Guess Inc., announced net revenue for the third quarter rose 3 per cent to US $ 651.2 million, with an increase in Europe, offsetting a decline in the fashion firm’s Americas division and flat sales in Asia.
Guess, a Los Angeles-based company, reported that while revenues in Asia were flat in constant currency due to a 9 per cent fall in constant currency, revenues in Europe climbed by 5 per cent in constant currency, with retail comparable sales including e-commerce rising by 7 per cent. With retail comparable sales down 5 per cent and wholesale revenues down 1 per cent in constant currency, Guess’s Americas retail revenues fell by 8 per cent.
Revenue from licencing rose 19 per cent in constant currency. Guess reported net earnings of US $ 55.7 million for the same period last year, a 155 per cent rise from US $ 21.8 million, despite the variable sales results.
“We are pleased with our third quarter financial results, which were in line with our guidance for revenue growth and at the high end of our expectations for operating profit performance. During the period, we managed the business well and delivered strong gross margin and effective cost performance, which resulted in GAAP and adjusted operating margins of 8.4 per cent and 8.9 per cent, respectively, ahead of our expectations for the quarter,” said Carlos Alberini, chief executive officer.
