<SEC-DOCUMENT>0000950142-13-000744.txt : 20130509
<SEC-HEADER>0000950142-13-000744.hdr.sgml : 20130509
<ACCEPTANCE-DATETIME>20130402171547
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000950142-13-000744
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20130402

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MOVADO GROUP INC
		CENTRAL INDEX KEY:			0000072573
		STANDARD INDUSTRIAL CLASSIFICATION:	WATCHES, CLOCKS, CLOCKWORK OPERATED DEVICES/PARTS [3873]
		IRS NUMBER:				132595932
		STATE OF INCORPORATION:			NY
		FISCAL YEAR END:			0131

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		650 FROM ROAD
		STREET 2:		SUITE 375
		CITY:			PARAMUS
		STATE:			NJ
		ZIP:			07652
		BUSINESS PHONE:		201-267-8000

	MAIL ADDRESS:	
		STREET 1:		650 FROM ROAD
		STREET 2:		SUITE 375
		CITY:			PARAMUS
		STATE:			NJ
		ZIP:			07652

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	NORTH AMERICAN WATCH CORP
		DATE OF NAME CHANGE:	19930916
</SEC-HEADER>
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<div style="LINE-HEIGHT: 1.25; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">File number 1-16497</font></div>
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<div style="LINE-HEIGHT: 1.25; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Dear Ms. Ransom,</font></font></div>

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<div style="LINE-HEIGHT: 1.25; TEXT-INDENT: 0pt; DISPLAY: block"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;</font></div>

<div style="LINE-HEIGHT: 1.25; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">This letter is submitted on behalf of Movado Group, Inc. (the &#8220;Company&#8221;) in response to the comments of the staff of the Division of Corporate Finance (the &#8220;Staff&#8221;) of the Securities and Exchange Commission (the &#8220;Commission&#8221;) with respect to the Company&#8217;s Form 10-K for the fiscal year ended January 31, 2012 (the &#8220;Form 10-K&#8221;) filed on March 30, 2012 and the Definitive Proxy Statement on Schedule 14A (the &#8220;Proxy&#8221;) filed on May 4, 2012, as set forth in your letter dated March 22, 2013 to Sallie A. DeMarsilis (the &#8220;Comment Letter&#8221;).</font></font></div>

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<div style="LINE-HEIGHT: 1.25; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">For reference purposes, the text to the Comment Letter has been reproduced herein with responses below each numbered comment.&#160;&#160;For your convenience, we have italicized the reproduced Staff comments from the Comment Letter, and we have bolded the headings of our responses thereto.&#160;&#160;Unless otherwise indicated, page references in the descriptions of the Staff&#8217;s comments and our responses refer to the Form 10-K and the Proxy.&#160;&#160;All capitalized terms used and not otherwise defined herein shall have the meanings set forth in the Form 10-K and Proxy, as applicable.</font></font></div>

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<div style="LINE-HEIGHT: 1.25; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">As discussed herein, the Company respectfully requests that compliance with Comment 1 not require that the Company file an amendment to its annual report on Form 10-K for its fiscal year ended January 31, 2012.&#160;&#160;Additionally, the Company filed an annual report on Form 10-K for its fiscal year ended January 31, 2013 on March 26, 2013 and respectfully requests that compliance with Comment 1 not require that the Company file an amendment to its annual report on Form 10-K for its fiscal year ended January 31, 2013.&#160;&#160;The Company expects to file an annual report on Form 10-K for its fiscal year ended January 31, 2014 by the end of March 2014 and wishes to comply with these requirements in that filing.</font></font></div>

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<div style="LINE-HEIGHT: 1.25; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Item 1A. Risk Factors, page 12</font></font></font></div>

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<div style="LINE-HEIGHT: 1.25; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">If the Company loses any of its license agreements . . ., page 15</font></font></font></div>

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<div style="LINE-HEIGHT: 1.25; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">1. <font style="FONT-STYLE: italic; DISPLAY: inline">We note your response to comment 1 in our letter dated February 28, 2013 and that you have not argued that disclosure of any one or more licensed brands, which represent a material portion of the 46% of your net sales, should be considered information which is not material to investors. The disclosure you are prepared to provide, that no individual licensed brand represents sales in excess of 20%, suggests that there is at least one licensed brand that is material to you. Please identify that brand(s) in future filings.</font></font></font></div>

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<div style="LINE-HEIGHT: 1.25; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Response to Comment No. 1</font></font></font></div>

