Movado shares drop 14 percent after weak results

NEW YORK - Shares of luxury watch and jewelry seller Movado Group Inc. fell 14 percent Friday after it reported a day earlier that its third-quarter earnings plunged 41 percent.

Shares fell $1.60 to $9.81 in late morning trading.

Morgan Joseph analyst Jeffrey Blaeser downgraded the shares on Friday to a "Hold" from "Buy," and said sales could fall by more than planned cost cuts for next year.

"Clearly the global slowdown has and could continue to negatively impact sales results," Blaeser wrote in a research note to investors. "With consumers cutting back, and retailers closing doors and/or trimming inventories, similar comparable year-over-year trends could continue."

JMP Securities analyst Kristine Koerber maintained a "Market Perform" rating on the shares.

"Trends turned from bad to ugly beginning in October as retailers began reducing their purchasing activity," the analyst wrote.

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