Movado Watches Group has announced that, following a strategic assessment of its retail boutique performance, the company will close its retail boutique division effective June 30, 2010, in an effort to streamline its business, redirect investment toward higher return businesses and improve the Company's overall profitability.

The Company will continue to sell its watch products primarily through its wholesale model, where it expects to increase its market share by further expanding relationships with existing wholesale customers and enhancing its relationships with independent retailers.

In addition, Movado will continue to sell all of the Company's watch brands directly to consumers through its 31 outlet stores and will keep the Movado Boutique located in New York's Rockefeller Center open as a flagship store.

Rick Cote, President and Chief Operating Officer of Movado Watches Group said, "Following several years of unprofitability and a strategic review of the business, we have decided to close our retail boutique division. We believe that this action will assist Movado Group to return U.S. operations to profitability.”

"We are confident the closure of our retail boutiques is in the best long-term interests of our Company and all of our stakeholders, and we look forward to focusing on new opportunities we see in our wholesale business," stated Chairman and Chief Executive Officer Efraim Grinberg. "We are particularly grateful to our retail boutique employees for their dedication to our Company and are committed to providing them with a smooth transition.”