US Apparel Brand Guess Three Quarter Revenue Growth, Asian Market Cooling

In November 26th, Guess released its third quarter financial performance report. The report shows that in the third quarter of fiscal year Guess2020, revenue grew by 2% to 616 million US dollars, and the currency grew by 4%.

Retail sales in the US fell by 4.9% in dollar terms, and 4.5% in fixed exchange rates. In terms of US dollar and fixed exchange rates, sales of retail portfolios, including e-commerce, fell by 3%.

Wholesale income in the Americas increased by 7% in dollar terms and increased by 8.1% at fixed exchange rates.

In Europe, the income of US dollar increased by 9.1%, and the fixed exchange rate increased by 13.2%. Retail sales, including e-commerce, increased by 1% in dollar terms and increased by 5% at fixed exchange rates.

Asia's US dollar income declined by 8%, and its fixed exchange rate declined by 4.6%. Retail sales, including e-commerce, fell by 21% in dollar terms and 19% in fixed exchange rates.

Carlos Alberini, chief executive of Guess, said that the realized revenue and earnings per share exceeded the highest expectations of the same period. By combining wholesale and licensing in Europe and the Americas, effective management of costs can offset retail sales in the Americas and Asia in the quarter. In the whole year, Guess will maintain the strategy of high-end guidance and low end promotion. This fully reflects the strength of Guess global brand and the power of diversified business models, and provides a variety of leverage to continue to increase revenue and improve profitability.

And Carlos Alberini said that Guess will hold investor day in New York in December 3rd. During the activity, we will introduce Guess's strategic business plan and key strategic plan in the next five years. It also provides the latest news about the company's global growth, profit improvement and value creation.

From the report, we can see that since the three quarter, Guess's retail and e-commerce in Asia have been on a downward trend. In the first quarter, Guess's performance report also showed this problem. In the first quarter, Guess revenue increased by 3% to $536 million 700 thousand. The Asian market grew by 1.4% in the first quarter and 6.6% in the fixed exchange rate. The retail business, including the electricity supplier, plunged 15% in the first quarter and 10% in the fixed exchange rate. Although the overall trend of growth is better, in the Asian market, the electricity supplier is still a problem that can not be overcome. Until the three quarter, Guess's weak performance in the Asian market had shifted from online to offline.

Third quarter Guess earnings per share of US $0.18, compared with last year's loss of 0.17 US dollars per share, Guess showed a trend of turning losses into profits.