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<div style="LINE-HEIGHT: 1.25; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">While no one single licensed brand accounts for more than 20% of the Company&#8217;s total consolidated net sales, it is not the case that only one (or certain) of the Company&#8217;s licensed brands is (or are) material to its business. Rather, each of the Company&#8217;s licensed brands is material to its business, because the loss of any one could have a material adverse impact on the Company&#8217;s results of operations or future prospects.&#160;&#160;As such, the Company has historically disclosed the license term and other material information regarding each license and has filed such licenses with the Commission, subject to confidential treatment.&#160;&#160;The Company believes that information regarding the revenue represented by each licensed brand relative to every other licensed brand would not be material to the reasonable investor.&#160;&#160;Revenue generated by a licensed brand or even its relative profitability are at times not appropriate measures of materiality.&#160;&#160;The Company&#8217;s revenues and profitability under its various license agreements may change from period to period due to various factors, including the maturity of the Company's relationship with the licensor, changes in consumer preferences, brand repositioning activities and other factors, some of which are outside of the Company's control.&#160;&#160;Because it is important for investors to know that revenues and profitability are subject to change for such reasons, the Company will include disclosure to such effect in future filings.</font></font></div>

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<div style="LINE-HEIGHT: 1.25; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Finally, if the Company were made to rank any licensed brand based on its revenue, the Company would be put at a significant disadvantage against its competitors and would also find it very difficult in the future when negotiating renewals or modifications of licenses with those licensors whose brands are ranked more highly than the others. As noted in a prior letter, future filings will include the percentage of the Company&#8217;s revenues derived from its total licensed brand business in this risk factor.&#160;&#160;The Company will also disclose that no individual licensed brand represents sales in excess of a specified percentage of the Company&#8217;s total consolidated net sales. The Company will make disclosures of other material events relating to the licenses as appropriate.</font></font></div>

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<div style="LINE-HEIGHT: 1.25; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Historical Disclosures</font></font></font></div>

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<div style="LINE-HEIGHT: 1.25; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The Company has the right to produce, market and distribute watches under the brand names of ESQ, Coach, Tommy Hilfiger, HUGO BOSS, Juicy Couture, Ferrari and Lacoste pursuant to license agreements with the respective owners of those trademarks.&#160;&#160;There are certain minimum royalty payments as well as other requirements associated with these agreements.&#160;&#160;Failure to meet any of these requirements could result in the loss of the license.&#160;&#160;Additionally, after the term of any license agreement has concluded, the licensor may decide not to renew with the Company.&#160;&#160;Any loss of one or more of the Company&#8217;s licenses could result in loss of future revenues which could adversely affect its financial condition.</font></font></div>

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<div style="LINE-HEIGHT: 1.25; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Future Disclosures</font></font></font></div>

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<div style="LINE-HEIGHT: 1.25; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline">The Company has the right to produce, market and distribute watches under the brand names of ESQ, Coach, Tommy Hilfiger, HUGO BOSS, Juicy Couture, Ferrari and Lacoste pursuant to license agreements with the respective owners of those trademarks.&#160;&#160;There are certain minimum royalty payments as well as other requirements associated with these agreements.&#160;&#160;Failure to meet any of these requirements could result in the loss of the license.&#160;&#160;Additionally, after the term of any license agreement has concluded, the licensor may decide not to renew with the Company.&#160;&#160;For the fiscal year ended January 31, 2012, the above mentioned licensed brands represented approximately 46% of the Company&#8217;s net sales.&#160;&#160;While no individual licensed brand represented net sales greater than 20% of the Company&#8217;s total consolidated net sales, the loss of any single licensed brand could have a material adverse effect on the Company&#8217;s results of operations and although the Company is not substantially dependent on a particular license brand, the loss of one or more of the Company&#8217;s licenses could result in loss of future revenues which could adversely affect its financial condition.</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;</font><font style="DISPLAY: inline">In addition, the Company&#8217;s revenues and profitability under its various license agreements may change from period to period due to various factors, including the maturity of the Company's relationship with the respective licensor, changes in consumer preferences, brand repositioning activities and other factors, some of which are outside of the Company's control.</font></font></font></div>

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<div style="LINE-HEIGHT: 1.25; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-WEIGHT: normal; TEXT-DECORATION: underline">Performance-Based Annual Cash Compensation, page 17</font></font></font></div>

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<div style="LINE-HEIGHT: 1.25; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The corporate performance objective established by our Compensation Committee under the Executive Performance Plan and the financial performance measure under the Annual Incentive Compensation Plan are determined within 90 days after the beginning of the award period when the only information available to the Compensation Committee with respect to the Company&#8217;s financial performance for the fiscal year at issue is the Company&#8217;s operating budget for that year.</font></font></div>

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<div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Staff comments or changes to disclosures in response to the Staff comments do not foreclose the Commission from taking any action with respect to the Form 10-K and Proxy; and</font></div>
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<div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">the Company may not assert Staff comments as a defense in any proceeding initiated by the Commission or any person under federal securities laws of the United States.</font></div>
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