24 Aug, 2017
Guess?, Inc. (NYSE: GES) shares jumped more than 17% after the apparel retailer released financial results for its second quarter ended July 29, 2017.
The company's total net revenue for the second quarter of fiscal 2018 increased 5.3% to $573.7 million, compared to $545.0 million in the prior-year quarter.
Guess showed a weaker than expected performance in the U.S. Americas Retail revenues decreased 11.2% in U.S. dollars and 10.8% in constant currency. Retail comp sales including e-commerce decreased 10% in U.S. dollars and constant currency. In Europe however, the retailer reported promising developments. Europe revenues increased 20.1% in U.S. dollars and 18.8% in constant currency. Retail comp sales including e-commerce increased 5% in U.S. dollars and constant currency.
Victor Herrero, Chief Executive Officer, commented, “We are pleased to report that our adjusted second quarter results finished above the high-end of our expectations for operating margin and earnings per share. Overall, the Company revenues increased 5%, operating margin expanded 120 basis points and operating profit grew 49% compared to last year’s second quarter. We continue to see the results of our efforts in Europe and Asia, where our revenues were up 20% and 17%, respectively, mainly driven by new store openings, wholesale growth and positive comp sales. We are also encouraged by the trends in operating margins for these two regions, as they expanded in the quarter relative to last year. In the Americas Retail, as our performance and the business environment remains soft, we continue to focus on shrinking our footprint and profitability improvements.”