Weak performance globally keeps Guess Q1 revenue low

Retail net revenue posted in Americas region during the quarter was $204.16 million as compared to $214.24 million in the corresponding quarter previously, a fall of 5 per cent. Wholesale revenue in the region stood at $32.79 million as compared to $37.27 million previously, a fall of 12 per cent.

In Europe, net revenue fell by 1 per cent during the quarter to $135.38 million as compared to $137.39 million previously.

Net revenue fell by 15 per cent in Asia during the quarter to $54.12 million ($64.03 million previously).

“The start to the year has been a bit more challenging than we anticipated especially in the Americas and to a lesser extent in Greater China,” Victor Herrero, CEO of Guess commented on the performance.

“We are still confident that we will be able to achieve the three year plan goals we provided in March this year, but with a different cadence than initially planned,” he said. “These developments are reflected in our guidance for the second quarter as well as our updated guidance for the full year.”

The company expects consolidated net revenue to increase between 0.5-2.5 per cent in the second quarter of fiscal 2017.

For full fiscal 2017, consolidated net revenue is expected to increase between 5.5-7.5 per cent. (MCJ)

Fibre2Fashion News Desk - India