What happened
Shares of fine watch retailer Movado Group (MOV -1.58%) fell on Wednesday, declining 15% by the time the market closed.
The stock's decline follows Movado's fiscal second-quarter results, which included worse-than-expected revenue and adjusted earnings per share, as well as a lowered outlook for its full-year fiscal 2020 financial performance.
Image source: Getty Images.
So what
Movado's sales rose 9.5% year over year to $157.8 million. According to Yahoo! Finance's data, the only analyst covering the stock had forecast revenue of $167 million. Adjusted earnings per share for the period were $0.36, down from $0.45 in the year-ago quarter. This also came in below the analyst's forecast for adjusted earnings per share of $0.49.
Movado CEO Efraim Grinberg cited "an increasingly challenging environment for our category, planned incremental investments and currency headwinds" as some of the hurdles the company faced during the quarter. But Grinberg did note that Movado was "pleased with the market share gains of our licensed brand portfolio both internationally and domestically, and saw strong digital sales growth on our movado.com site during the quarter."
Now what
Given the challenges the company is facing, management said it now expects full-year fiscal 2020 revenue to be between $725 million and $740 million, down from a previous forecast for revenue between $750 million and $765 million. In addition, Movado said it expects operating income for this period to be between $67 million and $70 million, well below its previous estimate for $82 million to $85 million.
