The European performance of US denim brand Guess has dragged down its third quarter earnings, although the company said its European results were still ahead of expectations.
Guess reported a 9% fall in European retail and wholesale sales to $168.8m (£101.9m) for the three months to October 31, down from $186.2m (£112.4m) for the same period in 2008. European earnings fell 18% to $40.8m (£24.6m).
The company blamed the fall in sales on the shift in phasing of wholesale deliveries, which are usually made in the third quarter, to the second quarter.
The group’s total revenue over the quarter fell 1% to $522.8m (£315.6m).
Guess’s global wholesale operations were up 10% to $86.7m (£52.3m) for the same period, marking a considerable improvement. For the nine months to October 31, global wholesale sales were down 5% to $215.3m (£130m).
Guess chief executive Paul Marciano said: “We are gaining share in key markets, generating strong cash flows and delivering solid returns. As we look into the future, we will continue to fund key growth initiatives and invest in our infrastructure.”
He added: “International expansion remains a high priority for us and we plan to resume retail development in North America and expand our retail presence in other countries as well.”
Guess has 373 stores in Europe and the Middle East, up from 77 stores last year.