The US clothing retailer Guess Inc. achieved a small increase in sales in the second quarter of the 2022/23 financial year thanks to good business in Europe. However, the profit clearly missed the corresponding level of the previous year. This emerges from an interim report that the company presented on Wednesday evening.
According to this, Guess generated sales of $642.7 million (€643.6 million) in the three months ended July 30. Compared to the same quarter of the previous year, this meant an increase of two percent. Adjusted for exchange rate changes, revenues grew by twelve percent. North American retail sales were down 1 percent (-1 percent at constant currency) to $181.7 million, while sales at the North American wholesale business were up 1 percent (+2 percent at constant currency) to $50.2 million.
Demand developed better overseas: In Europe, sales rose by four percent (currency-adjusted +21 percent) to USD 336.7 million, in Asia by three percent (currency-adjusted +15 percent) to USD 49.4 million . Global licensing revenue was $24.8 million, up 13 percent from the prior-year quarter.
The result was impacted by numerous factors. Among other things, the company cited negative currency effects, higher discounts, increased personnel costs and one-off charges. Operating profit slipped 39 percent to $53.4 million. Quarterly net income attributable to shareholders was $24.0 million, down 60.8 percent year-on-year.
In view of the increasingly deteriorating general conditions, the company lowered its sales forecast for the entire 2022/23 financial year. It now only expects growth of 1.5 percent (+9.5 percent adjusted for currency effects). “We have adjusted our outlook for the second half of the year to reflect our current trends and the impact of existing macroeconomic challenges, including currency developments,” said CEO Carlos Alberini in a statement.