Guess posts flat revenue amid lower consumer confidence

Guess Inc’s third-quarter net revenue was up 3 per cent year on year to US$651.2 million, but flat at 1 per cent in constant currency.

Europe revenue increased 6 per cent in US dollars and 5 per cent in constant currency, while Asia revenue increased 2 per cent in US dollars and remained flat in constant currency. 

In the Americas, retail revenues dropped 7 per cent in US dollars and 8 per cent in constant currency, while wholesale revenues increased 4 per cent in US dollars and decreased 1 per cent in constant currency.

For the first nine months, net revenue rose modestly by 1 per cent in both US dollars and constant currency to $1.89 billion.

Carlos Alberini, CEO of Guess, said the results were in line with the company’s guidance.

“Overall, a strong licensing business combined with a disciplined approach to cost management offset softness in some of our direct-to-consumer businesses and drove earnings from operations for the Company that were flat to last year’s performance,” Alberini added.

Given the recent sales trends, the company has lowered its full-year guidance, expecting net revenue to be up slightly by 1.8 to 2.4 per cent in US dollars.

“We are navigating through an uncertain shopping environment in many parts of the world impacted by geopolitical issues and lower consumer confidence,” Alberini remarked.

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