Movado's sales, profits rise

SEPTEMBER 11, 2006 - Paramus, N.J. -- Movado Group, Inc. reported net sales of $126.6 million for the second quarter of its fiscal 2007, ended July 21, up 9.8 percent from the same period a year ago.

Growth picked up at Movado boutiques, where comparable store sales increased 9.3 percent from the second quarter of 2006.

Gross margin for the period rose to 62 percent, compared to 60.7 percent a year ago, helping to drive a 15 percent increase in operating profit. Movado posted operating profit of $14.1 million, compared to $12.3 million for last year's second quarter.

For the first half of its fiscal 2007, Movado saw net sales increase 10.5 percent, to $224.3 million, from the same year-ago period. Operating profit reached $17.5 million, versus $14.4 million a year earlier.

"Our strong results reflect the continued customer appeal of our diverse portfolio of brands, including the growing prominence of Ebel around the world, the introduction of our new Hugo Boss watch collection and the very successful launch and delivery of Series 800, a bold new sport collection from Movado," said President and CEO Efraim Grinberg.