European sales boost Guess H1 results
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.
www.guess.com
4 August 2006
Guess profits soar in 2005
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.”
www.guess.com
17 February 2006
Guess suffers losses
Guess Inc., the up market US clothing and accessories company, has completed the year with considerable loss, but reported growth at its retail and licensing units. The Los Angeles-based company, which has been struggling with falling profits for more than three years and in 2001 saw profits slump 62 per cent, turned in a net loss of 11.2 million USD (10.4 million EUR) for 2002 compared to a net profit of 6.2 million USD in the previous year.
Once again, the company cited restructuring and severance charges as the reason for its losses, but also blamed declining sales in "an ongoing difficult retail environment". Total turnover for the year declined to 583.1 million USD. Retail sales increased by one per cent to 380.6 million USD.
Guess opened twenty four and closed two stores in 2002 and now trades from
249 stores. The company, which licensed out its childrenswear business at the
beginning of last year, reported a 5.8 per cent rise in licensing revenues to
39 million USD.
www.guess.com
February 28, 2003
Six percent increase sales for Guess
Guess?, Inc. on Wednesday reported January retail sales results for the fiscal month ended February 1, 2003. Total retail sales for the January 2003 fiscal period were 26.0 million USD, an increase of 5.9 per cent from sales of 24.5 USD million for the January 2002 fiscal period.
Comparable store sales for the January period decreased 1.6 per cent. Comparable store sales for the Company's full priced retail stores decreased 2.8 per cent, and comparable store sales at the factory outlet stores increased 1.8 per cent.
February 7, 2003
Guess suffers wider loss than expected
Guess Inc., the popular clothing retailer and designer, stated on Thursday that its loss was wider than forecast last year after the company increased promotions and discounts to attract shoppers during the holidays.
The loss, excluding some costs, was 12 cents to 14 cents a share, the company said. That was more than the loss of 2 cents to 5 cents it projected in October. Sales at stores open at least a year dropped 1.1 percent in December.
Profit margins were hurt because of high promotional costs during the holiday season and higher operating costs, Guess said. Guess also spent about USD 6.7 million to cut jobs and shut some corporate operations and stores as sales declined. The closings and job reductions were announced in October last year.
The French Marciano Brothers founded guess in 1981. They began purchasing denim fabric in large quantities even though many in the industry believed they were misguided. The GUESS? approach however was fresh, setting a standard for the new vision of denim.
January 10, 2003
www.guess.com
Guess spiralled into loss
Last week jeans and apparel producer Guess Inc revealed it spiralled into a loss during Q2 which slashed the company’s full-year outlook. The company announced it lost $6.4 million in the 13 weeks up to June 29th, which equals 15 cents per share, versus net income of $1.5 million, or three cents per share, in the year-ago period. Net revenue plunged to $119.8 million from $151.7 million.
In a statement the California-based company said that July same-store saled were likely to fall in the low to mid-single digits, with second half revenue expected to slip 5%. Guess added it sees full year earnings per share of 4-8 cents, including 8-10 cents profitin the current quarter and 19-21 cents profit in the fourth quarter.
President and COO, Carlos Alberini, commented: "Guess?' performance for the second quarter reflects the continuing weakness in the retail marketplace. Within this environment, we are managing our inventories and costs very carefully, and, although overall results were lower, our efforts are contributing to improved gross profit margins in our retail business.
"In looking to the second half, while we expect conditions to remain challenging
... (and) we see good opportunities for growth and margin expansion."
www.guess.com
8-6-2002