Guess Q2 income tops estimates

Los Angeles -- Guess Inc. reported net income for the second quarter above expectations due to improving sales in North America.



Net income fell 7% to $39.8 million, down from $42.9 million a year ago.



Overall sales rose 0.6% to $639 million. In North America, which accounts for about 40% of the chain’s revenue, retail sales were up 1%.



Same-store sales fell 2%, compared to a 10% drop in the first quarter.



“We are very encouraged by the improvements in the trends of our North American Retail business in the second quarter, reflecting the enhancements in our product assortments,” said CEO Paul Marciano. “However, the economic climate in Southern Europe continues to be challenging and we are beginning to see a slowdown in China. Therefore, although we are encouraged by our overall results in the first half of fiscal 2014, the outlook for consumer spending in Southern Europe and China remains uncertain and we are planning our business accordingly.”