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
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

Md Siddiqur Rahman, president, BGMEA, addressing a press conference with other dignitaries. Courtesy: BGMEA

Apparel/Garments | On 29th May 2017

BGMEA asks govt for 5% incentive for 2 years in Budget

The Bangladesh Garment Manufacturers and Exporters Association...

Textiles | On 29th May 2017

Special package creates 7,50,000 jobs in garment sector

The special garment package of Rs 6,000 crore that was introduced by...

Textiles | On 29th May 2017

Tintex, Bruckner bring new effects to knitted fabric

The textile company Tintex has joined hands with the system supplier...

Interviews View All

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Sachin Sharma
Gem Enviro Management Pvt Ltd

There are no significant differences between virgin yarn and PET recycled...

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
May 2017

May 2017

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


Browse Our Archives


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