At this time, I would like to welcome everyone to Movado Group’s conference call. (Operator Instructions) It is now my pleasure to turn the floor over to your host Suzanne Rosenberg of Movado. Ma’am, you may begin your conference.

Good morning everyone and thank you for joining us today. With me on the call is Efraim Grinberg, President and Chief Executive Officer; Rick Cote, Chief Operating Officer, and Gene Karpovich, Chief Financial Officer. Also joining us today is Sallie Demarsilis who as you saw in this morning’s announcement will assume the Chief Financial Officer role on March 31. Before we begin I would like to note that this conference call contains forward-looking statements which are made in pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Factors which could cause actual results to be materially different from any future results, expressed or implied, are discussed in our filings with the Securities and Exchange Commission. Such forward-looking statements include statements regarding Movado’s performance for fiscal 2009 and beyond. We currently expect to update estimates. However, the failure to update this information should not be taken as Movado’s acceptance of these estimates on a continuing basis. Movado Group may also choose to discontinue presenting future estimates at any time. During the course of today’s conference call, management may present certain non-GAAP figures. For a reconciliation of these figures along with information required under SEC Regulation G, please view our earnings press release which has been posted on our website at MovadoGroup.com. Let me now outline the order of speakers and topics for today’s conference call. Efraim will begin with the highlights of our fourth quarter and full year performance, Gene will then review the financial details and Rick will provide you with an update on our operating initiatives along with our financial outlook. We would then be glad to answer any questions you might have. I would now like to turn the call over to Efraim.

Thank you, Suzanne and good morning, everyone. Before I discuss our fiscal 2008 results, I would like to call your attention to a separate press release issued this morning announcing the appointment of Sallie Demarsilis as Chief Financial Officer and Principal Accounting Officer effective March 31. Sallie joined Movado Group earlier this year and we are very pleased to welcome her into her new role. Gene Karpovich will give his remarks on the most recent quarter and full year later in the call. We are fortunate that he will remain with company for a few years before his planned retirement which will not only allow for a seamless transition but will allow our company to continue to benefit from his significant industry experience as he remains an officer of the company and a senior member of our management team. Now I’d like to turn to today’s earnings announcement. We are pleased with our overall performance in fiscal 2008, considering the challenging economic and retail environment in the United States which really began to manifest itself in December. Despite this, our team delivered a 5% sales increase, a 150 basis point expansion in adjusted gross margin and 11% increase in adjusted earnings per share and we generated $84 million in cash flow from operations. Over the past number of years we have strategically diversified our company both from a brand portfolio perspective and in terms of our geographic exposure. Today, 40% of our total revenue is generated by international markets and nearly 50% of our wholesale watch sales come from markets outside of the US. With our healthy mix of business we have strongly positioned our company to weather the current environment. Our international performance exceeded our expectations and partially offset weakness in the US. In fact, total international sales in…

Thank you Efraim and good morning everyone. As Efraim stated it was a challenging fourth quarter given the difficult economic and retail environment in the United States. Despite these factors our growing international presence and our margin improvement initiatives enabled us to deliver a respectable financial performance in the fourth quarter and for the full year ended January 31, 2008. For the fourth quarter, adjusted net income -- which is described in our press release -- was $10.8 million or $0.40 per diluted share versus adjusted net income of $11.4 million or $0.42 per diluted share in the year ago period. On a GAAP basis, we reported fourth quarter net income of $19.6 million as compared to $14 million prior year. This year’s results included a $6.6 million after-tax non-cash charge for estimated sales returns related to the closing of certain Movado wholesale doors in the United States and the benefit on our tax expense of $15.4 million resulting from a settlement with the IRS as well as the utilization of our international net operating loss carry forwards. Prior year net income included $0.5 million gain from the sale of non-operating asset as well as a favorable impact on our tax expense of $2.2 million resulting from the utilization of net operating loss carryforwards in Switzerland. This translated into fully diluted earnings per share of $0.72 as compared to $0.52 in the prior year period. For the year, adjusted net income increased 13.1% to $46.6 million or $1.71 per diluted share versus adjusted net income of $41.2 million or $1.54 per diluted share in the year ago period. On a GAAP basis we reported net income for the year of $60.8 million or $2.23 per fully diluted share while our prior year net income was $50.1 million or $1.87 per…

