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

Courtesy: Michael Kors

Fashion | On 25th Jul 2017

Michael Kors to acquire Jimmy Choo

Global fashion luxury brand Michael Kors Holdings Limited has reached ...

Apparel/Garments | On 25th Jul 2017

VF Corp posts $2.4 billion revenue for Q2 2017

VF Corporation has recorded revenue of $2.4 billion, up 2 per cent,...

Textiles | On 25th Jul 2017

Egypt signs agreement with UNIDO for cotton production

Egypt has signed a €1.5 million ($1.74 million) cooperation agreement ...

Interviews View All

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Steve Cole
Xerium Technologies

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

Larry L Kinn
Suominen Corporation

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

Judy Frater
Somaiya Kala Vidya

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

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

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

July 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

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

Yes No

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

Yes No

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


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



X