Designer watch retailer Movado Group Inc. (NYSE: MOV) recently released 2Q fiscal 2008 results. There certainly does not seem to be problems in high end retailing, at least not according to Movado. Net sales increased 10% to $139.5 million. This figure includes $8 million worth of excess discontinued product. More importantly, operating profits increased 16% to $16.3 million. Net income for the quarter was $12.3 million, or diluted EPS $0.45, up $0.02 from one year ago.

Movado managed to post these gains despite two consecutive quarters worth of negative comparable store sales in its U.S. boutiques. Granted the decline is not huge, 1.9% for the two quarters, but it does denote a trend that needs to be examined and then fixed, pronto.

For the first half of fiscal 2008, Movado posted a net sales increase of 7.4% to $240.8 million, and net income of $14.7 million, or diluted EPS $0.54, exactly what it was one year prior. CEO Efraim Grinberg forecasts increased sales outside the U.S. The company is looking at net sales projections of $560 million in fiscal 2008, with diluted EPS of $1.72. The stock repsonded positively to the earnings news, closing up $0.22 at $29.95 on September 6.