Clothing retailer Guess has reported that its GAAP net loss in the first quarter of the year ended April 30, 2016 was US $ 25.2 million compared to net earnings of US $ 3.3 million in the same period last year. Total net revenue of the company in the first quarter of fiscal plunged 6.3 per cent to US $ 448.8 million, down from US $ 478.8 million in the same quarter last year. In constant currency, total net revenue dropped 5 per cent.
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The retailer also informs that GAAP operating loss for the first quarter of fiscal was US $ 29 million (including a US $ 0.9 million unfavourable currency translation impact), compared to operating earnings of US $ 4.4 million in the same period last year, a decrease of US $ 33.3 million.
Region wise, Americas retail revenues for Guess decreased 5 per cent in US dollars and 3 per cent in constant currency; retail comp sales including e-commerce decreased 4 per cent in US dollars and 3 per cent in constant currency, the company release mentions. Europe revenues dropped 1 per cent in US dollars and 3 per cent in constant currency. Similarly, Asia too reported downward trend. Revenues from this region declined 15 per cent in US dollars and 11 per cent in constant currency.
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Commenting on the results, Victor Herrero, Chief Executive Officer, averred, “Our first quarter adjusted operating loss finished at the low-end of our guidance as sales finished below our expectations. In the Americas, our retail business in the US and Canada was very challenging, especially in the month of April. In Europe, our retail business performed extremely well and delivered positive comp store sales in the mid-teens, a trend of strong comps that started in the second half of last year. In Asia, we delivered positive comps in Korea, although Greater China was below our expectations as we continue to build out our infrastructure there and transition the business to a direct model.”
