Guess'S Two Quarter Poor Performance Plan Will Close 50 Stores By The End Of The Year.

Guess Inc. decided to reduce its retail business after the company's second quarter profits fell, sales were lower than Wall Street's expectations and predicted that the third quarter performance would be lower than the public expectations.

Marciano said: "so far, sales have not improved from the second quarter, and we haven't seen any growth expectations for the last quarter. Realization "

In the first three months of August 2nd, net income fell by 44.9% from 39 million 900 thousand US dollars a year (47 cents per share) to 22 million US dollars (26 cents per share). All five business divisions of the company, North American retail, European, Asian, North American wholesale and licensing sectors, recorded a decline in sales and operating revenues compared with the same period last year.

　　 company Profits fell from $63 million 900 thousand to $60 million 860 thousand, down 4.8%. Retail profits in North America dropped by 4.1% to 24 million 400 thousand dollars. At the same time, comparable sales fell by 5.4% in dollar terms, and fell by 4.4% at fixed exchange rates. Although the rest of the company's business sector recorded a drop in profits, the North American retail sector switched from a $10 million 400 thousand revenue last year to a loss of $4 million 700 thousand. Gross margins fell by 330 basic points, from 38.9% to 35.6%.

Due to Guess Inc. second quarter performance In the second half of the year, it showed signs of weakness. The brand founder and CEO Paul Marciano decided to slim down for the company. He said that Guess Inc. will reduce the number of stores in North America and optimize its organizational structure to "adapt to the new modern retail standard".

Performance expectations Guess Inc. earnings per share will reach 29 cents, while total profits will reach $61 million 790 thousand. However, the performance of the company is not satisfactory. In addition, in view of the fact that the company's performance in the new quarter has not recovered, compared with the public's expectations for the new quarter's earnings per share of 37 cents and the total profit of $61 million 300 thousand, Guess Inc.'s earnings forecast is 15 to 20 cents per share, and the total profit is between 59 million and 60 million dollars.

The earnings of Guess Inc. fell 7.7% after the earnings report, at $23.67 per share. In the end, the company's share price closed at $25.64, down 0.7%, slightly higher than the quarterly announcement.

Marciano analysis shows strong performance in men's clothing business. Meanwhile, due to the company's emphasis on "accelerating the integration of physical stores, networks and mobile platforms, and creating a multi-channel shopping experience", Guess Inc.'s electronic retail transactions in North America increased by 47.8% to $15 million 200 thousand.

LADYMAX fashion net recently reported the departure of Sharleen Ernster Lazear, appointed chief designer a year and a half ago. Speaking of this, Marciano said that Hillary Super was also outgoing at the same time. The latter joined Guess Inc. as senior vice president and general manager of products before Lazear took office. According to Marciano, unlike Lazear, Super resigned for personal reasons, and the two executives left excellent teams.

In the first half of the year, the company's revenue fell 4.8% to 1 billion 130 million dollars, net income fell 60.1%, fell to 19 million 900 thousand dollars, diluted earnings per share were 23 cents.