Gregg Ribatt, Chief Executive Officer, said: “Despite a decline in our revenue, I am encouraged by our strategic progress which has enabled us to help mitigate the top-line pressure on profitability by delivering better than expected gross margins and managing expenses while reducing inventories. The global retail environment became more challenging as the second quarter progressed. This impacted our wholesale reorder opportunities and contributed to our sales shortfall relative to expectations. These headwinds were partially offset by a 2.9% increase in global direct-to-consumer comparable store sales, which is a positive indication that consumers are responding favorably to our new product line and enhanced marketing efforts. We remain confident that we have successfully repositioned the business and built the platform to provide sustained growth and profitability over the long-term.”

Revenue decreased by 6.3% in the quarter reaching 323.8 million US dollars compared to similar period in 2015. On a constant currency basis, revenue decreased by6.2%.

In the second quarter of 2016, the company reported GAAP net income attributable to common stockholders of 11.7 million US dollars, compared with net income attributable to common stockholders of 9.7 million US dollars in the same quarter of the prior year.

The company expects third quarter 2016 revenue to be in the 245.0 million US dollars to 255.0 million US dollars range compared to the 274.1 million US dollars posted in similar period in 2015. For the full year the company expects revenue to be down low single digits compared to the year ended on the 31st of December 2015. According to the company, this guidance reflects the more cautious retail environment and the slower turnaround in China.