Fashion group Guess reported sales increases for both the second quarter and the first half of the year, thanks to stronger sales in Europe and North America. Earnings for the three months ended 1 July surged 299.8 percent to $13.7 million (£7.24 million), exceeding analysts' expectations. For the first half last year, earnings were $4.2 million. Revenues rose 29.6 percent to $231 million, while sales jumped 28.8 percent to $217.6 million. "I'm pleased to report that all of our business formats delivered improved results in the quarter," co-chairman and co-chief executive Paul Marciano said during a conference call. Revenue growth was driven mainly by Guess's wholesale and North American retail activities. Sales from directly-owned stores in the US and Canada increased 23.4 percent to $163.9 million during the quarter. "In the quarter, we opened 10 new stores," he said. "We opened five Guess stores, two Marciano and three accessory stores." The company now has 320 US stores. The wholesale business grew 18.2 percent to $30.8 million. "We are pleased with the performance of our wholesale business, particularly in light of the impact of the Federated-May consolidation," Guess chief financial officer Dennis Secor told WWD last month. According to Maurice Marciano, co-chairman and chief executive, the wholesale business had been driven by jeanswear.

The European market saw the biggest increase during the second quarter, with a 130.1 percent revenue leap to $22.9 million from $9.9 million. Paul Marciano said footwear was an important and promising segment for that market. Meanwhile, Secor pointed out that because Europe operates on a bi-annual buying basis, the first and third quarters usually show the most growth.