Guess Inc. Net Profit Increased 76.4% In The Two Quarter Compared With The Same Period Last Year.

Retailer

Inc. raised its stock price by 15.5% after raising its annual profit forecast.

In the two quarter of July 30th, Guess Inc. recorded a net profit of $32 million 269 thousand, an increase of 76.4% over the same period last year of $18 million 289 thousand, and the net profit margin improved by 260 basis points, from 3.3% in the same period last year to 5.9%.

EPS increased from 0.21 US dollars in the same period last year to US $0.38 and adjusted EPS to US $0.14.

It is expected to be two times the US $0.07.

The Group expects that the current three quarter adjusted EPS will be in the 0.11-0.16 US dollar market, which is expected to be US $0.16. The expected lower limit for the whole year will be raised to 0.62 US dollars from the previous 0.55 US dollars, and the ceiling will remain unchanged at 0.75 US dollars. The market expects the data to be US $0.60.

The progress of profitability shows that Guess Inc.'s restructuring efforts have been initially rewarded, but the group says sales improvement is slower than expected.

In the two quarter, same store sales fell 2.5% year-on-year, down 4.2% from 4.2% in the same period last year, and net income decreased slightly from 0.2% to 545 million US dollars, less than 550 million 500 thousand US dollars in the combined forecast of FactSet.

The three quarter revenue is expected to increase by 5%-8%, which means that it will increase to $554 million, which is lower than the market expectation of US $568 million 800 thousand, and the annual revenue growth is expected to be 3%-5%.

Group CEO Victor Herrero Herrero pointed out in the earnings report that the pition period in the past six months has ended. The investment is expected to generate revenue growth in the three quarter, and the fourth quarter growth will accelerate.

Since the beginning of 2011, the group's same store sales have not increased.

In the two quarter, Guess Inc.'s regional sales performance was similar to that of PVH Corp. (NYSE:PVH)'s Calvin Klein and Tommy Hilfiger, which was released on the same day. It also gained strong growth in Europe (same store sales increased 11%-13%), and the fixed exchange rate rose only in this area (6%).

Retail sales in the United States were reduced due to reduced passenger purchases, while sales in the same store decreased by 2%, but it was better than the FactSet composite forecast of 4.3%. Fixed exchange rate sales in the US retail and wholesale channels declined by 1% and 4% respectively.

In Asia, Victor Herrero said that sales in the same stores in mainland China, South Korea and Japan have gone up, but as the group continued to build infrastructure and direct pformation in the Greater China region, the region's performance was less than expected, leading to a 4% decline in overall sales in Asia.

Guess Inc. closed 6.2% lower on Wednesday, closing at $14.9, expanding its cumulative decline to 22% in 2016.