(Source: PRNewswire)PARAMUS, N.J., Sept. 3 /PRNewswire-FirstCall/ -- Movado Group, Inc. (NYSE: MOV), today announced second quarter and six-month results for the period ended July 31, 2009. For the second quarter, adjusted diluted earnings per share were $0.06 compared to $0.39 in fiscal 2009 (see attached table for reconciliation of GAAP to non- GAAP measures). On a GAAP basis, diluted earnings per share were $0.02 and included a $1.3 million pre-tax charge in interest expense related to the refinancing and repayment of the Company's former credit and note agreements.

Second Quarter Fiscal 2010

-- Net sales in the second quarter of fiscal 2010 were $89.7 million

compared to $129.7 million.

-- Gross profit was $52.7 million, or 58.7% of sales, compared to $83.2

million, or 64.1% of sales last year.

-- Operating expenses decreased $22.5 million, or 31.2%, to $49.5 million

versus $72.0 million last year.

-- Operating profit was $3.1 million compared to $11.1 million in the

year-ago period.

-- Net income in the quarter was $0.5 million. Excluding the after-tax

effect of the aforementioned charge, adjusted net income was $1.4

million compared to adjusted net income of $9.8 million in the prior

year period, which excludes a charge related to the Company's

expense reduction plan.

First Half Fiscal 2010

-- Net sales in the first six months of fiscal 2010 were $157.3 million

compared to $231.0 million.

-- Gross profit was $89.7 million, or 57.0% of sales, compared to $147.5

million, or 63.8% of sales last year.

-- Operating expenses decreased $37.1 million, or 27.5%, to $97.7 million

versus $134.8 million last year.

-- Operating loss was $8.0 million compared to operating income of $12.8

million in the year-ago period.

-- Net loss was $8.4 million compared to net income of $9.4 million in the

year-ago period. Excluding the effect of the charge recorded in the

second quarter of fiscal 2010, adjusted net loss was $7.6 million, or

$0.31 per diluted share, compared to adjusted net income of $11.0

million, or $0.42 per diluted share, which excludes a charge related to

the Company's expense reduction plan.

Efraim Grinberg, President and Chief Executive Officer, stated, "We are pleased with our results during the quarter and our ability to return to profitability earlier than anticipated. We maintained our disciplined approach to managing our business, while continuing to offer compelling marketing and advertising campaigns that differentiate our brands in the marketplace. As consumers continue to be conservative with their spending, we remain focused on delivering value in each of our brands, from the high end of the luxury market to the more affordable fashion watch category. We have a strong portfolio of brands and a well-diversified global business which, combined with our improved productivity, will enable us to emerge even stronger as the economy improves."

Rick Cote, Executive Vice President and Chief Operating Officer, stated, "The aggressive actions we took last year to enhance our operational efficiencies are continuing to translate into tangible improvement in our financial results. Through continued execution of our expense management program, we remain on track to reach our goal of annualized cost savings of between $50 to $60 million, most of which we expect to realize in the current fiscal year. Additionally, we are continuing to focus on cash flow as well as reducing inventory levels to align with current sales trends. We remain confident in our ability to return to being free cash flow positive this year."

Fiscal 2010 Guidance

Movado Group reiterated today that it estimates fiscal 2010 fully diluted earnings per share to be approximately $0.50, including the one-time charge recorded in the second quarter, compared to fully diluted earnings per share of $0.09 recorded in fiscal 2009.