Guess? Inc makes excellent progress
Guess?, Inc. reported financial results for the second quarter of its 2011 fiscal year, which ended July 31, 2010.
Second Quarter Fiscal 2011 Results
For the second quarter of fiscal 2011, the Company reported record net earnings of $66.8 million, a 12.1% increase compared to net earnings of $59.6 million for the second quarter of fiscal 2010. Diluted earnings per share increased 12.5%, reaching $0.72, compared to $0.64 for the prior-year quarter.
Paul Marciano, Chief Executive Officer, commented, "We are pleased with our second quarter financial results, which exceeded our expectations for both top line and bottom line growth. Each one of our business segments increased revenues and we made excellent progress in our efforts to grow our international businesses. Our European and Asian expansion efforts continue to pay off, as these two regions represented nearly half of our revenue growth in the period, despite the headwind caused by the stronger US dollar.
“We executed well and delivered record earnings for the period, even as the US retail environment became increasingly promotional. Today's strong results confirm the benefit of our diversified earnings, the capability of our management team and the vitality of our brand as we continue to expand worldwide."
Mr. Marciano continued, "Economic conditions remain uncertain in many markets around the world and consumer behavior remains cautious. We continue to manage our business carefully, focusing on what we can control, but always with an eye toward the future. Our brand has tremendous momentum around the world and there are many markets where Guess? is well known but under-penetrated.
“We remain fully committed to expanding our business internationally and developing Europe and Asia remain our top priorities. We are making excellent progress in these regions as we add the necessary infrastructure to gain share in these markets. We remain confident about our future and believe that our solid capital structure and the strength of the Guess? brand will serve us well as we expand our business around the world."
Total net revenue for the second quarter of fiscal 2011 increased 10.5% to $577.1 million from $522.4 million in the prior-year quarter. In constant dollars, total net revenue increased 13.9%. The Company's retail stores in North America generated revenue of $241.8 million in the second quarter of fiscal 2011, a 6.3% increase from $227.5 million in the same period a year ago.
Comparable store sales increased 1.7% in local currency and 3.5% in US dollars for the second quarter of fiscal 2011, compared to the same period a year ago. The Company operated 448 retail stores in the United States and Canada at the end of the second quarter of fiscal 2011 versus 431 stores a year earlier.
Net revenue from the Company's North American wholesale segment increased 33.3% to $44.3 million in the second quarter of fiscal 2011, from $33.2 million in the prior-year period.