First Quarter Fiscal 2009

    -- Net sales in the first quarter of fiscal 2009 were $101.4 million.
       Fiscal 2008 first quarter net sales of $101.4 million included
       $2.7 million of sales of excess discontinued product.  Excluding the
       sales of discontinued product, net sales increased 2.7% from last year.

    -- On a constant-exchange-rate basis, which excludes the effect of
       translating foreign-currency-denominated sales into U.S. dollars, and
       excluding the previously mentioned discontinued product sales recorded
       in fiscal 2008, net sales decreased 2.6%.

    -- Gross profit was $65.0 million, or 64.2% of sales, compared to
       $61.7 million, or 60.8% of sales last year.  Excluding excess
       discontinued product sales, adjusted gross profit in the first quarter
       of fiscal 2008 was $62.0 million, or 62.9% of sales.

    -- Operating expenses were $63.4 million versus $58.9 million last year.
       On a constant-exchange-rate basis, operating expenses were
       $61.2 million.

    -- Operating profit was $1.6 million this year compared to $2.8 million in
       the year-ago period.

    -- Income tax expense of $0.6 million reflects a 30.4% tax rate in the
       first quarter compared to income tax expense of $0.6 million, or a
       20.6% tax rate, recorded last year.  Income tax expense this year
       included a charge of $0.2 million versus a net benefit of $0.2 million
       included in last year's income tax expense resulting from adjustments
       recorded in the respective quarters.

    -- Net income was $1.2 million, or $0.05 per fully diluted share, versus
       $2.4 million, or $0.09 per fully diluted share last year.

Efraim Grinberg, President and Chief Executive Officer, stated, 'In our seasonally smallest quarter, the strength of our international business -- which generates approximately half of our wholesale watch revenue -- offset the continued effects of a challenging retail and economic environment in the United States. New product introductions remain an important driver to our business, particularly in the current U.S. consumer spending environment, and we continue to support each of our brands with compelling advertising campaigns.'

Mr. Grinberg continued, 'We continue to take a long-term view of our business and as such, our team is steadily executing our comprehensive Movado brand strategy announced earlier this year. To date, we've made significant headway in the targeted reduction of wholesale doors. There are significant opportunities to embrace the power of Movado across all channels of distribution and to continue to build on the aspirational nature of the brand.'

Rick Cote, Executive Vice President and Chief Operating Officer, stated, 'Our balance sheet remains strong and we are well positioned to support our brands and businesses around the world. During the first quarter, we continued to be mindful of the current economic environment and took appropriate actions to limit our credit exposure. We are also cognizant of our expense infrastructure and expect to appropriately manage costs during these uncertain times.'

Share Repurchase Program

During the first quarter of fiscal 2009, the Company initiated a share repurchase program to buyback up to one million shares of the Company's common stock. As of April 30, 2008, the Company had repurchased 238,115 shares of its common stock at an average cost of $20.26 per share.