Guess earnings beat expectations, second-quarter revenue up 13%
Guess Inc. said on Wednesday second quarter results beat expectations with total net revenue up 13.7 percent reaching $645.9 million.
The Los Angeles-based company said it recorded GAAP net earnings of $25.5 million, up 67.8 percent compared to $15.2 million. Adjusted net earnings climbed 83.5 percent to $29.5 million.
On a per-share basis, it had profit of 31 cents. Adjusted earnings were 36 cents per share.
“I am pleased to report that our second quarter results finished above the high-end of our expectations for adjusted operating margin and adjusted earnings per share,” said Victor Herrero, Guess CEO, in a news statement.
By region, the Americas retail revenues decreased 2 percent in constant currency, while comp sales including e-commerce increased 3 percent. Americas wholesale revenues were up 6.8 percent in constant currency.
European revenues increased 19.4 percent in constant currency, while retail comp sales including e-commerce increased 2 percent. Asian revenues rose 29 percent with retail comp sales including e-commerce up 14 percent.
Licensing revenues climbed 19.5 percent, said Guess.
“Overall, I am very pleased by the momentum we are experiencing across the globe. We are now planning for positive comps in all regions, including the Americas," added Herrero.
"Looking forward, I feel confident that the 'turnaround' has only just begun, as we are well positioned to exit this fiscal year with every business segment profitable and the company firmly on the path to our 7.5% operating margin goal by continuing to execute on our strategic initiatives.”
For the third quarter ending November 3, 2018, the company expects revenue to increase between 10.5 and 11.5 percent.
Meanwhile, for fiscal 2019, the company forecasted EPS at between 85 cents to 95 cents, with adjusted EPS at between 94 cents to $1.03. Revenue is expected to be up 9 to 9.5 percent.
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