Guess? Reports Lower Fourth Quarter Earnings
byMar 21st 2013 9:57PM
Net earnings suffered a sharp 25% decline in the fourth quarter at Guess? , the clothing retailer reported, as European economic pressures and lower North America store traffic, coupled with a greater promotional environment, impacted consumer confidence.
Revenues in Asia rose 14%, and 3% in Europe in constant currency, while North American sales rose 2%, even as retail same-store sales declined 6.3%. Comps are a key retail metric because it eliminates the effects of expansion by only measuring organic growth.
Total net fourth-quarter revenues increased 5.1%, to $815 million, from $775.8 million in the year-ago quarter, which, in constant dollars, amounted to a 4.2% increase. The fourth quarter of 2013 also benefited from an extra selling week.
CEO Paul Marciano said that, despite a difficult retail environment, Guess? was still able to come in at the high end of its expectations, but he noted that the retailer believes, "The challenging macroeconomic environment will continue" through the current fiscal year.
Guess? also said its board approved a quarterly cash dividend of $0.20 per share, payable on Apr. 19 to shareholders of record at the close of business on Apr. 3.
Guess? operates 512 retail stores in the United States and Canada, and 320 retail stores in Europe, Asia, and Latin America.
The article Guess? Reports Lower Fourth Quarter Earnings originally appeared on Fool.com.Fool contributor Rich Duprey has no position in any stocks mentioned. The Motley Fool recommends Guess?. The Motley Fool owns shares of Guess?. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.