We’ve been following the Movado financial crisis since the first quarter a loss was reported. This week some good news came in from for the fourth fiscal quarter which ended at the end of January. Movado seems to have hit positive sales results.

According to Movado 61 of their retail stores were up 2.6 percent this quarter due to new merchandise and a consistent effort to turn a bad problem around to a good situation before it turned into a disaster.

Here’s the total scoop from Idex Online:

Highlights from Fourth Quarter and Year-End

The following are highlights from the company’s fourth quarter and full year results for the period ended January 2009 versus January 2008.

• Movado’s management reported that global sales in the fine watch business were down double-digit levels in 2008.

• One wholesale market performed better than average: the Middle East. Movado’s weakest wholesale markets were the U.S. and Brazil.

• Management noted that three factors hurt wholesale demand for watches in the fourth quarter:

• • Retailers cut back dramatically on replenishment orders.
  • Retailers typically have at least one year of inventory on hand, so there was no compelling reason to add to their inventory levels.
  • Retailers adjusted their re-orders to sales levels, which were weak.

• Movado’s focus over the past several months has been on cost savings. These are some of the cost and cash savings programs which have been implemented.

• • Management reduced employee benefits.
  • Executive pay was cut.
  • Capital expenditures were down significantly, a trend that will continue into 2009.
  • Its cash dividend was suspended, though we expect it to be reinstated later.
  • The company has reduced its own inventory levels.

• Fourth quarter financial highlights were as follows:

• • Total corporate revenues were down 35 percent.
  • Wholesale sales were down 46 percent.
  • U.S. wholesale sales were down 61 percent. All categories were down, especially the luxury brands (Ebel, Concord) and the accessible luxury brands (Movado, ESQ). Sales of licensed brands were down less. Licensed brands include Coach, Tommy Hilfiger, Hugo Boss, Juicy Couture and LaCoste.
  • International wholesale sales declined by 34 percent. All categories of watches experienced weak sales.
  • Movado retail sales were up 2.6 percent.
  • Movado Boutique sales were down 14.8 percent.
  • Movado Outlet sales were up 19.7 percent
  • The company’s gross margin fell to 55.9 percent from 64.3 percent (adjusted) due to three factors: 1) unfavorable currency translation; 2) heavy price-based promotions in the Movado Boutiques units; and 3) an unfavorable sales mix.
  • The company spent less on marketing, which probably hurt sales.

• Full year financial highlights were as follows:

• • Total sales were down 15 percent.
  • Wholesale sales were down 18 percent.
  • U.S. wholesale sales were down 30 percent. Sales of luxury and accessible luxury brands were down nearly 38 percent. Licensed brands were up just over 4 percent.
  • International wholesale sales were down 4 percent. Luxury and accessible luxury brand sales were down 17 percent, while sales of licensed brands were up 10 percent.
  • Retail sales were down 3.9 percent.
  • Sales in the Movado Boutiques were down 16.4 percent, with same-store sales down 17.3 percent.
  • Sales in the Movado Outlet stores were up 6.3 percent, with same-store sales up 6.9 percent.
  • Movado’s full year gross margin was 62.4 percent versus 64.0 percent (adjusted). Two factors were cited as depressing its gross margin: 1) price-based promotions in the Movado Boutiques; and, 2) an unfavorable sales mix.
  • Movado ended the year with too much inventory, and it is out of compliance on its debt covenants. During the current year, we look for the company to work down its inventory. It is currently working on a new asset-based lending agreement with its banks.

Movado management looks for continued weakness during the first half of 2009, with a gradual pickup in the second half. We expect a slight profit for the company in the fiscal year ending January 2010.

This men’s luxury watch is almost sold out not only because of its unique style but because of the quality of Movado watches. The Movado Ardezzo Men’s luxury watch has a silver dial and a silver subdial that counts away the seconds. Te hand indicators are gold tone and the hour markers are Arabic numerals.
Movado takes minimal to a new level with this luxury watch.  Scratch resistant sapphire crystal and a Swiss quartz movement are surrounded by a 28 mm case.  This Movado luxury watch also has 30 meters of water resistance.

