Net sales for the quarter of fiscal 2010 fell from $135.8 million to $129 million compared to the same period last year.
Overall, the company reported a 22 per cent decline year-to-date in sales from $366.9 million to $286.2 million year over year, including $13.6 million in sales of excess discontinued merchandise.
“We are very disappointed in our third quarter and year-to-date results,” said Movado president and chief executive officer (CEO) Efraim Grinberg. “We experienced higher levels of destocking in the marketplace than originally anticipated as retailers continued to focus on very tight inventory control. Further, the unprecedented level of U.S. jewellery retailers closing their operations and liquidating inventory has had a significant impact on our business.”
Grinberg said cost-cutting measures implemented since 2008 have helped ride the wave of some of the economic turmoil, noting “sales of the Movado brand and our licensed brands at our retail customers remain strong and generally outpace our retail partners’ watch department sales.”
