Guess returns to profit on strong Europe, Americas wholesale business

Guess Inc. has introduced a 5% uptick in third-quarter gross sales to $791.4 million, on the again of a strong efficiency within the U.S. trend agency’s Americas wholesale and Europe companies.

The Los Angeles-based firm mentioned Europe revenues rose 6%, offsetting a 6% decline in Asia gross sales through the quarter ending November 1.

Locally, Americas retail revenues decreased 2%, coated by a 26% surge in wholesale revenues within the area.

The firm swung to a internet earnings of $25.6 million through the quarter, in contrast to a internet lack of $23.4 million for a similar prior-year quarter.

“We are pleased with our third quarter performance, with revenue growth of 7% in U.S. dollars and 5% in constant currency, driven by a strong performance of our Americas wholesale and Europe businesses,” ​said Carlos Alberini, chief executive officer, Guess Inc.

“In our Americas retail business, despite continued softness, we were encouraged by the continued improvement in same store sales versus the prior quarter.”

In August, Guess introduced it will likely be taken non-public by Authentic Brands Group LLC in partnership with co-founders Maurice and Paul Marciano and Alberini. The deal values Guess at about $1.4 billion.

The transaction is predicted to shut within the fourth quarter.