Guess’ quarterly revenue smashes £550m

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Guess Q2 trading update
Guess expects net revenue to increase 2.0% to 3.0% in the 3rd quarter
// Guess’ second quarter revenue reaches £557.69m
// Net earnings were at £20.6m
// In Europe, Guess’ revenues rose 9.1%

Guess has surpassed the £550 million mark for the second consecutive quarter, as sales in its European market grew by almost 10 per cent.

For its second quarter ending August 3, the fashion retailer saw total net revenue reach $683.2 million (£557.69 million), up from $645.9 million (£527.18 million) in the prior-year period.

The fashion retailer’s net earnings for the three-month period amounted to $25.3 million (£20.6 million), down 0.8 per cent from the $25.5 million (£20.8 million) it reported in the previous year’s second quarter.

In Europe, Guess’ revenues rose 9.1 per cent, or 14.1 per cent in constant currencies, although like-for-like sales fell three per cent.

In the Americas, revenues increased 0.9 per cent and 1.2 per cent in constant currencies, while wholesale made the biggest contribution, registering a 22.3 per cent rise (22.4 per cent in constant currencies).

In Asia, revenues went up 0.6 per cent, or 5.2 per cent in constant currencies, despite a 13 per cent decline in like-for-like sales.

“I am very pleased with our second quarter financial performance, which delivered strong operating profit growth,” Guess chief executive Carlos Alberini said.

“This performance exceeded our expectations and was driven by a solid top line increase, strong margin performance and effective expense management.”

Guess now expects its net revenue to increase by around two per cent to three per cent in the third quarter.

For the full fiscal year 2020, the retailer expects revenues to rise between three per cent and 3.5 per cent.

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