Fashion firm Guess Inc has reported a 37.6% drop in first quarter net earnings, hurt by weaker sales in Europe and North America.
For the first quarter ended 28 April, the company posted net earnings of US$26.6m, compared to $42.7m the same period last year. Operating earnings slumped 44.8% to $39.1m, which included a $900,000 unfavourable currency translation impact.
Net revenue fell 2.2% to $579.3m. ThNorth American stores generated US$251.8m in net revenue, a 1.8% increase on last year, while comparable store sales declined 5.5% in US dollars and 5.1% in local currency. Wholesale revenue in the North American division dropped 3.8% to $43.9m.
European net revenue fell 9.7% to $189.8m, down 4.6% in local currency.
“While we did face economic headwinds in southern Europe, our brand remains strong there and our business is stable,” CEO Paul Marciano said.
Guess estimates diluted EPS will be in the range of $0.48 to $0.52 for the second quarter, while maintaining its full-year EPS guidance to be between $2.50 and $2.65.
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By GlobalData
