For the fourth fiscal quarter ended January 30, 2016, net earnings at apparel marketer Guess slipped to $47.8 million, an 11.4 per cent drop from $53.9 million for the fourth quarter of fiscal 2015.
A Guess press release said diluted earnings per share too decreased 9.5 per cent to $0.57 for the fourth quarter of fiscal 2016 from $0.63 for the prior fiscal's fourth quarter.
“The negative impact of currency on earnings per share in the fourth quarter of fiscal 2016 was approximately $0.19 per share,” the company explained.
Total net revenue for the reporting quarter also declined 5.5 per cent year over year to $658.3 million, while in constant currency, total net revenue increased 0.6 per cent.
Operating earnings for the fourth quarter of fiscal 2016 dipped 4.4 per cent year on year to $70.0 million, which includes a $4.5 million unfavourable currency translation impact.
Operating margin in the fourth quarter was relatively flat at 10.6 per cent compared to 10.5 per cent in the previous fiscal's same period.
“The favourable impact from lower store impairment charges was mostly offset by the negative impact from currency exchange rate fluctuations on the operating margin,” Guess observed.
The negative impact of currency on operating margin for the fourth quarter of fiscal 2016 was roughly 180 basis points.
Net earnings for the full fiscal of 2016 were $81.9 million, down 13.4 per cent from $94.6 million the company posted in fiscal 2015.
Correspondingly, diluted earnings per share also declined 13.5 per cent year over year to $0.96, while negative impact of currency on earnings per share was approximately $0.43 per share.
Total net revenue for fiscal 2016 fell 8.8 per cent to $2.20 billion, from $2.42 billion in the earlier fiscal's fourth quarter and in constant currency, total net revenue decreased 0.9 per cent.
Operating earnings for fiscal 2016 descended 3.6 per cent from a fiscal ago period to $121.4 million, which includes a $10.3 million unfavourable currency translation impact,
Operating margin for fiscal 2016 increased 30 basis points to 5.5 per cent as against 5.2 per cent in the prior fiscal.
The increase in operating margin was driven by lower store impairment charges and higher initial mark-ups, partially offset by the unfavourable impact from currency exchange rate fluctuations.
“The negative impact of currency on operating margin for fiscal 2016 was roughly 140 basis points,” the apparel marketer noted. (AR)
Fibre2Fashion News Desk – India