Thank you Gene and good morning everyone. In fiscal 2008 we significantly expanded our gross margins through new product introductions and a strong international performance. Importantly our business remains a significant cash flow generator with over $150 million of cash flow from operations provided over the past two years and we possess a very strong balance sheet with the cash position of $170 million at fiscal 2008 year end and a net cash position in excess of $100 million. Our strategies and focus remain intact and we continue to execute against our stated objectives even in these uncertain times. Now let me outline our operating initiatives for fiscal 2009. First, we are focused on executing our Movado brand strategy across our wholesale and retail channels. As previously announced part of our strategy involves the streamlining of Movado brands wholesale distribution in United States from 4,000 doors to approximately 2,600 doors for a 35% reduction by the end of fiscal 2009. The closing of these least productive doors represents approximately $10 million of Movado brand sales or less than 5% of the overall brands revenue and less than 2% of Movado Group’s consolidated revenue for fiscal 2008. These door closings will impact the sell-in of Movado particularly during the first half of this year. However, we expect sell-through to remain strong. Over the next few years we would expect productivity per door to improve significantly. In addition to optimizing our wholesale distribution ,we are centralizing the Movado brand’s product development, marketing, and merchandising functions to organize ourselves from a brand perspective versus channel specific. As a result we will record certain severance costs during the first half of this year. Our second operating initiative is aimed at maximizing growth opportunities in our existing businesses particularly in our licensed brand portfolio which…

Our first question is coming from Jeff Blaeser - Morgan Joseph.

A quick question on the ERP system, once you decide to go live how long do you think it’ll take to completely integrate it and be comfortable with it?

Obviously, before we go live we will be very comfortable with our revised processes that will be globalized and standardized and very comfortable with data transfer and integration of that nature in the running of SAP. Obviously with anything like that you generally have a stabilization period and we would expect a normal stabilization period of approximately up to six months as a reasonable timeframe and that stabilization is getting everyone 100% comfortable with everything that they are running day-in and day-out.

In China, any particular lines that you’d be focusing on in that market? Without getting into any specifics any thoughts of adding new licenses going forward or is it still focused on the three developing lines that you have right now?

Let me start with the first part of that question. We have great brands and really each brand has its own DNA and unique positioning. So, our current plan and because we believe we start great growth prospects in our existing brands is that we are very satisfied with the opportunities that those present to us. Really all of our brands have a capability of having a significant market in China and that includes our licensed brands as well as Movado which we are currently focused on and Concord and Ebel, as well over the next several years.

Licenses any thought for introducing new ones or still focus on developing other three?

We are focused on the great growth opportunities that we currently believe we have in our licensed brands and remember that three of them are basically only two years old with us, so and they have fantastic years and still have significant growth prospects ahead of them and so we’re really just focused on those opportunities today.

Our next question is coming from Jennifer Bennett - JMP Securities.

Again on this weakness in the US, have you seen any slowdown started to trickle into international markets? Can you talk a little bit about the opportunities to expand the licensed brands abroad whether in existing markets or new markets?

Well, I’ll take that Jennifer and I think we have not seen any slowdown overseas as of yet. Overseas markets remain strong and really on the international front that is the strength in our licensed brand business. We have very strong presence in Europe. But we also have a growing presence in Asia and that certainly represents even a bigger growth opportunity for the future.

So you’ve not seen a slowdown in Europe?

No, we have not, not yet.

But we are not sure as I said in my comments before, obviously not sure how the US economy and the impact it could have on overseas business. Right now we haven’t seen that yet.

Okay. And then opportunities to expand the license brand portfolio abroad?

Well we’re in a number of markets overseas. We are in most European markets. We are in and we have growth opportunities, for example, Juicy that we just began launching in the second half of this year in Europe and Asia. We have significant growth opportunities I believe as well in Latin America, where we had excellent, excellent year last year. And then Asia is a new market really for the licensed brands, we are going on our third year there. So, we still have significant growth opportunity there. So, there are significant growth opportunities overseas for our licensed brands.

Your next question comes from Jody Kane - Sidoti and Company.

