US apparel and accessories retailer Guess Inc. ended 2005 with a profit gain of 73.2 percent. Profits for the fourth quarter rose 23.5 percent. The company revealed that strong results had boosted year-end profits. Net income for the fourth quarter surged to $25.8 million (£15.4 million) from $14.9 million in the same period the year before. Sales rose to $276.6 million from $224 million. Net income for the year soared to $58.8 million form $29.6 million the year before on sales that rose 28.4 percent to $936.1 million from $729.2 million.

Same-store sales for the fourth quarter increased 15.9 percent, while operating income surged 66.3 percent to $43.4 million, or 15.4 percent of sales. The gross margin rate climbed 310 basis points to 42.6 percent. Co-chairman and co-chief executive Paul Marciano said in a statement that the strong performance in the fourth quarter and the year reflect "the progress that we have made in all our businesses - retail and wholesale operations in North America, our European business and domestic and international licensing."

He added that the brand's customer has continued to "respond favourably to our product assortment and mix, whish is supported by a consistent, global branding effort." Marciano continued by saying: "In our core North American retail business, comparable store sales increased 15.9 percent. Retail sales rose while we maintained appropriate inventory levels. Our balance sheet and cash flow continue to strengthen and should continue to provide most of the funding for our future growth."

Meanwhile, the European business, including the company's jeanswear licensee which it acquired in January 2005, saw operating income rise to $28.1 million compared with $7.7 million the year before. "We see further opportunities in Europe and elsewhere, especially in Asia ," said Marciano, and added: "We believe that our growing global presence will help us drive strong and consistent results."