Guess? North American retail revenues up 20%

04 Sep '08

5 min read

Guess? Inc reported financial results for the second quarter of its 2009 fiscal year, which ended August 2, 2008.

For the second quarter of fiscal 2009, the Company reported record net earnings of $53.8 million, an increase of 43.6% compared to net earnings of $37.5 million for the quarter ended August 4, 2007. Diluted earnings per share increased 42.5% to $0.57 in the current quarter versus $0.40 in the prior year quarter.

Paul Marciano, Chief Executive Officer, commented, "We are very pleased with our strong performance this quarter. These results are a testament to the strength of our brand and to the successful execution of our global growth strategy.

Our performance in this difficult U.S. retail environment demonstrates the power of our diversified business model to generate above average top and bottom line growth, even in challenging times. In the second quarter, each of our businesses posted double-digit revenue growth and increased operating profit.

Combined, we increased our global revenues by 33% and net earnings by 44%. Our international businesses once again contributed solid revenue and earnings growth, with Europe leading all business segments with a revenue increase in excess of 60% and earnings that more than doubled.

In North America, our retail business performed well, delivering 20% revenue growth and our 22nd consecutive quarter of same store sales growth."

Mr. Marciano continued, "Our business continues to grow globally as we deliver products that support the lifestyle of our customers.

We continue to strengthen our assortments and have made significant improvements toward this goal with several of our product categories including denim, which is, once again, a major focus for us.

We remain confident that the investments we are making around the world will support our global expansion effectively and position us well for further profitable growth."

Total net revenue for the second quarter of fiscal 2009 increased 32.7% to $515.2 million from $388.3 million in the prior-year quarter. The Company's retail stores in North America generated revenue of $242.4million in the second quarter of fiscal 2009, a 20.2% increase from $201.6 million in the same period a year ago.

Comparable store sales increased 8.1% for the second quarter of fiscal 2009, compared to the same period a year ago. The Company operated 407 retail stores in the U.S. and Canada at the end of the second quarter of fiscal 2009 versus 347 stores a year earlier.

Net revenue from the Company's wholesale segment, which includes the Company's Asian operations, increased 26.3% to $72.4 million in the second quarter of fiscal 2009, from $57.3 million in the prior-year period.

Net revenue from the Company's European segment increased 61.5% to $174.2 million in the second quarter of fiscal 2009, compared to $107.9 million in the prior-year period.

Licensing segment net revenue increased 21.7% to $26.2 million in the second quarter of fiscal 2009, from $21.5 million in the prior-year period.

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