Guess Inc. Sees Tough Sales in the Americas but Europe and Asia Provide a Silver Lining
Guess Inc. saw a solid increase in net revenues and earnings for the second quarter of fiscal 2024, but the company’s weakness was shown in its retail and wholesale business in the Americas.
For the second quarter, Guess Inc. saw net revenues of $664.5 million, a 3 percent rise over the same period last year, when global sales stood at $642 million.
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While total net revenues climbed, Guess’ wholesale business in the Americas was down 13 percent to $43.6 million. Retail sales in the Americas were off 8 percent to $167.5 million. Asia helped make up for softer business in the Americas. Asia’s revenues jumped 19 percent in the quarter to nearly $59 million.
In another positive note, Europe saw strong revenues, rising to $366.3 million, a 9 percent increase over the previous quarter.
Adjusted net earnings attributable to Guess Inc. in the quarter came to $39.7 million, up from $23 million during the same period a year ago.
“Our strong performance this year gives us confidence for the second half of the year to deliver on our plans,” Carlos Alberini, the company’s chief executive officer, said. “We have a clear strategy, and our teams are executing well and achieving solid results.”
Alberini noted that in Europe, women’s, men’s and accessories all posted healthy sales gains. The best performing products included outerwear, knit tops, woven shirts, denim, sweaters, dresses and shorts. Accessories were also particularly strong in Europe. Best performers in accessories were handbags, travel products, small leather goods, jewelry, belts, watches and eyewear.
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