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Guess Asia sales up on strong comps

Guess Inc. announced on Wednesday that its total second-quarter sales lifted by double digits, pushed on by comparable sales growth in Europe and Asia.

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The Los Angeles-based company said total revenues increased 14% to $645.9 million with Asia recording the highest growth percentage in the quarter.

Total revenues in the region lifted 32%, while comparable sales gained 17% while Europe revenues gained 22%. However, the Americas fell 2%, in retail terms, but lifted 5% in the wholesale segment, said Guess.

Operating margins and net earnings for the period ending August 4, 2018, were pushed on by favourable currency exchanges. Indeed, net earnings rose 67.8 per cent from a year ago to $15.2m, or 31 cents a share.

“I am pleased to report that our second quarter results finished above the high-end of our expectations for adjusted operating margin and adjusted earnings per share,” said Victor Herrero, Guess’s Chief Executive Officer, adding that he was “pleased by the momentum we are experiencing across the globe.”

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Looking ahead, the company plans to see positive comp growth across all of its regions, including a slight gain in the Americas. Elsewhere, comps in Asia and Europe are expected to grow in the low teens and mid-single digits, respectively.

Finally, for the full fiscal year, Guess sees revenue climbing between 8.5% and 9.5%, marking an increase from its previous guidance for 7% to 8% growth, with adjusted earnings per share of $0.88 to $0.99.

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