Management team of Guess? continues to execute well
01 Dec '09
4 min read
As expected, net revenue from the Company's European segment decreased 9.3% to $168.8 million in the third quarter of fiscal 2010, compared to $186.2 million in the prior-year period, due to a shift in shipments from the current year's third quarter into the second quarter.
Licensing segment net revenue decreased 0.4% to $27.8 million in the third quarter of fiscal 2010, from $27.9 million in the prior-year period.
Operating earnings for the third quarter of fiscal 2010 decreased 0.4% to $99.0 million from $99.4 million in the prior-year period. Currency translation did not have a material effect on operating profit in the quarter. Operating margin in the third quarter increased 10 basis points to 18.9%, compared to the prior-year's quarter. This operating margin increase was due to higher product margins in all segments and SG&A leverage resulting from strong expense management. These improvements were nearly offset by occupancy deleverage due to negative comparable store sales and a greater mix of European retail stores.
The Company's effective tax rate for the quarter was 33%, essentially flat to the prior year quarter.
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