Guess reported adjusted net earnings of $11.7 million for the 2014 fiscal first quarter, a 56 percent decrease from the first quarter of 2013. Adjusted earnings per share were 14 cents compared to 30 cents a share the year prior.
During the first quarter, Guess implemented plans to streamline its operational structure and reduce expenses. Earnings per share based on GAAP accounting, which excludes a restructuring charge of $2.3 million, or 2 cents a share, were 12 cents a share.
The Los Angeles-based company was expected to post a first-quarter profit of 8 cents a share, on average, on revenue of $550 million, according to Yahoo! Finance.
Net revenue slipped 5.2 percent to $548.9 million. Revenue from operations in North America and Europe were 5 percent and 13 percent lower in the period, respectively, while sales in Asia jumped 10 percent. Guess said that North American retail comp sales declined 9.8 percent in the quarter.
More From TheStreet.com:
Single-Family REIT IPOs Are Risky Bet
Delta Invades United Hub with Newark-Paris Service
At Netflix, It's Not About Magic, It's About Tricks
"Despite the continued global economic challenges, we are pleased to deliver better than expected first quarter earnings," CEO and co-founder Paul Marciano said in the earnings release. "These earnings reflect the ongoing success within the company to globally streamline and improve productivity. While we are encouraged by our start to fiscal 2014, the near term outlook for consumer spending remains soft and we are planning our business accordingly. Southern Europe continues to be our main concern going forward."
Guess said that adjusted operating margin in the first quarter declined 430 basis points to 2.5 percent, compared to operating margin of 6.8 percent in the prior-year quarter.