Asia tipped to fuel Guess sales
US fashion retailer Guess believes Asia and Europe offer “a lot of opportunity” and should continue to grow in double digits into next year.
CEO Victor Herrero delivered his upbeat prediction while revealing the company’s third quarter Guess sales and results.
“We continue to see good momentum in Europe and Asia, where our revenues were up 19 per cent and 17 per cent, respectively, mainly driven by new store openings, wholesale growth and positive comp sales,” he said.
While Guess sales in the Americas dipped, higher margins saw an improved profit from that market.
“We were thrilled with the operating margin expansion in the Americas despite a sales decline. This is the result of our profit improvement plan which included tight markdown management, negotiated rent reductions and unprofitable store closures.”
In the quarter to October 28, Guess posted a GAAP net loss of US$2.9 million, compared to net earnings of $9.1 million for the same period last year. That was partly attributed to restructuring costs including lease termination penalties as the company closed about 60 stores this year.
Asia revenues increased 16.8 per cent in US dollars and 18.5 per cent in constant currency. Retail comp sales including e-commerce increased 3 per cent in US dollars and 5 per cent in constant currency.