Movado inventory strikes decrease after dimming full-year forecast (NYSE:MOV)

Movado Group (NYSE:MOV) inventory tumbled on Tuesday after administration tempered their full-year expectations.

For the third quarter, the watch distributor reported non-GAAP EPS of $1.31, above the $1.21 consensus. Nonetheless, a 2.9% decline in income to $211.4M for the quarter got here in under the $225.6M expectation. Gross margin contracted 40 foundation factors from the prior yr quarter to 57.3%.

“The disciplined execution of our technique led to topline development in fixed forex and strong profitability in an more and more tough macro-environment,”CEO Efraim Grinberg stated. “On this local weather, we’re happy with the outcomes throughout our manufacturers and, particularly, with the continued success of our new CK model that has been very effectively obtained by customers.”

Whereas Grinberg commented that the corporate is assured within the vacation gross sales outlook, forex and inflationary headwinds are anticipated to adversely impression earnings. As such, estimates had been reeled in.

“As customers in our key markets expertise inflationary strain, we’re updating our annual outlook to mirror forex headwinds and a softer spending setting,” Grinberg stated.

Web gross sales are anticipated to vary from $740M to $750M versus the earlier outlook of $780M to $790M. Forex fluctuations are anticipated to unfavorably impression full-year fiscal 2023 internet gross sales by roughly $35M.

Shares of Movado Group (MOV) fell 8.88% about an hour after Tuesday’s market open.

Dig into the small print of the outcomes.