Movado Group Inc. recorded a double-digit decline in sales in the second quarter as consumer demand for watches remains soft and again lowered its outlook for the year.
The Paramus, N.J.-based watch company reported Thursday that second quarter net sales totaled $128.1 million compared with $145.6 million in the second quarter of last year, a decrease of 12 percent (11 percent on a constant dollar basis).
Net income dropped 48 percent, from $12.1 million to $6.3 million.
For the first half of the year, Movado has seen sales decline 9 percent (8 percent on a constant dollar basis) while net income has totaled $9.6 million, compared with $15.7 million in the same period last year.
In a company statement, Chairman and CEO Efraim Grinberg called the retail and economic environment challenging but noted that Movado’s second quarter performance was consistent with its outlook.
He also said that both Movado-brand watches and the company’s licensed brands, a list that includes names such as Tommy Hilfiger and Coach, continue to outperform other watches at retail.
Like Signet Jewelers, Movado is lowering its guidance for the full year. The watch company now expects sales of $550 to $560 million, down from the $565-$580 million projected following the release of its first quarter results.
“Given the challenging marketplace, we still see a number of headwinds and feel it is prudent to lower our full-year outlook,” Grinberg said.
Movado Group Inc. is based in Paramus, N.J. and designs, sources and distributes Movado, Ebel, Concord and ESQ Movado watches, as well as watches for Coach, Tommy Hilfiger, Hugo Boss, Juicy Couture, Lacoste and Scuderia Ferrari. The company also operates Movado stores in the United States.