UPDATE 2-Guess Q2 profit beats Street; raises FY09 outlook
(Adds details, analyst's comments)
By Dilipp S. Nag
BANGALORE, Sept 3 (Reuters) - Clothing and accessories retailer Guess Inc (GES.N: Cotización) posted a better-than-expected quarterly profit, driven by strong sales growth in Europe, Asia and North America, and raised its fiscal 2009 outlook.
The company, whose products include apparel, denim, handbags, watches and shoes, reported net earnings of $53.8 million, or 57 cents a share, for the second quarter ended Aug. 2. It earned $37.5 million, or 40 cents a share, a year earlier.
Total net revenue for the company, whose larger rivals include Abercrombie & Fitch Co (ANF.N: Cotización) and Limited Brands Inc LTD.N, rose nearly 33 percent to $515.2 million.
Analysts on average expected earnings of 49 cents a share, before special items, on revenue of $460.8 million, according to Reuters Estimates.
Guess, whose brands include Guess, Marciano and G by Guess, said it continues to strengthen its assortments, and denim is a major focus for the company.
Brean Murray, Carret & Co analyst Eric Beder said right now denim is extremely strong, and Guess is one of the better companies selling it. "Denim is going to be a very big piece of this second-half fashion story."
Net revenue from the company's European segment surged nearly 62 percent, while revenue from its wholesale segment, which includes its Asian operations, increased 26 percent. North American retail revenue rose 20 percent. Continuación...