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Movado announces a unified strategy for its boutiques
26 Feb '08
4 min read
Movado Group Inc announced a unified strategy designed to leverage the strength of the Movado brand across all distribution channels.
The Movado brand strategy will unite the areas of product development, merchandising, and marketing across the Company's wholesale and retail channels.
The Company intends to optimize its wholesale distribution network and enhance the performance of its Movado boutiques to contribute further to the brand's long- term growth.
As part of the strategy, the Company expects to streamline the Movado brand wholesale distribution in the United States from 4,000 doors to approximately 2,600 doors, representing a 35% reduction, by the close of its fiscal year ending January 31, 2009.
The closing of these least productive doors represents approximately $10 million of Movado brand sales, or less than 5% of the overall brand's revenue and less than 2% of Movado's Group's consolidated revenue.
The Company will continue to partner with retailers that it believes will support and enhance the Movado brand image and strategy.
Efraim Grinberg, President and Chief Executive Officer, commented, "Managing our brand proactively, we believe there are significant opportunities to harness the power of Movado across all channels of distribution and to build on the aspirational nature of the brand.
We developed this comprehensive strategy following a thorough analysis of our brand, our retail customers, and our end-consumers.
While we are cognizant of the economic environment in which we currently operate, we continue to take a long-term view of our business. We believe that by taking this decisive action now, it will allow us enhanced opportunities to generate strong sustained growth in the future."
Based on a weak macroeconomic environment and the aforementioned Movado brand strategy, the Company has updated its guidance for its year ended January 31, 2008 (fiscal 2008).
On a GAAP basis, Movado Group projects fiscal 2008 net sales will be approximately $559 million, which includes approximately $31 million of excess discontinued product sales.
The Movado brand strategy will unite the areas of product development, merchandising, and marketing across the Company's wholesale and retail channels.
The Company intends to optimize its wholesale distribution network and enhance the performance of its Movado boutiques to contribute further to the brand's long- term growth.
As part of the strategy, the Company expects to streamline the Movado brand wholesale distribution in the United States from 4,000 doors to approximately 2,600 doors, representing a 35% reduction, by the close of its fiscal year ending January 31, 2009.
The closing of these least productive doors represents approximately $10 million of Movado brand sales, or less than 5% of the overall brand's revenue and less than 2% of Movado's Group's consolidated revenue.
The Company will continue to partner with retailers that it believes will support and enhance the Movado brand image and strategy.
Efraim Grinberg, President and Chief Executive Officer, commented, "Managing our brand proactively, we believe there are significant opportunities to harness the power of Movado across all channels of distribution and to build on the aspirational nature of the brand.
We developed this comprehensive strategy following a thorough analysis of our brand, our retail customers, and our end-consumers.
While we are cognizant of the economic environment in which we currently operate, we continue to take a long-term view of our business. We believe that by taking this decisive action now, it will allow us enhanced opportunities to generate strong sustained growth in the future."
Based on a weak macroeconomic environment and the aforementioned Movado brand strategy, the Company has updated its guidance for its year ended January 31, 2008 (fiscal 2008).
On a GAAP basis, Movado Group projects fiscal 2008 net sales will be approximately $559 million, which includes approximately $31 million of excess discontinued product sales.
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