Guess Inc. has announced a 3% increase in net revenue for the third quarter, reaching a total of $651.2 million. The company’s strong performance in Europe played a significant role in this growth, as revenues in the region increased by 5% in constant currency. However, this positive trend was offset by a decline in the Americas division and stagnant sales in Asia.

Europe proved to be a particularly successful market for Guess, as retail comparable sales, including e-commerce, grew by 7% in constant currency. This indicates a strong performance and consumer demand in the region. In contrast, revenue in Asia remained flat, primarily due to a 9% decline in constant currency.

On the other hand, the Americas division faced challenges during the quarter. Retail revenues in the region fell by 8% in constant currency, and retail comparable sales were down by 5%. Additionally, wholesale revenues saw a slight decrease of 1% in constant currency. However, the company’s licensing revenues witnessed an impressive growth of 19% in constant currency.

Despite some mixed sales results, Guess managed to achieve a substantial increase in net earnings, totaling $55.7 million. This represents a significant 155% increase compared to the same quarter of the previous year. CEO Carlos Alberini expressed satisfaction with these financial results, stating that they met expectations for revenue growth and exceeded expectations for operating profit performance.

Alberini attributed the strong earnings to the company’s robust licensing business and disciplined cost management. He acknowledged that there were challenges in some of their direct-to-consumer businesses, which impacted overall performance. However, the positive results from the licensing segment were able to offset these difficulties, resulting in earnings from operations that were on par with the previous year’s performance.

Looking ahead, Guess remains optimistic about its future prospects. The company is committed to effectively managing its business, maintaining strong gross margins, and implementing cost-saving measures. By leveraging its successful licensing business and addressing any weaknesses in its direct-to-consumer operations, Guess aims to sustain its growth and profitability in the highly competitive fashion industry.

Useful links:
– Guess Inc. Investor Relations: https://investors.guess.com/
– Guess Inc. Official Website: https://www.guess.com/