Guess sales soar 14.7% in first quarter but losses remain
The US company has registered its seventh consecutive quarter of revenue growth, primarily due to the good evolution experienced in European and Asian markets.
Guess grows at the beginning of the year despite posting losses. The company, led by Víctor Herrero, ended the first quarter of its fiscal year (concluded on May 5) with a net loss of 21.2 million dollars (18.2 million euros), in line with the same period last year.
On the contrary, revenues increased by 14.7% to 521.3 million dollars (449 million euros), compared to 454.3 million dollars (391.3 million euros) posted in the same quarter of 2017. At constant exchange rates, turnover raised by 7.7%.
“We were able to expand the Company’s operating margin, despite cost pressures related to our transition to our new distribution center in Europe,” said Guess’ chief executive officer Víctor Herrero. “Turning to the Americas, I am especially proud of the work that has been accomplished in retail where we ended the quarter with positive comps while being significantly less promotional.”
Guess grew 24% in Europe during the first quarter and reached 205.4 million dollars in sales
By regions, retail sales in American decreased by 1.4% to 171.3 million dollars (147.5 million euros), while wholesale revenues reached 40.6 million dollars (34.9 million euros), 13.4% up.
In Europe, Guess recorded sales of 205.4 million dollars (176.9 million euros), 24% more, while in Asia, the company achieved a turnover of 40.6 million dollars (34.9 million euros), up 33% from prior year.
Guess results were also favoured by its licensing business, which grew 23.5% in the first quarter to 19.7 million dollars (16.9 million euros).
On May 5, 2018, Guess directly operated 1,020 retail stores worldwide, while the company’s licensees and distributors operated 624 additional stores. The group was present in approximately 100 countries.
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