Guess Q2 revenues up on strong Europe wholesale
American fashion brand Guess Inc. announced first-half revenues gained 8% for the six-month period ending July 30, on the back of solid sales momentum in the second quarter.
The Los Angeles-based company said total net revenue for the six months reached $1.24 billion, from $1.15 billion in the same prior-year period. Americas retail revenues increased 2%, while retail comp sales, including e-commerce, decreased 2%. Americas wholesale revenues increased 24%.
Elsewhere, Europe revenues increased 9% in U.S. dollars and 23% in constant currency. Retail comp sales, including e-commerce, decreased 5% in U.S. dollars and increased 8% in constant currency. Asia revenues increased 2% in U.S. dollars and 11% in constant currency. Retail comp sales, including e-commerce, decreased 6% in U.S. dollars and increased 2% in constant currency.
Licensing revenues increased 18% in U.S. dollars and constant currency, said the company.
Likewise, total sales for the second quarter increased 2% to $642.7 million from $628.6 million in the same prior-year quarter. In constant currency, net revenue increased by 12%.
Americas retail revenues decreased 2%, while retail comp sales, including e-commerce, decreased 6%. Americas wholesale revenues increased 1% in U.S. dollars and 2% in constant currency.
Internationally, Europe revenues increased 4% in U.S. dollars and 21% in constant currency, and Asia revenues increased 3% in U.S. dollars and 15% in constant currency. Licensing revenues increased 13% during the second quarter, Guess said.
Net income for the quarter fell to $24 million, a 60.8% decrease from $61.1 million for the same prior-year quarter, with the earnings dive narrowing overall during the first half, down 21% to $89.8 million.
“We are pleased with our second quarter results that exceeded our revenue and operating earnings expectations in a challenging retail environment... These results reflected a strong performance of our wholesale business in Europe, partially offset by softer sales in our America’s retail business," . said Carlos Alberini, chief executive officer.
"Our adjusted operating earnings decreased from last year but exceeded our expectations, as a result of effective expense management partially offset by a margin decline across our businesses."
Looking ahead, Guess said it expects revenues to be down around 4.5% in U.S. dollars (up 4.5% in constant currency) tor the third quarter of fiscal 2023. For the full fiscal, it expects revenues to be up around 1.5% in U.S. dollars (9.5% in constant currency) versus fiscal 2022.
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