Home / Knowledge / News / Apparel/Garments / Guess? Q3 FY'14 net earnings slip 3.4%
Guess? Q3 FY'14 net earnings slip 3.4%
05
Dec '13
Guess?, Inc. Reports Third Quarter Results for fiscal year ending November 3, 2013.
 
Third Quarter Results
For the third quarter of fiscal 2014, the Company recorded adjusted net earnings of $35.4 million, a 3.4% decrease compared to net earnings of $36.6 million for the third quarter of fiscal 2013. Adjusted diluted earnings per share decreased 2.3%, to $0.42, compared to diluted earnings per share of $0.43 for the prior-year quarter.  
 
The adjusted net earnings exclude restructuring charges of $1.9 million ($1.4 million net of taxes).  On a GAAP basis, third quarter fiscal 2014 net earnings were $34.0 million and diluted earnings per share totaled $0.40, including an unfavorable $0.02 after-tax impact from the restructuring charges.
 
Total net revenue for the third quarter of fiscal 2014 decreased 2.4% to $613.5 million, from $628.8 million in the prior-year quarter.  In constant currency, total net revenue decreased 4.1%.
 
The Company's retail stores in North America generated revenue of $253.8 million in the third quarter of fiscal 2014, a 3.1% decrease from $262.1 million in the same period a year ago.  Comparable store sales for the third quarter of fiscal year 2014 decreased 5.0% in U.S. dollars and 4.0% in constant currency compared to the same period a year ago.  
 
Adjusted operating earnings for the third quarter of fiscal 2014 decreased 14.2% to $49.8 million (including a $0.7 million favorable currency translation impact) from operating earnings of $58.1 million in the prior-year period.  Adjusted operating margin in the third quarter decreased 110 basis points to 8.1%, compared to operating margin of 9.2% in the prior-year quarter.  
 
The lower operating margin primarily reflects the impact of more markdowns and the impact of negative same store sales on the Company's fixed asset structure in North America as well as lower wholesale shipments in Europe.  
 
These decreases were partially offset by lower selling and merchandising expenses in Europe resulting from productivity improvements and lower advertising and marketing expenditures.  On a GAAP basis, operating earnings decreased 17.5% and operating margin decreased 140 basis points.
 
Other net income, which primarily includes net unrealized and realized gains on non-operating assets, was $3.6 million for the third quarter of fiscal 2014, compared to other net expense of $0.2 million in the prior-year quarter.
 
The Company's third quarter fiscal 2014 effective tax rate decreased to 33.0%, compared to 34.8% for the third quarter of the prior year.
 
 

Must ReadView All

Textiles | On 10th Dec 2016

India’s 2016-17 cotton import to touch 17 lakh bales

The import of cotton from international markets by spinning mills in...

Textiles | On 10th Dec 2016

US textile & apparel imports fall 6.50% in Jan-Oct ’16

The import of textiles and apparel by United States dropped 6.50 per...

Textiles | On 10th Dec 2016

Indian textile hubs adopt cashless payment modes

The textile ministry is promoting cashless payment within the...

Interviews View All

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Steve Cole
Xerium Technologies

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

Mohammad Hassan
Biax Fiberfilm

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

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

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
December 2016

December 2016

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search