For the quarter, GES generated EPS of $0.13, missing the consensus by $0.03. This was the company's first earnings miss since 1Q17, which is likely what traders were first latching on to following the release. One issue was that currency headwinds unexpectedly impacted its earnings in the quarter. More specifically, its GAAP loss from operations took a $1.3 mln hit due to unfavorable currency translation. Additionally, GES' operating margin in its European segment contracted by 120 basis points, mainly due to cost pressures resulting from expenses related to the move of its distribution center. However, the pressures from this event are moderating and should be less of a factor going forward.
Moving to the top-line, revenue was up 10% to $605 mln, slightly edging the $603 mln expectation. The company has now achieved four straight quarters of double-digit revenue growth, which is quite a feat considering where GES was coming from. To put the turnaround into context, from 3Q10-2Q16, its revenue declined in every quarter. Then, from 3Q16-3Q17, it posted positive sales growth, albeit, in the low single digit range.
There are a couple key catalysts to the improved results. Most notably, GES' focus and efforts to return its America's retail segment (30% of revenue) to profitability has been at the forefront. In order to achieve this, GES has eliminated under-performing stores and has implemented a strategy to drive AURs (average unit retail) higher. AUR measures what the average unit selling price is over a select period of time.
The company's efforts have been paying dividends as the Americas retail segment has experienced improved profitability for five straight quarters. In Q3, its operating margin from the segment expanded by 330 basis points to 2.0%, driven primarily by lower mark-downs, negotiated rent reductions, and positive sales comps of 3%. And, while total revenue was essentially flat yr/yr at $187 mln, that is actually a strong result because GES has closed a significant number of stores in the Americas region over the past year.
Turning to its European segment, revenue growth was solid at +15% as the company opened 20 new stores in Europe this quarter. In fact, for the first time in its history, GES now has more stores in Europe than it does in the Americas region. In addition to the new store growth, retail comps sales jumped by 8%. However, as we noted above, its operating margin in the region declined due to the relocation of its distribution center.
Its fastest growing segment remains Asia, which saw a 20% spike in revenue and an 8% increase in comps. The growth was led by Japan and China, especially from its e-commerce channel in China as Alibaba-owned Tmall continues to grow at a very fast clip. GES opened another 17 stores in Asia, including 13 in China.