companies, is struggling amid the COVID-19 pandemic, temporarily shuttering its stores and furloughing 80 percent of its North American workforce, approximately 850 employees.
Net sales in its recent first quarter fell 53 percent to $69.7 million, compared with $146.5 million a year ago.
Grinberg highlighted the “accelerated shift in the overall business” to digital and e-commerce.
“Although e-commerce sales
were strong, they were not nearly enough to offset the declines in our wholesale and company stores businesses,” said CFO DeMarsilis on the earnings call last month.
Looking to the year ahead, DeMarsilis said the company won’t be providing fiscal guidance but it does expect its second quarter to be “significantly impacted by the crisis” with the top line “expected to remain below last year.”
The company also recently borrowed an additional $30 million under its credit agreement to bolster its financial flexibility.
Looking to the year ahead, DeMarsilis said the company won’t be providing fiscal guidance but it does expect its second quarter to be “significantly impacted by the crisis” with the top line “expected to remain below last year.”
The company also recently borrowed an additional $30 million under its credit agreement to bolster its financial flexibility.
More on Majors
The Latest
EditorsApr 24, 2025
Q&A: Wolf’s CEO Talks U.S. ExpansionSimon Wolf shares why the time was right to open a new office here, what he looks for in a retail partner, and why he loves U.S. consumers.
IndependentsApr 24, 2025
Longtime Iowa Jeweler Herman Ginsberg Dies at 99 A third-generation jeweler, Ginsberg worked at his family’s store, Ginsberg Jewelers, from 1948 until his retirement in 2019.
Brought to you by
Protect Your Customers and Your BusinessThe risk of laboratory-grown diamonds being falsely presented as natural diamonds presents a very significant danger to consumer trust.
FinancialsApr 24, 2025
Charles & Colvard Delisted From Nasdaq Due to NoncomplianceThe company failed to file its quarterly reports in a timely manner.
Weekly QuizApr 24, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
SourcingApr 24, 2025
Young Diamantaires Transition to NonprofitThe organization also announced its board of directors.
TrendsApr 24, 2025
Amanda’s Style File: So CharmingCharms may be tiny but with their small size comes endless layering possibilities, from bracelets to necklaces and earrings.
Events & AwardsApr 23, 2025
PDPaola Creative Director Wins FGI’s ‘Rising Star’ AwardPaola Sasplugas, co-founder of the Barcelona-based jewelry brand, received the Fine Jewelry Award.
AuctionsApr 23, 2025
Rare Custom Rolex Daytona Heads to AuctionA platinum Zenith-powered Daytona commissioned in the late ‘90s will headline Sotheby’s Important Watches sale in Geneva next month.
MajorsApr 22, 2025
Zales’ Rebrand Takes Playful Approach to Fine JewelryThe Signet Jewelers-owned retailer wants to encourage younger shoppers to wear fine jewelry every day, not just on special occasions.
AuctionsApr 22, 2025
Christie’s to Auction JAR Jewelry CollectionThe 21 pieces, all from a private collector, will be offered at its Magnificent Jewels auction next month.
ColumnistsApr 22, 2025
The PR Adviser: Building Buzz Through Word of MouthLilian Raji answers a question from a reader who is looking to grow her jewelry business but has a limited marketing budget.
GradingApr 22, 2025
Avi Levy Is GCAL By Sarine’s New Chief Growth OfficerGCAL by Sarine created the new role to sharpen the company’s focus on strategic partnerships and scalable expansion.
IndependentsApr 22, 2025
Brinker’s Jewelers Acquires Fellow IndependentThe Indiana jeweler has acquired Scottsdale Fine Jewelers in Scottsdale, Arizona.
Events & AwardsApr 21, 2025
An Exhibition Exploring the History of Cartier Is Now on Display“Cartier: Design, Craft, and Legacy” opened earlier this month at the Victoria and Albert Museum in London.
IndependentsApr 21, 2025
New York Jeweler to Close After 111 YearsVan Cott Jewelers in Vestal, New York, is hosting a going-out-of-business sale.
IndependentsApr 21, 2025
IJO Names New Director of Vendor Relations, Merchandise StrategyIndustry veteran Samantha Larson has held leadership roles at Borsheims, McTeigue & McClelland, Stuller, and Long’s Jewelers.
Events & AwardsApr 21, 2025
Jewelers of Louisiana, Mississippi Jewelers Association to Co-Host ConventionThe two organizations will hold the educational event together this fall in Mississippi.
Events & AwardsApr 18, 2025
Daymond John to Give Keynote at JCK Las VegasThe entrepreneur and “Shark Tank” star will share his top tips for success.
CollectionsApr 18, 2025
Piece of the Week: Dukachi’s ‘Easter Bread’ PendantThe Ukrainian brand’s new pendant is modeled after a traditional paska, a pastry often baked for Easter in Eastern European cultures.
IndependentsApr 18, 2025
Bremer Jewelry to Reveal Renovated StoreThe jeweler has announced a grand reopening for its recently remodeled location in Peoria, Illinois.
MajorsApr 18, 2025
Tiffany & Co. Employees Star in Mother’s Day CampaignThe “Strong Like Mom” campaign features moms who work at Tiffany & Co. and their children.
CollectionsApr 17, 2025
John Hardy, Athena Calderone Partner on Art Deco Decor-Inspired CollectionInterior designer Athena Calderone looked to decor from the 1920s and 1930s when crafting her first fine jewelry collection.
FinancialsApr 17, 2025
Movado Group to Increase Prices to Offset Tariffs ImpactDuring a call about its full-year results, CEO Efraim Grinberg discussed how the company is approaching the uncertainty surrounding tariffs.
Lab-GrownApr 17, 2025
NDC Launches Its Diamond Learning CenterThe free program provides educational content for jewelry salespeople and enthusiasts to learn or refresh their diamond knowledge.
Policies & IssuesApr 17, 2025
Jewelers of America Requests Tariffs Testimonials from MembersThe feedback will be used to prepare other jewelers for the challenges ahead, the organization said.
