Guess Q3 profit dips 4% as tax rate increases
Los Angeles — Guess Inc. said Wednesday that profit for the quarter ended Oct. 29 fell 4% as the clothing company’s tax rate increased. The chain reported net income of $66.3 million, compared with $69.1 million in the year-ago period. The company’s effective tax rate rose to 32.3% during the quarter from 29.1% a year earlier. As a result, the incomes taxes Guess paid rose 5% to $31.9 million.
Revenue rose 5% to $642.8 million from $613.9 million, missing Wall Street’s expected $657.2 million in revenue. Same-store sales in the United States fell 3.5%.
"We are pleased to deliver third quarter earnings consistent with our expectations, even as economic pressures have intensified and are affecting consumer confidence in many of our markets, particularly in Europe,” said Paul Marciano, CEO. “Our efforts to elevate our brand in North America are yielding significant improvements in profitability. We enjoy momentum in Asia and the newer markets in Europe where our brand is well known but where our business is still under-penetrated. And we are focusing on sound execution, managing our inventories, expenses and capital prudently."
The company is projecting fourth quarter profit and revenue that are short of Wall Street estimates.
Rue21 Q3 profit rises 22%
Warrendale, Pa. — Rue21 Inc. reported Wednesday that its third-quarter profit surged 22% to $8.7 million, from $7.1 million a year earlier, as the apparel retailer opened dozens of new stores during the period.
Revenue climbed 19% to $194.8 million, but missed Wall Street’s expected $197.3 million in revenue. The company opened 30 stores during the quarter and expanded eight into its "Rue21 etc!" format.
First Data Black Friday report: Charged purchases increased 6.3% over last year
Atlanta — A report released Thursday by First Data Corp., which tracks same-store consumer spending via credit, signature debit, PIN debit and EBT cards at U.S. merchant locations, found that dollar volume for the Thursday-Friday shopping period grew 6.3% over last year, and transaction growth was 7.3%.
The First Data SpendTrend analysis showed that Electronic/Appliances, Clothing and Accessory Stores, and NonStore Retailers were some of the merchant categories that saw a boost in dollar volume growth this year.
Cyber Monday continued the spending trend of the Thanksgiving weekend, with e-commerce year-over-year dollar volume growth of nearly 20%.
Aggressive promotions resulted in lower average ticket values. Overall year-over-year average ticket growth was 0.7%, while average ticket growth at Retailers declined 0.9%. Significant discounting at Electronic/Appliances stores and General Merchandise Stores (including Value Retail) were the main contributors to the lower average ticket growth within the Retail category.
Non-Retail discretionary merchants did quite well also, according to the report. Food Service/Drinking Places (including Restaurants and Quick Service Restaurants) dollar volume growth was 11.7%, versus 9.6% last year.
“The holiday spending season is off to a good solid start. Consumers definitely responded to the early openings and discount prices on Black Friday.” said Silvio Tavares, senior VP and division manager of First Data Global Information and Analytics Solutions, which publishes SpendTrend. “We continued to see strong momentum through Cyber Monday.”