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

President Donald Trump; Courtesy: White House

Textiles | On 24th Jan 2017

US sets ball rolling for withdrawal from TPP

President Donald Trump has set the ball rolling for withdrawal of the ...

Textiles | On 24th Jan 2017

Indian cotton consumption estimated at 290 lakh bales: CAI

The domestic consumption of cotton during the crop season 2016-17...

Stefano Gallucci (left), CEO, Santex Rimar Group, and Tamer Hasbay, President, Has Group; Courtesy: Santex Rimar

Textiles | On 24th Jan 2017

Santex Rimar to market all Has products globally

Italy based Santex Rimar Group has signed an agreement with Turkey...

Interviews View All

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Manfred Mentges
Sedo Treepoint GmbH

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

Kai Poehler
Voith Paper GmbH & Co. KG

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

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Eric Scholler

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

Mike Hoffman
Gildan Activewear SRL

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

Igor Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

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

January 2017

January 2017

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


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search