Buoyed by strong sales in Europe, Guess Inc. Wednesday reported that fourth-quarter net income jumped 83 percent. The Los Angeles-based apparel retailer and wholesaler also issued 2010 guidance that was well above analysts’ estimates.
The firm said that for period ended Jan. 30, profits rose to $87.9 million, or 93 cents a diluted share, from year-ago levels of $48 million, or 51 cents a share. Excluding impairment charges, the company’s net earnings totaled $89.3 million, or 96 cents.
Quarterly revenues rose 14.4 percent to $642 million from $561.1 million a year earlier. Aided by fewer promotions, gross margin expanded to 46 percent of sales from 40.5 percent in the prior-year period.
Analysts surveyed by Yahoo expected EPS of 81 cents a share on sales of $601.7 million.
European revenues increased 23.7 percent to $222.6 million, “fueled by retail expansion” in the region, the company said, as North American retail revenues grew 7.2 percent to $309.4 million. Same-store sales in North America rose 5.3 percent. Wholesale volume expanded 21 percent to $84.7 million, and licensing operations improved 12 percent to $25.4 million.
On a conference call, chief executive officer Paul Marciano touted the company’s growth in Europe and said, in the next two to three years, he hopes to grow European sales to $1 billion by opening new stores and investing in marketing. European expansion is a “key priority,” he said and, as a result, the firm plans to open 85 stores in the region, bringing the total of stores in Europe to 380 by year’s end. The firm projects 52 new stores in North America as well.
Guess operates 432 stores in the U.S. and Canada, and 778 stores outside of North America.
For the year, Guess said net income increased 14.6 percent to $246.3 million, or $2.61 a diluted share, compared with profits of $215 million, or $2.25 a share, in 2008. Revenues edged up 1.7 percent to $2.13 billion from $2.09 billion.
The vendor anticipates first-quarter EPS to be between 46 cents and 48 cents, and consolidated net revenues to be between $495 million and $510 million. For the year, EPS is expected to be in the range of $2.87 to $2.95, on sales of between $2.3 billion and $2.35 billion. Prior to the release of guidance, analysts were looking for first-quarter EPS of 47 cents on sales of $484.2 million, and yearly profits of $2.51 a share on revenues of $2.09 billion.
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews
@prada is introducing a new project at its men’s fall 2018 show this Sunday: “Prada Invites.” The fashion house invited four celebrated creative minds – @ronanaerwanbouroullec, Konstantin Grcic, @herzogdemeuron and @rem.koolhaas – to each create a unique item with its iconic nylon material. The designs will be unveiled on the runway show, which will take place at the company’s warehouse in Viale Ortles 25. #wwdfashion #mfwm (📷: @martinocarrera)
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion