Guess’ net revenue for the third quarter increased 4.4 per cent. Compared to prior year quarter, net revenue was up 13 per cent. Net earnings for the third quarter increased 140.5 per cent. Compared to fiscal 2021, third quarter earnings were up 13.3 per cent. Diluted earnings per share (EPS) increased 150 per cent in fiscal 2020.
Earnings from operations rose 190 per cent in the third quarter of fiscal 2020. Compared to the 2021 quarter, earnings from operations increased 47.7 per cent. Operating margin in the period increased 6.5 per cent to 10.2 per cent from 3.7 per cent in the third quarter of fiscal 2020, driven primarily by lower markdowns, higher initial markups, overall leveraging of expenses and lower occupancy costs, partially offset by higher performance-based compensation. Operating margin was up 2.4 per cent to 10.2 per cent from 7.8 per cent in the same prior-year quarter, driven primarily by lower non-cash impairment charges, lower markdowns, higher initial markups and overall leveraging of expenses, partially offset by higher performance-based compensation.
All in all, Guess delivered a 10 per cent operating margin in the period, driven by strong gross margin expansion, as a result of lower promotional activity and improved IMUs in spite of increased freight costs related to the supply chain disruptions experienced in the market.