Guess reports sharp decline in third-quarter revenue

Guess reports sharp decline in third-quarter revenue

Guess, Inc.’s third-quarter net income of $21.8 million fell 26.9% and GAAP diluted net earnings per share fell 24.4% to 34 cents.

The company’s adjusted net income was $24.7 million, down 40.4%, and adjusted diluted EPS was down 29% to 44 cents, compared to the same quarter a year earlier.

Total net revenue for the third quarter decreased 2% to $633.4 million, while in constant currency, net revenue increased 10%.

For the fourth quarter of fiscal 2023, Guess expects revenue to decline approximately 3.5% in US dollars and increase 3.5% in constant currency, while full-year revenue are expected to increase approximately 2% in US dollars and 10.5% in constant currency from fiscal 2022.

Commenting on the results, Carlos Alberini, CEO of the company, said: “Our revenues decreased by nearly 2% in US dollars but increased by 10% in constant currency, mainly due to the strength of our activities in Europe. For the period, we managed the business well and delivered an operating margin of 8.6% and operating profit of $55 million.

Alberini added, saying: “We are well positioned for our holiday period. Our updated outlook for the year reflects these trends and the impact of further currency headwinds.

Highlights of Guess performance across all markets

The company said retail revenue in the Americas fell 2% in US dollars and 1% in constant currency, while retail sales, including e-commerce, fell 1% in US dollars and remained relatively stable in constant currency. Americas wholesale revenue decreased 10% in US dollars and 9% in constant currency.

Europe revenue was down 2% in US dollars and up 17% in constant currency, while retail sales, including e-commerce, were down 8% in US dollars and up 9 % in constant currency.

Asia revenue increased 10% in US dollars and 28% in constant currency, while retail sales, including e-commerce, fell 2% in US dollars and increased 13% in constant currency.

Licensing revenue increased 4% in US dollars and constant currencies.

Guess posts drop in nine months of revenue

For the nine months ended October 29, 2022, the company reported GAAP net income of $53.8 million, down 47.8%, while GAAP diluted EPS decreased 48.4% to 80 cents for the period.

The company reported adjusted net income of $62.9 million for the period, down 47.4%, and adjusted diluted EPS fell 40.8% to $1.06.

Total net revenue for the nine months increased 4% to $1.87 billion, while in constant currency, net revenue increased 14%.

Americas retail revenue was flat in US dollars and increased 1% in constant currency, while retail sales including e-commerce were down 2% in US dollars and 1% in constant currency. constant currency. Americas wholesale revenue increased 11% in US dollars and 12% in constant currency.

Europe revenue increased 5% in US dollars and 21% in constant currency, while retail sales, including e-commerce, fell 6% in US dollars and increased 8% in constant currency.

Asia revenue increased 5% in US dollars and 17% in constant currency, while retail sales, including e-commerce, fell 5% in US dollars and increased 5% in constant currency.

Licensing revenue increased 13% in US dollars and constant currencies.

The Company’s Board of Directors has approved a quarterly cash dividend of 0.225 cents per share on the Company’s common stock payable on December 23, 2022 to shareholders of record at the close of business on December 7, 2022.

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