Guess Inc. overcame a shift in its European business to easily beat expectations in its third quarter as the firm offered optimistic guidance for the holidays.
In the three months ended Oct. 31, the Los Angeles-based denim and sportswear firm recorded a 1.3 percent gain in profits to $65.1 million, or 69 cents a diluted share. A year ago, the firm’s third-quarter net totaled $64.2 million, or 67 cents a share.
Analysts polled by Yahoo Finance had expected earnings per share of 51 cents on average.
Revenues in the third quarter fell 1 percent to $522.8 million from $527.9 million. Retail revenues rose 1.9 percent, to $239.5 million, while North American same-store sales fell 3.4 percent in the period. Gross margin declined to 45.3 percent of sales from 45.8 percent a year ago.
Chief executive officer Paul Marciano said the company controlled costs and inventories in the quarter to “protect its profitability.”
European revenues fell 9.3 percent to $168.8 million, the result of a shift in pre-collection shipments from the third quarter to second this year, the company said. The firm’s wholesale segment, which includes its Asian business, grew 10 percent to $86.7 million.
Despite the slide, Marciano said Europe still tops Guess’ expansion plans beyond fiscal 2010.
“We strongly believe that Europe can reach $1 billion in sales in the next two to three years,” the executive said on an after-market conference call. “Retail growth remains a major part of that strategy and our goal for the next year is to open 100 stores, Guess stores across all concepts, in Europe.”
Marciano said another of the firm’s goals is to open 60 accessories stores across the globe next year.
For the fourth quarter, the firm said it expects EPS to be between 77 cents and 80 cents on revenues between $585 million and $605 million. Before Guess revealed the outlook, analysts had expected fourth-quarter EPS of 69 cents on revenues of $563.8 million, on average.
For the nine months, Guess’ net income fell 5 percent to $158.4 million, or $1.68 a share, from $166.7 million, or $1.74 a share, in the comparable period. Revenues in the three quarters fell 3 percent to $1.49 billion from $1.53 billion a year ago.
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews