Guess posts increase in Q3 earnings

Third quarter GAAP earnings at Guess?, Inc. of 12.4 million dollars rose 192.4 percent compared to GAAP net loss of 13.4 million dollars for the third quarter of fiscal 2019. GAAP diluted earnings per share increased 205.9 percent to 18 cents compared to GAAP diluted loss per share of 17 cents for the prior-year quarter. The company recorded adjusted net earnings of 14.9 million dollars, a 41.2 percent increase compared to 10.6 million dollars for the third quarter of fiscal 2019. Adjusted diluted earnings per share increased 69.2 percent to 22 cents, compared to 13 cents for the prior-year quarter.

Commenting on the third quarter update, Carlos Alberini, the company’s Chief Executive Officer, said in a statement: “I am very pleased to report that we delivered operating earnings and earnings per share above the high-end of our expectations for the period. For the full year, we are maintaining the high-end of our guidance and raising the low-end.”

Guess Q3 revenues rise 1.7 percent

Guess said, total net revenue for the third quarter increased 1.7 percent or 4.2 percent in constant currency to 615.9 million dollars. Americas retail revenues decreased 4.9 percent in US dollars and 4.5 percent in constant currency, while retail comp sales including e-commerce decreased 3 percent in US dollars and constant currency. Americas wholesale revenues increased 7 percent in US dollars and 8.1 percent in constant currency.

The company added that Europe revenues increased 9.1 percent in US dollars and 13.2 percent in constant currency, while retail comp sales including e-commerce increased 1 percent in US dollars and 5 percent in constant currency. Asia revenues decreased 8 percent in US dollars and 4.6 percent in constant currency, while retail comp sales including e-commerce decreased 21 percent in US dollars and 19 percent in constant currency. Licensing revenues decreased 0.3 percent in US dollars.

Guess posts surge in earning for nine-month period

For the nine months ended November 2, 2019, the company recorded GAAP net earnings of 16.4 million dollars, a 279.3 percent increase compared to GAAP net loss of 9.1 million dollars for the nine months ended November 3, 2018. GAAP diluted earnings per share increased 283.3 percent to 22 cents compared to GAAP diluted loss per share of 12 cents in the same prior-year period. Adjusted net earnings for the period of 22.7 million dollars, rose 2.4 percent compared to 22.2 million dollars for the same period last year, while adjusted diluted earnings per share increased 14.8 percent to 31 cents compared to 27 cents for the same prior-year period.

Total net revenue for the first nine months increased 3.6 percent to 1.84 billion dollars and in constant currency, net revenue increased by 7.1 percent. Americas retail revenues decreased 0.4 percent in US dollars and increased 0.1 percent in constant currency, while retail comp sales including e-commerce increased 1 percent in US dollars and constant currency. Americas wholesale revenues increased 13.2 percent in US dollars and 14.3 percent in constant currency. Europe revenues increased 7.3 percent in US dollars and 13.3 percent in constant currency, while retail comp sales including e-commerce decreased 1 percent in US dollars and increased 4 percent in constant currency. Asia revenues decreased 2.2 percent in US dollars and increased 2.2 percent in constant currency, while retail comp sales including e-commerce decreased 16 percent in US dollars and 12 percent in constant currency. Licensing revenues decreased 3.6 percent in US dollars.

Guess maintains Q4 and full year outlook

Guess expects fourth quarter consolidated net revenue in US dollars to increase between 1 percent and 2 percent and to increase between 2.7 percent and 3 percent for the full year. Consolidated net revenue in constant currency is expected to rise between 2.5 percent and 3.5 percent for the further quarter and to increase between 5.7 percent and 6 percent for the full year.

GAAP EPS for the fourth quarter is expected to range between 1.04 dollar to 1.09 dollar and between 1.20 dollars to 1.25 dollars for the full year, while adjusted EPS is expected to be in the range of 1.07 dollars to 1.12 dollars for the fourth quarter and between 1.31 dollars to 1.36 dollars for the full year.

The company’s board of directors has approved a quarterly cash dividend of 1125 cents per share on the company’s common stock payable on January 2, 2020 to shareholders of record at the close of business on December 11, 2019.

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