Movado Group Inc.
was downgraded on Thursday to market perform from outperform at Cowen over growth concerns. Cowen slashed its price target to $22 from $40. “Cowen’s view is that Movado is also facing various pressures beyond its control, including tariffs and associated margin risk, the rise of ‘re-commerce,’ online customer acquisition cost inflation, and international macro headwinds – all of which we believe could weigh on growth at Movado and within the broader watch category over the medium term,” the note said. Re-commerce refers to the secondhand market. Data from RealReal Inc.
shows that sales of secondhand luxury watches priced at $30,000 to $50,000 has surged 126% over the last year. Younger shoppers are showing greater interest in secondhand watches priced higher than $5,000, the data shows. “Savvy buyers are latching onto high-end watches as ultimate statement pieces that are also one of the smartest luxury investments,” said Laif Anderson, head watchmaker at The RealReal, in a statement. Movado reported earnings and sales that fell short of expectations on Wednesday. Movado stock took a 15% nose dive in Wednesday trading, closing with the biggest one-day percentage drop since August 2011. The stock slumped another 3.6% in Thursday trading. Movado shares have lost 51% over the past year while the S&P 500 index
has edged up 0.2% for the period.
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