Home / Knowledge / News / Apparel/Garments / Q2FY15 net income crashes 50% at apparel retailer Guess?
Q2FY15 net income crashes 50% at apparel retailer Guess?
29
Aug '14
Despite a 50% growth in the North American online business, net earnings crashed 50.5% year-on-year at lifestyle apparel retailer Guess? Inc in the second fiscal quarter ending August 2, 2014.

For the second quarter of 2014, Guess recorded net earnings of $22.0 million, down 50.5% from adjusted net earnings of $44.3 million, the retailer posted for the second fiscal quarter of 2014.

Correspondingly, second quarter of 2014 diluted earnings per share too fell 50.0% to $0.26, compared to adjusted diluted earnings per share of $0.52 for the prior-year quarter.

Guess said the prior-year adjusted net earnings excluded restructuring charges of $6.1 million or $4.4 million net of taxes.

Total net revenue for the second quarter of 2014 fell 4.8% to $608.6 million from $639.0 million in the comparable second quarter of 2013. In constant currency, total net revenue decreased 6.3%, the retailer revealed.

Operating earnings for the second quarter of 2014 too went down 55.4% to $29.9 million, which includes a $0.9 million favorable currency translation impact, from adjusted operating earnings of $66.9 million in the prior-year period.

Operating margin in the second quarter fell by a massive 560 basis points to 4.9%, compared to adjusted operating margin of 10.5% in the prior-year quarter.

Guess attributed the lower operating margin to the negative impact on its fixed cost structure from negative same store sales in North America and lower wholesale shipments in Europe and more markdowns in North America and Europe.

Second quarter 2014 effective tax rate increased to 34.8%, compared to 33.0% for the second quarter of 2013.

CEO Paul Marciano said, “We are consolidating in North America, making it more efficient and more focused on our long-term goals and also continue to rationalize the region’s store portfolio and also have the flexibility to further optimize our retail footprint in the coming years.”

Guess directly operated 488 retail stores in the United States and Canada at end of second quarter of 2014 fiscal 2015 against 507 retail stores a year earlier and 349 retail stores in Europe, Asia and Latin America.

Fibre2fashion News Desk - India


Must ReadView All

Maintain NAFTA trucking provisions: AAFA, US trade bodies

Apparel/Garments | On 22nd Nov 2017

Maintain NAFTA trucking provisions: AAFA, US trade bodies

The American Apparel & Footwear Association (AAFA) recently joined...

Vietnam’s textile & garment exports cross $24bn till Oct

Textiles | On 22nd Nov 2017

Vietnam’s textile & garment exports cross $24bn till Oct

Vietnam earned $24.372 billion from textile and garment exports in...

Karl Mayer unveils TMJ 4/1-T terry warp knitting machine

Textiles | On 22nd Nov 2017

Karl Mayer unveils TMJ 4/1-T terry warp knitting machine

Karl Mayer, a technology and market leader in textile machinery from...

Interviews View All

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Abhishek Samdaria
Reflete

GST will certainly reduce a lot of paperwork in future

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Steve Cole
Xerium Technologies

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

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Rupa Sood and Sharan Apparao
Nayaab

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

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Robert Brunner
Devereux

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

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

November 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

Active Poll

Do you see sustainability as a route to business growth?

Yes
68.5%
No
12.4%
Skip
19.1%

Total Votes: 89

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

Yes No

Active Poll

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

Yes
61.8%
No
30.3%
Skip
7.9%

Total Votes: 89

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

Yes No

Active Poll

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

Yes
86.5%
No
10.1%
Skip
3.4%

Total Votes: 89

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

Active Poll

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

Yes
80.9%
No
9.0%
Skip
10.1%

Total Votes: 89


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