Guess’ North American retail revenues drop 6% in Q1
It has been reported that Guess?, Inc.'s North American retail revenues dropped 6% for its first quarter that ended on May 2, 2015. Retail comp sales together with e-commerce declined 6% in US dollars and 4% in constant currency.
European revenues of the company fell 14% in US dollars and rose 8% in constant currency. Its Asian revenues decreased 9% in US dollars and 6% in constant currency. Wholesale revenues of the company also suffered to some extent, falling 5% in US dollars and increasing 1% in constant currency. The company generated $4 million from operations in Q1 fiscal 2016, whereas it lost $2 million during the same period a year ago.
According to CEO Paul Marciano, "Overall first quarter results were better than our expectations, mainly driven by tight expense management. In North America, we saw improvements in the women's category, and Marciano delivered another quarter of good performance with comp sales up in the mid-single digits". He added that their e-commerce business is continuously experiencing top-line growth of nearly 14% and in Europe, performance of their retail stores was above expectations and brought positive comps.
Marciano also said that until now, during the second quarter, they've seen improvements in the same areas. He said that in Europe, their retail stores are now coming up in the mid-single digits. Marciano added that the first quarter performance gave a lot of confidence and they will keep on concentrating on executing their strategic initiatives, intended to improving the company's profitability.