Apparel maker Guess Inc. said Wednesday its second quarter net income rose 11 percent on higher European revenue and lower expenses, beating Wall Street expectations.
After the markets closed, the Los Angeles retailer and clothing supplier reported net income of $59.6 million (64 cents per share) for the quarter ended Aug. 1, compared with $53.8 million (56 cents) a year ago. Guess had a smaller number of outstanding shares in the quarter than a year ago.
Revenue rose 1.4 percent to more than $522 million, driven by a 20.6 percent increase in revenue from its European operations. North American revenue fell 6 percent.
Analysts surveyed by Thomson Reuters on average expected per-share earnings of 44 cents on revenue of roughly $485 million.
The company is forecasting third quarter earnings of 46 to 49 cents per share on revenue of $465 to $485 million, but did not provide a full year outlook. Analysts expect profit of 49 cents per share on revenue of nearly $480 million in the current quarter.
“It is difficult to predict when the global economy will ultimately recover,” said Chief Executive Paul Marciano in a statement. “Our commitment to expand internationally remains a top priority, with Europe and Asia still representing the most significant opportunities.”
Despite Marciano’s optimism about Asia, net revenue from the company's wholesale segment, which includes its Asian operations, fell 13 percent quarter.
Prior to the announcement, shares closed up 75 cents, or 2 percent, to $32.15 on the New York Stock Exchange and rose 2.6 percent in after-market trading.
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