Comparable store sales for the June period decreased 6.2%. Comparable store sales for the Company's full priced retail stores declined 5.5% and comparable store sales at the factory outlet stores decreased 8.1%.
For the second quarter ended June 29, 2002, total retail sales decreased 4.0% to $79.9 million compared to $83.2 million for the second quarter of 2001. Comparable store sales decreased 7.4% during the second quarter of 2002.
The Company also announced that due to continued weakness in both the retail and wholesale channels it now expects a diluted loss per share for the second quarter in the range of $0.16 to $0.18 versus previously announced expectations of a diluted loss per share of $0.12 to $0.14.
Carlos Alberini, President and Chief Operating Officer, commented, "The retail environment for Guess? and other apparel companies continues to be challenging. While gross product margins in our retail business increased during the second quarter from the prior year period, this improvement was offset by lower comparable store sales and increased store expenses as a result of a larger store base. In addition, as anticipated, our wholesale segment has continued to encounter a difficult department store environment.
"We anticipate improving same store sales during the second half of 2002 as we see the benefit of actions we have taken to reposition and enhance our product lines, particularly in the men's area. At the same time, we are aggressively managing costs and inventory levels, with a focus on best positioning Guess? in the current retail climate and for future growth."
Guess? plans to report its second quarter 2002 financial results during the week of July 29, 2002, at which time it will provide updated earnings guidance for the second half of 2002.
Guess?, Inc. designs, markets, distributes and licenses one of the world's leading lifestyle collections of contemporary apparel, accessories and related consumer products.
Except for historical information contained herein, certain matters discussed in this press release including but not limited to the Company's expected results of operations and plans to reduce costs and estimated charges, are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are only expectations, and involve known and unknown risks and uncertainties, which may cause actual results in future periods and other future events to differ materially from what is currently anticipated. Factors which may cause actual results in future periods to differ from current expectations include, among other things, the continued availability of sufficient working capital, the successful integration of new stores into existing operations, the continued desirability and customer acceptance of existing and future product lines, possible cancellations of wholesale orders, the success of competitive products, the success of the Company's programs to strengthen its inventory cost accounting controls and procedures, and the availability of adequate sources of capital. In addition to these factors, the economic and other factors identified in the Company's most recent annual report on Form 10-K for the fiscal year ended December 31, 2001 including but not limited to the risk factors discussed therein, could affect the forward-looking statements contained herein and in the Company's other public documents.
CONTACT: Guess?, Inc.
Carlos Alberini, 213/765-3582
or
Guess?, Inc.
Frederick G. Silny, 213/765-3289
or
Kekst and Company
Wendi Kopsick/Molly Morse, (212) 521-4867 /4826
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