NEW YORK, Feb. 6, 2015 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the District of New Jersey on behalf of all persons or entities that purchased the securities of Movado Group, Inc. ("Movado" or the "Company") (NYSE:MOV) between March 26, 2014 and November 13, 2014, inclusive (the "Class Period"), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the "Complaint").
The complaint charges Movado and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Movado, one of the world's leading watchmakers, designs, sources, markets and distributes fine watches.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements extolling the purportedly positive business prospects and powerful growth expected for the Company's flagship Movado brand as well as its portfolio of licensed brands, which includes Scuderia Ferrari and Lacoste watches. The complaint also alleges that Defendants misled investors about their plan to boost the Movado brand by using the shelf space of one of the Company's other brands at various retailers. The complaint alleges that as a result of defendants' materially false and misleading statements and omissions, Movado common stock traded at artificially inflated prices during the Class Period, reaching a high of $46.39 per share and allowing the Company's Chairman and CEO to sell over $8.6 million worth of his Movado shares at these inflated prices.
On November 14, 2014, Movado issued a press release announcing disappointing third quarter financial results and reducing the Company's financial guidelines for its 2015 fiscal year (ending January 31, 2015). Specifically, the Company reported that: (i) it expected third quarter earnings in a range of $0.86 to $0.87 per share, far less than analysts' estimates of $1.13 per share; (ii) it expected net sales between $188.6 million to $189.7 million for the third quarter, well below the consensus estimate of $218.32 million; (iii) certain brands, including Movado, Scuderia Ferrari and Lacoste, had not performed as well as expected; and (iv) as a result, the Company would be reducing its fiscal year 2015 guidance. In contrast to the sales growth of 11% and operating income growth of 19% touted throughout the Class Period, defendants now stated they expected sales growth of only 1% to 2% and a reduction in operating profit of 7% to 10% compared to fiscal 2014. On this news, the price of Movado stock declined, falling from $38.51 per share to $26.25 per share, a decline of nearly 32%.
If you wish to serve as lead plaintiff, you must move the Court no later than April 6, 2015. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
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