US denim brand and retailer Guess posted a 9% fall in net income from $66.8m (£41m) to $60.7m (£37m) for the second quarter to July 30, although revenue rose by 17% to $677.2m (£414m), ahead of analyst expectations.
Revenue in stores open for at least a year dropped 1.9% in US dollars. The results saw a dip in the company’s shares after it gave a cautious outlook for the rest of the year.
Paul Marciano, Guess chief execution, saud: “Global economic and market conditions have become increasingly volatile, which could erode consumer confidence and have an impact on our customers’ behaviour. We will continue to monitor market conditions and manager our business prudently.”
Guess forecasts revenue of between $650m (£397m) and $665m (£406m) for the third quarter of the year and revenue of $2.74bn (£1.67bn) to $2.78bn (1.7bn) for the full year, which is slightly down on its previous guidance of $2.8bn (£1.71bn).
Guess has 490 stores in the US and Canada and 218 outlets across Europe, Asia and Latin America. A further 757 stores are operated by licensees and distributors outside of the US and Canada. It is also stocked in indies and department stores, with 150 accounts in the UK including House of Fraser and Selfridges.