Robbins LLP: Movado Group, Inc. (MOV) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that an investor of Movado Group, Inc. (NYSE: MOV) has filed a federal securities fraud class action complaint in the U.S. District Court for the District of New Jersey. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1934 between March 26, 2014 and November 13, 2014. Movado design, sources, markets, and distributes fine watches.
Movado Misrepresents Its Business Practices
On November 14, 2014, shares of Movado dropped $12.26 per share, or nearly 32%, to close at $26.25 per share following the company’s combined disappointing third quarter financial results and announcement that it would be lowering its financial outlook for the 2015 fiscal year. According to the recently filed class action, the stark decrease in Movado stock is a direct result of the company’s previous false and misleading statements touting the purportedly attractive business prospects and strong growth expected for its flagship Movado brand as well as its portfolio of licensed brands.
In particular, in the November 14, 2014 announcement, Movado revealed the true financial condition of the company, disclosing that it: (i) anticipated third-quarter earnings in a range of $0.86 to $0.87 per share, despite analysts’ estimates of $1.13 per share; (ii) expected net sales between $188.6 million to $189.7 million for the third quarter, again significantly below the previous estimate of $218.32 million; (iii) certain brands had not performed as well as expected; and (iv) as a result, Movado would be lowering its fiscal year 2015 guidance. Specifically, sales growth was lowered from a previous estimate of 11% to only 1%-2%, while income growth previously estimated to be 19% was replaced by an estimated decrease in operating profits of 7%-10% compared to fiscal 2014.
Movado Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.