Guess Inc. experienced a decline in revenues during the first quarter, with a 4% drop amounting to $569.8 million. The decrease can mainly be attributed to a significant decline in retail and wholesale sales in the Americas. However, there was a surge in retail sales in Asia. The Los Angeles-based brand reported a 14% decrease in its Americas retail revenues, accompanied by a 12% decrease in retail comp sales, including e-commerce. Additionally, the company saw a 25% decrease in Americas wholesale revenues and a 10% fall in licensing revenues. On the other hand, European revenues increased by 2%, with retail comp sales, including e-commerce, seeing a 10% increase. Furthermore, revenues in Asia experienced a remarkable surge of 26%, with retail comp sales in the region, including e-commerce, showing a modest 1% lift.
During the three months ending on April 29, Guess faced a net loss of $11.8 million, compared to net earnings of $8 million in the same quarter the previous year. This resulted in a diluted net loss per share of $0.22 for the first quarter, as opposed to diluted net earnings per share of $0.12 in the prior-year quarter. Carlos Alberini, the CEO of Guess, acknowledged the results and expressed satisfaction with the first quarter’s financial performance. Despite the decline in the Americas retail business due to reduced foot traffic in stores, Alberini highlighted the strength of the international businesses and attributed the success to the brand’s diversified business model and global distribution.
Looking ahead, Guess is optimistic about its future growth prospects. The company expects a growth rate of 2% to 4% in net revenues for fiscal 2024 and anticipates diluted earnings per share to range between $2.01 and $2.25 for the year. Alberini reaffirmed a positive outlook for the brand, emphasizing the aim of achieving single-digit topline growth in fiscal 2024, along with strong profit performance and cash flow generation. Guess recently completed the successful refinancing of its convertible bonds, extending debt maturities and gaining additional financial capacity. The brand also repurchased 2.2 million shares of its stock and approved a 33% increase to the quarterly dividend.
Overall, Guess maintains confidence in its ability to execute plans effectively and capitalize on growth opportunities. The company’s strong capital structure and commitment to rewarding shareholders further support its positive outlook.
Useful links:
1. Guess Inc. Press Release
2. Guess Inc. Official Website
