Guess posts lower profit, lowers outlook
Los Angeles -- Guess Inc. on Wednesday reported that its second-quarter profit fell to $42.9 million, from $60.7 million a year ago. The company also lowered its full-year earnings outlook.
Total net revenue for the quarter ended July 28 fell 6.2% to $635.4 million, from $677.2 million.
The company’s retail stores in North America generated revenue of $253.0 million in the second quarter, down 3.1% from $261.1 million in the same period a year ago. Same-store sales fell 8.5%.
Net revenue from the company's Europe segment decreased 14.5% to $246.9 million in the second quarter. Net revenue from the company's Asia segment increased 20.9% to $66.8 million.
Guess CEO Paul Marciano noted that while store traffic remained down in North America, the company’s strategy to elevate its women's business appears to be working.
“We are now focused on driving improvements in accessories, which has become increasingly competitive, and are also developing plans to refine our North American strategy where necessary to remain competitive,” he stated. “Our European business remained stable, as we grew in newer markets in the north and east, while economic conditions continued to affect consumers, particularly in the south. We also posted solid double digit growth in Asia and China has continued to exceed our expectations."