For the first quarter of fiscal 2019, the company posted adjusted net loss of $17.8 million, a 7.9 per cent improvement compared to $19.4 million for the first quarter of fiscal 2018. Adjusted diluted loss per share improved 4.2 per cent to $0.23, compared to $0.24 for the prior-year quarter.
GAAP operating loss for the first quarter of fiscal 2019 improved 0.3 per cent to $24.9 million (including a $4.0 million unfavorable currency translation impact), compared to $25.0 million in the prior-year quarter. GAAP operating margin in the first quarter improved negative 4.8 per cent, compared to negative 5.5 per cent in the prior-year quarter, driven primarily by segment mix and lower markdowns in Americas Retail, partially offset by higher distribution costs resulting from the relocation of the company’s European distribution centre and certain professional service and legal fees and related costs.
"I am pleased to report that our first quarter results finished above the high-end of our expectations for revenues, adjusted operating margin and adjusted earnings per share. Overall, the company revenues increased 15 per cent in US dollars and 8 per cent in constant currency, driven by continued momentum in Europe and Asia. We were also able to expand the company’s operating margin, despite cost pressures related to our transition to our new distribution center in Europe. Operating margin in Asia improved as we continue to leverage our infrastructure investments in China and Japan. Turning to the Americas, I am especially proud of the work that has been accomplished in retail where we ended the quarter with positive comps while being significantly less promotional. This translated into improvement in operating margin for the Americas Retail segment," Victor Herrero, chief executive officer, said.
Other net expense was $2.6 million for the first quarter of fiscal 2019, which primarily includes net unrealised mark-to-market revaluation losses on foreign currency balances and unrealised losses on non-operating assets, partially offset by net unrealized mark-to-market revaluation gains on foreign exchange currency contracts, compared to other net income of $1.9 million in the prior-year quarter.
"Overall, I am very excited by the continued momentum, as the first quarter marks the seventh consecutive quarter of revenue growth for the company. For me, it speaks to the global strength and potential of the Guess brand. More than ever, we remain focused on executing our strategic initiatives that have been the pillars of our revenue and profit growth," Herrero concluded. (RR)
Fibre2Fashion News Desk – India
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