International expansion continues to drive growth of Guess?
Guess? Inc reported financial results for the third quarter of its 2011 fiscal year, which ended October 30, 2010.
Third quarter fiscal 2011 results
For the third quarter of fiscal 2011, the Company reported record net earnings of $69.1 million, a 7.8% increase compared to net earnings of $64.1 million for the third quarter of fiscal 2010. Diluted earnings per share increased 8.7%, reaching $0.75, compared to $0.69 for the prior-year quarter.
Paul Marciano, Chief Executive Officer, commented, "We are very pleased with our third quarter performance, which exceeded our expectations for top line growth, operating margin and earnings. We grew all of our businesses and made significant progress on several key initiatives. We expanded our retail presence, opening 84 new stores around the world. Our international expansion continues to drive our growth, with Europe and Asia combining to contribute two-thirds of this quarter's revenue increase. And, we continued to build management strength, filling several key positions during the quarter."
Mr. Marciano continued, "As a Company, we remain focused on delivering value to our shareholders. Our strong capital structure and significant cash position give us the flexibility to significantly enhance our dividend program while continuing to invest in our future. Our commitment and belief in the Guess brand and its long term potential has never been stronger. While our brand already enjoys tremendous recognition around the world, we know that there are many regions where our current business has much more potential. Our success in new international markets validates this conviction.
“Our strategy is to continue to invest in our brand and business, developing new markets while building the necessary infrastructure and partnerships to support our growth. Above all, we will protect our most important asset - the Guess brand - by constantly adapting ourselves to the new world, but always maintaining integrity and staying true to who we are."
Total net revenue for the third quarter of fiscal 2011 increased 17.4% to $613.9 million from $522.8 million in the prior-year quarter. In constant dollars, total net revenue increased 20.6%.
The Company's retail stores in North America generated revenue of $253.7 million in the third quarter of fiscal 2011, a 5.9% increase from $239.5 million in the same period a year ago. Comparable store sales increased 1.5% in US dollars and 0.6% in local currency for the third quarter of fiscal 2011, compared to the same period a year ago. The Company owned and operated 473 retail stores in the United States and Canada at the end of the third quarter of fiscal 2011 versus 433 stores a year earlier.
Net revenue from the Company's North American wholesale segment increased 22.0% to $56.3 million in the third quarter of fiscal 2011, from $46.1 million in the prior-year period.
Net revenue from the Company's Europe segment increased 28.0% to $216.2 million in the third quarter of fiscal 2011, compared to $168.8 million in the prior-year period. In local currency, net revenue increased 40.5%.