MajorsNov 04, 2024
Jewelers Mutual Appoints Mastercard Exec to Its BoardDana J. Lorberg brings 35 years of experience in finance, technology, and strategy to the role.
FinancialsJun 10, 2020
Movado Sales Down 53% in Q1
The watch company has reopened 14 stores in North America, which are performing better than expected, said CEO Efraim Grinberg.
A set of Movado Connect 2.0 watches. The watch company posted a double-digit drop in sales amid the coronavirus pandemic.
Paramus, N.J.—Movado Group reported a double-digit decline in first quarter sales as the coronavirus pandemic closed its stores and hurt comps across both owned and licensed brands.
CEO Efraim Grinberg opened Tuesday morning’s earnings call by addressing the “senseless deaths” of George Floyd, Ahmaud Arbery, and Breonna Taylor.
Grinberg said the company has been “having the difficult discussions [with associates] surrounding race, diversity, inclusion, and the biases that exist within all of us” and recognizes it needs to do better.
Looking at its financial results, Grinberg said the year was progressing according to plan in February and early March, but by mid-March, the coronavirus pandemic forced the closure of most of its operations and retail stores.
In April, the company temporarily furloughed 80 percent of its North American workforce, approximately 850 employees, and temporarily reduced the work rate of its international employees.
Net sales in the first quarter fell 53 percent to $69.7 million, compared with $146.5 million a year ago.
Sales declined across all segments, including owned brands, licensed brands, and company stores, said CFO Sallie DeMarsilis on the call, adding sales were down in the U.S. and internationally.
Grinberg said he was encouraged by the strength of its online business, pointing to Movado and Olivia Burton as brands performing especially well in key markets while MVMT also saw improvement.
“Although ecommerce sales were strong, they were not nearly enough to offset the declines in our wholesale and company stores businesses,” said DeMarsilis.
China, which saw strong e-commerce sales as well, has begun to reopen its stores.
In North America, 14 out of 47 locations have reopened with 41 expected to be open by June 17.
The 14 stores currently open have performed better than expected, said Grinberg, adding that sales at these stores were down 11 percent compared with the same period last year.
“I actually think that this pandemic has kind of, to a certain extent, really fortified the need for a certain amount of brick and mortar centers, and especially outdoor ones, so we’re seeing that consumers like to shop and they’re coming to our stores and shopping at a pretty high level,” said Grinberg.
While traffic is down about 40 percent at those stores, he said, there are higher conversion rates and higher average transactions.
Looking to the year ahead, DeMarsilis said the company would not be providing specific fiscal guidance, but expects its second quarter to be “significantly impacted by the crisis.”
“Although
we expect trends will improve in the second half of the year, our top line is expected to remain below last year,” she said.
The company also borrowed an additional $30 million under its credit agreement to bolster its financial flexibility, she said.
Movado has slowed the inflow of inventory into its warehouses and reduced its capital expenditures with the exception of projects with short-term return on investments, including select digital initiatives.
The company’s quarterly dividend has been discontinued and its share repurchase program has been suspended until further notice.
Movado also announced organizational changes Tuesday, effective immediately, in an effort to streamline the company and accelerate its digital initiatives.
Behzad Soltani, the current president of direct to consumer and chief digital officer, has been promoted to executive vice president, commercial president, and chief technology officer.
Soltani will oversee the company’s global wholesale business, company stores, e-commerce, and digital center.
Current CFO DeMarsilis has been promoted to executive vice president and chief operating officer, while still maintaining her role as CFO.
DeMarsilis will be responsible for finance and accounting, value chain, distribution, and business controls.
Grinberg said the new management structure will help unify the company’s distribution channels.
The company also borrowed an additional $30 million under its credit agreement to bolster its financial flexibility, she said.
Movado has slowed the inflow of inventory into its warehouses and reduced its capital expenditures with the exception of projects with short-term return on investments, including select digital initiatives.
The company’s quarterly dividend has been discontinued and its share repurchase program has been suspended until further notice.
Movado also announced organizational changes Tuesday, effective immediately, in an effort to streamline the company and accelerate its digital initiatives.
Behzad Soltani, the current president of direct to consumer and chief digital officer, has been promoted to executive vice president, commercial president, and chief technology officer.
Soltani will oversee the company’s global wholesale business, company stores, e-commerce, and digital center.
Current CFO DeMarsilis has been promoted to executive vice president and chief operating officer, while still maintaining her role as CFO.
DeMarsilis will be responsible for finance and accounting, value chain, distribution, and business controls.
Grinberg said the new management structure will help unify the company’s distribution channels.
More on Financials
The Latest
CrimeNov 04, 2024
FBI Offering $15K Reward for Info on Halloween Mask-Wearing RobbersThe suspects are said to have been involved in the armed robberies of four jewelry stores across three Midwest states.
CollectionsNov 04, 2024
John Hardy’s New Jewels Turn the Black Sands of Bali into DiamondsThe new designs blend Creative Director Reed Krakoff’s aesthetic with the brand’s Balinese roots.
