American apparel firm Guess beats revenue and earnings expectations

26 Nov '21

2 min read

Pic: Guess

Guess, a US-based lifestyle clothing brand, has reported a 13.0 per cent revenue rise to $643.1 million in the third quarter (Q3) of FY22 ended on October 30, 2021, compared to the revenue of $569.3 million in the corresponding period of previous fiscal. The company’s net earnings for the three-month period increased to $29.9 million (Q3 FY21: $26.4 million).

“We are very pleased with our performance this quarter, which exceeded our expectations for revenues and earnings. The better performance than expected was driven by our European wholesale, Americas retail and licensing businesses, which posted strong top and bottom line results across the board,” Carlos Alberini, chief executive officer at Guess, said in a press release.

Gross profit for Q3 FY22 accelerated to $293.6 million ($239.5 million), while earnings from operations expanded to $65.7 million ($44.5 million).

By segment, Americas retail revenue climbed 30 per cent to $169.6 million ($130.3 million), while Americas wholesale revenue escalared by 64 per cent to $59.0 million ($35.9 million). Moreover, European sales grew by 3 per cent to $330.7 million ($321.6 million), whereas sales from Asia recorded a dip of 8 per cent to $57.1 million ($61.9 million).

“For the first time in our company’s history we have one global line of products across all categories and our products are highly elevated, with a strong focus on quality and sustainability. The Guess brand is enjoying strong momentum worldwide, and we see a big opportunity to gain market share and grow in multiple markets and product categories,” Paul Marciano, co-founder and chief creative officer at Guess said.

“We are confident in our plans for the holiday business. Our inventory position is strong, and our customers are responding well to our assortments. Based on our progress, we now expect to deliver an operating margin of 11.0% in the current year, double that of fiscal 2020, pre-pandemic. I am very pleased with our performance for the current year but I am even more excited with what lies ahead for us,” Alberini concluded in the release.

Fibre2Fashion News Desk (JL)

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