Guess returns to profit on strong Europe, Americas wholesale business

Guess Inc. has announced a 5% uptick in third-quarter sales to $791.4 million, on the back of a strong performance in the U.S. fashion firm’s Americas wholesale and Europe businesses.

The Los Angeles-based company said Europe revenues rose 6%, offsetting a 6% decline in Asia sales during the quarter ending November 1.

Locally, Americas retail revenues decreased 2%, covered by a 26% surge in wholesale revenues in the region.

The company swung to a net earnings of $25.6 million during the quarter, compared to a net loss of $23.4 million for the same 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 announced it will be taken private 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 expected to close in the fourth quarter.