Hi, thank you very much. For the Museum Dial watch, did you say you are going to introduce some new colors?

Well, we introduce new colors in every season and we introduced a color in Museum watches last fall and we are introducing new ones again this spring and next fall. But I think what I was covering in my remarks was that the stores are currently black and white and we will be adding color to our visual enhancements and that was in my comments as part of our strategy to make our stores more exciting and you will see that beginning from Mother’s Day.

Okay and how are the non-Museum Dial Movado watches doing?

Well, really the one non-Museum Dial collection that we’re really focused on is Series 800 and that’s done extremely well since we introduced it. We believe we still have a major growth opportunity for the brand. We introduced a limited edition Tom Brady watch last fall that did extremely well and that watch is retailing for $2,500 for the stainless steel version to $20,000 for the gold version. We will also introduce the Derek Jeter limited edition this fall for Series 800. So that represents a significant growth opportunity. The Museum watch still represents 90% of the Movado brand sale and it is the significant powerhouse in all of our distribution across all the channels.

Are you thinking about or working on introducing some new additional lines to the Movado Series?

We will continue to introduce newness and really I think I said in my comments last month in the price range of $2,500 to $5,000, which we believe represents significant opportunity for Movado. Movado has tremendous market share of watches between $500 and $1,500 and the $2,500 to $5,000 range gives us a great opportunity and we will also and a number of those will also contain new versions of the Museum Dial that we’re working on.

Now that you’re moving out of some of the lower end stores or the sort of worst performing stores for your Museum Dial, would you now be able to raise some of the prices or would your average selling price be a little higher now that you’re in higher end doors?

Our average selling price has been moving up over the last several years. It’s now about $1,000 in Movado and we expect that to continue to rise over the next several years.

Our next question is coming from Marie DeLucia - DeLucia Foundation.

Before I ask you sort of talk a little bit more about the Movado Boutiques, I’m not usually on these calls live, so I want to take this opportunity to compliment the management on the diversification of the business by brand and geography over the past few years, its really impressive.

Thank you, Maria.

On the Movado Boutiques, I will share with you that I was in the Rockefeller Center Store not too long before you made your announcement of the changes that were underway and I will share with you that while I was there to make a purchase as a gift, I was struck -- I’m going to be really bunt -- about when I first considered the sterileness of the environment. I would appreciate if you could kind of talk about your thinking in relationship to the changes that you’re going to embark upon?

Absolutely, and I think that one of the things that we are working on and that’s what when I talked about visual enhancement, the addition of color to the Boutiques. We are very focused on making a warmer shopping environment over the next year as well as really highlighting the key features in our key items both in jewelry and in watches over the next year. So we believe that represents significant opportunity to excite the customer in our Movado boutiques and that is one of the things that we are focused on.

Along those lines Efraim, I’m very impress with the fact that 50% of your wholesale watch business is now overseas. Do you see any foreign tourism in your boutiques?

We do get some but not significant because Movado for us is predominantly as I said earlier in my remarks a North American brand. As we develop China and we have been actually fairly successful in China so far, as we develop that market that will present an opportunity for foreign tourists as well as they began to travel to the US. You also have to recognize that although the boutiques take a significant amount of focus from us, they still only represent about 7% of our overall business and are a major growth opportunity for the future.

Your next question comes from David Taylor of David P. Taylor and Company.

You have two programs that have been running during the course of fiscal ‘08. One is the sale of excess inventory and then the second one is the reduction of the number of Movado doors. Are these programs in terms of their impact on sales, over?

Well, let me first talk about and I’ll give Rick the liquidation one in the second. On the Movado Boutique, the door closures that’s occurring in fiscal ‘09. That’s occurring this year. We announced it after fiscal ’08 was over. We did take an accrual for the expected returns of the watches from the wholesale doors that we are closing.

So, that’s just an accrual?

That’s right. That’s just an accrual. Their returns will actually occur this year. We do believe that that will have an impact obviously in sell-in this year and also the US economy will have an effect on Movado this year but we expect that it will position the Movado brand extremely strongly to grow again as the economy improves. We’ve gotten enthusiastic, very enthusiastic response from our retail partners and so we believe this represents the opportunity to really return Movado to an accelerated growth path for the future both in wholesale and retail. Rick, why don’t you address the liquidation?

