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On June 4, 2009,


(GES) - Get Report

reported a 32.9% decline in its Q1 FY10 earnings due to a drop in revenues and shrinking margins. Net income decreased to 32.54 million or $0.35 per share from $47.80 million or $0.50 per share in the same quarter a year ago. The latest quarterly earnings beat the most recent consensus estimate of $0.29 per share.

Net revenue decreased 9.8% to $441.20 million from $489.22 million in the prior year's quarter, dragged down by a major fall in its European operations. Segment-wise, retail operations revenue inched down 2.1% to $207.56 million from $211.94 million. Comparable store sales declined 10.0%. Revenue from wholesale operations, including the Asian operations, fell 12.3% to $65.87 million from $75.13 million. Additionally, European operations revenue plunged 18.5% to $145.70 million from $178.66 million and the licensing operations revenue fell 6.0% to $22.07 million as against $23.49 million.

GES purchased 400,000 shares of its common stock at an average price of $13.00 per share, totaling to $5.30 million. Meanwhile, GES opened 6 new stores during the latest first quarter, compared to 19 stores in the same quarter a year ago, and closed two stores compared to one closing in the prior year's period. At the end of the quarter, the total number of stores increased to 429 retail stores in U.S and Canada from 329 in Q1 FY09. Recently, the company declared a quarterly cash dividend of $0.10 per share, payable on July 2, 2009.

Looking ahead to Q2 FY10, the company expects revenues to range between $465.00 and $485.00 million and earnings per share to range in between $0.42 to $0.45. The company foresees strong opportunities for implementing its international expansion strategy, especially in Europe and Asia.