Los Angeles — Guess Inc. beat first-quarter revenue expectations, even though it also reported a 15% decline in net income. The company said net income fell to $42.7 million in the quarter ended April 30, compared with $50.3 million in the year-ago period.
Total revenue increased 9.8% to $592.2 million, beating analysts' predictions of $567.7 million. Strength in Asia, where revenue rose 24%, drove the increase. Revenue in Europe also helped, rising 12%. Revenue in North America was the weakest, up 5%.
Same-store sales fell 3.1% in U.S. dollars.
In a Barrons report, Guess CEO Paul Marciano said the company focused on controlling inventory and costs, and that the year "is not without its challenges." He cited rising costs of cotton, fuel and other commodities that Guess needs to make and transport its goods, as well as "uncertainty in many economies around the world."