Home / Knowledge / News / Apparel/Garments / Q3FY15 net earnings plunge 41.3% at apparel marketer Guess
Q3FY15 net earnings plunge 41.3% at apparel marketer Guess
06
Dec '14
Net earnings at apparel and footwear marketer, Guess, Inc plunged 41.3 per cent year on year for the third fiscal quarter ended November 1, 2014.

Guess said it recorded net earnings of $20.8 million in the third quarter of fiscal 2015, down 41.3 per cent from adjusted net earnings of $35.4 million for the third quarter of fiscal 2014.

Resultantly, diluted earnings per share too slipped 42.9 per cent to $0.24, compared to adjusted diluted earnings per share of $0.42 for the prior-year quarter.

Total net revenue for the third quarter of fiscal 2015 declined 3.9 per cent to $589.8 million as against $613.5 million in the prior-year quarter. In constant currency, revenue fell 2.6 per cent.

From overall revenue, North America generated sales of $243.2 million in the third quarter of fiscal 2015, a 4.2 per cent fall from $253.8 million in the same period a year ago.

Net revenue from its European segment decreased 5.5 per cent to $189.9 million in the reporting quarter from $200.9 million in the prior-year period. In local currency, sales slipped 2.5 per cent.

The Asia segment also posted a revenue reduction of 2.0 per cent from the year ago period to reach $71.3 million and in constant currency it went down by 5.1 per cent.

Licensing segment net revenue decreased 1.4 per cent to $32.0 million in the third quarter of fiscal 2015, from $32.4 million in the corresponding quarter of fiscal 2014.

Operating earnings was knocked down by 50.1 per cent to $24.9 million compared to adjusted operating earnings of $49.8 million in the same quarter of previous fiscal year.

In the same quarter, operating margin at Guess caved in by 390 basis points to 4.2 per cent as against adjusted operating margin of 8.1 per cent from the same quarter last fiscal year.

“The lower operating margin primarily reflects higher store impairment charges, from negative same store sales in North America and Europe, as well as more markdowns in North America,” Guess said.

The only redeeming feature was other net income which more than doubled to $7.5 million for the third quarter of fiscal 2015, compared to $3.6 million in the prior-year quarter.

Effective tax rate in the reporting quarter of the apparel marketer stood at 33.0 per cent, unchanged from third quarter of fiscal 2014.

Paul Marciano, CEO at Guess explained, “Third quarter results were within the range of our expectations from an operations perspective.”

“Going into the fourth quarter, overall trends in North America have softened from the previous quarter and in Europe, trends however have improved so far in the fourth quarter,” he added. (AR)

Fibre2fashion News Desk - India


Must ReadView All

Pakistan govt notifies 50% duty drawback on exports

Textiles | On 21st Oct 2017

Pakistan govt notifies 50% duty drawback on exports

The Pakistan government has notified the ‘Duty Drawback of Taxes...

Ghana sets up task force to clamp down on textile piracy

Textiles | On 21st Oct 2017

Ghana sets up task force to clamp down on textile piracy

Ghana’s ministry of trade and industry has set up a taskforce to...

Courtesy: Coach

Fashion | On 21st Oct 2017

US company Coach to change name to Tapestry from Oct 31

Coach Inc., a New York-based house of modern luxury accessories and...

Interviews View All

Top executives
Textile industry

The foremost issue is bridging the skill gap

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Headhonchos
Indian fashion industry

Cotton consumption will keep growing in the Indian fashion industry

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Larry L Kinn
Suominen Corporation

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

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Robert Brunner
Devereux

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

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

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

October 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
77.1%
No
12.9%
Skip
10.0%

Total Votes: 70

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
61.4%
No
28.6%
Skip
10.0%

Total Votes: 70

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
85.7%
No
10.0%
Skip
4.3%

Total Votes: 70

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
75.7%
No
11.4%
Skip
12.9%

Total Votes: 70


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