Guess beats Street with swing to Q1 profit

New York – Guess Inc. beat Wall Street expectations with net earnings of $3.3 million in the first quarter of fiscal 2016, compared to a net loss of $2.1 million the same period a year earlier. Reductions in pretax expenses pushed Guess out of the red into the black.



Total net revenue decreased 8% to $478.8 million, from $522.5 million. Foreign currency fluctuations drove the decline. Same-store sales, including e-commerce, dropped 5.9%.



“Overall first quarter results were better than our expectations, mainly driven by tight expense management,” said Paul Marciano, CEO. “We are very encouraged by the first quarter performance and early reads on the second quarter, and we will continue to focus on executing on our strategic initiatives aimed at improving the company's profitability."



During the second quarter of fiscal 2016, consolidated net revenues are expected to decline from 11% - 13%. For the full fiscal year, consolidated net revenues are expected to decline between 6.5% - 8.5%.