US: Guess Q2 profit soars 81.5%, raises FY guidance
Guess? Inc yesterday (4 August) filed record second quarter financial results in which net earnings soared by 81.5% on double digit revenue increases across all businesses, and raised its full year guidance.
For the three months to 4 August, the Los Angeles, California-based jeanswear and sportswear brand reported net earnings of $37.5m, up from $20.6m for the same period last year.
Diluted earnings per share increased 81.8% to $0.40 per share in the current quarter versus $0.22 per share a year ago.
Total net revenue increased 48.2% to $388.3m from $261.9m, with the company's US and Canadian stores generating sales of $201.6m, a 21.4% increase year-on-year. Comparable store sales increased 16.2% - the 18th consecutive quarter of same store sales growth.
Wholesale revenues, which include the company's Asian operations, rose 74.5% to $57.3m from $32.8m. European sales were up 121.2% to $107.9m, and licensing revenue increased 51.1% to $21.5m.
Operating margin in the second quarter improved 250 basis points to 15.3%, compared to the prior year's quarter.
Paul Marciano, chief executive officer, said the results reflect "the continued strength of the Guess brand, the success of our ongoing investments in long-term initiatives, such as Europe, Asia, and our accessories lines, and the consistency with which we are growing our business in North America and abroad."
For the six month period, net earnings were up 76.7% to $73.0m from $41.3m, and diluted earnings per share increased 73.3% to $0.78 per share versus $0.45 per share last time.
Total net revenue for the first half increased 45.2% to $766.2m from $527.6m, with same-store sales up 15.0%.
Guess now expects diluted earnings per share to be in the range of $1.79 to $1.84 for the fiscal year ending 2 February 2008, up from previous estimates of $1.75 to $1.80, and net revenues to range from $1.56bn to $1.60bn.
The company operates 347 retail stores in the US and Canada.
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