Foreign currency hits Guess in Q2

New York — Guess Inc. cited the negative impact of foreign currency fluctuations on earnings and sales in a difficult second quarter of fiscal 2016. Net earnings totaled $18.3 million, a 17% decrease compared to $22 million for the second quarter of fiscal 2015.

Total net revenue decreased 10%, from $608.6 million to $546.3 million. Same-store sales, including e-commerce, dropped 2.8% in the United States and Canada. In one bright spot, top-line e-commerce sales grew 20%.

For the fiscal third quarter, Guess expects consolidated net revenues to fall 11 to 12.5%. For the full fiscal year, Guess anticipates consolidated net revenues to decline 8 to 9%. Full-year U.S. and Canadian same-store sales are expected to have flat to low single-digit growth. These projections include significant negative impact from foreign currency exchange.