Guess Inc. said Wednesday that sales rose 10 percent to $732.6 million, led by sales growth in all segments of the U.S. brand except Asia.
Speculation
The Los Angeles-based company said European revenue rose 5% for the three months ended Aug. 3, with retail same-store sales in the region up 1%. Meanwhile, its Americas region grew 8% on a 93% jump in wholesale sales, despite retail same-store sales falling 10%.
In Asia, revenue fell 8% as retail peers in the region plunged 14%.
Despite strong sales growth, Guess slumped to a net loss of $10.6 million in the quarter, compared with a net profit of $39 million in the same period last year.
“In the second quarter, we delivered 10 percent revenue growth, as expected. The performance was driven by the Rag & Bone acquisition and strong wholesale performance in our European and Americas operations. Sales increased in all segments except Asia,” Guess Chief Executive Officer Carlos Alberini said.
“Our bottom line results reflect our decision to significantly increase marketing investments compared to last year's spending to support the international expansion of our brands, including our core brand Guess and new additions to our portfolio, Guess Jeans and Rag & Bone.”
Looking ahead, Guess said it expects full-year revenue to grow 9.5% to 11%.
“Looking ahead to the second half of the year, we are adjusting our sales and earnings guidance to reflect the softening consumer environment,” Albertini said.
“As always, we will continue to support the growth of the business, including investing in marketing, new stores and infrastructure, while carefully managing costs and inventory. This year has been a year of transformation and investment for us, as we further diversify the business with new brands in our portfolio that have significant opportunities for growth and value creation.”
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