A great pick is from the Watchery, a Movado Sports Edition SE Ladies Watch with a stainless steel mother of pearl dial, diamond bezel, and bright yellow leather strap.

This luxury watch by Movado is perfect for any Spring activity, and it’s a perfect gift for Easter.  It’s has a brushed and polished stainless steel case, silver tone hand indicators, Movado signature concave dot, scratch resistant sapphire crystal, precise Swiss quartz movement and a deployment buckle clasp .

The case is stunning and it takes the minimalist Movado look up a notch by adding sleek curves, stunning exotic stones, and geometrically placed stainless steel dots.

Here’s an Angular Momentum Email Grand Feu Watch

Here’s a Movado Museum Watch:

Same case design… same dot at 12 o’clock… same minimalist features… same design plan with focus on the hands. Angular Momentum is saying the new line of time pieces feature the skeletonized hands but it’s so similar to the Movado Museum watch, it makes us wonder…

The white dial has Roman numeral hour markers at 12, 3, 6, and 9 o’clock and gold dots for the rest of the hour makers.  The Movado 12 o’clock dot is still on this Movado luxury watch under the Roman numeral 12 and above the Movado logo complemented the gold hour hands are sword shape and angular.

Additional specifications include a precise Swiss Quartz movement and a case width of 17.2 mm.

Movado luxury watches is no different as they get ready to rally their resources for the Jewelers for Children’s (JFC) “Hero for Hope” program where industry brands and small jewelry boutiques can give any amount they wish to the program through any fundraising options they choose.

The money from the fundraiser goes to charities such as St. Jude’s Children’s Research Hospital, Elizabeth Glaser Pediatric AIDS Foundation, National CASA Association and Autism Speaks.

According to Movado Group President and chief Executive Officer Efraim Grinberg:

“Our employees have been involved with the Hero for Hope program since it began. We hold an annual kick-off that gets everyone motivated and excited, so much so that our employees hold fund-raising activities throughout the year where the proceeds go to JFC as a supplement to their payroll deductions.”

The Movado Aviso Men’s watch includes a polished 14k gold case and bracelet, a white dial, blue hand indicators, black Roman numeral hour markers, scratch resistant sapphire, precise Swiss quartz movement, 3 o’clock date calendar, 34 mm case width, hidden double folding clasp, and 30 meters of water resistant.

This Movado luxury watch is from the Watchery, the number one seller of genuine discount luxury watches online.  It’s perfect for a guy because it has traditional touches with the bold Roman numeral hour markers and a masculine gold bracelet.

The distinctive and  blue dial with silver colored hands and 3 subdials as well as Arabic hour markers allow the Movado Watch  to combine with normal contemporary sleek look of Movado watches with a bold presence.

Some other attributes include a polished steel crown that sits at the top of the case, scratch resistant sapphire crystal, 30 meters of water resistance, 40 mm case width, pin buckle watch clasp, and recise Swiss quartz chronograph movement.

The Movado Museum dial black with a single do representing the 12 o’clock maker and sword shaped gold watch hands relaying the minutes and the hours.  A Movado watch label sits at the 6 o’clock maker.

This Movado watch also has a scratch resistant sapphire crystal case and a precise Swiss quartz movement.  The elegant watch is simple and petite with dimensions which include a 24.5 mm crown, 26 mm case near crown, 6 mm case thickness, and 14 mm bracelet.

The clasp type of this Movado watch is a double hidden folding clasp type and 30 meters of water resistance.

This Movado Esperanza watch has a Museum styled dial with a single dot representing the 12 o’clock marker.  However, the stand out feature is the skeletal Bourdeaux fabric strap in brown with uniquely contrasts against the stainless steel dial and diamond bezel.

Technical features of this Movado watch include silver hand indicators, scratch resistant sapphire crystal, precise Swiss quartz movement, and 100 feet of water resistance.