Sure. As you know over the last two years we’ve taken some advantage of being able to convert some excess discontinued product that we would normally send out to the outlet into cash. We separately highlight that so it doesn’t disrupt from the real trends taking place in our business. The vast majority of that has taken place however clearly if other opportunities present itself we certainly may take advantage of that this year but again there are no plans in place right now to do that. If we did we’ll clearly call that out.

You also have to recognize that was predominantly in Concord and Ebel inventory. That was Ebel inventory that we acquired with the acquisition that we made several years ago and Concord inventory that became discontinued as we repositioned the brand.

Going on the Movado repositioning, again now as I understand it you are going to be closing some of the less productive doors of some of your large multi-store customers, is that correct?

Across all channels so we are closing some department stores, some chain jewelry stores doors as well as some independent jewelers that we feel are not as productive as they should be.

I guess if I were running the likes of Macy’s or Zales and I saw a supplier say okay you can have my product in certain stores but not in other stores, I might get rather upset. You haven’t had any that sort of reaction?

We work with our retailers as partners and they understand that we are doing the best thing for the brand and that will strengthen the brand for them and most of our customers are very excited actually about the prospects because they recognize that they will have greater focus and greater productivity as well.

Our next question is from Arnold Brief - Goldsmith & Harris. Arnold Brief - Goldsmith & Harris: Do you expect the closing of the wholesale outlets that have any direct impact on your boutique sales?

Well we believe that all of our remaining doors will become more productive, so within that are obviously included also our Movado Boutiques as well. But one of the things that I think we also addressed as part of our strategy for the Movado Boutiques and the Movado brand is that we will also begin to develop a greater number of exclusive offering of watches for the Movado Boutiques specifically designed for the Movado Boutiques and that presents also a significant growth opportunity for the future, the first of which we will introduce this fall. Arnold Brief - Goldsmith & Harris: Has there ever been any thought, I know the boutiques are part of the Movado brand strategy to enhance the whole brand but that would basically take place in the trading area around the boutiques itself. Has there ever been any thought that that money might be better spent, that investment might be better spent in the national advertising and promotion program to enhance the issue as opposed to just enhancing that issue around the trade area of the boutiques as well?

Well, our boutiques and we currently have 30 of them are in the top trading areas in the United States and one of the significant things that we found as we did our review of our boutiques is that the Movado brand significantly outperforms its competitors in markets where we have boutiques. We actually have now factual data that confirms that the Movado brand has a more significant presence than other brands in the markets where we have boutiques. It’s also a different shopper, and we found out in our research as well that the department store shopper and the boutique shopper and the chain jewelry shopper are completely different shoppers. So we believe it is certainly a worthwhile investment and we’ll have major growth opportunities for the future and also as distribution in the United States consolidates with multi-store operations, it also makes sense to have a retail presence as well. Arnold Brief - Goldsmith & Harris: Is there anything you could give us in the way of on the licensed brands, number of doors that are expanding? How many doors they have been in? Not necessarily by brand, but just in total?

Let me take that, from a standpoint where we got a well established international network because we’ve been in the licensed brand business for a long period of time so we are in when we launch a brand basically in the first two years, we cover a vast majority of doors that we want to be into because these are well recognized brands and as a matter of fact with Hugo and Lacoste they were in the watch business prior to us taking over the license for those. So clearly the first two years have a lot of door expansion and then after two years it’s a couple of secondary market type of expansions and its really productivity within the existing doors of our group. So Lacoste will probably see a little bit more door expansions. Juicy as they grow their business internationally we will follow in the markets that they go into, but Hugo Boss is already well distributed throughout the world. Arnold Brief - Goldsmith & Harris: Finally with the Movado brand going into China, is there any thought of expanding the Movado brand more internationally?

Well we have a strong presence in Mexico and Canada as well as a growing presence in Latin America and the Middle East and so really we are focused on one market at a time right now and we are going to be making investments this year and next year in China. So we believe that represents a big growth opportunity for us.

At this time there appears to be no further questions. I’ll turn the floor back over to management for any closing remarks.

I would like to thank all of you for participating today and for your continued support and we look forward to updating you again after the close of our first quarter. Thank you very much.