Majors

Movado To Lay Off Employees Amid Restructuring

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.

20200707_Movado_Connect.jpg
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.
Lenore Fedowis the associate editor, news at National Jeweler, covering the retail beat and the business side of jewelry.

The Latest

FBI robbery surveillance photo
CrimeNov 04, 2024
FBI Offering $15K Reward for Info on Halloween Mask-Wearing Robbers

The suspects are said to have been involved in the armed robberies of four jewelry stores across three Midwest states.

Models wearing Black Sand Pebble ring and Surf bracelet
CollectionsNov 04, 2024
John Hardy’s New Jewels Turn the Black Sands of Bali into Diamonds

The new designs blend Creative Director Reed Krakoff’s aesthetic with the brand’s Balinese roots.

Jaeger-LeCoultre Reverso Tribute watch
IndependentsNov 04, 2024
Eiseman Jewels is Celebrating Watches All Month-Long

The Dallas-based jeweler will showcase timepieces from Cartier, IWC Schaffhausen, Jaeger-LeCoultre, Parmigiani Fleurier, and more.

Jewelers Mutual Group Cybersecurity
Brought to you by
Navigating Cybersecurity: Essential Guidance for Jewelers

From protecting customer data to safeguarding inventory records, it's crucial to learn how to tackle cybersecurity challenges.

Artist Reena Ahluwalia “Pristine” painting
SourcingNov 01, 2024
Reena Ahluwalia Donates Diamond Painting to Benefit CJA

The artwork, titled “Pristine,” was raffled off at the Canadian Jewellers Association’s recent summit.

Weekly QuizOct 31, 2024
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Gunderson’s Jewelers in Omaha, Nebraska
IndependentsNov 01, 2024
Gunderson’s Jewelers Opens New Location in Nebraska

The new store features a custom design studio and a bridal salon.

Sydney Evan x Wicked “Spell Book” coin charm
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.

Article-Top-Image.jpg
Brought to you by
Enhance Your Expertise with IGI’s In-Person Courses in NYC

This fall, sharpen your skills in jewelry grading, quality control and diamond assessment.

Charles & Colvard moissanite ring
FinancialsOct 31, 2024
Charles & Colvard Faces Possible Nasdaq Delisting

The retailer said it will file the necessary paperwork to regain compliance as soon as it is able.

National Jeweler columnist Peter Smith
ColumnistsOct 31, 2024
Peter Smith: Nervous Flyers and Emotional Selling

Whether you’re calming the jittery gentleman in seat 13B or selling a diamond ring to a hesitant customer, an empathetic approach is best.

Annie E. Doresca, Grant Mobley, Alexis Padis, Terry Chandler
Events & AwardsOct 31, 2024
WJA Will Celebrate 4 Award Winners at ‘Future of Forty’ Gala

The gala includes a red carpet, music from DJ Renata, an awards program, and “mystery boxes.”

Instore show 2025
Events & AwardsOct 31, 2024
The Instore Show Returns To Chicago Area

The trade show, in its third year, will take place in late September at the Donald E. Stephens Convention Center in Rosemont, Illinois.

Constance Polamalu
Lab-GrownOct 31, 2024
Q&A: Constance Polamalu on Selling Natural and Lab-Grown Diamonds

The jeweler shared her change of heart on lab-grown diamonds and why she keeps them separate from natural diamonds in her business ventures.

Gem Awards New York City
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.

CD Peacock Love and Celebration Rings
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.

Hands pushing a shopping cart
SurveysOct 30, 2024
Consumer Confidence Rebounds in October

A more positive view of the labor market contributed to the strongest monthly gain since March 2021.

Mejuri store
Events & AwardsOct 30, 2024
Mejuri to Award $50K in Scholarships to Jewelry Design Students

The funds will be distributed to schools in the U.S., Canada, and the U.K.

Jewelers’ Security Alliance President Jennifer Mulvihill
MajorsOct 29, 2024
Cybersecurity Expert Selected as President of Jewelers’ Security Alliance

Jennifer Mulvihill, the first woman to lead JSA in the organization’s 141-year history, takes over for the retiring John Kennedy.

20241030_NYCJW.jpg
Events & AwardsOct 29, 2024
The Can’t-Miss Events of 2024 New York City Jewelry Week

This year’s festivities include more than 100 experiences, such as designer showcases, panel discussions, and even a treasure hunt.

Edgar Mitchell’s Rolex GMT-Master Pepsi
AuctionsOct 29, 2024
Rolex Worn on Apollo 14 Mission Sells for More Than $2M

The GMT-Master “Pepsi” that belonged to astronaut Edgar Mitchell is one of two Apollo-flown Rolex watches ever sold at auction.

Pandora ambassadors Chloe Bailey, Halle Bailey, and Pamela Anderson
MajorsOct 29, 2024
Pandora’s Holiday Campaign, New Jewelry Celebrate Light and Love

The ads star brand ambassadors Chloe and Halle Bailey and Pamela Anderson.

Stock image of a diamond engagement ring
SourcingOct 29, 2024
De Beers’ Production Drops 25% as Demand Remains Sluggish

The 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.

Monica Rich Kosann
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.

Jewelers for Children Rock the Costume Showdown graphic
MajorsOct 28, 2024
Jewelers for Children’s Halloween Costume Contest Rocks

Participants can buy five votes for $5 to decide which jeweler will dress up as an ‘80s rockstar for Halloween.

Katy Briscoe carved indicolite Persian cat ring
TrendsOct 28, 2024
Amanda’s Spooky Style File

These 15 pieces of jewelry hand-picked ahead of Halloween appeal to the costume- and candy-loving child in all of us.

Executives at the Bulgari Ritz Carlton ribbon cutting ceremony
MajorsOct 25, 2024
This New Bulgari Boutique Is on a Yacht

Starboard Luxury is bringing the Italian brand aboard The Ritz-Carlton Yacht Collection’s newest yacht.

Mourning Jewelry Pendant
CollectionsOct 25, 2024
Piece of the Week: A Haunting Piece of Mourning Jewelry

The pendant, circa the late 1700s, likely was commissioned to remember a loved one who died young.

×

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