Paramus-based premium watch marker Movado Group anticipates business growth and brand promotion in the next three years, focusing on expanding business in the China region. The company plans to take strategic business moves that can help boost its performance in China by 2014 with earnings expected to grow from $1.40 to $1.50 per share. Movado also dreams to make supreme profits with better-than-estimated revenue of $520 million to $540 million over the year that represents approximately 10-13% sales growth per year.
Rick Cote, President and Chief Operating Officer from the Movado Group management said, “China is a strategic growth market for our Movado brand. We're significantly increasing our resources in this country to support our plan of developing Movado into a major accessible luxury brand sought by the Chinese consumer.” This key quote from the management indicated the optimistic business approach adopted by the company to fuel its expansion plan.
“We’re not planning on opening any boutiques in China at the present time. I think what we have talked about is the shop-in-shops, which are Movado corners in department stores and jewelry stores, but where we sell only Movado watches. We have been successful in doing that over the last several years. We have approximately 50 Movado shop-in-shops. And China for us is a long-term growth market and investment market for the Movado brand. And we've seen nice growth, but again off a very small base,” added the Movado management.
The Movado Group’s announcement included a speech from the management at a great length about its China business strategy; however, the news couldn’t stimulate the investors, impacting negatively on the Movado stocks (NYSE: MOV) that fell marginally in this week.
Movado Group’s key operations include distribution of watches under the world-famous brands like HUGO BOSS, Tommy Hilfiger, Ebel, Juicy Couture, Concord, Lacoste, Coach and ESQ by Movado.
