The downtown-based retailer’s net revenue was up 58% to $628.6 million compared to the second quarter of its fiscal 2021 — which corresponds to the July quarter of calendar 2020 — but was 8% below the $683 million it posted two years ago in the more stable second quarter of its fiscal 2020.
The decline was “due to a timing shift of European wholesale shipments into the third quarter and the impact of permanent store closures,” Chief Executive Carlos Alberini said in a statement.
Net earnings were $61.1 million, or 91 cents a share, up from a loss of $20.3 million in the year-ago period, and 141% above the income Guess posted in 2019.
Analysts had anticipated a net income of 70 cents a share on $648.6 million revenue.
Net revenue attributable to the company’s retail sales in the Americas region was up 69% year over year to $186.3 million, while wholesale accounted for $49.8 million, a 146% increase. Compared to calendar 2019, retail was down 6% and wholesale grew 19%.
“Based on our progress, we now expect to deliver our 10% operating margin goal in the current year and are raising our expectations to reach 12% by fiscal year 2024, which would yield a return on invested capital of over 30% and adjusted earnings per share of around $3.50,” Alberini said.
