Store Closings Update: Movado Shutters Retail Division

Luxury Swiss watchmaker and jeweler, Movado, announces plans to shutter its entire fleet of retail stores by June 30. The retailer plans to close all 27 of its U.S. stores in a move to focus on its core watch business.

The retailer will now sell its namesake brand and an array of licensed brands such as Coach and Juicy Couture to other retailers including Zales, Saks Fifth Avenue, Neiman Marcus and independent jewelers.

"While the boutiques offered valuable opportunity to enhance our Movado brand and test new product concepts, they have never been profitable," said Richard J. Cote, executive vice president and chief operating officer, Movado.

The retail division was losing an average of $10 million a year and was expected to lose $7 million in fiscal 2011, added Cotes. The stores, which average 2,200 square feet, are too big to be profitable in the current economic environment, he said.

"We believe that the negative effects on our business caused by the unprecedented level of U.S. jewelry retailers closing their operations and liquidating inventory last year are behind us," said Efraim Grinberg, chairman and CEO of Movado Group. "We are now focused on executing the strategies that will return our business to growth."

At its peak, the jeweler operated 31 stores and expanded its merchandise assortment to include fine jewelry, clocks, pens, leather goods and tabletop accessories. The company will continue to operate its flagship at Rockefeller Center in New York City as well as its 31 outlet stores.