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Asia boosts Guess’ international business with 19 percent sales uptick

U.S. fashion and accessories brand Guess Inc. reported net revenues of USD 664.5 million for the second quarter, up 3 percent, on the back of surging revenues across its international business, especially in Asia.

SEE ALSO: Guess Asia sales up 10 percent

For the second quarter ending July 29, Guess Asia revenues increased 19 percent in U.S. dollars, while retail comp sales, including e-commerce, increased 2 percent in the region.

For the first six months of the year, Guess Asia revenues surged 23 percent. Retail comp sales, including e-commerce, increased 2 percent during the first half.

Elsewhere, Europe sales were up 9 percent and 6 percent for the quarter and first half, respectively, while the brand’s Americas region clocked declines in both the quarter and six-month period.

Guess licensing revenues were up by double digits in the second quarter and inched forward 1 percent in the first half.

The company recorded net earnings of USD 39 million, a 63 percent increase from USD 24 million for the same prior-year quarter.

“We are very pleased with our second quarter performance, which exceeded our expectations for top line growth and delivered a significant beat in operating earnings and earnings per share for the period,” said ​Carlos Alberini, chief executive officer.

“Our international businesses continued to perform strongly with robust revenue growth and our Americas retail business achieved a sequential improvement in performance compared to the first quarter, as we drove better customer conversion in stores. Most of our businesses delivered better-than-expected operating results, driven by solid revenue performance, strong gross margin results and effective cost management, which contributed to an operating profit of USD 65 million and a 9.7 percent operating margin for the period, well ahead of our expectations.”

For the six months, Guess recorded net earnings of USD 27.2 million, a 15 percent decrease from USD 31.9 million, in the prior-year period.