Financials

Movado Inks Deal with Calvin Klein

FinancialsAug 28, 2020

Movado Inks Deal with Calvin Klein

The watch company also released its second-quarter results, posting a 44 percent drop in sales.

20200828_Movado_watch.jpg
A Movado Connect 2.0 smartwatch. The company also announced its second-quarter results, seeing sales decline across its owned and licensed watch brands.

Paramus, N.J.—Movado Group signed a licensing agreement with Calvin Klein to create a new line of watches and jewelry.

The five-year deal will begin in January 2022.

The company already partners with owner PVH Corp. on its Tommy Hilfiger licensed brand.

Calvin Klein was on the lookout for a partnership after the end of its 22-year-long licensing deal with Swatch Group.

Swatch chose to let the licensing agreement expire in October 2019, citing “turbulence and uncertainties at the management level,” which included office closings, layoffs and changes to executive management.

PVH Corp. said in a statement the decision to end the long-standing agreement was mutual as “both partners believe that they have been unable to achieve the maximum potential in key markets.”

Movado CEO Efraim Grinberg said in a press release the company is “thrilled” to partner with Calvin Klein.

“The Calvin Klein brand has tremendous global awareness, with a significant online presence and a footprint that spans the world,” he said.

The billion-dollar brand was founded in 1968 by Calvin Klein and his business partner Barry Schwartz and acquired by PVH Corp. in 2003.

Movado has plans for men’s and women’s watch collections, offering Swiss-made and fashion watches featuring “modern designs with a clean aesthetic.”

The company will take a “refined and minimal” approach to its jewelry, working with stainless steel, rose and yellow gold plating.

“The watch and jewelry categories are important businesses for Calvin Klein, and we are optimistic about the potential growth the category holds,” said Cheryl Abel-Hodges, CEO of Calvin Klein, in a press release.

The collections are expected to debut in spring 2022.

The price points will be in the $150 to $500 range, Grinberg estimated during an earnings call Thursday.

“What we’re also really excited about is that it includes both watches and jewelry, and jewelry for us is a growth opportunity,” Grinberg said.

The company sells jewelry through its Tommy Hilfiger, Hugo Boss, Olivia Burton, MVMT and Movado brands.

The news of the Calvin Klein collaboration followed the announcement of Movado’s second-quarter results.

The watch company posted a steep drop in overall sales due to the impact of COVID-19 but looked to online sales as a bright spot.

Net sales in the second quarter fell 44 percent to $88.5 million, compared with $157.8 million a year ago.

In the first half, net sales were down 48 percent to $158.2 million compared with $304.4 million a year ago.

Quarterly gross profit was down 48 percent to $45.4 million,

or 51 percent of sales, compared to $85.3 million, or 54 percent of sales, in the second quarter last year, which Movado attributed the “unfavorable changes” in channel and product mix, foreign currency exchange rates, and U.S. special tariffs.

Year-to-date gross profit was $80.8 million, or 51 percent of sales, as compared to $164.4 million, or 54 percent, of sales last year, attributed to similar reasons.

Following temporary store closures due to COVID-19, its outlet stores in North America reopened in June.

Though all stores are open now, they were closed for most of the quarter, which ended July 31, Chief Financial Officer Sallie DeMarsilis noted during the earnings call.

Movado said it has seen sequential improvements in July despite operating with reduced store hours.

Sales declined across all segments, including owned brands, licensed brands and company stores, both in the U.S. and internationally.

Online sales were strong, Movado said, posting a 130 percent increase in its own and third-party e-commerce sales.

Grinberg said the company is “focused on reaching consumers in an increasingly digital environment, wherever they choose to shop.”

He forecast future digital growth through its own e-commerce, wholesale partners and global digital marketplaces, highlighting Amazon’s growth in Europe and the growth of Zalando, a Berlin-based fashion and lifestyle ecommerce platform.

Looking at the U.S., Grinberg noted department stores are doing especially well since many have street-side entrances at malls and a strong digital presence.

Internationally, Movado’s retail performance varies, he said. Germany and France are close to normal and the U.K. is making progress while Latin America and India are more challenging markets.

Quarterly sales in China were up 16 percent, as both digital and physical sales performed well.

