Despite the continuing weakness in demand in America, the US fashion group Guess Inc. achieved surprisingly significant growth in sales and earnings in the second quarter of the 2023/24 financial year. The company then raised its full-year earnings forecast on Wednesday evening.
In the three months ended July 29, sales reached $664.5 million. It thus exceeded the level of the same quarter of the previous year by three percent (currency-adjusted +3 percent).
In America, however, the company had to accept losses again: There, its own retail sales fell by eight percent to USD 167.6 million and in the wholesale business by 13 percent (currency-adjusted -16 percent) to USD 43.7 million. At least the downward trend slowed down considerably compared to the first quarter.
In the other market regions, on the other hand, things went up: In Europe, sales grew by nine percent (currency-adjusted +8 percent) to 366.3 million US dollars, in Asia they even increased by 19 percent (currency-adjusted +22 percent) to 58.9 million US dollars to. Global licensing revenue increased 13 percent to $28.0 million.
Not least thanks to a higher gross margin, the clothing supplier was able to increase its operating profit by 21 percent to USD 64.6 million. Quarterly net income attributable to shareholders grew 63 percent to $39.0 million.
In the first six months of the current financial year, group sales were 1.23 billion US dollars and thus marginally below the corresponding level of the previous year (-0.1 percent). Net income attributable to shareholders fell 15 percent to $31.9 million.
The company raised its earnings forecast for the full year due to the upward trend in the second quarter. Diluted earnings per share are now expected to be between $2.22 and $2.37. Previously, the target range was between $2.01 and $2.25.