Los Angeles -- Guess on Wednesday reported second-quarter net earnings of $22 million, a 50.5% decrease compared to adjusted net earnings of $44.3 million for the year ago period. The retailer, which also cuts its fiscal year outlet, noted that soft traffic and promotional activity have continued to put its North American stores under pressure.
Sales for the quarter fell 4.8% to $608.6 million, from $639 million a year ago. Same-store sales decreased 5.4%. Guess said it was encouraged by its North American online business, which grew by almost 50% in the second quarter.
“So far in the third quarter, our fall collection in North American Retail has not seen the traction with the consumer that we were expecting and we have adjusted our expectations for the back-half of the year accordingly,” said Paul Marciano, CEO.
The retailer said it is consolidating its organization in North America, making it more efficient and more focused on long-term goals.
“In addition, we are continuing to rationalize our North America store portfolio and also have the flexibility to further optimize our retail footprint in the coming years,” Marciano said.