As for its brands, both owned and licensed, the company has new things in the works.

This includes the Movado Museum SE, a luxury sports collection starting at $995, starring in a holiday television campaign ad, while the Movado jewelry collection will expand and include online exclusives.

MVMT, acquired by Movado in 2018, will launch the Legacy Slim collection, with a starting price of $115.

It will also offer the Minimal Sport Automatic, a limited-edition 500-piece collection and the most expensive watch the brand has offered at $350.

The new Tommy Hilfiger Mason collection will give a sporty look with branded rubber straps, and the Hugo Boss brand will introduce the Globetrotter 46 mm athleisure chronograph collection, marked by bold pops of color.

Coach will introduce Arden, a new design with its signature “C” on the crown, and the C001, a new analog digital watch for men, which will be promoted by a social media campaign.

Lacoste Boston is the new sporty collection with the classic Lacoste green dial.

Looking at the company’s financials, Grinberg pointed to the company’s recent restructuring, which included cost-cutting measures like employee layoffs and reduced expenditures, as the reason the company is well-positioned to withstand the current challenges.

The company reduced its headcount by 24 percent, Grinberg said.

It expects to see $90 million in cost savings in the fiscal year.

“As we look to the remainder of the year, we continue to expect improving sales trends in the second half relative to the first half with improved profitability, and we will continue to be disciplined and agile in managing the business given the continued uncertainty,” Grinberg said.

Movado will not provide financial guidance for the year ahead, due to the “dynamic nature of the COVID-19 crisis and lack of visibility.”
Lenore Fedowis the senior editor, news at National Jeweler, covering the retail beat and the business side of jewelry.

The Latest

Bergman Jewelers family
IndependentsApr 01, 2025
Bergman Jewelers in Omaha Closing After 137 Years

The independent jeweler first opened its doors in 1888.

QVC Group Inc. logo
MajorsApr 01, 2025
QVC Group to Cut 900 Jobs in the U.S.

The layoffs come amid the TV shopping channel’s efforts to restructure and focus on live shopping through social media.

Coconut Grove Jewelry & Watch Show
Events & AwardsApr 01, 2025
U.S. Antique Shows Adds Fall Show in Florida

The debut event will take place in Miami’s Coconut Grove neighborhood this fall.

bench jeweler 1872x1052.png
Brought to you by
The Heart of the Industry: Giving Bench Jewelers the Recognition They Deserve

Bench jewelers spend years honing their skills, Jewelers of America’s Certification validates their talents.

The Jewelry Symposium (TJS)
Events & AwardsApr 01, 2025
TJS to Host Discussion on Jewelry Industry’s Labor Shortage

The roundtable will take place May 17 ahead of the trade show’s welcome dinner.

Weekly QuizMar 27, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Peanuts x Monica Rich Kosann Collection Bracelets
CollectionsApr 01, 2025
Monica Rich Kosann Says ‘Good Grief’ in Peanuts Jewelry Collection

The “Peanuts x Monica Rich Kosann” collection features the comic strip’s classic vocabulary across 10 bracelet designs.

Graphic for What Do We Mean When We Say “Recycled” Gold webinar
Recorded WebinarsMar 31, 2025
Watch: What Do We Mean When We Say ‘Recycled’ Gold?

Three industry experts dive into the complexities of the material often marketed as an “ethical” alternative for metal in jewelry.

Facets-of-Fire-Difference-You-Can-See.jpg
Brought to you by
Natural Diamonds Should Mean More

Natural diamonds mean more than lab-grown, but when every cut is ideal, they all look the same. Customers want more—Facets of Fire delivers.

Mindi Mond Clarity Earrings
TrendsMar 31, 2025
Amanda’s Style File: Dripping in Diamonds

Diamonds are not only one of the most prominent gemstones, but the birthstone for those born in April.

Lashbrook ring
MajorsMar 31, 2025
Lashbrook Expands Into Luxury Golf Gifts With Acquisition

The Utah-based company known for making wedding bands has acquired Doubloon Golf.

Bulgari and LVMH Watches CEO Jean-Christophe Babin
WatchesMar 31, 2025
Bulgari CEO Jean-Christophe Babin Will Also Head LVMH Watches

The longtime luxury executive led one of LVMH’s watch brands, TAG Heuer, for 12 years before taking over Bulgari in 2013.

