Movado Group, Inc. Provides Update on Response To COVID-19

Movado Group, Inc. (NYSE: MOV) today announced additional measures to ensure the health and safety of its employees and their families, its customers and the communities where it operates, as well as plans for dealing with business disruptions, including expense reductions in response to the impact of COVID-19.

Efraim Grinberg, Chairman and Chief Executive Officer, stated, “The health and safety of our associates, customers and business partners remains our primary focus during these unprecedented times. With this in mind, we have already temporarily closed our company-owned stores and are operating our warehouses with minimal staffing, while continuing to serve our consumers through our e-commerce platforms. As we continue to tightly manage cash during this very challenging environment, we have now made the difficult decision to furlough team members. We are very appreciative to all of our employees for their dedication to the Company and its customers. As we look ahead, our strong balance sheet and the decisive actions announced today should enable the Company to emerge from the current crisis with the means to quickly ramp up operations to support our brands and business.”

The Company believes it is necessary and appropriate to take the following actions at this time:

• Furlough approximately 850 employees, or approximately 80% of its North American workforce, effective April 6, 2020 through the end of May or such other time as circumstances warrant. The Company is taking similar actions around the globe in accordance with local government guidelines and programs. U.S. employee health and other benefits will be paid by the Company during the furlough.
• Reduce salaries for its salaried employees, including Chairman and Chief Executive Officer, Efraim Grinberg, who has volunteered to forego all salary during the furlough period. All remaining salaried employees have agreed to a salary reduction of 15% to 25% during this period. Additionally, the Board of Directors will waive the cash portion of their compensation during this period.
• Freeze the Company's match on executive deferred compensation plans and the Company's 401(k) match.
• Reduce staffing to minimal levels at all Company warehouses worldwide. The warehouses are focused on serving e-commerce customers.
• Implement measures to minimize all non-essential operating expenses and capital expenditures and to conserve cash. The Company possesses $190 million in cash and only $82 million of debt as of March 25, 2020.

In addition, as previously announced on March, 26, 2020, the Company temporarily closed all company-owned stores throughout the U.S., Canada and the U.K. and also discontinued the quarterly dividend and suspended its share repurchase program until further notice.