Shares of Movado Group Tank After Reporting Q3 Results

Shares of Movado Group Inc., the American watchmaker, were tumbling in Tuesday’s premarket trading after the company reported third quarter earnings and sales that missed estimates.

For the quarter, the company reported that income totaled $17.8 million, or 76 cents per share, down from $26.9 million, or $1.14 per share, last year.

Adjusted EPS of 82 cents was below the FactSet outlook for $1.03.

Sales of $205.6 million were down from $208.9 million last year and were also trailing the $220.0 million FactSet guidance.

“This year we made the strategic decision to increase marketing investments to drive sales across our powerful portfolio of watch brands,” said Efraim Grinberg, chief executive of the company, in a statement.

“While this effort led to market share gains, we fell short of our sales plan due to the category performing below our expectations as challenges intensified within the watch category and retail landscape, which combined with our increased marketing expenditures, impacted our results.”

Looking ahead, the company expects fiscal year sales to be in the range of $690 million to $700 million, EPS of $1.55 to $1.70. The FactSet outlook is for sales of $729 million and EPS of $2.27.

Shares are down over 30% in the past year.

Disclaimer: We have no position in Movado Group, Inc. (NYSE: MOV) and have not been compensated for this article.