Movado Group sales for three months ending July 31, 2008, fell 7 percent to $129.7 million. Cost of sales fell 18 percent to $45.8 million, but selling and general administration expenses rose 9 percent to $73 million, during this second quarter for Movado's fiscal year 2009, RAPAPORT reported.
Gross profit (65 percent of sales) was flat at $83.9 million, but net income fell 33.6 percent to $8.136 million.
Efraim Grinberg, president and CEO, said, "While our second quarter results reflect the continued challenging macroeconomic environment, the decisive actions we've taken to reduce expenses and improve productivity are designed to position our company to emerge quickly and even stronger than before, as the economy recovers. At the same time, we continue to gain market share with a combination of strong product innovation and a powerful presence at the point-of-sale, along with consistent marketing support and advertising investment across our spectrum of brands."
On August 7, 2008, Movado Group initiated an expense reduction plan to streamline operations, reduce expenses, and improve efficiencies across the company's global organization. Expense reduction targets $25 million in annualized savings, or 8 percent of the company's operating expenses.

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