Fashion brand Guess has exceeded analysts’ expectations with its second quarter profit, despite a disappointing turnover evolution.
Much-increased net profit, lower turnover
Over the second quarter, Guess has generated a 545 million dollar (480 million euro) turnover, down 0.2 % compared to 2015’s second quarter and lower than expected. Like-for-like turnover even dropped 2 %.
Nevertheless, net profit soared, from 18.3 million dollars last year to 32.3 million dollars (28.6 million euro) in the past quarter. Guess says it performed very well in Europe, South Korea, China and Japan in its second quarter. However, North and South America underperformed.
The company’s third quarter forecast entails a 5 to 8 % turnover increase, with a full-year turnover increase forecast of 3 to 5 %.
