UPDATE 2-Movado Q3 profit trumps market view; shares jump

* Q3 adj shr $0.50 vs est $0.32

* Q3 revenue $123 mln vs est $128.8 mln

* Backs 2011 revenue outlook

* Shares surge as much as 26 pct to touch two-year high
(Adds conference call details, updates share movement)

Dec 2 (BestGrowthStock) – Movado Group Inc’s (MOV.N: ) quarterly
profit beat market expectations as a favorable product mix
boosted margins and the watchmaker said it saw a good beginning
to the holiday season, sending its shares up 26 percent to
touch their highest in more than two years.

The company said it continues to expect sales to rise 12-15
percent for fiscal 2011 and sees earnings of 39-45 cents a
share from continuing operations, which includes a benefit of
17 cents.

On a conference call, Chief Operating Officer Rick Cote
said the company was well-positioned for the holiday season,
when its retail partners are expected to increase their
inventory and restock its products.

Movado sells its products through department store chains
and jewelry stores, and had closed all its retail stores this
year, except for its flagship store in New York.

The company, whose watch brands include Concord, Ebel and
the namesake Movado, has been trying to woo customers by
focusing more on popular licensed brands, as demand for its
in-house products remained weak.

The company recently said it would revamp its brands by
spending more on advertisements and promotions.

In September, Movado said it expects a 10-13 percent growth
in sales annually for the next three years by focussing more on
its licensed brands and international sales, especially China.

For the September-October quarter, Movado, which competes
with Fossil Inc (FOSL.O: ), earned 68 cents a share on revenue of
$123 million. Excluding items, it earned 50 cents a share.

“In addition to improved results in our U.S. wholesale
business, our international wholesale business continues to
perform well, driven by our licensed brands performance,” COO
Cote said.

Gross margin for the third quarter rose to 55.8 percent,
from 51.3 percent year ago.

Shares of the Paramus, New Jersey-based Movado, which have
gained nearly 22 percent since it reported second-quarter
results in September, were up $2.43 at $14.89 in afternoon
trade on Thursday on the New York Stock Exchange.

They touched a high of $15.64 earlier in the day.
(Reporting by Renju Jose in Bangalore; Editing by Prem
Udayabhanu and Don Sebastian)

UPDATE 2-Movado Q3 profit trumps market view; shares jump