Youth is in fashion for Guess
August 27, 2015 02:00 PM
Guess Inc., led by a new CEO, hopes to visit the fountain of youth to continue its double-digit e-commerce growth and turn around sliding overall sales.
Guess, No. 327 in the Internet Retailer 2015 Top 500 Guide, reported e-commerce sales in the Americas of $18.23 million during the second quarter of fiscal 2016, up 20.1% from $15.18 million during the same time last year. E-commerce accounts for 7.8% of Guess’s overall revenue in the Americas region compared to 6.2% during the same time last year.
The 20.1% growth online in the Americas comes in the face of declining overall sales for the company. Guess reported net revenue of $546.26 million during the quarter, down 10.2% from $608.57 million during the same time last year.
Heading into the second half of fiscal 2016, a new leader will be charged with turning those fortunes around. Guess hired Victor Herrero as its CEO in mid-July, succeeding co-founder Paul Marciano.
On Guess’s quarterly earnings call, Herrero articulated his vision of lowering Guess’s average customer age through an aggressive digital marketing effort, including plans to hire an executive to oversee all digital initiatives and a team underneath that person.
“We will strengthen our online marketing efforts, not only from a technical point of view, but also as a generator of new idea and as a crucial channel of customer feedback,” he told analysts on the call, according to a transcript from Seeking Alpha. Herrero didn’t specify what changes he’s looking to make to bolster Guess’s current e-commerce efforts.
For the second quarter ended Aug. 1, 2015, Guess reported:
- Sales in its Americas Retail segment, which includes e-commerce, of $232.5 million, down 4.7% from $244.0 million during the same time last year.
- Comparable-store sales in the Americas, including e-commerce, down 2.8%.
- Net earnings of $18.5 million, down 17.0% from $22.3 million during the same time last year.
For the first six months of fiscal 2016, Guess reported:
- E-commerce revenues in the Americas of $36.44 million, up 16.9% from $31.17 million during the same time last year.
- Comparable-store sales in the Americas, including e-commerce, down 4.3%.
- Overall net revenues of $1.025 billion, down 9.4% from $1.131 billion during the same time last year.
- Net earnings of $22.5 million, up 11.9% from $20.1 million during the same time last year.