Guess Q2 profit declines on settlement charges.
Guess Inc posted a decline in second-quarter net profit on the back of a settlement charge as the apparel retailer posted a double-digit increase in sales, driven by growth in Europe and Asia.
Egytex News Desk
Source: www.mrketplace.com
The company said net income was down 9.1% to US$60.6m as it was hit by a $19.5m settlement charge related to one of its European service providers.
Over the quarter ended 30 July, net revenue increased 17.3% to $677.2m. At constant exchange rates, net revenue increased 9.5%. The company’s European operations posted 29.9% growth to $288.8m. In constant currency, European sales rose 14.1%.
Net revenue from its Asian operations increased 31.1% to $55.3m. At constant currency, revenue in the division was up 21.6%. The North American retail segment reported an 8% increase in sales to $261.1m, despite seeing a 3.4% same-store sales decline.
The company is forecasting that full-year net revenue will be between US$2.74-2.78bn, with operating margin to be between 15.3% and 15.8%.
“Our international businesses continue to drive our growth, with Europe and Asia combining to deliver 80% of this quarter’s revenue increase,” said CEO Paul Marciano.
“In North America, our focus on inventory control and markdown management was evident in our results, as we posted a substantial increase in our retail profitability. Overall, our results demonstrate the ability of our team to manage our business effectively and execute well on our strategic initiatives.”
Source: www.mrketplace.com
From the Egytex news archive, first published on 29 August 2011. Figures and names are as reported at the time.
