U.S. fashion retailer GUESS reports dramatic 50,2% decline in profits for Q2

US upscale fashion retailer Guess?reported a disappointing profit for the second quarter on falling sales. Cost cutting efforts failed to offset a decline while online business rose significantly.

Gues said profit fell 50.5% to $22 million, down from $44.3 million, or 52¢ a share a year earlier. Operating earnings for the second quarter dropped 55.4% to $29.9 million.

Revenue fell 4.8% to $608.6 million as online competitors dented its sales in brick-and-mortar stores. Gross margin narrowed to 35.6% from 38.9% in the quarter. In contrast, e-commerce sales rose 50% in the quarter.

Regionally, North American retail revenue fell 4% in the reported period, while same-store retail sales, including e-commerce, fell 5%. European revenue fell 6% while Asian revenues decreased 2%. The company also confirmed it will continue to shut down stores

Guess store in Kuantan, Malaysia