Brought to you by
Navigating Cybersecurity: Essential Guidance for JewelersFrom protecting customer data to safeguarding inventory records, it's crucial to learn how to tackle cybersecurity challenges.
IndependentsNov 04, 2024
Eiseman Jewels is Celebrating Watches All Month-LongThe Dallas-based jeweler will showcase timepieces from Cartier, IWC Schaffhausen, Jaeger-LeCoultre, Parmigiani Fleurier, and more.
Weekly QuizOct 31, 2024
This Week’s QuizTest your jewelry news knowledge by answering these questions.
SourcingNov 01, 2024
Reena Ahluwalia Donates Diamond Painting to Benefit CJAThe artwork, titled “Pristine,” was raffled off at the Canadian Jewellers Association’s recent summit.
IndependentsNov 01, 2024
Gunderson’s Jewelers Opens New Location in NebraskaThe new store features a custom design studio and a bridal salon.
Brought to you by
Enhance Your Expertise with IGI’s In-Person Courses in NYCThis fall, sharpen your skills in jewelry grading, quality control and diamond assessment.
CollectionsNov 01, 2024
Piece of the Week: Sydney Evan Gets ‘Wicked’Designer Rosanne Karmes has created a collection to coincide with the release of the movie musical, which is expected to be a blockbuster.
ColumnistsOct 31, 2024
Peter Smith: Nervous Flyers and Emotional SellingWhether you’re calming the jittery gentleman in seat 13B or selling a diamond ring to a hesitant customer, an empathetic approach is best.
Events & AwardsOct 31, 2024
WJA Will Celebrate 4 Award Winners at ‘Future of Forty’ GalaThe gala includes a red carpet, music from DJ Renata, an awards program, and “mystery boxes.”
Events & AwardsOct 31, 2024
The Instore Show Returns To Chicago AreaThe trade show, in its third year, will take place in late September at the Donald E. Stephens Convention Center in Rosemont, Illinois.
Lab-GrownOct 31, 2024
Q&A: Constance Polamalu on Selling Natural and Lab-Grown DiamondsThe jeweler shared her change of heart on lab-grown diamonds and why she keeps them separate from natural diamonds in her business ventures.
Events & AwardsOct 30, 2024
These Designers, Journalists, and Retailers Are Up for a Gem Award The 2025 Gem Awards are scheduled to take place March 14 at Cipriani 42nd Street in New York City.
MajorsOct 30, 2024
Peggy Grosz Leaves Assael After Company Is SoldGrosz had served as Assael’s senior vice president and creative director since 2017.
CollectionsOct 30, 2024
CD Peacock Honors Its Hometown of Chicago in First Bridal Collection“Love and Celebration” is the jeweler’s first in-house collection featuring engagement rings, wedding bands, and celebration rings.
SurveysOct 30, 2024
Consumer Confidence Rebounds in OctoberA more positive view of the labor market contributed to the strongest monthly gain since March 2021.
Events & AwardsOct 30, 2024
Mejuri to Award $50K in Scholarships to Jewelry Design StudentsThe funds will be distributed to schools in the U.S., Canada, and the U.K.
MajorsOct 29, 2024
Cybersecurity Expert Selected as President of Jewelers’ Security AllianceJennifer Mulvihill, the first woman to lead JSA in the organization’s 141-year history, takes over for the retiring John Kennedy.
Events & AwardsOct 29, 2024
The Can’t-Miss Events of 2024 New York City Jewelry WeekThis year’s festivities include more than 100 experiences, such as designer showcases, panel discussions, and even a treasure hunt.
AuctionsOct 29, 2024
Rolex Worn on Apollo 14 Mission Sells for More Than $2MThe GMT-Master “Pepsi” that belonged to astronaut Edgar Mitchell is one of two Apollo-flown Rolex watches ever sold at auction.
MajorsOct 29, 2024
Pandora’s Holiday Campaign, New Jewelry Celebrate Light and LoveThe ads star brand ambassadors Chloe and Halle Bailey and Pamela Anderson.
SourcingOct 29, 2024
De Beers’ Production Drops 25% as Demand Remains SluggishThe company combined two sights in Q3 due to the slowdown in demand, and said it is moving up the dates for sights 9 and 10 in Q4.
EditorsOct 28, 2024
Q&A: Monica Rich Kosann Looks Back on 20 Years The jewelry designer discussed how she got into the jewelry industry, what she keeps in her favorite locket, and the future of her brand.
MajorsOct 28, 2024
Jewelers for Children’s Halloween Costume Contest RocksParticipants can buy five votes for $5 to decide which jeweler will dress up as an ‘80s rockstar for Halloween.
TrendsOct 28, 2024
Amanda’s Spooky Style FileThese 15 pieces of jewelry hand-picked ahead of Halloween appeal to the costume- and candy-loving child in all of us.
MajorsOct 25, 2024
This New Bulgari Boutique Is on a YachtStarboard Luxury is bringing the Italian brand aboard The Ritz-Carlton Yacht Collection’s newest yacht.
