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PARAMUS, NJ – The Movado Group Inc. released some very impressive numbers for the recently ended Q3, and company officials credit the firm’s in-place strategic plan for the results. And a lot more is in the works, according to executives.

By the numbers, Movado’s Q3 net sales were up 26.1%, comparable store sales were up a solid 12.8% at the company’s Movado boutiques, operating profit was up almost 19% and net income increased 12.5%. For nine months, net sales rose 25.9%, comparable store sales increased 16.7%, operating profit was up 3% and net income rose 14.7%

“The results were driven by the execution of our strategy to develop and support our portfolio of brands through product development, advertising campaigns and consistent marketing support,” says Efraim Grinberg, the company’s president/CEO.

Indeed, much credit goes to the fact that Movado has reached beyond its trademark product (read expensive) to a much wider variety of price points. Those so inclined can still buy Concord watches, which range up to more than $10,000, or the recently acquired Ebel brand for between $1,500 and $10,000, or the trademark Movado watches for between $500 and $1,500. Those not so inclined can opt for the company’s self-styled “entry-level” ESQ Swiss brand for between $200 and $500, or even its Tommy Hilfiger watches, which it sells under a license agreement for between $50 and $125.

Besides rolling out new products, Movado is very much in the acquisition game. Witness Ebel, which earlier this year the company spent close to $50 million to buy from LVMH Moet Hennessey Louis Vuitton in an all-cash deal. Ebel was a solid factor in the company’s Q3 numbers, according to company officials.

“We’re very pleased that Ebel delivered an attractive sales level driven by our recently launched global advertising campaign featuring Claudia Schiffer and certain new products such as the Sportwave,” says Rick Cote, the company’s vice president and COO. “We will continue to accelerate new product introductions next year.”

The Ebel acquisition “represented a compelling opportunity,” according to Grinberg. “Ebel is an excellent complement to our existing portfolio of brands, significantly expanding our presence in the high-end watch category. It was also consistent with our overall portfolio strategy of differentiating each of our brands in the marketplace.”

As far as the company’s chain of Movado Boutiques, which sell watches, jewelry, home décor items, gift items and personal desk accessories, the retail concept is mall-based and limited. The company currently operates almost two dozen of them in metro New York, Miami/South Florida, Boston, Greater Chicago, Washington, DC, and Las Vegas. Buoyed by the solid same-store gains, company officials say the will roll out at least another 30 to 35 in major markets.

“Our boutiques provide a continuation of our strategy to enhance Movado’s image as a lifestyle brand,” Grinberg says. “They underscore a cultured, contemporary style.

“We believe our company is well positioned,” Grinberg says. “At the same time, we remain focused on our business fundamentals and operating disciplines to further enhance our bottom line results.”

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