Home / Knowledge / News / Apparel/Garments / Q2FY16 net income down 16.7% at clothing retailer Guess
Q2FY16 net income down 16.7% at clothing retailer Guess
28
Aug '15
For the second fiscal quarter ended August 1, 2015 net income at clothing retailer Guess dipped to $18.3 million, down 16.7 per cent as compared to $22.0 million for the second quarter of fiscal 2015.

“Diluted earnings per share however declined higher at 19.2 per cent to $0.21 as against $0.26 for the prior fiscal second quarter,” a Guess press release stated.

“The negative impact of currency on earnings per share in the second quarter of fiscal 2016 was approximately 10 cents,” the retailer informed.

Total net revenue for the reporting quarter also dropped 10.2 per cent to $546.3 million from $608.6 million in the comparable quarter of fiscal 2015, while it inched down 0.6 per cent in constant currency.

The Company's retail stores and e-commerce sites in the Americas generated revenue of $232.5 million in the second quarter of fiscal 2016, down 4.7 per cent year over year.

Comparable store sales including the results of its e-commerce sites in the US and Canada for the second quarter of fiscal 2016 fell 2.8 per cent in US dollars and was relatively flat in constant currency.

For the quarter under review, net revenue from its Europe segment too reduced 15.3 per cent year on year to $199.4 million in the second quarter of fiscal 2016.

Net revenue from its Asia segment contracted 11.7 per cent from a fiscal ago quarter to $56.7 million in the second quarter of current fiscal.

Operating earnings for the second quarter of fiscal 2016 drove down 12.2 per cent year on year to $26.2 million, which includes a $4.4 million unfavourable currency translation impact.

Operating margin in the second quarter was down 10 basis points at 4.8 per cent as compared to 4.9 per cent in the previous fiscal's second quarter.

“Operating margin was negatively impacted by currency exchange rate fluctuations and charges related to legal matters,” the retailer said.

“These decreases were mostly offset by overall product margin improvements relating to higher initial mark-ups in Europe and Americas Retail and less markdowns in Americas Retail,” it informed.

Chairman Paul Marciano said, “I am pleased to report that second quarter results were better than our expectations.”

“In our Americas Retail business, comp sales ended flat for the quarter in constant currency, mainly driven by continued improvement in the performance of the womens' category,” Marciano added.

CEO Victor Herrero too said, "I have identified five initiatives that I am sure will create economic value and in the first phase, we will focus on elevating the quality of our sales organisation.”

“We will also unlock the potential of the Guess brand in Asia by working to build a major business in this region,” he too added.

“Finally we will create a culture of purpose and accountability throughout the entire company by implementing a central organisational structure focused on sales and profitability,” Herroro observed. (AR)

Fibre2Fashion News Desk – India

Must ReadView All

Textiles minister Smriti Irani at a press conference with minister of state for textiles, Ajay Tamta, the principal director general (M&C), PIB, AP Frank Noronha and other dignitaries. Courtesy: PIB

Apparel/Garments | On 23rd May 2017

Special package for knitwear coming soon: Irani

Union textiles minister Smriti Irani said that the government of...

Apparel/Garments | On 23rd May 2017

Apparel, footwear use may rise by 63% in 2030: Report

The apparel and footwear consumption is projected to rise by 63 per...

Apparel/Garments | On 23rd May 2017

Gap Inc earns $3.4 bn in net sales in Q1 FY17

Gap Inc's net sales for the first quarter of fiscal year 2017 were...

Interviews View All

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Eamonn Tighe
Nature Works LLC

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

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...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

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

news category


Related Categories:
May 2017

May 2017

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

SUBSCRIBE


Browse Our Archives

GO


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