Apparel retailer Guess’, Inc. (GES – Analyst Report) reported fourth-quarter fiscal 2016 results, wherein earnings missed the Zacks Consensus Estimate, while revenues beat the same.

Guess’ reported earnings of 57 cents per share, which declined 9.52% from the prior-year figure of 63 cents due to top-line weakness and currency headwinds. Currency impacted earnings by 19 cents. Earnings also missed the Zacks Consensus Estimate of 58 cents. However, earnings were within management’s expectation of 53 cents to 62 cents.

Revenues and Margins

Revenues slipped 6% to $658.3 million mainly due to currency headwinds. On a constant currency basis, revenues gained 1%, in line with management’s guidance range of 1.5% decline to 1.5% increase. Revenues beat the Zacks Consensus Estimate of $655 million.

Total gross margin decreased 90 basis points (bps) to 36.5% primarily due to the negative currency impact due to softer top line. The decline in the gross margin was more than the company’s estimates because of higher-than-planned promotional expenses at the Americas Retail segment.

Operating profit decreased 4.4% to $70.0 million from $73.2 million in the prior-year period. Operating margin in the quarter was relatively flat at 10.6%.

Segment Results

Beginning second-quarter fiscal 2016, Guess’ changed the names of its “North American Retail” and “North American Wholesale” segments to “Americas Retail” and “Americas Wholesale,” respectively.

Revenues from retail stores and e-Commerce sites at the Americas Retail segment declined 3% but gained 1% on a constant currency basis. Consolidated comparable store sales (comps) went up 2% year over year on a constant currency basis, including e-Commerce sales.

Including the currency impact, consolidated comps dipped 1%. This was due to lower average unit retail sales overall. E-Commerce, however, had another strong quarter and delivered top-line growth of 9%, marking the 18th consecutive quarter of growth in the U.S. and Canada. Women’s category comps were positive driven by dresses, knit tops and wovens.