Guess reported a US $ 10.6 million GAAP net loss for the second quarter, but its adjusted net earnings came in at US $ 23 million, down 42 per cent from US $ 39.7 million. To reach US $ 732.6 million, the total net revenue for the quarter climbed by 10 per cent or 13 per cent in constant currency.
Commenting on the company’s financial performance, Carlos Alberini, Guess chief executive officer, said, “During the second quarter we delivered revenue growth of 10 per cent, in line with our expectations. This performance was fueled by the Rag & Bone acquisition and strong wholesale performance in our Europe and Americas businesses.
Retail comparable sales including e-commerce climbed 1 per cent in US dollars and 4 per cent in constant currency, while the company’s revenues in Europe increased by 5 per cent in US dollars and 8 per cent in constant currency.
With comparable sales down 10 per cent, retail revenues in the United States grew by 8 per cent in US dollars and 9 per cent in constant currency. America’s wholesale sales climbed by 94 per cent in constant currency and 93 per cent in US dollars.
Comparable sales in Asia fell 10 per cent in constant currency and 14 per cent in US dollars, while revenues declined by 8 per cent in US dollars and 4 per cent in US dollars. Revenues from licensing climbed by 4 per cent in US dollars and constant currency.
The company projects that for the third quarter, GAAP and adjusted operating margin would range from 4.7 to 5.8 per cent, and consolidated net revenue in US dollars will rise between 14.5 and 16.5 per cent.
