Movado Shares Plunge as CEO Blames Apple Watch for Demise of Traditional Watches
The success of the Apple Watch is impinging on Movado’s traditional watch sales, said CEO Efraim Grinberg on a fiscal Q3 call Tuesday. Operating profit fell 32 percent on a 9.1 percent U.S. sales decline. The stock plunged 20.4 percent…
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Tuesday, closing at $20.05. “We are operating in a challenging retail environment for our channels of distribution and our category,” said Grinberg. The technology in wearables “has had an effect” on the retail channel in traditional watches, “but it's really focused on one company and that being Apple,” he said. “I believe that people will continue to wear traditional watches.”