SurveysApr 03, 2025
2025 Retail Sales to Grow More Slowly Amid ‘Uncertainty,’ Says NRFThe National Retail Federation expects retail sales growth to return to pre-pandemic levels as consumers continue to face inflation.
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
Editors' Picks
Sponsored by
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
TrendsApr 03, 2025
Tallulah Willis Imbues Antique Engagement Ring With MagicThe 4-carat, old mine brilliant-cut diamond engagement ring was co-designed by Willis and New York City-based brand Karina Noel.
SourcingApr 03, 2025
Canadian Mine Produces 158-Carat Yellow Diamond Rio Tinto unearthed the diamond at its Diavik mine in Canada’s Northwest Territories.
Brought to you by
The Heart of the Industry: Giving Bench Jewelers the Recognition They DeserveBench jewelers spend years honing their skills, Jewelers of America’s Certification validates their talents.
CollectionsApr 03, 2025
Buccellati to Open Immersive Exhibition in MilanThe multisensory experience, open April 8-13, will feature the brand’s silver creations among dream-like scenes of natural landscapes.
Weekly QuizApr 03, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
Policies & IssuesApr 03, 2025
Jewelers of America to Hold Webinar on TariffsThe virtual event will take place April 7 at 3 p.m.
CollectionsApr 02, 2025
Bea Bongiasca’s ‘Tarallo’ Collection Expansion Is a ZooThe pieces in “Animali Tarallo” portray animals from stingrays to elephants through portraits and interpretations of their patterns.
Brought to you by
Natural Diamonds Should Mean MoreNatural diamonds mean more than lab-grown, but when every cut is ideal, they all look the same. Customers want more—Facets of Fire delivers.
MajorsApr 02, 2025
Neiman Marcus’ Dallas Flagship Will Remain Open, For NowParent company Saks Global said the iconic location will be open through the holiday season as it decides what to do with the space.
SourcingApr 02, 2025
Winston’s Collection of Natural Color Diamonds Now on Display in D.C. Ronald Winston, son of Harry Winston, donated the diamonds to the Smithsonian National Museum of Natural History in Washington, D.C.
Events & AwardsApr 02, 2025
Punchmark to Host Client WorkshopThe educational event will take place in Charlotte, North Carolina, this May.
IndependentsApr 01, 2025
Bergman Jewelers in Omaha Closing After 137 YearsThe independent jeweler first opened its doors in 1888.
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.
Events & AwardsApr 01, 2025
U.S. Antique Shows Adds Fall Show in FloridaThe debut event will take place in Miami’s Coconut Grove neighborhood this fall.
Events & AwardsApr 01, 2025
TJS to Host Discussion on Jewelry Industry’s Labor ShortageThe roundtable will take place May 17 ahead of the trade show’s welcome dinner.
CollectionsApr 01, 2025
Monica Rich Kosann Says ‘Good Grief’ in Peanuts Jewelry CollectionThe “Peanuts x Monica Rich Kosann” collection features the comic strip’s classic vocabulary across 10 bracelet designs.
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.
TrendsMar 31, 2025
Amanda’s Style File: Dripping in DiamondsDiamonds are not only one of the most prominent gemstones, but the birthstone for those born in April.
MajorsMar 31, 2025
Lashbrook Expands Into Luxury Golf Gifts With AcquisitionThe Utah-based company known for making wedding bands has acquired Doubloon Golf.
WatchesMar 31, 2025
Bulgari CEO Jean-Christophe Babin Will Also Head LVMH WatchesThe longtime luxury executive led one of LVMH’s watch brands, TAG Heuer, for 12 years before taking over Bulgari in 2013.
CrimeMar 28, 2025
2 Suspects Arrested in $1.7M Smash-and-Grab Robbery of NY Jewelry StoreAuthorities said the robbers fled with jewelry and 70 Rolex watches, later taking pictures of themselves posing with big stacks of cash.
SourcingMar 28, 2025
19th-Century Jade Book Now Available in EnglishLotus Gemology founder Richard W. Hughes has translated Heinrich Fischer’s 1880 book “Nephrit und Jadeit” from its original German.
CollectionsMar 28, 2025
Piece of the Week: Löf’s ‘The Valentine’ RingThe ring's design features contrasting lines influenced by work from architecture-inspired photographer Nikola Olic.
SurveysMar 27, 2025
Consumer Confidence Falls in March Amid ‘Gloomy’ OutlookThe Conference Board’s index fell as consumers continued to worry about the impact of tariffs, the labor market, and the price of eggs.
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.
WatchesMar 27, 2025
Austin Butler Joins Breitling as Brand AmbassadorThe Oscar-nominated actor debuted in the campaign for the new “Top Time B31” collection, which introduced Breitling’s Caliber B31.
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.