Surveillance footage of robbery
CrimeMar 28, 2025
2 Suspects Arrested in $1.7M Smash-and-Grab Robbery of NY Jewelry Store

Authorities said the robbers fled with jewelry and 70 Rolex watches, later taking pictures of themselves posing with big stacks of cash.

Nephrite and Jadeite by Heinrich Fischer, Richard W. Hughes
SourcingMar 28, 2025
19th-Century Jade Book Now Available in English

Lotus Gemology founder Richard W. Hughes has translated Heinrich Fischer’s 1880 book “Nephrit und Jadeit” from its original German.

LÖF The Valentine Ring
CollectionsMar 28, 2025
Piece of the Week: Löf’s ‘The Valentine’ Ring

The ring's design features contrasting lines influenced by work from architecture-inspired photographer Nikola Olic.

Eggs on a shelf
SurveysMar 27, 2025
Consumer Confidence Falls in March Amid ‘Gloomy’ Outlook

The Conference Board’s index fell as consumers continued to worry about the impact of tariffs, the labor market, and the price of eggs.

Richard Rainsford memorial ring
AuctionsMar 27, 2025
300-Year-Old Ring Linked to Witch Trial Judge Goes Unsold at Auction

However, two medieval jewels surpassed estimates at Noonans Mayfair’s recent jewelry auction in London.

Austin Butler
WatchesMar 27, 2025
Austin Butler Joins Breitling as Brand Ambassador

The Oscar-nominated actor debuted in the campaign for the new “Top Time B31” collection, which introduced Breitling’s Caliber B31.

ICA Congress Brazil 2025
SourcingMar 27, 2025
Susan Jacques, Gaetano Cavalieri to Headline 2025 ICA Congress

The Congress is scheduled to take place May 19-22 in Brasilia, Brazil.

Bailey’s Fine Jewelry storefront
IndependentsMar 26, 2025
Bailey’s Fine Jewelry Acquires Fellow NC Independent Jeweler

The family-owned retailer is the new owner of Morrison Smith Jewelers in Charlotte, North Carolina.

Bulova 150 Art Deco Miss America Watch, 150 Art Deco Pocket Watch
WatchesMar 26, 2025
Bulova Celebrates 150th Anniversary With Art Deco Watches

The “150 Art Deco” collection features a Miss America timepiece and a pocket watch from the brand’s Archive Series.

Alex Wellen
MajorsMar 26, 2025
QVC Group Appoints New President

Alex Wellen, formerly CEO and president of MotorTrend Group, has taken on the role.

Jewelers of America’s new logo
Events & AwardsMar 26, 2025
Jewelers of America Announces New Funding Initiative

The Impact Initiative is part of the nonprofit association’s new three-year strategic plan.

Christies regent kashmir sapphire and regal Burmese ruby
AuctionsMar 25, 2025
Christie’s To Auction 35-Carat Sapphire, 13-Carat Ruby

The ruby and the sapphire, which Christie’s calls a “once-in-a-generation masterpiece,” are part of the upcoming Hong Kong jewelry auction.

Diamond earrings held in gloved hand
CrimeMar 25, 2025
Tiffany & Co. Earrings Swallowed Following Grab-and-Run Theft Recovered

The two pairs of earrings, snatched from a Tiffany & Co. store in Orlando, Florida, are valued at a combined $769,500.

Emmanuel Raheb CEO of Smart Age Solutions
ColumnistsMar 25, 2025
The Smart Lab: Using Short-Form Videos to Sell More Jewelry

The time to start experimenting with video content is now, writes columnist Emmanuel Raheb.

Pomellato Nudo High Jewelry Campaign
CollectionsMar 24, 2025
Pomellato’s Latest ‘Nudo’ Collections Revamp its Classic Design

From striking high jewelry to miniature fine jewelry, the new chapter continues to highlight gemstones featuring its signature 57-facet cut.

Jamie Singleton, Bill Brace, Rebecca Wooters, Bill Luth
MajorsMar 24, 2025
4 Top Executives to Depart Signet Jewelers Amid Turnaround

The jewelry giant is reducing its senior leadership by 30 percent as part of its new turnaround strategy.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy