Guess Inc., the American fashion brand, has reported a strong second quarter, with revenues increasing by 8% for the first half of the year. The company’s total net revenue for the six-month period ending July 30 reached $1.24 billion, compared to $1.15 billion in the same period last year.
Guess experienced solid sales momentum in the second quarter, with Americas wholesale revenues increasing by 24% and Europe revenues increasing by 9% in U.S. dollars and 23% in constant currency. Asia revenues also saw growth, increasing by 2% in U.S. dollars and 11% in constant currency.
Despite the overall positive performance, there were declines in retail comp sales, including e-commerce. Americas retail revenues increased by 2%, but retail comp sales decreased by 2%. In Europe, retail comp sales decreased by 5% in U.S. dollars but increased by 8% in constant currency. In Asia, retail comp sales decreased by 6% in U.S. dollars but increased by 2% in constant currency.
Licensing revenues also saw growth, increasing by 18% in both U.S. dollars and constant currency.
In terms of the second quarter alone, total sales increased by 2% to $642.7 million. Americas retail revenues decreased by 2%, while retail comp sales, including e-commerce, decreased by 6%. Americas wholesale revenues increased by 1% in U.S. dollars and 2% in constant currency. In Europe, revenues increased by 4% in U.S. dollars and 21% in constant currency, and in Asia, revenues increased by 3% in U.S. dollars and 15% in constant currency.
Guess reported a net income of $24 million for the second quarter, representing a 60.8% decrease from the same period last year. However, the earnings decline narrowed during the first half, with a 21% decrease to $89.8 million.
Carlos Alberini, CEO of Guess, expressed satisfaction with the second quarter results, particularly highlighting the strong performance of the wholesale business in Europe. He acknowledged softer sales in the Americas retail business but emphasized the company’s ability to exceed revenue and operating earnings expectations in a challenging retail environment. Alberini credited effective expense management for the better-than-expected results.
Looking ahead, Guess expects revenues to be down around 4.5% in U.S. dollars (up 4.5% in constant currency) for the third quarter of fiscal 2023. For the full fiscal year, the company anticipates revenues to be up around 1.5% in U.S. dollars (9.5% in constant currency) compared to fiscal 2022.
Overall, Guess remains optimistic about its future performance and is focused on managing expenses and driving sales growth in key markets.
Sources:
– Guess Inc.
– PR Newswire
