Guess Group To Achieve Profit And Loss Market Reversal

Guess Inc. of the US denim group released its first quarter earnings on Tuesday, which successfully reversed its losses, a loss of $2 million 100 thousand compared to the same period last year. The group's net profit reached $3 million 300 thousand in the first quarter, and its earnings per diluted share were $0.40.

Analysts had generally expected a loss of $0.50 per share. This unexpected profit made the group confident of the second quarter.

According to the group's first quarter earnings report, the total income fell from $522 million 500 thousand to US $478 million 800 thousand, or 8.4%, down from the US $478 million 800 thousand, which was lower than the $483 million 500 thousand expected by Wall Street.

E-commerce sales rose by 13.8% to 18 million 200 thousand dollars, including revenue figures, but were offset by a 5.9% decline in comparable sales in the US and Canada and 7.5% in the same store sales.

By region,

It is the largest market in the company, with total revenues falling 6.2% to 214 million 200 thousand dollars, and 4% after excluding currency effects.

European sales fell by 13.7% to $137 million 400 thousand, up 8% at constant exchange rates.

Total income in the Asia Pacific region decreased by 8.7% to 64 million US dollars, and fell by 6% according to the fixed exchange rate.

Wholesale business in North America fell 5.2% to 37 million 300 thousand U.S. dollars, excluding the impact of the exchange rate rose 1%.

In addition, the sales cost, general and administrative expenses of the group dropped by 9.5% and 9.6% in the first quarter, down to 313 million 300 thousand US dollars and 161 million 100 thousand US dollars respectively.

Inventories measured last year fell by 12.4% to $327 million 100 thousand.

Chief executive officer

"The performance in the first quarter exceeded our expectations and was mainly driven by strict cost management," he said.

While aware of the challenges ahead, Marciano points out that North American sales of women's clothing and Marciano's brand will continue to grow.

He added, "in Europe, our retail stores are currently showing a median increase.

We are very encouraged by the performance in the first quarter and the early display in the second quarter. We will continue to focus on the implementation of our strategic plan to enhance our profitability. "

According to the latest expectations of the group, its expected second quarter share

It was $0.12, lower than analysts had expected $0.18.

In addition, Guess expects annual earnings per share to be between 0.86-1.02 US dollars, while analysts generally expect annual earnings per share to be US $0.87.

Guess also expects earnings per share to drop to around $0.45 under the influence of currency exchange rates.

The unexpected performance expected Guess to rise 6.2% to $18.65 in regular trading on the New York stock exchange.

After the market closed, the share price dropped slightly from 0.8% to 18.50 dollars.