Online sales grow in the Americas for Guess as overall sales fall in Q3
November 26, 2015 08:00 AM
Online sales in the Americas grew by double digits while overall revenue and profits slid for apparel manufacturer and retailer Guess Inc. in the third quarter of fiscal 2016.
Guess, No. 327 in the Internet Retailer 2015 Top 500 Guide, reported online sales in the Americas of $20.1 million, up 18.2% from $17.0 million during the same time last year. E-commerce now accounts for 8.9% of retail revenue in the Americas region as compared to 7.0% this time last year. Chief financial officer Sandeep Reddy told analysts this marks the 17th consecutive quarter for e-commerce growth in the region. Overall retail revenue in the Americas fell to $226.6 million during the quarter, down 6.8% from $243.2 million last year.
With domestic online sales growing, CEO Victor Herrera told analysts the company is turning its attention to China.
“We have begun accelerating our e-commerce business in China through Tmall, JD.com and Guess.cn,” he told analysts, according to a transcript from Seeking Alpha. “We are focused at this moment [on] China, particularly in online and also retail stores.” Guess plans to open several stores in China and reinforce operations online with a greater Tmall presence. Tmall is a brand-friendly marketplace operated by Alibaba Group, China’s dominant e-commerce company. JD.com is China’s largest online retailer that sells its own merchandise, making it No. 1 in the 2015 Internet Retailer China 500.
For the third quarter of fiscal 2016 ended Oct. 31, Guess reported:
- Product sales of $493.2 million, down 11.6% from $557.9 million during the same time last year.
- Net revenue of $521.0 million, down 11.7% from $589.8 million.
- Net earnings of $12.4 million, down 40.4% from $20.8 million.
For the first nine months of fiscal 2016, Guess reported:
- E-commerce revenue in the Americas region of $56.6 million, up 17.4% from $48.2 million during the same time last year.
- Retail net revenue in the Americas region of $673.3 million, down 5.9% from $715.6 million.
- E-commerce accounted for 8.4% of year-to-date retail revenues in the Americas, compared to 6.7%.
- Net revenue of $1.546 billion, down 10.2% from $1.721 billion.
- Net earnings of $34.1 million down 16.0 from $40.6 million.