Sluggish North American Sales Drag on Guess Earnings

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Guess Inc. reported Monday that weakness in the North American market contributed to a drag on second quarter earnings.

The company reported second-quarter net income of $22 million (26 cents a share), a 51 percent decrease from the same period a year earlier. Net revenue for the Los Angeles clothing company decreased 5 percent to $607 million. The results fell short of expectations. Analysts believed earnings would be 29 cents a share on $618 million in revenue.

“Overall second quarter earnings were consistent with our expectations but were short of our operational goals due to a soft environment in North America, where traffic and promotional activity have continued to put our brick and mortar stores under pressure,” Chief Executive Paul Marciano said in a statement.

Shares of Guess fell two points in after-hours trading on Wednesday to close at $23.90.

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