Apparel retailer Guess? Inc reported financial results for the second quarter ended July 1, 2006.
For the second quarter ended July 1, 2006, the company reported that net earnings increased by 230% to $13.7 million compared to net earnings of $4.2 million for the quarter ended July 2, 2005. Diluted earnings per share increased 233.3% to $0.30 per share in the current quarter versus $0.09 per share in the second quarter last year.
Paul Marciano, Co-Chairman and Co-CEO, said, "We are very pleased with our financial performance this quarter. We exceeded revenue and earnings targets in all our businesses, and delivered record revenues and earnings for the period.”
Marciano continued, "Our improved operating margin performance during the period highlights management's focus on the bottom line. We were able to increase gross margins and leverage SG&A expenses considerably. As we entered the back-to-school selling season, our inventories were very clean and the initial sell throughs for seasonal product have been very encouraging, as demonstrated by our July same store sales increase of 10.7%. While we remain cautious regarding consumer spending and customer traffic, we are confident about our business growth in Europe and licensing expansion in all categories."
Total net revenue for the second quarter of 2006 increased 29.6% to $231.0 million from $178.2 million in the second quarter of 2005. Its retail stores in the US and Canada generated revenue of $163.9 million in the 2006 second quarter, a 23.4% increase from $132.9 million, as reported in the prior year period.