GAAP earnings at denim apparel retailer Guess zoomed 76.4 per cent to $32.3 million in the three months ended July 30, 2016, as against $18.3 million for the second quarter of fiscal 2016. GAAP diluted earnings per share too soared 81 per cent to $0.38 for the second quarter of fiscal 2017, compared to $0.21 for the earlier fiscal’s second quarter. According to the company, during the reporting quarter, it recognised a gain from the sale of a minority interest investment of around $22.3 million or a $0.24 per share impact. Excluding the gain from the sale of the minority interest investment, adjusted net earnings were $12.0 million and adjusted diluted earnings per share were $0.14 during the second quarter of fiscal 2017. In the quarter under review, net revenues however fell marginally to $545.0 million vis-a-vis $546.3 in the fiscal ago quarter, while they rose 0.5 per cent in constant currency terms. Operating margin in the second quarter of fiscal 2017 also declined 190 basis points to 2.9 per cent versus 4.8 per cent in the corresponding period of the previous fiscal. “Operating margin fell mainly due to higher expenses, driven by retail expansion and the negative impact from currency exchange rate fluctuations, partially offset by lower charges related to legal matters,” the company said.
