Guess Inc. on Wednesday reported a 10% increase in sales to $732.6 million, driven by growth in all segments except the U.S. brand’s Asia region.
The Los Angeles-based company said, Europe revenue rose 5% in the three months ended August 3, with regional comparable retail sales up 1%, while the company’s sales in the Americas rose 8%, despite a 10% decline in comparable retail sales in the region, supported by a massive 93% increase in wholesale revenue.
In Asia, revenues fell 8%, with retail comparisons in the region down 14%.
Despite the positive sales growth, Guess swung to a net loss of $10.6 million during the quarter, compared to a net profit of $39 million in the same quarter a year earlier.
“In the second quarter, we delivered 10% revenue growth, in line with our expectations,” said Carlos Alberini, CEO of Guess Inc. “This performance was supported by the Rag & Bone acquisition and strong performance in our wholesale business in Europe and the Americas. All of our segments, excluding Asia, delivered revenue growth.”
“Our final results reflect our decision to significantly increase our marketing investments compared to last year’s spend to support the international expansion of our brands, including our core Guess brand as well as new additions to our portfolio – Guess Jeans and Rag & Bone.”
Looking ahead, Guess said it now expects full-year revenue growth of between 9.5% and 11%.
““As we look to the second half of the year, we are adjusting our revenue and earnings outlook to reflect the more subdued consumption environment,” Albertini said.
“As always, we will carefully manage our costs and inventories, while continuing to support the growth of our business, including investments in marketing, new stores and infrastructure. For us, this is a year of transformation and investment – a year where our business is further diversified with new brands in our portfolio that have significant opportunities for growth and value creation.”
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