News In a year of general gloom such as 2003, there are some who managed nonetheless to achieve considerable success. Such was the case in particular for the Movado Group, which, on 12 March this year at a press conference, announced an annual turnover up by 10.0% to 330.2 million dollars (+8.2% excluding exchange rate effects), and figures for operating and net profit showing increases respectively of 9.5% to 34.8 million, and 13.9% to 22.9 million, for the financial year ending 31 January. During the last quarter (November 2003 - January 2004), sales increased by as much as 16.6% to 92.7 million dollars (+14.6% at constant exchange rates).
At the same press conference, the group's president, Efraim Grinberg, lifted a corner of the veil on the future positioning of Ebel: "The company will be positioned as a very exclusive luxury brand. Distribution will be reviewed at hand-picked points of sale." A new advertising campaign will be launched, using media which for their part will be no less exclusive. The aim of the operation: to increase Ebel's international brand awareness. "We are working very closely with Ebel's management to this end," added Efraim Grinberg, who expressed his delight at products awaiting their launch at Baselworld 2004. Ebel is on target to record a slight loss in 2004. The first benefits from the takeover are unlikely to have any significant impact before 2006.
The restructuring plan has also been finalised: by cutting nearly 40% of Ebel's workforce - around 70 job losses - the watchmaking group intends to review production methods in La Chaux-de-Fonds, with more work carried on outside, as is already the case for the production of Movado watches in Biel. This restructuring, which will cost around 5 million dollars, should come into effect over the next six months.
March 23, 2004
