Shares in luxury watch maker Movado Group, Inc. (NYSE: MOV)posted a steep decline on Thursday, after the company's profit exceeded expectations for the fourth quarter but lowered its earnings outlook for 2008.

The company said its net income in the fourth quarter rose to $14 million, or 52 cents a share, from $2.96 million, or 11 cents a share, compared to the year before. On an adjusted basis, it earned 42 cents a share compared to 38 cents a year earlier.

Analysts polled by Thompson Financial expected the firm to earn 38 cents per share.

The company, which also produces ESQ SWISS, Coach , HUGO BOSS, and Tommy Hilfiger branded watches, lowered its outlook for 2008, saying it expects $1.72 a share for 2008, on sales between $550 to $560 million.

Thomson Financial says analysts expect earnings of $1.74 per share on revenue of $584 million.

Shares of Movado fell $5.93, or 17.15 percent to $28.65 in late afternoon trading on the New York Stock Exchange.