Home / Knowledge / News / Apparel/Garments / Guess? Inc faces economic headwinds in Southern Europe
Guess? Inc faces economic headwinds in Southern Europe
23
May '12
Guess?, Inc. reported financial results for the first quarter ended April 28, 2012.

First Quarter Fiscal 2013 Highlights
• North American Retail revenues increased 2%; retail comp sales declined 5.5%
• Asian revenues increased 8%
• European revenues decreased 10% in U.S. dollars; declined 5% in local currency
• Operating earnings decreased 45% and operating margin declined 520 basis points to 6.8%

First Quarter Fiscal 2013 Results
For the first quarter of fiscal 2013, the Company reported net earnings of $26.6 million, a 37.6% decrease compared to net earnings of $42.7 million for the first quarter of fiscal 2012. Diluted earnings per share decreased 34.8% to $0.30, compared to $0.46 for the prior-year quarter. The prior year quarter's earnings per share included $0.08 in net non-operating charges, primarily unrealized mark-to-market charges related to foreign currency contracts and balances.

Paul Marciano, Chief Executive Officer, commented, "We are pleased to deliver first quarter financial results that exceeded both our top and bottom line expectations, even as economic conditions remained challenging in many markets.

“We continued to focus our efforts on growing in newer international markets, and we succeeded, expanding in key markets such as China, Germany and Russia. While we did face economic headwinds in southern Europe, our brand remains strong there and our business is stable. Our global licensing business outperformed expectations, even as our licensees encountered many of those same economic challenges."

Mr. Marciano continued, "We're off to a very encouraging start this year – a milestone year for Guess? as we celebrate our 30th anniversary. We've launched great new marketing campaigns that invoke the rich tradition of Guess? and reach consumers through both traditional and social media. We are developing innovative product designs to support our customers' lifestyle and reinforce our fashion authority. We intend to leverage the strength of our global lifestyle brand and expand in underdeveloped markets and newer concepts. As always, we will manage our business prudently from our position of financial strength and, above all, protect our most valuable asset, the Guess? brand."

• Total net revenue for the first quarter of fiscal 2013 decreased 2.2% to $579.3 million from $592.2 million in the prior-year quarter. In constant dollars, total net revenue increased slightly.
• The Company's retail stores in North America generated revenue of $251.8 million in the first quarter of fiscal 2013, a 1.8% increase from $247.5 million in the same period a year ago.
• Comparable store sales decreased 5.5% in U.S. dollars and 5.1% in local currency for the first quarter of fiscal 2013, compared to the same period a year ago. The Company directly operated 503 retail stores in the United States and Canada at the end of the first quarter of fiscal 2013 versus 484 stores a year earlier.


Must ReadView All

US merchandise trade with India, 2012–16; Courtesy: USITC

Textiles | On 27th Jul 2017

India becomes US’ 9th largest trading partner in 2016

In 2016, India became the United States’ 9th-largest single-country...

Textiles | On 27th Jul 2017

GST will lead to further increase of MMF prices

The Goods & Services Tax (GST) rolled out on July 1, 2017 is not...

Textiles | On 27th Jul 2017

Global yarn production improved 30% q-o-q in Q1: ITMF

In the first quarter of 2017, global yarn production rose by almost...

Interviews View All

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Manuj Terapanthi
Texaura

Transparent supply chain and fair trade will boost sustainable market

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X