Movado Group, Inc. Reaches Settlement in Lawsuit Against Swiss Army Brands, Inc. Et Al.
PARAMUS, N.J., July 28 /PRNewswire-FirstCall/ -- Movado Group, Inc. (NYSE: MOV), today announced it has reached a settlement in a lawsuit the Company filed against Swiss Army Brands, Inc. and two individuals in November 2001. In the lawsuit, the Company alleged that Swiss Army Brands and the other defendants tortiously interfered with its business by soliciting a number of the Company's sales employees. As a result of the settlement, Movado Group will record an unanticipated pre-tax gain of $1.9 million in its second quarter ending July 31, 2004. After accounting for fees and taxes associated with the settlement, second quarter net income will benefit from approximately $835,000, or approximately $0.03 per diluted share.
Movado Group will report its full results for the second quarter on September 8, 2004. The Company's management will host a conference call on that date to be broadcast live via webcast at 10:00 a.m. Eastern Time. To access the call, please visit the Company's website at http://www.movadogroupinc.com. An archive of the webcast can be accessed within one hour of the completion of the conference call and will be available for the next 12 months.
Movado Group, Inc. designs, manufactures, and distributes Movado, Ebel, Concord, ESQ, Coach and Tommy Hilfiger watches worldwide, and operates Movado boutiques and Company stores in the United States.
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company has tried, whenever possible, to identify these forward-looking statements using words such as "expects," "anticipates," "believes," "targets," "goals," "projects," "intends," "plans," "seeks," "estimates," "projects," "may," "will," "should" and similar expressions. Similarly, statements in this press release that describe the Company's business strategy, outlook, objectives, plans, intentions or goals are also forward-looking statements. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the Company's actual results, performance or achievements and levels of future dividends to differ materially from those expressed in, or implied by, these statements. These risks and uncertainties may include, but are not limited to: the Company's ability to successfully introduce and sell new products, the Company's ability to successfully integrate the operations of Ebel without disruption to its other business activities, changes in consumer demand for the Company's products, risks relating to the retail industry, import restrictions, competition, seasonality and the other factors discussed in the Company's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. These statements reflect the Company's current beliefs and are based upon information currently available to it. Be advised that developments subsequent to this press release are likely to cause these statements to become outdated with the passage of time.
SOURCE Movado Group, Inc. -0- 07/28/2004 /CONTACT: Investor Relations: Suzanne Michalek, Director of Corporate Communications of Movado Group, Inc., +1-201-267-8000; or Investor Relations: Melissa Myron, or Press: Jennifer McCullam, both of Financial Dynamics, +1-212-850-5600, for Movado Group, Inc./ /Web site: http://www.movadogroupinc.com / (MOV) CO: Movado Group, Inc.; Swiss Army Brands, Inc. ST: New Jersey IN: REA FAS FIN SU: LAW CCA LI -- NYW026 -- 4016 07/28/2004 07:30 EDT http://www.prnewswire.com