Second Quarter Net Profit Of US Apparel Brand Guess Rose 76.5%

U.S.A

The retailer's Guess surged 15.5% after its announcement of better than expected market EPS on Wednesday and raising its annual profit forecast.

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

EPS increased from $0.21 in the same period last year to US $0.38, adjusted EPS to US $0.14, which is two times the market expected 0.07 US dollars.

The Group expects that the adjusted EPS in the current three quarter will be in the range of 0.11-0.16 US dollars, and the market 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, and the market expects the data to be US $0.60.

Progress in profitability shows that Guess'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 by 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 of FactSet's consolidated forecast, mainly because the 4% increase in sales of products (to US $523 million) was offset by the decline in authorized revenue 13.3% (21 million 950 thousand US dollars).

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 in the earnings report pointed out that the past half a year of restructuring period has ended, the investment is expected to generate revenue growth in the three quarter, the fourth quarter growth will speed up.

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

The two quarter

The regional sales performance is similar to that of PVH Corp.'s Calvin Klein and Tommy Hilfiger released on the same day, which also has strong growth in Europe (same store sales rose by 11%-13%), and the fixed exchange rate is only up (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 FactSet's overall forecast by 4.3%; fixed exchange rates for retail and wholesale channels in the Americas.

1% and 4% respectively.

In Asia, Victor Herrero revealed 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% drop in overall sales in Asia.

Dragged down by Express Guess, who was released on Wednesday, Guess lowered its revenue by 6.2% on Wednesday, closing at $14.9, expanding its cumulative decline to 22%.