Despite the continuing weakness in demand in America, the US fashion group Guess Inc. surprisingly achieved significant growth in sales and earnings in the second quarter of the 2023/24 financial year. As a result, the company raised its full-year earnings forecast on Wednesday evening.
In the three months before 29 July, turnover reached 664.5 million dollars. This exceeded the level of the same quarter last year by 3 percent (+3 percent adjusted for currency effects).
In America, however, the company again had to accept losses. There, revenues in own retail fell by 8 percent to 167.6 million dollars and in the wholesale business by 13 percent (currency-adjusted -16 percent) to 43.7 million dollars. At least the downward trend slowed down considerably compared to the first quarter.
America takes a hit, but Europe and Asia prevail
In Europe, turnover grew by 9 percent (+8 percent adjusted for currency effects) to 366.3 million dollars, and in Asia it even increased by 19 percent (+22 percent adjusted for currency effects) to 58.9 million dollars. Worldwide licensing income rose by 13 percent to 28.0 million dollars.
Not least thanks to a higher gross margin, the clothing supplier was able to increase its operating profit by 21 percent to 64.6 million dollars. The quarterly net profit attributable to shareholders even grew by 63 percent to 39.0 million dollars.
In the first six months of the current business year, Group turnover was 1.23 billion dollars and thus marginally below the previous year's level (-0.1 percent). Net profit attributable to shareholders shrank by 15 percent to 31.9 million dollars.
Due to the upward trend in the second quarter, the company raised its earnings forecast for the full year. Diluted earnings per share are now expected to be between 2.22 and 2.37 dollars. Previously, the target range had been between 2.01 and 2.25 dollars.
This article originally appeared on FashionUnited.NL. Translation and edit by: Rachel Douglass.