* Second-quarter adj EPS $0.52 vs est $0.39
* Second-quarter revenue $639 mln vs est $622.9 mln
* Sees full-year adj EPS $1.78-$1.92, largely above Wall
* Shares up 18 pct after market
(Adds analyst, CFO comment, Europe details; updates shares)
By Siddharth Cavale
Aug 28 Guess Inc's second-quarter
results beat Wall Street estimates, helped by recovering sales
in North America, and bucked a broader trend of falling sales
for apparel retailers.
Guess shares surged 18 percent in after-market trading.
"I think across the board, every segment exceeded our
expectations in terms of sales and profitability," Wedbush
analyst Betty Chen told Reuters.
"In North America, in particular, it was really strong with
comps down only 2 percent. So it shows sequential improvement in
the quarter despite a very tough landscape."
The sales performance in North America, which accounts for
about 40 percent of the company's revenue, was a marked
improvement over the 10 percent drop reported for the region in
the previous quarter.
Many apparel retailers such as Abercrombie & Fitch Co
and Aeropostale have reported weak sales in the
region as customers shied away from spending on discretionary
items amid high taxes and gas bills. This has led to heavy
discounting and aggressive competition.
Guess too resorted to discounting like its peers, but that
helped drive sales of its denims and dresses in the quarter,
Chief Executive Paul Marciano said on a conference call with
Overall sales rose 0.6 percent to $639 million. North
American retail sales were up 1 percent.
In Europe, its second biggest market, comparable-store sales
fell by mid-single-digit percentage as wholesale shipments in
Italy and France declined.
The company warned that sales in the region, especially in
Southern Europe, would continued to be pressured by the weak
In August, however, comparable-store sales in Europe
improved and are up by mid single digits, Chief Financial
Officer Sandeep Reddy said on the call. Overall, the outlook for
Europe was encouraging, the company said.
Net income fell 7 percent to $39.8 million, or 47 cents per
share, from $42.9 million, or 49 cents per share, a year ago.
Excluding restructuring charges, the company earned 52 cents
per share in the quarter ended Aug. 3.
Analysts on average had expected second-quarter earnings of
36 cents per share on revenue of $622.9 million, according to
Thomson Reuters I/B/E/S.
The company also forecast full-year adjusted earnings of
$1.78-$1.92 per share, largely above analysts expectations of
$1.79 per share.
Guess shares were up 18 percent at $32.30 in trading after
the bell. They closed at $27.31 on the New York Stock Exchange
(Reporting by Siddharth Cavale in Bangalore; Editing by