Movado Group slashes full-year earnings guidance

PARAMUS, N.J. - Watch maker Movado Group Inc. sharply reduced its full-year earnings guidance on Thursday, after reporting that third-quarter profit dropped 41 percent as retailers pulled back on inventory to cope with a drop in sales.

Movado shares dropped $1.99, or 14.7 percent, to $11.57 in midday trading. The stock has traded between $10.42 and $26.50 during the past 52 weeks.

Movado Group now projects 2009 earnings of 80 cents to $1 on net sales of $470 million to $480 million. Excluding charges related to the company's cost-savings plan announced in August, the company projects a profit of 85 cents to $1.05 per share.

Movado said its projections do not include any one-time charges related to a second round of cost-cutting measures announced on Thursday. The company noted that its results will also depend on holiday sales and retailer replenishment in January.

In September, Movado predicted full-year profit of $1.65 to $1.72 per share, excluding a charge and cost savings related to its August expense reduction plan.

Analysts surveyed by Thomson Reuters, who generally exclude one-time items, forecast 2009 earnings of $1.67 per share.

Movado reported adjusted earnings per share of $1.71 in fiscal 2008.

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