June 2, 2011
Board of Directors
Movado Group Inc.
650 From Rd., Ste. 375
Paramus, NJ 07652
We are providing this letter to you for inclusion as an exhibit to your Form 10-Q filing pursuant to Item 601 of Regulation S-K.
We have been provided a copy of the Companys Quarterly Report on Form 10-Q for the period ended April 30, 2011.
Note 5 therein describes a change in accounting principle for the costing of the Companys U.S. inventory from a first-in, first-out (FIFO) method to the average cost method. It should be understood that the preferability of one acceptable
method of accounting over another for valuing inventory costs has not been addressed in any authoritative accounting literature, and in expressing our concurrence below we have relied on managements determination that this change in accounting
principle is preferable. Based on our reading of managements stated reasons and justification for this change in accounting principle in the Form 10-Q, and our discussions with management as to their judgment about the relevant business
planning factors relating to the change, we concur with management that such change represents, in the Companys circumstances, the adoption of a preferable accounting principle in conformity with Accounting Standards Codification 250,
Accounting Changes and Error Corrections.
We have not audited any financial statements of the Company as of any date
or for any period subsequent to January 31, 2011. Accordingly, our comments are subject to change upon completion of an audit of the financial statements covering the period of the accounting change.
Very truly yours,
/s/ PricewaterhouseCoopers LLP