Guess? makes substantial progress toward many objectives
17 Mar '11
5 min read
Total net revenue for the fourth quarter of fiscal 2011 increased 17.9% to $756.9 million from $642.0 million in the prior-year quarter. In constant dollars, total net revenue increased 21.0%.
The Company's retail stores in North America generated revenue of $338.6 million in the fourth quarter of fiscal 2011, a 9.4% increase from $309.4 million in the same period a year ago. Comparable store sales decreased 1.1% in US dollars and 2.1% in local currency for the fourth quarter of fiscal 2011, compared to the same period a year ago. The Company owned and operated 481 retail stores in the United States and Canada at the end of the fourth quarter of fiscal 2011 versus 432 stores a year earlier.
Net revenue from the Company's Europe segment increased 32.5% to $294.9 million in the fourth quarter of fiscal 2011, compared to $222.6 million in the prior-year period. In local currency, net revenue increased 43.3%.
Net revenue from the Company's Asia segment increased 23.2% to $55.4 million in the fourth quarter of fiscal 2011, from $44.9 million in the prior-year period.
Net revenue from the Company's North American wholesale segment decreased 5.2% to $37.7 million in the fourth quarter of fiscal 2011, from $39.8 million in the prior-year period.
Licensing segment net revenue increased 19.6% to $30.4 million in the fourth quarter of fiscal 2011, from $25.4 million in the prior-year period.
Operating earnings for the fourth quarter of fiscal 2011 increased 19.6% to $144.3 million (including a $4.6 million unfavorable currency translation impact) from $120.7 million in the prior-year period. Operating margin in the fourth quarter increased 30 basis points to 19.1%, compared to the prior-year quarter. The improvement in operating margin primarily reflects the impact of operating expense leverage, mainly driven by lower performance based compensation, as well as the loyalty program breakage.
These favorable impacts were partially offset by lower initial markups in Europe, including the negative effect of currency on product costs, along with higher markdowns in North America retail. Other net income, which primarily relates to net revaluation gains on foreign currency balances and contracts and net gains on non-operating assets, was $7.4 million for the fourth quarter of fiscal 2011, compared to $5.0 million in the prior-year's quarter.
The Company's effective tax rate was 30.3% for the fourth quarter of fiscal 2011, compared to 29.9% for the fourth quarter of the prior year.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
