NEW YORK — Guess Inc. wrapped up 2005 on a high note by delivering a 73.2 percent profit gain on sales that rose 23.5 percent in the fourth quarter.
The robust results helped fuel year-end profits that nearly doubled, the company said in its earnings report Thursday.
For the fourth quarter ended Dec. 31, net income leaped to $25.8 million, or 57 cents a diluted share, from $14.9 million, or 33 cents a share, in the same period last year on sales that rose to $276.6 million from $224 million. For the year-end period, net income soared to $58.8 million, or $1.31 a share, from $29.6 million, or 66 cents, in the prior period on sales that jumped 28.4 percent to $936.1 million from $729.2 million.
The gross margin rate for the quarter gained 310 basis points to 42.6 percent. Same-store sales for the quarter showed an increase of 15.9 percent while income from operations rose 66.3 percent to $43.4 million, or 15.4 percent of sales, from $26.1 million, or 11.7 percent of sales.
Paul Marciano, co-chairman and co-chief executive officer, said in a statement that the company’s strong performance in the fourth quarter and yearend reflect “the progress that we have made in all our businesses — retail and wholesale operations in North America, our European business and domestic and international licensing.”
Marciano went on to say Guess’ customers “continue to respond favorably to our product assortment and mix, which is supported by a consistent, global branding effort.”
He noted that the company’s North American retail business experienced a 15.9 percent same-store sales gain during the fourth quarter. “Retail productivity rose while we maintained appropriate inventory levels,” Marciano said. “Our balance sheet and cash flow continue to strengthen and should continue to provide most of the funding for our future growth.”
Marciano said the company’s European business, “including our jeanswear licensee, which we acquired in January 2005, earned $28.1 million from operations compared with $7.7 million the prior year.”
The company said it sees further opportunities in Europe and in other markets, “especially in Asia.”
“We believe that our growing global presence will help us drive strong and consistent results,” Marciano added.