By Sandra M. Jones | Movado
Group Inc., the Swiss watchmaker and jeweler, plans to close its
money-losing retail division as of June 30 in an effort to bolster
profitability. The decision means shuttering two dozen U.S. stores,
including locations at Woodfield Mall in Schaumburg, Oakbrook Shopping
Center in Oak Brook and Water Tower Place in Chicago.

The company will keep open its flagship store at Rockefeller Center in New York and will continue to operate its 31 outlet stores. Movado will also continue to sell watches and other products through independent retailers.

“Following several years of unprofitability and a strategic review of the business, we have decided to close our retail boutique division,” said Rick Cote, president and chief operating officer of the Paramus, N.J.-based firm. “We believe that this action will assist Movado Group to return its U.S. operations to profitability.

“Movado, which means “always in motion,” began as a watchmaker in Switzerland in 1881. The manufacturer started opening its own stores in 1998 to promote its brand name. An outpost at Northbrook Court in Northbrook was closed in 2007 after four years.

The company makes watches sold through department stores and jewelry shops under a variety of brands including Movado, Concord and Ebel, as well as licensed brands Coach, Tommy Hilfiger, Juicy Couture and Hugo Boss.

The store closings are expected to lower annual revenue by about $30 million, while immediately improving profitability for fiscal 2011, the company said. Movado recorded a $3.4 million pre-tax charge associated with the costs of closing the stores and anticipates taking another $21.6 million in charges later this year.