Guess reports Q3 revenue increased 2.9%
Guess Inc reports total net revenue increased 2.9% to $536.3 million led by revenue increases in Europe and Asia. The company reported decreases from the Americas retail and wholesale businesses and licensing.
Operating earnings fell 27.4% to $15.1 million from $20.8 million and the operating margins in all regions and the licensing segment decreased. Earnings per share for the quarter also decreased to $0.11 from $0.15.
Victor Herrero, Chief Executive Officer, commented, “While I recognize the challenges we are facing in the Americas, I am thrilled that, due to our various revenue enhancement initiatives, our third quarter revenues increased by 3%. We enjoyed strong double-digit growth in Europe and in Asia, and we remain focused on improving our profitability in North America. Third quarter earnings finished at the low-end of our guidance. Overall we are pleased with the performance of our international businesses. As we reach the end of our transition year, I look forward to fiscal year 2018 with tremendous anticipation and excitement ”
Net revenue in the first nine months of fiscal 2017 fell 1.0% to $1.53 billion from $1.55 billion in the previous year, and diluted earnings per share decreased 52.5% to $0.19.
In the fourth quarter, Guess expects its consolidated net revenues to increase between 3.5% and 7.5% in US dollars and diluted EPS to range from $0.40 to $0.50. The company expects currency headwinds to negatively impact consolidated revenue growth for the year and expects full year revenue to increase between 0.5% and 1.5% in US dollars.