Guess Reports Increased Sales Abroad

The apparel retailer Guess (NYSE: GES) released its second quarter results, showing a rise in European and Asian sales as well as general improvements in the brand.

The retailer announced a diluted EPS of $0.19 compared to last years $0.15, translating to net earnings of $16.1 million, or a 30.4% increase from last year’s $12.3 million. The company saw American retail revenues decrease 11.2%, as well as a 10% decrease in e-commerce, but this was expected as the American market becomes more demanding and volatile. Business abroad is boomin’ however, as European and Asian revenues rose 20.1% and 17.5%, respectively. Internationally, e-commerce was also up in the mid-single digits, helping outline the trends for shopping abroad, where e-commerce is becoming a larger bit player in the retail industry.

Guess released an outlook for Q3, with an expected diluted EPS of $0.08 to $0.11 and an increase of revenue around 4% – 6%. The 53rd week is expected to account for $0.03 of fiscal 2018 EPS and 1% in consolidated revenues for the year. Full year adjusted EPS is expected to be around $0.52 to $0.60.

Although the retailer has seen better times, especially in North America, it is still well positioned to leverage its international markets against that of a weaker N. American one. The continual reduction of costs, especially in the supply chain for the company, will pay dividends in the future as it seeks to reestablish itself in the American market space.

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