Guess Q2 revenues decrease 6 percent

Guess total net revenue for the second quarter of 2013 decreased

6 percent to 635 million dollars, from 677 million dollars in the prior-year quarter. For the first half, net earnings were 69.5 million dollars, a decrease of 42.5 percent compared to adjusted net earnings of 121 million dollars for the same period in 2011. Diluted earnings per share declined 40 percent to 0.78 per dollars share compared to adjusted diluted earnings per share of 1.30 dollars in the comparable six-month period last year. On a GAAP basis, for the first six months of fiscal 2013, net earnings decreased 32.7 percent and diluted earnings per share decreased 29.7 percent. On a GAAP basis, second quarter net earnings decreased 29.3 percent and diluted earnings per share decreased 24.6 percent.

The second quarter EPS reached 0.49 dollars, compared to adjusted EPS of 0.84 dollars and GAAP EPS of 0.65 dollars in Q2 fiscal 2012. For the second quarter of fiscal 2013, the company generated net earnings of 42.9 million dollars, a 45.2 percent decrease compared to adjusted net earnings of 78.3 million dollars for the second quarter of fiscal 2012. The company's retail stores in North America generated revenue of 253 million dollars, a 3.1 percent decrease from 261.1 million dollars in the same period a year ago. Comparable store sales decreased 7.5 percent in local currency and 8.5 percent in U.S. dollars compared to the same period a year ago.

Net revenue from the company's Europe segment decreased 14.5 percent to 246.9 million dollars, compared to 288.8 million dollars in the prior-year period. In local currency, net revenue decreased 1.9 percent. Net revenue from the company's Asia segment increased 20.9 percent to 66.8 million dollars, from 55.3 million dollars in the prior-year period. In constant dollars, net revenue increased 26.2 percent. Net revenue from the company's North American wholesale segment decreased 5.1 percent to 41.6 million dollars, from 43.9 million dollars in the prior-year period. Licensing segment net revenue decreased 4 percent to 27 million dollars, from 28.1 million dollars in the prior-year period.

In the first half the company's retail stores in North America generated revenue of 504.8 million dollars, a 0.7 percent decrease from 508.5 million dollars in the same period a year ago. Comparable store sales decreased 6.3 percent in local currency and 7.1 percent in U.S. dollars, compared to the six months ended July 30, 2011.

Net revenue from the company's Europe segment decreased 12.5 percent to 436.7 million dollars, compared to 499 million dollars in the prior-year period. In local currency, Europe segment revenues decreased 3.1 percent. Net revenue from the company's Asia segment increased 14.1 percent to 131.7 million dollars, compared to 115.4 million dollars in the prior-year period. In constant dollars the increase was 17 percent. Net revenue from the company's North American wholesale segment decreased 4.4 percent to 85.5 million dollars, from 89.5 million dollars in the prior-year period. Licensing segment net revenue decreased 1.9 percent to 55.9 million dollars, from 57 million dollars in the prior-year period.

Paul Marciano, Chief Executive Officer, commented, "The second quarter was both rewarding and challenging for us. While store traffic remained down in North America, our strategy to elevate our women's business appears to be working. We are now focused on driving improvements in accessories, which has become increasingly competitive, and are also developing plans to refine our North American strategy, where necessary, to remain competitive. Our European business remained stable, as we grew in newer markets in the north and east, while economic conditions continued to affect consumers, particularly in the south. We also posted solid double digit growth in Asia, and China has continued to exceed our expectations."

Guess, as of July 28, 2012, directly operated 511 retail stores in the United States and Canada and 300 retail stores in Europe, Asia and Latin America. The company's licensees and distributors operated an additional 815 retail stores outside of the United States and Canada.