Guess experienced declines in its second quarter, however, the jeans company beat analyst expectations. The company reported net earnings of $18.3 million for the second quarter of fiscal year 2016, a 16.7% decrease compared to $22.0 million for the second quarter of 2015. Diluted earnings per share decreased 19.2% to $0.21, compared to $0.26 for the prior-year quarter.
The negative impact of currency on earnings per share in this quarter was approximately 10 cents.
Comparable store sales, including the results from e-commerce sites in the U.S. and Canada, for the second quarter of fiscal year 2016 decreased 2.8% in U.S. dollars and was relatively flat in constant currency compared to the same period a year ago.
For the six months ended August 1, 2015 net earnings were $21.6 million, an increase of nine percent compared to $19.9 million for the six months ended August 2, 2014. Diluted earnings per share increased 8.7% to $0.25, compared to $0.23 for the prior-year period.
The negative impact of currency on earnings per share for the six months ended August 1, 2015 was approximately 11 cents.
Paul Marciano, Guess chairman of the board and chief creative officer, said, “I am pleased to report that second quarter results were better than our expectations. In our Americas retail business, comp sales ended flat for the quarter in constant currency, mainly driven by continued improvement in the performance of the womens’ category.”
In his comments, newly appointed CEO Victor Herrero, pointed to a series of initiatives he plans to undertake, including building business in Asia, revitalizing wholesale accounts and creating a central structure focused on sales and profitability.
The company’s expectations for the third quarter of fiscal year 2016, ending October 31, 2015, include a decline in consolidated net revenues between 4.5% and three percent in constant currency. Currency headwinds are expected to negatively impact consolidated revenue growth by approximately eight percent, for a net decline between 12.5% and 11 percent.
Diluted earnings per share are expected to be in the range of $0.08 to $0.12. The estimated impact on earnings per share of the currency headwinds is approximately $0.12.