Fashion company Guess has managed to boost its turnover in 2017, but it did suffer a near 8 million dollar loss compared to the nearly 25 million dollar profit from 2016.
Growth in Europe
Guess’ 2017 turnover reached 2.36 billion dollars (nearly 2 billion euro), up 7.9 % compared to the year before. If exchange rates remained stable, it would have been a 5.3 % increase. North and South American turnover plummeted 10.9 %, but wholesale sales grew 2.8 %. European turnover skyrocketed 26.7 % and retail turnover jumped 11 %. Asian turnover also spike, up 24.3 %.
Despite that higher turnover, Guess still suffered a 7.9 million dollar (6.5 million euro) net loss, compared to a 22.8 million dollar (18.5 million euro) profit the year before. The loss is mainly because of one-time costs and its weak American results.
“I still see a lot of opportunities left in Europe and Asia, where we will continue to allocate capital for superior returns and where we plan to continue growing sales in double digits while also expanding margins. We will keep working on improving the profitability of the Americas by executing on our cost reduction and margin improvement initiatives”, CEO Victor Herrero said.
Guess forecasts a 7 to 8 % growth and a return to profitability in the current fiscal year.