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Movado Group CEO Efraim Grinberg on the factors driving the company’s sales growth.
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Yeah OK Nicole -- -- let's take a look at a stock right now shares of moved -- -- the watch company who bottom group.
They're down right now in the face of a surge in first quarter profit this may be buy on the rumor sell on the news because your one year chart shows you.
What a great stock this has been but time -- money.
This stock skyrocketing 77%.
In just the past year some 52%.
Year to date.
At from Greg Burke is the chairman and CEO Movado in his here in a Fox Business explicit.
You know these stories are few and far between likely to see a company doing extraordinarily well -- holding on to gains.
Particularly a firm in the luxury space.
What is it that you are doing.
With this company that has really improve the business.
Well what we did several years ago.
And the height of the recession we challenged our management team.
To figure out what we needed to do and it was really all about.
In each of our brands Movado we -- concorde.
Really giving consumers a reason to by.
They want to buy it they'd just going to be a lot more careful about what they buys so you really had a up to design quotient and the value that you're giving him products today.
-- you we would call it accessible luxury your price point is high but not so prohibitively high that people will look at it and say it not this year.
Well.
You know what what we've done really in and I've always wanted to do.
Is be able to save somebody -- a 300 dollar watch I want him to feel like to put a thousand dollars on their wrist and that really has seemed to work.
For our customers now we've got some on the set you're looking at some of them right now and and I'm I'm noticing that the white ceramic one with that what what does that battle with stainless steel stainless steel in the white ceramic that's us and that's great.
About a Serena a -- brand new right absolutely brand new we just introduced it for mothers that how much.
That retail -- 12190 dollars with diamonds.
And it's done extremely well really excited about it -- That's certainly a lot less probably -- the Chanel version and people are rushing to those kinds of think so.
They don't looking at commodity prices right now he has a lot of metals including some gold for some of -- different companies.
Do just that hedge or do you -- how does this all work for of of -- company like yours.
What we're really more today about design in the product in the materials.
We combine many different -- price of diamonds has gone up so.
But that again adds value to the consumer when they buy it.
You know when you look at the the one year chart you see a little bit of -- stumble most recently around early may and that was when fossil.
Came out one of your competitors and said that there was softening in Europe.
Now -- getting caught that downdraft here's your opportunity to say we are also experiencing that or not what is your European business looking like right now.
Well I think you know we we have different businesses and and we have a different footprint we don't operate in in retail we really operate the whole -- model.
We are seeing softness in Southern Europe we have seen that fair a number of years now so that's no surprise.
But Northern Europe has seemed to remain resilient forests and and business there appears to be good.
Well a big portion of your business I'm sure -- love to be doing more in Asia China specifically people are worried about a slowdown there are you sensing that.
Well.
You know you're getting mixed signals from China we have a very small business there it's growing it's been growing nicely I think in the more mature levels.
Of business there you are seeing some slowdown but.
Our license Fram businesses for example Hugo Boss Tommy Hilfiger Coach.
Those who really that whole segment is new to the market and that segments doing very well.
Look cost you do you say you do licensing business as well with.
Do it's -- that really with the him.
Global brands that are powerful brands around the world that we have long term partnerships with.
Your first quarter numbers -- beach on the bottom line -- revenue came in at a 103 point seven billion dollars.
What I want people to know about this company and the story is that your father.
Had escaped from Communist Cuba brought you was a tiny child as I was I was two years though -- sold.
Came to this country is it fair to say -- virtually very little we've virtually nothing became the head of this company worked PAJ first.
And I look at this and I see what an opportunity America has been for you and your your family.
What do you view America right now -- it's.
It's kind of popular out of beat up on the atmosphere but but do you think that there's still a great opportunity in -- richness of this nation for small businessmen to succeed and -- Well I I think it's still it's the land of opportunity this is the country that you dream about -- dream about being able to achieve things that are impossible to achieve in.
And you know I look at what FaceBook just fitted 27 year old kid who built.
Four billion dollar company and 56 years that's only in America.
Only in America and and also only in America is an opportunity to continue to grow at even as a big established company.
Could receive as competition mean people talk about that the car chase of the world the the Rolex is of the world is it that or is it lower end.
Well we compete in -- against many different segments not even just only watches so I think our job is really -- acute against our own strategy.
Make sure that we continue to make exciting products for consumers to but.
Are OK so when you're the head of the watch company I'm dying to know what you're wearing on your -- -- if you could show us -- wearing a -- right now which is our SE extreme and as one of our best sellers -- that -- so we concealer and how much is that -- this retails for about 2000 -- what these people switch is out constantly and collects different watches.
Well I have to -- all of our managers of each of our different -- happy so I do -- one of their life as -- all of the time when you're talking to the.
