Guess Inc. brushed off all the drama about Paul Marciano to post second-quarter results that topped Wall Street expectations.
A strong performance in both Europe and Asia helped drive overall revenues 14 percent higher to $645.9 million in the second quarter. At the same time, earnings came in at $25.5 million, or 31 cents a share, compared to $15.2 million, or 18 cents a share, a year earlier.
When adjusted for one-time gains and costs, they were 36 cents a share, beating the general consensus among analysts polled by Zacks Investment Research for 33 cents a share.
“I am very pleased by the momentum we are experiencing across the globe. We are now planning for positive comps in all regions, including the Americas. Looking forward, I feel confident that the ‘turnaround’ has only just begun,” Victor Herrero, chief executive officer of Guess, said Wednesday.
During a call with investors, Herrero further explained that last year’s uptick was fueled solely by growth in sales and profit in Europe and in Asia, but now its Americas retail division has joined their ranks and is on the path to return to profitability this year after two consecutive years of losses.
This comes after the Los Angeles-based company hit the headlines earlier this year when Kate Upton took to social media hinting at alleged misconduct by Marciano. Guess subsequently set up a special committee to investigate Upton’s and others’ allegations and in June concluded that it would pay out $500,000 in settlements and that Marciano, who founded the company with his brothers, would step down from his role of executive chairman.
He remains on the board, with Herrero telling WWD earlier this month that “he’s an amazing individual so definitely we will continue.”