Movado Group, Inc. (NYSE:MOV)
The Company is a designer, manufacturer and distributor of quality watches with prominent brands in almost every price category comprising the watch industry.
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Sales are strong now, but Movado isn't really the aspirational brand it used to be.
Lots of ads for the Bold Collection are likely driving sales. It's a nice temporary push, but nothing to hang your hat on.
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Isn't the attrition rate of their consumer base trending higher? At least I would assume that..
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nobody wants a damn movado
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We're a long way from real revenue/earnings improvement here, and any hiccup will punish the stock. A 50% runup has taken away most of the upside.
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Very strong brand and a very strong balance sheet to match. Watch out..sory for the pun.
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According to its last 10k:
Total Current Assets: 482,520
Total Liabilities: 180,857
Net current assets = 301,663
But hey, I'm conservative, and I am going to assume a 30% markdown in inventory and accounts receivable, so:
Total current assets: 375,960
Net current assets: 195,103
...its market cap is 191,050
+ its watches are in the 'affordable' range
+ at night I dream about chinese and indians with a nice swiss quality movado watch on their wrists
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great product and good price for buy
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Pick triggered by the Foolish recommendations.
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Cramer recommendation. How caqn you go wrong?
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upscale retailer, most customers in this market do not feel the economic downturn, if there is one....
also their products are fashionble and trendy.......
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Earnings growth and Cramer recommendation.
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over priced
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Wall Street Pro Pick.
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Movado Group, Inc. is a manufacturer, distributor and retailer of watches and jewelry. Its portfolio of brands comprises of Movado, Ebel, Concord, ESQ SWISS, HUGO BOSS Watches and Tommy Hilfiger Watches. The company's wholesale segment, which contributes 80% to total revenue, includes the design, development, marketing and distribution of watches. The Retail segment generating the balance 20% revenue includes the Movado Boutiques. Revenue generated by the domestic segment is 80% while international segment contributes the rest.
Movado is a leading player of the $275 billion Specialty Retail Industry which comprises of various groups of sub-sectors including clothing and shoes, electronics and appliances, jewelry, luxury goods and music. Luxury goods segment, offering products to affluent customers who have higher lifestyle expenses, is less affected by unstable economic situation and unemployment levels, which heavily affect the low priced specialty retail chains. Hence, the probable risk to Movado’s future includes sales shortfalls due to a slowdown in consumer discretionary spending on luxury goods.
For the nine months ended October 2006, revenues of the company increased 13% while operating income increased 20%. Revenues and operating income reflect higher wholesale and retail sales in domestic as well as international markets and a proportionate decrease in operating and interest expense. Moreover, the results were fueled by new watch introductions and continued strength in existing brands.
Movado is well positioned to increase its market share in 2008 considering the breadth of its watch and jewelry assortments in a growing global luxury goods market and limited exposure to the challenging lower end of the U.S. fashion watch market. Additionally, there is a strong likelihood of improving sales trends as management flows more in-fashion offerings to the store like Lacoste. With a great product range, innovative advertising and comprehensive marketing program Movado is expected to be a likely Outperformer.
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